Do brand rumors matter? The role of brand equity and response strategy to brand rumor

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihee Choi ◽  
Soobin Seo
Keyword(s):  
Brand Equity ◽  
Restaurant Industry ◽  
Response Strategy ◽  
Effective Response ◽  
Content Type ◽  
Consumer Responses ◽  
Response Strategies ◽  
Brand Crisis ◽  
Negative Impacts ◽  
The Impact

Purpose This paper aims to investigate consumer responses to brand rumors and corporate rumor response strategies in the restaurant industry. Design/methodology/approach A scenario-based experimental design was used to examine changes in consumers’ brand evaluation depending on level of brand equity and corporate choice of response strategy. Findings It was found that the impact of brand rumors on consumer responses is more negative when the restaurant’s brand equity is low compared to when it is high. It was also found that a company's use of active response strategies is more effective in combating brand rumor than a strategy of simple denial. Practical implications The findings have significant implications for both academics and practitioners in terms of developing effective response strategies for counteracting brand rumors. Originality/value Given the frequency of brand rumors in the restaurant industry and their serious negative impacts, this study extends the existing brand crisis communication literature by demonstrating how consumers respond to a rumor and the effectiveness of different corporate rumor response strategies.

Rebuilding a global brand under crisis – case of a global brand Maggi

2019 ◽  
Vol 13 (2) ◽  
pp. 118-139 ◽  
Author(s):  
Rajesh Kumar Srivastava
Keyword(s):  
Social Media ◽  
Brand Equity ◽  
Brand Image ◽  
Communication Strategy ◽  
Purchase Behavior ◽  
Primary Research ◽  
Content Type ◽  
Global Brand ◽  
Brand Crisis ◽  
The Impact

Purpose The purpose of this paper is to study whether the controversy because of brand crisis based on quality had any impact on consumer brand equity, brand image, brand reliability, brand perception of quality, perceived value, brand sentiments and purchase behavior. Design/methodology/approach The research methodology consisted of two types of data: primary and secondary data. The secondary research consisted of social media brand sentiments and financial analysis. The primary research focused on perception study of brand quality, consumer brand equity, brand reliability, brand image, purchase and brand switch behavior. Findings Maggi used social media extensively to address the issue and re-build the brand reliability and confidence among its users. Communication strategy adopted by focusing on the past experience of consumers and using them as a spokesperson generated a positive sentiment towards the brand under crisis. Research limitations/implications While Maggi suffered the backlash because of the controversy across the length and breadth of India and was banned in a number of states, the author could conduct the primary research only in one city of the state of Maharashtra, Mumbai. The effectiveness of the survey was impacted because of the geographic limitations the author faced while collecting the responses. The survey would have definitely been more effective, with responses collected from different states and with more number of respondents. Fishbein is very old, from the 1980s, even though this theory has met the test of time. Application of the effect of experiences on experiential perceptions and how this influences value through networking could have been used to explain the same. Practical implications An important implication of this paper’s findings for practice, therefore, is that brands should incessantly strive to maintain the consumers’ level of trust, as it is essential for the preservation of the brand equity after a crisis. Crisis-stricken brands should safeguard their reputations from the negative effects of crises. It is even more important for any brand to act appropriately when the cause of the crisis is attributed to its actions and processes. Managers have to address the quality of products in case of brand crisis for restoring trust, image and reliability in the brand. Right type of communication to right targeted consumers will help in the restoration of the image, trust on the brand and bring back loyal customers. Managers have to build brand equity on a regular basis, as a strong brand can recover faster as seen from this paper. Originality/value This paper helps to upgrade the knowledge and understanding of the impact of the controversy on brand equity and image and how the crisis management strategy can be adopted to regain the mind share and equity. This paper will help the brands in the future to know how a crisis can be managed efficiently by drawing a cue from the strategies implemented by Maggi.

No matter what you do, I still love you: an examination of consumer reaction to brand transgressions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eric Kennedy ◽  
Francisco Guzmán
Keyword(s):  
Factorial Design ◽  
Brand Equity ◽  
Design Methodology ◽  
Reasoned Action ◽  
Brand Love ◽  
Content Type ◽  
Consumer Responses ◽  
Consumer Reaction ◽  
Level Of Knowledge ◽  
The Impact

Purpose This paper aims to examine the impact that brand transgressions, and the effect of an apology or lack thereof, have on consumers’ intentions to co-create with a brand, perceived brand equity and brand love, and compares these effects on brands that are viewed positively versus brands that are viewed negatively. Design/methodology/approach Two studies were deployed. In the first study, a 2 × 2 between subjects factorial design using fictitious brands is used to test the hypotheses. The second study seeks to replicate the findings of the first study by using a brand connected to a real retailer. Findings Regardless of a brand issuing an apology or not, co-creation, higher perceived brand equity and increased levels of brand love, are more likely to occur when a consumer views a brand as being positive versus negative. However, the results vary when the consumer has a prior level of knowledge and a stronger relationship with a brand. Research limitations/implications This paper focuses on consumers between the ages of 18 and 29 years. While the findings of Study 1 are mostly replicated in Study 2, a more generalizable sample could create additional insights into the impact of brand transgressions and issuing or not an apology. Originality/value The findings of this paper add to the current literature on co-creation, brand equity, brand love and theory of reasoned action, in terms of the impact of an apology, or lack thereof, on brand transgressions and consequent consumer responses.

