The influence of negative publicity on brand equity: attribution, image, attitude and purchase intention

2018 ◽  
Vol 27 (4) ◽  
pp. 440-451 ◽  
Author(s):  
Mingzhou Yu ◽  
Fang Liu ◽  
Julie Lee ◽  
Geoff Soutar

Purpose This study aims to understand the influence of negative publicity on brand image, brand attitude and brand purchase intention. Specifically, the study examines the role of attribution (or brand blame) and information characteristics in Chinese consumers’ responses to negative publicity. Design/methodology/approach The study used a quasi-experimental approach involving two negative publicity scenarios (mild and high severity) and a sample of 203 young and educated Chinese consumers. Partial least squares was used to test the hypotheses. Findings A common assumption is that negative brand information has a negative influence on all aspects of a brand. However, this study finds that brand blame and information severity have differential effects on consumer evaluations of the affected brand. Specifically, brand blame negatively impacted attitudes and purchase intentions, but not brand image. In contrast, information severity negatively impacted brand image, but not attitudes or intentions. Further, the relations between brand image and brand attitudes and intentions depended on the level of information severity. In the mild-severity condition, brand image positively influenced attitudes and intentions, but not in the high-severity condition. Research limitations/implications Future research should examine consumer responses to negative publicity across different media and product categories. Cross-cultural studies should also be explored in the future. Practical implications When a brand encounters negative publicity, its marketer or brand manager should assess to what extent various brand equity components are influenced by negative publicity before adopting any cognitive-based or imagery-based communication strategies. Originality/value This paper contributes to the limited and fragmented literature on consumer response to negative publicity by examining the impact of consumer’s attributions of blame to the brand under conditions of mild and severe negative information on a range of important brand-related outcomes. Specifically, the authors find that negative publicity has a different impact on brand image, brand attitudes and intentions to purchase. The authors suggest that brand managers use this information to guide their marketing communications.

2016 ◽  
Vol 33 (4) ◽  
pp. 245-256 ◽  
Author(s):  
Noel Yee-Man Siu ◽  
Ho Yan Kwan ◽  
Celeste Yunru Zeng

Purpose This paper aims to investigate the impact of brand equity on Chinese consumers’ affective attitudes toward luxury brands and their behavioral intentions by applying the cognitive-affective model. The interaction effect between face saving and consumer’s affective attitude on luxury consumption is also examined. Design/methodology/approach A field survey was conducted using a sample of 248 luxury consumers in three Chinese cities. Findings Brand equity was found positively to predict Chinese consumers’ affective attitudes and their willingness to pay a premium price for a luxury brand. Moreover, consumers who highly value face saving were found to be more willing to pay a premium price, even though they hold a less positive attitude toward the brand. Research limitations/implications The use of cross-sectional survey data with young Chinese consumers in first-tier cities may limit the generalizability of the findings as well as precluding the making of causal inferences. Practical implications Global luxury marketers who plan to enter the China market can utilize marketing strategies to create prestigious value and appeal to consumers who seek for social approval and status. Originality/value Previous published studies of brand equity and luxury consumption have primarily emphasized Western markets. These findings advance our understanding of luxury purchase intention among young Chinese consumers, for whom the need for social acceptance acts as a crucial motivator in luxury consumption. The results contribute to amplifying the brand equity concept by taking cultural context into consideration.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Klaus-Peter Wiedmann ◽  
Walter von Mettenheim

