 Strategies to offset performance failures: The role of brand equityMichael K. Brady, J. Joseph Cronin, Gavin L. Fox and Michelle L. Roehm Journal of Retailing, 2008, vol. 84, issue 2, 151-164 Abstract: In this research, we examine the role of brand equity as a strategy to offset the negative effects of a performance failure. Two independent studies, spanning four industries and involving 669 respondents are employed to investigate this issue. Results suggest that high brand equity leads to more favorable satisfaction evaluations and behavioral intentions than low brand equity. The brand equity effect is identified as a prevailing advantage that spans the entire failure and recovery sequence. This is an important finding because it implies that the advantages of high brand equity theoretically can apply to all failures, not just those for which recovery is attempted. Further inspection, however, reveals that despite the prevailing advantage, high-equity brand failures lead to a more drastic decline in customer evaluations immediately after the failure episode. Managerial implications and future research are addressed. Keywords: Performance failures; Brand equity; Mitigation; Satisfaction; Customer perceptions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:84:y:2008:i:2:p:151-164 DOI: 10.1016/j.jretai.2008.04.002 Access Statistics for this article Journal of Retailing is currently edited by A. Roggeveen More articles in Journal of Retailing from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.