The Effect of Brand Crisis on Consumer’s Response: The Moderating Roles of Brand Associations and Brand-Customer Relationship Strength

Abstract

The purposes of this study are (1) to investigate the influence of the types of brand crisis on the change of consumer’s response such as emotions, attitude, trust, purchasing intention, and behaviors, (2) to analyze the moderating roles of the types of consumer’s brand association and brand-customer relationship strength on the consumer’s response to the types of brand crisis, and (3) to interpret this mechanism through information integration theory. For the purposes, two studies are conducted with integrative approach of qualitative and quantitative methods.

For study 1, a qualitative research method, ethnographic interview, targets domestic electronic market (Samsung Electronics/LG Electronics: two pulling companies in electronic industry in Korea). In study 2 with an empirical model, a quantitative approach is conducted. Proposed hypotheses are examined by employing a 2 (brand crisis types: CA/CSR) * 2 (brand association types: CA/CSR) * 2 (brand-customer relationship strength: low/high) between-subjects factorial design. Variables for consumer’s response include consumer’s attitude, purchasing intention, and behaviors after exposure to negative information for brands.

It is shown from the study 1 that consumers with high brand-customer relationship strength are inclined to maintain their attitude, trust, and purchasing intention and the synergistic effect between consumer’s brand associations and brand-customer relationship strength significantly influences consumer’s response to the types of negative information for the brand. The results from Study 2 indicate that the three-way interaction effects with the types of brand crisis, the types of brand associations, and brand-customer relationship strength (low/high) on consumer’s response are significant. Specifically, consumers with strong brand-customer relationship strength and brand association related to CA (CSR) show more favorable response to brand crisis related to CA (CSR) rather than brand crisis related to CSR (CA). The results of this study could contribute to the research area and marketing practice related to brand crisis by providing crucial insights for in-depth understanding of the consumer’s response-mechanism to brand crises.