Purpose The importance of influencer marketing is constantly growing. However, little empirical research has examined influencers’ success requirements. This study aims to fill this gap by exploring whether the requirements of influencers’ attractiveness, expertise and trustworthiness are relevant for online influencer campaigns. An entry-level luxury fashion brand is the focus of the experiment. Design/methodology/approach A total of 288 participants completed an online survey evaluating the profiles of influencers who varied in terms of the three abovementioned requirements. The impacts of these requirements on brand image, brand satisfaction and brand trust as well as purchase intention and price premium were tested via structural equation modeling. Findings The results show that the most important requirement is trustworthiness, followed by attractiveness; surprisingly, the relevance of expertise is virtually nil. Research limitations/implications To date, practitioners are still struggling with the success requirements of influencer marketing. They have focused on traditional advertising models and numeric requirements such as the amount of followers. However, regarding merely these requirements can result in wrong decisions. Considering the two requirements, attractiveness and trustworthiness, in a stronger way can provide a remedy to this struggle. In future research, the relevance of the requirements in different involvement conditions and for non-attractiveness-related products might be investigated. Originality/value To the best of the authors’ knowledge, this study is one of the first to explore the success requirements that are directly related to influencers (e.g. attractiveness) rather than numeric requirements of their profiles (e.g. page rank) and the impacts of those requirements on brand image, brand satisfaction and brand trust as well as purchase intention and price premium. It adapts the Source-Credibility Model for influencers and shows that its requirements interact in a unique way that is counterintuitive and different from other endorser types such as celebrities or salespersons.


2019 ◽  
Vol 32 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Matthew Tingchi Liu ◽  
Yongdan Liu ◽  
Ziying Mo ◽  
Zhidong Zhao ◽  
Zhenghao Zhu

Purpose The purpose of this paper is to focus on how corporate social responsibility (CSR) (i.e. responsibility to customers, employees and society) influences customer behavioural loyalty in the hotel industry. The mediating effects of brand image and customer trust on the relationship between CSR and customer behavioural loyalty are also considered. Design/methodology/approach In total, 298 valid responses to questionnaire surveys were collected from a convenience sample in China in 2017. A structural equation model was used to test the hypotheses. Findings Hotel customer behavioural loyalty can be enhanced by CSR performance. Performance in each of the three CSR domains positively impacted customer behavioural loyalty to different degrees. The impact of CSR on the customer had the strongest influence on Chinese customers’ behavioural loyalty among the three CSR domains of customer, employee and society. Brand image and customer trust were found to be mediators of the relationship between CSR performance and customer behavioural loyalty. Originality/value The current research contributes to the literature by demonstrating that CSR activities are not all equally effective. Results reveal that the society dimension of CSR had the strongest impact on Chinese customers’ brand image of hotels among the three CSR dimensions investigated. In terms of Chinese hotel customers’ trust, the CSR–customer dimension plays the most effective role. The findings also support the notion that Chinese consumers are beginning to use CSR information to evaluate hotels.


2016 ◽  
Vol 26 (1) ◽  
pp. 2-27 ◽  
Author(s):  
Maja Šeric ◽  
Irene Gil-Saura ◽  
Alejandro Mollá-Descals

Purpose – The purpose of this paper is to empirically test the impact of perceived information and communication technology (ICT) on creation of brand equity within service firms, more specifically upscale hotels. The relationships between ICT and three brand equity dimensions, i.e. brand image, perceived quality, and brand loyalty are examined. Design/methodology/approach – The empirical research was conducted in 20 upscale hotels in Rome-Italy, collecting data from 335 guests. Findings – Advanced ICT directly influences perceived quality and image, while the impact of ICT on loyalty is mediated by perceived quality. Additionally, positive and significant relationships are found between the three brand equity dimensions. Research limitations/implications – The lack of significance of ICT impact on loyalty needs further attention. Future studies could center on this specific relationship, examining whether hotel companies that implement technology efficiently are able to deal with loyalty. Practical implications – Managers are encouraged to invest in advanced technologies as their adoption and subsequent perception among guests can shape brand image and perceived service quality, thus influencing brand equity from the consumer perspective. Originality/value – The contributions of this paper are fourfold. First, the ICT and customer-based brand equity concepts are studied together in the hotel context. Second, the inter-relationship among the three brand equity dimensions is analyzed. Third, the model is tested from the guest perceptive, as customers themselves can provide the most valuable inputs for business strategies. Finally, the work contributes to the service field by providing an empirical evidence on the potential and impact of advanced technology.


