Effect of Consumer Accused Product Harm on Consumer Moral Reputation

Abstract

Cause of product harm crisis shapes how a consumer responds. Majority of the existing literature has discussed consumer perceptions when the company or any external factor is accused for crises. Irrespective of the numerous mitigation measures adopted by companies, product harm crises are increasing at an accelerating rate throughout the world recently. This situation alarms to study the matter in a new empirical angle. Therefore, the main objective of the study is to work- out how consumer morally reputes the affected brand and company when he himself is accused for the crisis. Results reveal that this situation leads to enhance his moral reputation toward the affected brand and subsequent enhancement of consumer based brand equity (CBBE) of that particular brand. However, it reverses when company accuses. This study provides new insights for the companies to secure their moral reputation, while safekeeping the brand equity in midst of product harm crisis.