Imagine: You’re in charge of marketing for a major automaker, and your biggest competitor just recalled thousands of vehicles. Now customers are worried about the safety of cars like yours. Do you seize the moment and ramp up advertising to steal market share? Or do you pull back on ads, fearing that customers will connect your brand with the bad press?
For what marketing professors like me call “substitute brands,” this sort of dilemma pops up all the time. Whether it’s a product recall, a customer data breach or a scandal, bad news for one brand can shake customers’ confidence in an entire product category.
