Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/79624 
Year of Publication: 
2012
Series/Report no.: 
SFB 649 Discussion Paper No. 2012-062
Publisher: 
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk, Berlin
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.
Subjects: 
Brand equity
critical incidents
negative publicity
structure equation modeling
online experiment
JEL: 
M14
M31
C12
C14
C38
C93
Document Type: 
Working Paper

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