Advances in Economics and Business Vol. 5(11), pp. 601 - 623
DOI: 10.13189/aeb.2017.051104
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Effect of Product-harm Crisis on Customer's Based Brand Equity: The Moderating Role of Attitude towards Brand


Muhamamad Bilal 1,*, Muhammad Idrees 2
1 Institute of Management Studies, University of Peshawar, Peshawar, 25000, Khyber Pakhtunkhwa, Pakistan
2 Institute of Management Sciences, Peshawar, Peshawar, 25000, Khyber Pakhtunkhwa, Pakistan

ABSTRACT

A company importance can be changed by product-harm crisis (PHC). There are so many cases of PHC where weak response of the company's has resulted in negative effect on brand equity. Still less research studies were conducted on the effect of product-harm crises. The objective of this research is to investigate (a) the effect of PHC on customer's based brand equity (BE) (b) the moderating role of attitude towards brand (ATB) between PHC and BE. The population of this study consists of nine universities of Peshawar district offering business programs. Two universities were purposively selected. A sample of 200 undergraduate business students has been selected. After reading self-designed newspaper article by sampled undergraduate business students, questionnaires were filled on five and seven points' likert-scales. To investigate the effect of PHC on BE, simple linear regression was used. In order to measure the before and after effect of stone –walling response of a company on the relationship between PHC and BE, Wilcoxon signed-rank test was used. Also moderating effect of ATB was measured through SPSS. The overall results demonstrated that relationship between PHC and BE is statistically significant and negative. Additionally, the inclusion of ATB as a moderator has lessened the negative effects of PHC on BE. The effect of PHC on BE before stonewalling response was less negative as compared to after.

KEYWORDS
Product-harm Crisis, Customer’s Based Brand Equity, Attitude towards Brand

Cite this paper
Muhamamad Bilal , Muhammad Idrees . "Effect of Product-harm Crisis on Customer's Based Brand Equity: The Moderating Role of Attitude towards Brand." Advances in Economics and Business 5.11 (2017) 601 - 623. doi: 10.13189/aeb.2017.051104.