2020 ◽  
Vol 3 (4) ◽  
pp. 451-468 ◽  
Author(s):  
Maja Šerić ◽  
Josip Mikulić

PurposeThis paper examines the development of customer-based brand equity through communication consistency in a luxury hotel segment. Communication consistency is considered as a basic principle of the integrated marketing communications (IMC) approach.Design/methodology/approachThe empirical research was conducted among 223 guests during their stay in five-star deluxe luxury hotels in a Mediterranean country. Data are analyzed through the PLS technique and impact-asymmetry analysis.FindingsCommunication consistency is found to have a strong positive impact on all brand equity dimensions, especially on brand trust, brand image and perceived quality. The impact-asymmetry analysis further revealed negatively asymmetric relationships between communication consistency and six out of seven brand equity dimensions, except for affective commitment.Research limitations/implicationsSome restrictions related to the measurement scales should be mitigated in future research.Practical implicationsCommunication consistency is confirmed as a core management practice in luxury hotel business. Marketing professionals operating in this industry are therefore confronted with increasing challenges of efficient management of IMC.Originality/valueThis work addresses several research calls from the most recent marketing and hospitality literature. The analysis of the impact of communication consistency has extended our knowledge on the potential of IMC in creation of a strong brand. Obtained insights into the shape of the relationship between communication consistency and seven different brand equity dimensions help to better understand the process of brand equity building in a luxury hotel setting.


2019 ◽  
Vol 32 (8) ◽  
pp. 1651-1674
Author(s):  
Eun Young Park ◽  
Jung Min Jang

Purpose The purpose of this paper demonstrate that purchase intention toward a cause-related marketing (CRM)-enhanced product can be positively correlated with consumers’ social responsibility consciousness (SRC) and can be increased or decreased merely by changing the evaluation mode. Design/methodology/approach The authors conduct three experimental studies with two levels of SRC (high vs low) × two evaluation modes (joint evaluation (JE) vs separate evaluation (SE)) between-subjects design. The dependent variable is purchase intent toward the CRM-enhanced product. Findings The results indicate that consumers with high SRC are more likely than those with low SRC to purchase a CRM-enhanced product when two products are presented side by side (JE). However, consumers’ SRC level does not impact purchase intention when they see only one product (SE) independently (Study 1). The authors confirm that the proposed effect is mediated by perceived price fairness toward the product (Studies 2 and 3). Research limitations/implications Future research on CRM-enhanced products should carefully consider that the impact of individuals’ SRC level was in very different directions depending on the evaluation mode. In addition, further investigation is needed to address generalizability issues regarding samples and hypothetical stimuli. Practical implications These findings offer recommendations to help practitioners design effective marketing communications about CRM practice for target markets. Originality/value To the authors best knowledge, the current study is the first attempt to explore the crucial role of SRC, presentation mode and their interaction on purchase intention toward CRM-enhanced products.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reza Fazli-Salehi ◽  
Ivonne M. Torres ◽  
Rozbeh Madadi ◽  
Miguel Ángel Zúñiga