Asymmetric cognitive, emotional and behavioural effects of values-related and performance-related negative brand publicity

2018 ◽  
Vol 27 (2) ◽  
pp. 128-145 ◽  
Author(s):  
Xian Liu ◽  
Helena Maria Lischka ◽  
Peter Kenning
Keyword(s):  
Relative Effectiveness ◽  
Corrective Action ◽  
Response Strategy ◽  
Related Case ◽  
Content Type ◽  
Consumer Responses ◽  
Response Strategies ◽  
Behavioural Effects ◽  
Negative Publicity ◽  
And Performance

Purpose This research aims to systematically explore the cognitive and emotional effects of values-related and performance-related negative brand publicity and investigate how the psychological effects translate into different behavioural outcomes. In addition, it examines the relative effectiveness of two major brand response strategies in mitigating negative publicity. Design/methodology/approach Two experimental studies were conducted to test the hypotheses. Study 1 examines the effects of values- and performance-related negative brand publicity, using a 3 (negative brand publicity: values-related vs performance-related vs control) × 2 (brand: Dove vs Axe) between-subjects experiment. Study 2 further compares the effects of two major brand response strategies on consumers’ post-crisis perceived trustworthiness and trust and responses towards a brand involved in negative publicity. A 2 (negative brand publicity: values-related vs performance-related) × 2 (brand response strategy: reduction-of-offensiveness vs corrective action) between-subjects design was used. Findings The results suggest that values-related negative brand publicity is perceived as being more diagnostic and elicits a stronger emotion of contempt, but a weaker emotion of pity than performance-related negative brand publicity. Moreover, values-related negative brand publicity has a stronger negative impact on consumer responses than performance-related negative brand publicity. Interestingly, compared to perceived diagnosticity of information and the emotion of pity, the emotion of contempt is more likely to cause differences in consumer responses to these two types of negative brand publicity. Regarding brand response strategy, corrective action is more effective than reduction-of-offensiveness for both types of negative brand publicity, but the advantage of corrective action is greater for the performance-related case. Originality/value This research enriches the negative publicity and brand perception literature, showing the asymmetric cognitive, emotional and behavioural effects of values- and performance-related negative brand publicity. It also identifies the psychological mechanisms underlying consumer responses to negative brand publicity, and it provides empirical evidence for the relative effectiveness of two major brand response strategies.

News personalization for peace: how algorithmic recommendations can impact conflict coverage

2019 ◽  
Vol 30 (3) ◽  
pp. 309-328 ◽  
Author(s):  
Mariella Bastian ◽  
Mykola Makhortykh ◽  
Tom Dobber
Keyword(s):  
Conceptual Framework ◽  
System Design ◽  
News Media ◽  
Content Distribution ◽  
Content Type ◽  
Constructive Conflict ◽  
Peace Journalism ◽  
Negative Impacts ◽  
The Impact ◽  
War Reporting

PurposeThe purpose of this paper is to develop a conceptual framework for assessing what are the possibilities and pitfalls of using algorithmic systems of news personalization – i.e. the tailoring of individualized news feeds based on users’ information preferences – for constructive conflict coverage in the context of peace journalism, a journalistic paradigm calling for more diversified and creative war reporting.Design/methodology/approachThe paper provides a critical review of existing research on peace journalism and algorithmic news personalization, and analyzes the intersections between the two concepts. Specifically, it identifies recurring pitfalls of peace journalism based on empirical research on constructive conflict coverage and then introduces a conceptual framework for analyzing to what degree these pitfalls can be mediated – or worsened – through algorithmic system design.FindingsThe findings suggest that AI-driven distribution technologies can facilitate constructive war reporting, in particular by countering the effects of journalists’ self-censorship and by diversifying conflict coverage. The implementation of these goals, however, depends on multiple system design solutions, thus resonating with current calls for more responsible and value-sensitive algorithmic design in the domain of news media. Additionally, our observations emphasize the importance of developing new algorithmic literacies among journalists both to realize the positive potential of AI for promoting peace and to increase the awareness of possible negative impacts of new systems of content distribution.Originality/valueThe article particle is the first to provide a comprehensive conceptualization of the impact of new content distribution techniques on constructive conflict coverage in the context of peace journalism. It also offers a novel conceptual framing for assessing the impact of algorithmic news personalization on reporting traumatic and polarizing events, such as wars and violence.

