Effect of Product Harm Crisis on Consumer Based Brand Equity: Sri Lankan Young Consumers' Perspective

Abstract

The main purpose of the study is to investigate how product harm crisis shapes consumer moral judgments toward the troubled company and the brand from Sri Lankan young consumers' point of view. Related to a hypothetical product harm crisis situation, results related to regression analyses reveal that product harm crisis yields a negative impact on consumer's moral perceptions toward the both company and the brand, and thereby subsequently yielding detrimental effect on consumer based brand equity. This study provides new insights for companies to protect their moral reputation, while safekeeping the brand equity in midst of product harm crises.