Crisis Management in Brand Equity and Consumer Response

Brand crises—ranging from product defects and recalls to symbolic incongruities and greenwash exposures—pose a severe threat to the intangible value that consumers assign to a label. Effective crisis management in this domain combines rapid problem identification with transparent communication to safeguard or restore brand equity. Consumers gauge the severity of negative information against their emotional and cognitive bonds with the brand, leading to a spectrum of responses from reduced purchase intention to negative word of mouth. Strategies such as full remedy offers, public apologies and targeted compensatory actions have been shown to differentially influence satisfaction and trust, depending on pre-existing brand strength and the type of crisis. Recent work also highlights novel approaches to fortifying consumer resilience, including the use of an immunity metric that prompts reflection and inoculates customers against future negative information. Underlying these strategic choices are factors such as severity of failure, self-brand connection and national cultural norms, which modulate the efficacy of interventions. A holistic understanding of crisis management in brand equity therefore requires integration of psychological constructs—such as image congruity, perceived risk and sense of control—with practical guidelines, including the five-step remedy framework. Globally, brands that deploy context-sensitive, ethically attuned responses are better positioned to maintain market share and foster long-term loyalty, even in the aftermath of a high-impact event.

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Crisis Management in Brand Equity and Consumer Response publication trend

The graph below shows the total number of articles in crisis management in brand equity and consumer response across all publications each year (not limited to Nature Index journals).

Technical terms

Brand equity: the collective value derived from consumers’ perceptions, associations and loyalty to a brand.

Crisis management: the strategic process by which firms identify, address and communicate about disruptive events to mitigate reputational damage.

Product recall: the withdrawal or correction of a product from the market due to safety, quality or regulatory concerns.

Self-brand connection: the degree to which a consumer incorporates a brand into their self-concept, influencing emotional and behavioural responses.

Immunity metric: a reflective tool used to enhance customers’ resilience to negative information by assessing and reinforcing their psychological defences.

References

1. Immunizing customers against negative brand-related information. Journal of the Academy of Marketing Science (2023).
2. The influence of self‐brand connection on consumer reactions to symbolic incongruency and perceived betrayal. International Journal of Consumer Studies (2024).
3. Managing customer satisfaction after a product recall: the joint role of remedy, brand equity, and severity. Journal of the Academy of Marketing Science (2021).
4. Mitigating Product Harm Crises and Making Markets Sustainable: How does National Culture Matter?. Sustainability (2014).
5. Understanding damage to and reparation of brand trust: a closer look at image congruity in the context of negative publicity. Journal of Product & Brand Management (2022).
6. How to Make an Industry Sustainable during an Industry Product Harm Crisis: The Role of a Consumer’s Sense of Control. Sustainability (2019).