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Consumer Responses to Performance Failures by High-Equity Brands

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  • Michelle L. Roehm
  • Michael K. Brady

Abstract

Two experiments explore conditions that mitigate negative customer reactions to high-equity brand failures. Results indicate that such brands fare best when responses are timed immediately after the failure and when the failure is severe or there is substantial distraction present in the environment. When any of these conditions are absent, high-equity brand evaluations appear to be adversely affected by a performance lapse. Implications, particularly for service brands, are discussed. (c) 2007 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Michelle L. Roehm & Michael K. Brady, 2007. "Consumer Responses to Performance Failures by High-Equity Brands," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(4), pages 537-545, July.
    • Handle: RePEc:oup:jconrs:v:34:y:2007:i:4:p:537-545
    DOI: 10.1086/520075
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    Cited by:

    1. Colleen M. Harmeling & Jordan W. Moffett & Mark J. Arnold & Brad D. Carlson, 2017. "Toward a theory of customer engagement marketing," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 312-335, May.
    2. Khalifa, Dina & Shukla, Paurav, 2017. "Me, my brand and I: Consumer responses to luxury brand rejection," Journal of Business Research, Elsevier, vol. 81(C), pages 156-162.
    3. Kunter Gunasti & Hans Baumgartner, 2016. "The Asymmetric Effects of Positive Or Negative Experiences with an Extension on Low- or High-Equity Parent Brands: A Microtheoretical Notion," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(3), pages 126-143, December.
    4. Lars Meyer-Waarden & William Sabadie, 2012. "Quelles dimensions de la théorie de la justice privilégier pour satisfaire les réclamants : le rôle de la qualité de la relation?," Post-Print halshs-00685291, HAL.
    5. Huei-Fu Lu & Tien-Tze Chen, 2016. "The Impact of Match-Fixing Scandals on the Stock Returns of Parent Companies and Sponsors: Evidence from Chinese Professional Baseball League In Taiwan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(4), pages 172-189, April.
    6. Dutta, Sujay & Pullig, Chris, 2011. "Effectiveness of corporate responses to brand crises: The role of crisis type and response strategies," Journal of Business Research, Elsevier, vol. 64(12), pages 1281-1287.
    7. Ahmed Khwaja & Nathan Yang, 2022. "Quantifying the link between employee engagement, and customer satisfaction and retention in the car rental industry," Quantitative Marketing and Economics (QME), Springer, vol. 20(3), pages 275-292, September.
    8. Wolter, Jeremy S. & Bacile, Todd J. & Smith, Jeffery S. & Giebelhausen, Michael, 2019. "The entitlement/forgiveness conflict of self-relevant and self-neutral relationships during service failure and recovery," Journal of Business Research, Elsevier, vol. 104(C), pages 233-246.
    9. Françoise Simon & Vesselina Tossan & Chantal Guesquière, 2015. "The relative impact of gratitude and transactional satisfaction on post-complaint consumer response," Marketing Letters, Springer, vol. 26(2), pages 153-164, June.
    10. Alexander Mafael & Sascha Raithel & Stefan J. Hock, 2022. "Managing customer satisfaction after a product recall: the joint role of remedy, brand equity, and severity," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 174-194, January.
    11. Samuel Nathan Kirshner & Yuri Levin & Mikhail Nediak, 2017. "Product Upgrades with Stochastic Technology Advancement, Product Failure, and Brand Commitment," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 742-756, April.
    12. Tao Zhang & Chao Feng & Hui Chen & Junjie Xian, 2022. "Calming the customers by AI: Investigating the role of chatbot acting-cute strategies in soothing negative customer emotions," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 2277-2292, December.
    13. Markus Blut & Viktorija Kulikovskaja & Marco Hubert & Christian Brock & Dhruv Grewal, 2023. "Effectiveness of engagement initiatives across engagement platforms: A meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 941-965, September.
    14. Liao, Shuling & Cheng, Colin C.J., 2014. "Brand equity and the exacerbating factors of product innovation failure evaluations: A communication effect perspective," Journal of Business Research, Elsevier, vol. 67(1), pages 2919-2925.
    15. Yang, Zhiyong & Freling, Traci & Sun, Sijie & Richardson-Greenfield, Pam, 2022. "When do product crises hurt business? A meta-analytic investigation of negative publicity on consumer responses," Journal of Business Research, Elsevier, vol. 150(C), pages 102-120.
    16. Amélie Guèvremont & Bianca Grohmann, 2018. "Does brand authenticity alleviate the effect of brand scandals?," Journal of Brand Management, Palgrave Macmillan, vol. 25(4), pages 322-336, July.
    17. Andrew E. Wilson & Michael D. Giebelhausen & Michael K. Brady, 2017. "Negative word of mouth can be a positive for consumers connected to the brand," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 534-547, July.
    18. Dalman, M. Deniz & Chatterjee, Subimal & Min, Junhong, 2020. "Negative word of mouth for a failed innovation from higher/lower equity brands: Moderating roles of opinion leadership and consumer testimonials," Journal of Business Research, Elsevier, vol. 115(C), pages 1-13.
    19. Oliver Schnittka & Alexander Himme & Dominik Papies & David Pellenwessel, 2017. "Are sponsors blamed for edging off? Consumer reactions to sponsorship terminations," Journal of Business Economics, Springer, vol. 87(7), pages 943-984, October.
    20. Lars Bergkvist & Martin Eisend, 2021. "The dynamic nature of marketing constructs," Journal of the Academy of Marketing Science, Springer, vol. 49(3), pages 521-541, May.

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