%0 Journal Article
%A Sánchez Herrera, Joaquín
%A Pintado Blanco, Teresa
%T Brand Entropy. Why Good Brands Go Bad
%D 2025
%U https://hdl.handle.net/20.500.14352/123629
%X When brands lose direction, they risk losing consumer trust and preference. This research shows how a breakdown in a brand’s internal structure —what we call *brand entropy*— increases perceived risks and ultimately weakens brand preference. By combining theories of brand identity systems with ideas about organizational complexity, we aim to map the causal links between brand entropy and brand preference, highlighting risk perception as a key mediator. The research unites fragmented insights on how risk perception serves as a psychological barrier to forming brand preference. Using a Bayesian mediation model, we analyzed data from 615 brands across 17 product categories. The results show that higher brand entropy raises risk perception, which then dampens preference. About 55 % of the total effect of entropy on preference is explained by risk perception, while the remaining direct impact further erodes trust through cognitive dissonance and reduced brand resonance. This work introduces brand entropy as a dynamic concept and clarifies how risk perception mediates expectation disconfirmation theory. It connects theoretical frameworks —from attribution theory to cognitive dissonance— and underscores the practical challenges of maintaining global coherence. For managers, the findings suggest adopting centralized governance to avoid fragmented decision‑making, implementing entropy‑monitoring systems for early detection of inconsistencies, and communicating transparently about core values during disruptive periods (e.g., rapid expansion). Practitioners must balance innovation with strategic alignment, because even small spikes in entropy can trigger important losses in brand preference.
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