Research on the Negative Spillover Effect of Scandal Type on National Image in Product-harm Crisis

Hai Ri

doi:10.7176/jesd/10-16-14

Abstract

When a product-harm crisis occurs in a multinational company, the negative spillover effect is likely to be larger than a country, affecting the national image of the country of origin and other brands of the country. The results of our study showed that consumers' personality characteristics or way of thinking content could moderate the spillover effect of brand scandal on the country image. Specifically, for the consumers with analytic thinking, ability ( vs. morality) brand scandal had greater impact on country image; for the consumers with holistic thinking，morality ( vs. ability) brand scandal had greater impact on country image. Moreover，this moderation was mediated by consumers' sense of predictability. The research conclusion can bring certain enlightenment and thinking to enterprises, which is more conducive to enterprises to establish accurate contact with consumers and formulate more effective marketing strategies. Keywords: National image; Spillover effects; Brand scandal; Thinking mode DOI : 10.7176/JESD/10-16-14 Publication date : August 31 st 2019

Highlights

In recent years, domestic and foreign product-harm crisis events occur frequently, on the one hand, hurt the interests of consumers; On the other hand, it will cause economic losses to enterprises
Product-harm crisis often leads to product recall, which may have a significant impact on the company's reputation, sales and financial value
When a product-harm crisis occurs in a multinational company, the negative spillover effect is likely to be larger than a country, affecting the national image of the country of origin and other brands of the country

Summary

Introduction

Domestic and foreign product-harm crisis events occur frequently, on the one hand, hurt the interests of consumers; On the other hand, it will cause economic losses to enterprises. The purpose of this study is to explore the spillover effect of brand scandal on the national image of the country of origin and the moderating effect of the content of consumer thinking mode under the product-harm crisis. Consumers pay more attention to the event itself and less to the connection between situational information and things, so they are more likely to be affected by endogenous scandals and generate spillover effect on competitive brands. Consumer thinking mode plays a moderating role in the negative spillover effect of scandal attribute on national image in product-harm crisis events: for the consumers with analytic thinking, ability ( vs morality) brand scandal had greater impact on country image; for the consumers with holistic thinking,morality ( vs ability) brand scandal had greater impact on country image. In product-harm crisis, brand evaluation plays an intermediary role in the negative spillover effect of brand scandal attribute on national image

Discussion

Brand evaluation affects national image