How does corporate learning orientation enhance industrial brand equity? The roles of firm capabilities and size

2019 ◽  
Vol 35 (2) ◽  
pp. 231-243 ◽  
Author(s):  
Yi Xie ◽  
Xiaoying Zheng
Keyword(s):  
Brand Equity ◽  
Firm Size ◽  
Small Firms ◽  
Learning Orientation ◽  
Innovation Capability ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Corporate Learning ◽  
The Impact

Purpose This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated. Design/methodology/approach The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China. Findings Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms. Research limitations/implications Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation. Practical implications To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms. Originality/value While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size.

scholarly journals Understanding consumer loyalty to technology-based self-services with credence qualities

2015 ◽  
Vol 29 (6/7) ◽  
pp. 522-532 ◽  
Author(s):  
Lisa Schuster ◽  
Judy Proudfoot ◽  
Judy Drennan
Keyword(s):  
Professional Services ◽  
Content Type ◽  
Consumer Responses ◽  
Factors Affecting ◽  
Behavioral Loyalty ◽  
Behavioral Domain ◽  
Continued Use ◽  
Self Service ◽  
The Impact ◽  
Goal Directed Behavior

Purpose – This paper aims to use the Model of Goal-Directed Behavior (MGB) to examine the factors affecting consumers’ continued use of emerging technology-based self-services (TBSSs) with credence qualities. Professional services, which traditionally require specialized knowledge and high levels of interpersonal interaction to produce owing to their credence qualities, are increasingly delivered via self-service technologies. Health services delivered via mobile devices, for example, facilitate self-care without direct involvement from health professionals. Design/methodology/approach – A mental health service delivered via the Internet and mobile phone, myCompass, was selected as the research context. Twenty interviews were conducted with users of myCompass and the data were thematically analyzed. Findings – The findings of the study showcase the unique determinants of consumers’ continued use of TBSSs with credence qualities relative to the more routine services which have been the focus of extant research. The findings further provide support for the utility of the MGB in explaining service continuance, although the importance of distinguishing between extrinsic and intrinsic motivational components of behavioral desire and capturing the impact of social influence beyond subjective norms is also highlighted. Originality/value – This study contributes to recent research examining differences in consumer responses across TBSSs and behavioral loyalty to these services. It also provides empirical evidence for broadening and deepening the MGB within this behavioral domain.

scholarly journals The impact of brand concept on brand equity

2017 ◽  
Vol 11 (2) ◽  
pp. 233-245 ◽  
Author(s):  
Joo-Eon Jeon
Keyword(s):  
Brand Equity ◽  
Emotional Attachment ◽  
Brand Performance ◽  
Brand Relationships ◽  
Content Type ◽  
Customer Commitment ◽  
Brand Relationship ◽  
Brand Concept ◽  
The Impact ◽  
The Relationship

PurposeResearches on the impact brand equity have grown considerably in recent years, as it has been shown to have significant impact on a company’s financial performance. This paper aims to empirically test the relationships between brand concepts and brand equity, while exploring the mediating roles of emotional attachment and customer commitment. Design/methodology/approachThe research investigates the effect of brand concept on the customer–brand relationship and brand performance. Additionally, it examines how the relationship between brand concept and brand equity is mediated by customer–brand relationships such as emotional attachment and commitment. FindingsThe results empirically demonstrate the important contribution of the three brand concepts to brand equity. The results empirically demonstrate the important contribution of the three-brand concept to customer commitment and to brand equity that has been predicted by prior research. Originality/valueThe main contribution of this study is to demonstrate the effects of the brand concepts related to aesthetic, functional and symbolic benefits on brand equity. From this, brand equity may be viewed as a link in the path of effects that indirectly connects brand concepts with market performance. Brand concept, emotional attachment and customer commitment are relevant constructs underlying brand equity, and commitment and loyalty are key mediating variables in relational exchanges.

