This article reports strategies of coping with the inevitable crisis of brands or products. We research the effects of crisis on the consumer-brand relationship and brand attitude. Specifically, we study the differences of the effect according to the ...
This article reports strategies of coping with the inevitable crisis of brands or products. We research the effects of crisis on the consumer-brand relationship and brand attitude. Specifically, we study the differences of the effect according to the consumer loss type and brand personality. Also we consider the effects of recovery action on the consumer-brand relationship and brand attitude and the effects of the accordance of consumer loss type and recovery action type. The consumer loss types are economic loss and social loss. In prior research, consumers were more sensitive about economic risks. Thus, we suggest that a crisis resulting in consumers' economic loss affects more negatively on the consumer-brand relationship and brand attitude. The brand personalities are sincere and exciting.
This study examines hypotheses with 8 kinds of experimental situations (2 brand personality x 2 consumer loss type x 2 recovery action). After the participants were provided with information about crisis and recovery action, they evaluated the loss types caused by crisis and types of recovery action. We checked that the participants properly recognized the difference between loss types and recovery action types.
As a result, a crisis affects negatively on the consumer-brand relationship and brand attitude. But there is no difference of effect on the consumer-brand relationship and attitude by loss type of crisis. Also, as was hypothesized, a sincere brand is more sensitive to a crisis than an exciting brand. The results also reveal that recovery actions for consumer loss due to crisis have a positive effect on the recovery of a consumer-brand relationship and brand attitude. Concretely speaking, when an economic loss crisis occurs compared to when a social loss crisis does, the degree of recovery of the dependent variables is higher.
In conclusion, this research investigated differentiated influences of consumer loss type of crisis on the consumer-brand relationship and brand attitude. Also, we identified different influences of brand personality and the effect of the accordance of recovery action with loss type caused by a crisis. Thus, we insist that this research has merits in that it could identify the impact of the loss type of crisis, brand personality and recovery action type on the consumerbrand relationship and brand attitude.