Terry College marketing professor Julio Sevilla says the “spectacular failure of the Samsung Galaxy Note 7 will become a textbook example of what technology firms should never do if they want to establish and preserve a strong brand.”
Sevilla, who is an expert in consumer behavior, says “technology firms’ success depends heavily on their perceived competence and the confidence that consumers place on the quality and reliability of their products so Samsung’s flop is likely to negatively influence the firm’s brand equity. With the demise of one of Samsung’s flagship products, many consumers may lose confidence in the leader of the market and migrate to Apple’s iPhone, a competing brand that was already perceived by many as able to produce higher quality products. Other competitors may also benefit from the Samsung Galaxy Note’s 7 failure, as they may capture some of those consumers who look for options different from iPhone.”