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The Effects of Faulty or Potentially Harmful Products on Brand Reputation and Social Responsibility of Business

Author

Listed:
  • Claudiu-Catalin Munteanu

    (Academia de Studii Economice,)

  • Dorian-Laurentiu Florea

    (Academia de Studii Economice,)

  • Andreea Pagalea

    (Academia de Studii Economice,)

Abstract

Building a strong brand requires a good management of brand reputation over time. Social responsibility of business is a key factor in evoking a positive brand reputation. Both the product itself and brand related actions and communications define brand reputation in the eyes of consumers, thus influencing perceived corporate social responsibility. As a consequence, it can be easily hindered or endangered by many product related issues such as faulty products or potentially harmful products. The purpose of this article is to provide an insight on the link between brand reputation and social responsibility in order to help organizations provide better services and protection for consumers. We examined how brand reputation is influenced by the negative bias generated by brand related communications regarding potentially harmful products. This study also analyzes how under normal consumption circumstances, consumers` experiences related to faulty products can influence brand reputation. To investigate this, we propose a model based on perceptual brand constructs and possible outcomes of brand reputation. In both circumstances, negative spillover effects are highlighted using structural equation modeling. The findings reveal that both faulty products and potentially harmful products have a negative bias on brand reputation, but affected perceptual brand constructs are different.

Suggested Citation

  • Claudiu-Catalin Munteanu & Dorian-Laurentiu Florea & Andreea Pagalea, 2014. "The Effects of Faulty or Potentially Harmful Products on Brand Reputation and Social Responsibility of Business," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 1-58, February.
  • Handle: RePEc:aes:amfeco:v:1:y:2014:i:35:p:58
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    References listed on IDEAS

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    1. Laurentiu Dan Anghel & Georgiana Florentina Grigore & Mihai Roşca, 2011. "Cause-Related Marketing, Part of Corporate Social Responsibility and Its Influence upon Consumers’ Attitude," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(29), pages 72-85, February.
    2. Keller, Kevin Lane, 2003. "Brand Synthesis: The Multidimensionality of Brand Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 595-600, March.
    3. Veloutsou, Cleopatra & Moutinho, Luiz, 2009. "Brand relationships through brand reputation and brand tribalism," Journal of Business Research, Elsevier, vol. 62(3), pages 314-322, March.
    4. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    5. 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, vol. 62(4), pages 509-516, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Catalina Mitra Crisan & Dan-Cristian Dabija & Vasile Dinu, 2015. "Social Entrepreneurship in Romania: Significance and Models," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 65-77.
    2. Claudiu-Cătălin MUNTEANU, 2023. "The Usefulness of Branding in Agricultural Marketing," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 20(2), pages 209-224.
    3. Claudiu-Cătălin MUNTEANU & Alexandru-Narcis BOZGĂ, 2022. "The Effects Of Shrinkflation On Brand Reputation : The Case Of Dairy Products In Romania," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 19(2), pages 281-292.

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    More about this item

    Keywords

    brand reputation; faulty products; harmful products; social responsibility; consumers.;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection

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