Role of Brand Familiarity in Combatting Rumors

This research investigates why companies are not always successful in combating damaging rumors about their brands. Findings reveal that a well-crafted denial statement that provides sufficient evidence against the rumor is only successful in curbing transmission intention when a well-known brand is involved in the rumor. However, well-known brands also serve as common grounds for conversation amongst consumers. As such, they are more prone to being victims of rumors as they are more likely to be talked about. This way, brand familiarity act as a liability, instead of being an advantage for well-known brands in the context of rumors.

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