Exploring Brand Extension Evaluation in the Mobile Internet Environment

Abstract

Mobile internet (M-internet) has developed rapidly in recent years. Under this environment, the spillover effect of corporate negative publicity may have a further impact on brand extension evaluation. This study examined the effects of two types of corporate negative publicities on brand extension evaluation. Further, the possible moderation effects on the above relationship in the M-internet environment were also studied. Compared to ethics negative publicity, the results show that product-harm negative publicity leads to a lower brand extension evaluation. Furthermore, both spatial distance and social distance produce a significant moderation effect on the relationship between corporate negative publicity and brand extension evaluation. In the case of near spatial distance and social distance of familiarity type, a lower brand extension evaluation is shown by product-harm negative publicity. Lastly, negative emotion can significantly mediate the relationship between corporate negative publicity and brand extension evaluation.