Brand equity: How is it affected by critical incidents and what moderates the effect
Lutz Hildebrandt and
Sven Tischer
No 2012-062, SFB 649 Discussion Papers from Humboldt University Berlin, Collaborative Research Center 649: Economic Risk
Abstract:
To explore how occurring critical incidents affect customer-brand relations, this study measures the impact on the basis of an online experiment. For this purpose, 1,122 usable responses are gathered considering the smartphone brands of Apple and Nokia as well as different scenarios. The respective reactions to these negative incidents are evaluated using the concept of customer-based brand equity. More precisely, a structure equation model is specified and differences in latent factor means are estimated taking into account perceived quality, various brand associations, loyalty and overall brand equity. The findings indicate that brand equity dimensions are not equally affected. Moreover, the results demonstrate that both brand equity and the business relationship before crisis moderate the effect of distinct critical incidents.
Keywords: Brand equity; critical incidents; negative publicity; structure equation modeling; online experiment (search for similar items in EconPapers)
JEL-codes: C12 C14 C38 C93 M14 M31 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb649:sfb649dp2012-062
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