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This research questioned the proposition that corporate familiarity is positively associated with firm reputation. Student images of familiar and unfamiliar Fortune 500 corporations were examined in 4 experiments. The results suggested that, consistent with behavioral decision theory and attitude theory, highly familiar corporations provide information that is more compatible with the tasks of both admiring and condemning than less familiar corporations. Furthermore, the judgment context may determine whether positive or negative judgments are reported about familiar companies. The notion that people can simultaneously hold contradictory images of well-known firms may help to explain the inconsistent findings on the relation between familiarity and reputation.
Brooks et al. (Wed,) studied this question.