Weathering product-harm crises
AbstractTo counter the negative effects of a product-harm crisis, brands hope to capitalize on their equity, and often use advertising as a communication device to regain customers’ lost trust. We study how consumer characteristics and advertising influence consumers’ first-purchase decisions for two affected brands of peanut butter following a severe Australian product-harm crisis. Both pre-crisis loyalty and familiarity are found to form an important buffer against the product-harm crisis, although this resilience decreases over time. Also heavy users tend to purchase the affected brands sooner, unless their usage rate decreased significantly during the crisis. Brand advertising was found to be effective for the stronger brand, but not for the weaker brand.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/205823.
Date of creation: Jun 2008
Date of revision:
Publication status: Published in Journal of the Academy of Marketing Science (2008-06) v.36, p.262-270
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Web page: http://www.kuleuven.be
Product-harm crises; Brand equity; Advertising; Multiple-event hazard model;
Other versions of this item:
- 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.
- Cleeren, Kathleen & Dekimpe, Marnik & Helsen, K, 2006. "Weathering product-harm crises," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/121040, Katholieke Universiteit Leuven.
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