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Brand equity – how is it affected by critical incidents and what moderates the effect

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  • Sven Tischer
  • Lutz Hildebrandt
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    Abstract

    To explore how occurring critical incidents affect customer-brand relations, this study measures the impact on the basis of an online experiment. For this purpose, 1,122 usable responses are gathered considering the smartphone brands of Apple and Nokia as well as different scenarios. The respective reactions to these negative incidents are evaluated using the concept of customer-based brand equity. More precisely, a structure equation model is specified and differences in latent factor means are estimated taking into account perceived quality, various brand associations, loyalty and overall brand equity. The findings indicate that brand equity dimensions are not equally affected. Moreover, the results demonstrate that both brand equity and the business relationship before crisis moderate the effect of distinct critical incidents.

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    File URL: http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2012-062.pdf
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    Bibliographic Info

    Paper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2012-062.

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    Length: 47 pages
    Date of creation: Oct 2012
    Date of revision:
    Handle: RePEc:hum:wpaper:sfb649dp2012-062

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    Related research

    Keywords: Brand equity; critical incidents; negative publicity; structure equation modeling; online experiment;

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    1. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, Elsevier, vol. 52(1), pages 1-14, April.
    2. Mangold, W. Glynn & Faulds, David J., 2009. "Social media: The new hybrid element of the promotion mix," Business Horizons, Elsevier, Elsevier, vol. 52(4), pages 357-365, July.
    3. Dawar, Niraj & Lei, Jing, 2009. "Brand crises: The roles of brand familiarity and crisis relevance in determining the impact on brand evaluations," Journal of Business Research, Elsevier, Elsevier, vol. 62(4), pages 509-516, April.
    4. Cleeren, K. & Dekimpe, M.G. & Helsen, K., 2008. "Weathering product-harm crises," Open Access publications from Tilburg University urn:nbn:nl:ui:12-321393, Tilburg University.
    5. Harald Van Heerde & Kristiaan Helsen & Marnik G. Dekimpe, 2007. "The Impact of a Product-Harm Crisis on Marketing Effectiveness," Marketing Science, INFORMS, INFORMS, vol. 26(2), pages 230-245, 03-04.
    6. Ahluwalia, Rohini, 2002. " How Prevalent Is the Negativity Effect in Consumer Environments?," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 29(2), pages 270-79, September.
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