Brand Externalities: A Taxonomy

Abstract

Brands are ubiquitous and adorn contemporary marketing systems. Modern branding practices spawn contradictory social mechanisms, value co-creation and value co-destruction. This paper considers the societal implications, including personal, psychological, social, ecological, and economic consequences of branding. It posits brand externalities as meaning-led discrepancies and symbolic spill-overs igniting mechanisms detrimental to the integrity of the social system. Brand externalities accompany the assortment of brands in contemporary marketing systems. We propose a taxonomy of brand externalities and elucidate societal consequences of branding upon brand exchange actors themselves, their immediate others, future others and general others. This stakeholder orientation sets a future research agenda and calls for redefining branding from the system’s perspective.

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