ABSTRACT
Firms build strong brands by communicating positive and unique brand identities to consumers. By doing so, brands develop special meanings and associations for consumers, sometimes to the point of achieving iconic status. Disney is associated with childhood, fantasy, and family entertainment. In the marketplace, dilution may be detected in a variety of ways, including a negative change in consumer brand perceptions and associations, a decrease in overall brand attitude or preference, and a decrease in brand sales, market share, or stock valuation. This chapter defines dilution in terms of its proximate cause and subsequent consequences. It then defines dilution as a negative and harmful change in the way consumers relate to a brand on a cognitive, affective, or behavioral basis. The chapter also discusses two major sources of brand dilution—external and internal sources of dilution.
