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1、Marketing Intelligence Sarstedt, 2009; Siomkos et al., 2010) but some specific examples include the withdrawal of almost 2,000 complementary and alternative medicines produced by Pan Pharmaceuticals (Eagle et al., 2005)
2、, the 2007 court ruling of mis-advertising by Ribena (Jaques, 2008), Toyota’s recall crisis of 2010 (Piotrowski and Gray, 2010), and Nokia’s decision to close a manufacturing plant in Bochum, Germany (Sarstedt, 2009). Wh
3、ile the nature of brand crises may vary it is important to acknowledge that consumers rely on brands and that unethical, improper, and illegal actions may seriously damage that trust (Point 1). A concept that is particul
4、arly useful in understanding the impact of crises relating to brands and crisis brand management is brand equity. According to Srivastava and Shocker (1991) brand equity is “. . . a set of associations and behaviours on
5、the part of a brand’s consumers, channel members and parent corporation that enables a brand to earn greater volume or greater margins than it could without the brand name and, in addition, provides a strong, sustainable
6、 and differential advantage”. Brand equity develops through experience and communication of information over an extended period of time. Degradation of brand equity also occurs via experience and communication of informa
7、tion but crises involving distinctive attributes are considered more serious (Greyster, 2009) and in such instances the effect is over a much shorter time period (McCormack, 2008). This leads Dawar and Pillutla (2000) to
8、 observe that “. . . brand equity is a valuable yet fragile asset”. Branding may relate to corporate brands as well as product brands and a crisis may impact the brand equity of both (Nelson and Kanso, 2008). While it is
9、 difficult to plan and prepare for brand crises because of the infinite sources and types of crisis that may occur (Jaques, 2008; Greyster, 2009) it is still advisable for an organisation to undertake contingency plannin
10、g in order to attempt to protect a brands reputation (Eagle et al., 2005; Kitchen, 1997) (Point 2). Planning in respect of a potential brand crisis refers to risk management that involves identifying threats to brand equ
11、ity via a risk assessment, quantifying the risks as a function of probability and impact, and monitoring of related performance criteria (McCormack, 2008).Crisis brand management19Downloaded by University of Pennsylvania
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