Purpose The purpose of this study was to explore the impact of self-related traits on consumer self-brand connection (SBC) and communal-brand connection (CBC) in public vs private consumption. Marketing practitioners will benefit by understanding the consumer traits that can be triggered and focused on in advertising campaigns. Moreover, it is important to know which traits have a significant impact on each product category section (i.e. public vs private use). Design/methodology/approach An experiment used a between-subjects design with two randomized blocks of publicly used brands and privately used brands. Within each block, the relationship between independent variables (narcissism and need for uniqueness [NFU]) and dependent variables (SBC, CBC and purchase intention) were analyzed using SmartPLS. Findings The results showed that narcissism has a significant positive impact on consumers’ SBC for publicly consumed products, no effect was found for CBC. NFU shows a significant positive impact on SBC and CBC for both categories. The results also showed a positive impact for SBC on purchase intention, no effect was found for CBC. Research limitations/implications Future research can examine brand names that people favor the most and test whether individuals’ narcissism and NFU is influential on their SBC and CBC with the brands, regardless of the exposure to the visual cues provided in this paper. Moreover, there are more behavioral outcomes that need examination. For example, it would be fruitful to see whether attitude toward the ad, or brand attitude are affected by consumers’ narcissism and NFU. Practical implications The results contribute to the effectiveness of advertising in different industries. For instance, brand managers and marketing practitioners can benefit by understanding which product types are more attractive to consumers based on their tendency toward uniqueness. Moreover, narcissism is another common trait that can be used to target consumers. Thus, certain product types may be more attractive to consumers based on their narcissism tendencies. Originality/value Despite the popularity of SBC and CBC research, there is limited knowledge about the consumer traits which can stimulate and enhance these concepts. As such, an important question that needs to be addressed is: “What consumer personality traits lead to higher SBC and CBC?” When it comes to self-concept, a limited number of studies exist that explore the actual types of personality or self-concept that generate a desired connection between the “self” and brands.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sriparna Guha ◽  
Anirban Mandal ◽  
Fedric Kujur

Purpose First, this study aims to focus on the promotional part of the Indian handicraft products through various social media platforms such as Facebook, Twitter, Instagram and YouTube. Second, the study measures the effectiveness of social media marketing activities (SMMA) relating to handicraft products on brand awareness, brand image and brand equity. Third, this study also measures the impact of brand awareness and brand image on brand equity and consumers’ purchase intention and further brand equity on consumers’ purchase intention of handicraft products. Design/methodology/approach This study used an offline questionnaire to conduct empirical research and collected and analyzed data of 609 samples by using the structural equation modeling approach. Findings The findings of this study showed that SMMA relating to handicraft products had a very strong impact on creating both brand awareness and brand image in the social media environment. Additionally, this study also exhibited a positive and significant impact of brand awareness and brand image on brand equity and consumers’ purchase intention and further brand equity on consumers’ purchase intention of handicraft products in the social media environment. Practical implications The outcome of this research will definitely motivate the handicraft industry to have a strong social media presence on various platforms for promoting their products across India and outside. Further, the promotional activities in various social media platforms will help in creating awareness about the handicraft products and give brand recognition among other industrial competitive brands which will consequently lead to an increase in the demand for these products. Originality/value The novelty of this study is that it has made an initial attempt to study the marketability of handicraft products using various social media platforms and also has measured the probable impact of SMMA relating to handicraft products on brand awareness and brand image and their impact on brand equity and purchase intention.


Author(s):  
Rajesh Kumar Srivastava

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.


2015 ◽  
Vol 03 (02) ◽  
pp. 40-51
Author(s):  
Kashif Shafique Abbasi ◽  
◽  
Aamir Khan Khattak ◽  
Muhammad Junaid Shahid ◽  

Current study highlights the contribution of social currency in developing brand equity and purchase intention, and validate the formative construct of social currency not only to develop brand equity but also to significantly improve customer’s purchase intention. The main objective was to find out the mediating role of brand equity elements in relationship between social currency and purchase intention in smart phone industry. Data was collected from smart phone brand users in Islamabad. 600 questionnaires were distributed and 396 complete responses were received, making a response rate of 66%. Data was analyzed through SPSS and AMOS Graphics. Reliability, Validity, Confirmatory Factor Analysis and Path analysis was performed to test the hypotheses. Results indicated that social currency has a positive and significant impact on brand equity elements (i.e. brand trust, perceived quality and brand image). Also, brand trust, perceived quality and brand image partially mediates the relationship between social currency and purchase intention. This study contributes to social capital and consumer socialization perspective of social currency in developing brand equity and purchase intention. The study also contributes to smart phone industry, and provides guidelines to improve brand equity and purchase intention through social media and engaging customers over the online and offline platforms. At the end, conclusion, limitations, and future research directions are also discussed.


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