The Effect of National Brand Failure on Micro-National Image and Attitudes Toward Other Brands: The Moderating Role of Ethnocentrism

This study examines the effect of failures by prominent Korean brands on Korea’s micro-level national image and other Korean brands among Chinese consumers, focusing on technological capability and design dimensions, and the moderating role of consumer ethnocentrism. Data was collected through surveys that presented scenarios of varying degrees of brand failures and analyzed using AMOS and Hayes Process Macro. Results reveal that typical brand failures negatively affect perceptions of Korea’s micro-national image, particularly in terms of technology capability and design. Additionally, higher levels of ethnocentrism amplify the negative effect of brand failures on the design dimensions of Korea’s image. However, ethnocentrism does not significantly affect perceptions of technological capability. The representative brand’s failures significantly influence other Korean brands. This study highlights the importance of managing brand failures to mitigate their broader implications on micro-national image and other domestic brands, offering crucial insights for brand managers and policymakers in navigating international markets.