LAUSR

Abstract Conventional wisdom suggests a ‘copycat’ (look-alike) product’s success is due in part to the halo generated by its positive association with national leader brands (NLB). But, what if the NLB is the focus of negative publicity? In the current investigation, we seek to determine the extent to which NLB scandals (i.e. negative news stories) have an impact on consumers’ evaluations of copycat products. Further, we extend recent work on comparative evaluation strategies (consumer information processing modes) by demonstrating that a copycat product is evaluated more favorably when presented separate from (as opposed to adjacent to) the NLB product. However, negative perceptions of the NLB are shown to moderate these effects. Furthermore, a follow-up study supports the notion that visual similarity drives these effects.