Global challenges, sustainable development, and their implications for organizational performance

2015 ◽  
Vol 27 (4) ◽  
pp. 430-446 ◽  
Author(s):  
Busaya Virakul
Keyword(s):  
Sustainable Development ◽  
Organizational Performance ◽  
Relevant Literature ◽  
Business Practices ◽  
Business Organizations ◽  
Effective Response ◽  
Content Type ◽  
Global Challenges ◽  
Sustainability Policy ◽  
The Impact

Purpose – This paper aims to propose an effective response by business organizations to the impact of global challenges and sustainable development (SD). It also presents an overview model of organizational performance employing such an approach. Design/methodology/approach – This paper is a conceptual work based upon a review of theories, research findings and reports gathered from relevant literature. The review yielded the following research framework: many countries are facing global challenges; these global challenges are affecting business organizations as external factors; SD is a concept employed to address these challenges; SD can be applied in business organizations through corporate social responsibility (CSR), corporate governance (CG) and sustainability policy and practices; and embedding CSR, CG and sustainability concepts at a strategic level is an effective response to global challenges. Findings – Global challenges are impacting on business organizations and will continue to do so into the future. CSR, CG and sustainability concepts are increasingly being adopted by leading business organizations throughout the world. Embedding CSR, CG and sustainability concepts at a strategic level can sustain long-term organizational performance, as they help businesses face global challenges in a positive manner and maintain their position in societies on good terms with all stakeholders. Research limitations/implications – Different cultural or socio-economic environments may limit the interpretation and application of the findings or propositions in this research. Practical implications – How CSR, CG and sustainability concepts can be holistically implemented in business practices. Social implications – The role of business in lessening the effect of global challenges and supporting SD is illustrated in the proposed model. Originality/value – This paper demonstrates connections among the following critical influences on organizational performance: global challenges; SD; and CSR, CG and sustainability.

Effects of the COVID-19 pandemic on the construction sector: a systemized review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ayat ◽  
Malikah ◽  
Chang Wook Kang
Keyword(s):  
Content Analysis ◽  
Health And Safety ◽  
Mitigation Strategy ◽  
Mitigation Measures ◽  
Construction Sector ◽  
Content Type ◽  
Process Improvements ◽  
Negative Impacts ◽  
The Impact ◽  
Safety Guidelines

PurposeThe COVID-19 pandemic has brought profound changes to all sectors of society including the construction sector. The main purpose of this study is to explore and provide insights into the impact and changes that have occurred in the construction sector due to COVID-19 and to present a mitigation framework to minimize the effects.Design/methodology/approachThe scope of this study is limited to peer-reviewed articles in Scopus or Web of Science indexed journals. A systemized review was performed with bibliometric and content analyses of articles related to the impact of COVID-19 on the construction sector.FindingsThrough content analysis, the main topics discussed in the selected articles were grouped into 10 categories. Most of these studies were found to have focused on the challenges, impact, and health and safety at construction sites resulting from the pandemic. The study further identified 39 subtopics through detailed content analysis and organizes them into the categories of negative impacts, positive impacts and opportunities and barriers to COVID-19 safety guidelines in the construction sector. Moreover, the study developed a systematic mitigation strategy based on the recommendations of the literature review to reduce the impact of the current pandemic on the construction sector. The mitigation strategy presents separate set of measures regarding safety guidelines, process improvements, government intervention, psychological support and technology adoption.Originality/valueThe research insights provided in this study are useful for practitioners in guiding them to design effective strategies for addressing the challenges of the COVID-19 pandemic and future crises. Furthermore, a systematic presentation of the impacts, challenges and mitigation measures in this study will help researchers to identify existing gaps in the literature and explore other aspects of the impact of the pandemic on the construction sector.

Medical tourism in the COVID-19 era: opportunities, challenges and the way ahead

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arvind Chhabra ◽  
Mehak Munjal ◽  
Prabhu Chandra Mishra ◽  
Kritika Singh ◽  
Debjanee Das ◽  
...  
Keyword(s):  
Medical Tourism ◽  
Healthcare Industry ◽  
Short Term ◽  
Indian Government ◽  
Content Type ◽  
Factors Affecting ◽  
Technological Advances ◽  
Negative Impacts ◽  
Novel Coronavirus ◽  
The Impact

PurposeThe novel coronavirus has not only caused significant illness and loss of life, it has caused major disruption at local, national and global levels. While the healthcare industry is experiencing growth during the pandemic, disruption to travel has affected medical tourism. This article considers the short-term factors affecting medical tourism and how they could be mitigated by incorporating technological advances to secure long-term growth.Design/methodology/approachThe study examines data provided by the Indian government as well as from non-government sources available in the public domain to review the impact of coronavirus disease 2019 (COVID-19) on medical tourism. The authors also examine data on technological advances in the healthcare industry that could help to reduce the impact of the pandemic.FindingsThis study’s findings show that while in-person services have been seriously impacted in the short term, technological adaptation of medical services to facilitate remote medical consultation has significantly increased. This has enlarged the business opportunities available to hospitals and general practitioners, and it could be leveraged to enhance medical tourism.Originality/valueThe article provides an analysis of the impact of the pandemic on medical tourism and how technology could be used to overcome short-term negative impacts and support longer-term development.

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