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Product damage mechanism of the impact of the crisis on brand equity research

Author: LiZuo
Tutor: LuoJianHong
School: Central South University
Course: Business management
Keywords: Product harm crisis Attribution Brand equity Perceived risk
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 79
Quote: 0
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Abstract


Brand equity is the very valuable resource of companies. It’s the unique marketing effects resulting from brand association of the enterprise business activities. It requires long-term accumulation and careful maintenance. But in recent years, the frequent occurrence of product harm crisis results in perceived risk of product crisis for consumers It will result in the loss of brand equity without improper handling of companies, so that enterprises will suffer financial losses or even bankruptcy.Based on recent domestic and foreign research, this paper carried out to do research. The paper established a conceptual model regarding the severity of the crisis, attribution to crisis and crisis response of business as independent variables, perceived risk as mediating variables, brand equity and its five component factors brand attitude, perceived quality, possibility of purchasing, brand association, brand trust as the dependent variable. It selected two recent product crises:carcinogenic events of Bawang shampoo and carcinogenic events of Jinhao tea oil and did investigation to the relevant consumers.Than it used SPSS software to analyze survey data.The results confirmed the severity of the crisis, the attribution of consumers to the crisis, perceived risk of consumers impose the negative effects on brand equity and its five factors, crisis response of business impose t positive effects on brand equity and its five factors. In non-defensible products harm crisis severity of crisis, attribution to crisis and crisis response of business impose greater impact to t brand equity and its five factors than those in defensible product harm crisis. Finally, the paper proposed some recommendations basing on empirical analysis.The companies should establish good corporate image, that can make consumers not attribute the crisis to the crisis enterprises before surveying of the crisis. The companies should try to take a series measures to prevent the occurrence of crisis events. If the crisis happens suddenly enterprises should actively respond to the crisis. The brand equity will loss smaller as companies response more positively.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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