Brand trust and avoidance following brand crisis: A quasi-experiment on the effect of franchisor statements

Hyunju Shin (), Riza Casidy (), Alyssa Yoon () and So-Hyang Yoon ()
Additional contact information
Hyunju Shin: Georgia Southern University
Riza Casidy: Deakin Business School, Deakin University
Alyssa Yoon: Korea University
So-Hyang Yoon: Cornell University

Journal of Brand Management, 2016, vol. 23, issue 5, No 1, 23 pages

Abstract: Abstract Although franchising has become an important growth strategy in several industries over the last few decades, there are few empirical studies about the effects of franchisor communication strategy on customer responses in the context of franchise brand crisis. Two quasi-experimental studies were conducted to test the effect of a franchisor ownership separation statement on brand trust and brand avoidance following a brand crisis situation. Results show that a franchisor’s explicit communication of the franchise brand’s individual ownership business structure is useful in preventing further negative spillover effect throughout the franchised chain when the brand crisis occurs at a single franchise location. The authors also investigate the mechanism through which such communication influences customer behavior and the moderating effect of the brand crisis severity in affecting brand evaluation. These results offer guidance to franchise brand managers by providing insight into how to overcome a franchise brand crisis and by suggesting franchise context-specific managerial recommendations.

Keywords: franchise brand; franchising; brand crisis; crisis response; crisis severity; spillover effect (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1057/s41262-016-0011-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jobman:v:23:y:2016:i:5:d:10.1057_s41262-016-0011-7

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41262

DOI: 10.1057/s41262-016-0011-7

Access Statistics for this article

Journal of Brand Management is currently edited by Joachim Kernstock, Shaun M. Powell, Mark Davies and Ur a Golob

More articles in Journal of Brand Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().