The mechanism of brand crisis influence on consumer purchase intentions in the context of green development

Xue Meng, Kanakarn Phanniphong, Wenjin Cheng

Article ID: 6561
Vol 8, Issue 9, 2024

VIEWS - 155 (Abstract) 99 (PDF)

Abstract


The promotion of new energy vehicles (NEVs) in China not only provides a pathway for the country to achieve its “dual carbon” strategic goals but also facilitates the transformation and upgrading of the automotive industry, contributing to social development and economic growth. This study examines the influence mechanism of brand crises on consumer purchase intentions within the NEV sector, an area critical to sustainable infrastructure and green development. Using a framework of “brand crisis—consumer negative emotions/perceived risk—consumer purchase intention,” and data from consumer surveys conducted in Beijing, Shanghai, Zhengzhou, and two other locations, the study employs regression models to analyze the relationship between brand crises and purchase intentions. Mediation effect models are used to explore how brand crises impact consumer purchase intentions through negative emotions and perceived risks. The results indicate that brand crises significantly reduce consumers’ willingness to purchase products from affected brands, posing a threat to the market stability and growth of the NEV sector. Moreover, negative emotions and perceived risks mediate the relationship between brand crises and purchase intentions, highlighting the importance of addressing both emotional and cognitive responses in crisis management strategies. To mitigate the adverse effects of brand crises, companies should adopt measures to improve consumer sentiment and reduce perceived risks, such as proactive communication, transparency, and effective recall procedures. Additionally, factors such as NEV performance, price, and charging infrastructure coverage also play a crucial role in consumer purchase decisions. Therefore, companies must consider these factors when formulating crisis response strategies to swiftly regain consumer trust and promote sustainable market and green development. This study contributes to the broader discourse on infrastructure development and public policy by providing insights into how brand crises in the NEV industry can be managed to support sustainable economic growth and development. By understanding the mechanisms through which brand crises affect consumer behavior, this research offers valuable recommendations for policymakers, industry professionals, and academic researchers focused on the interplay between infrastructure, development, and policy.

Keywords


social development; brand crisis; negative emotion; perceived risk; brand trust; sustainable infrastructure; green development

Full Text:

PDF


References


Chen, K., Gu, R., & Hu, J. (2019). Research on new energy vehicle purchase intentions based on the perceived benefit-perceived risk framework. Journal of Nanjing University of Technology (Social Science Edition), 18(2), 61-70,112.

Cui, P., Yang, Y., & Li, W. (2015). Research on the effect of CSR strategies in repairing brand trust after product harm crises—The role of moderating and mediating variables. Journal of Central University of Finance and Economics, (2), 69-74.

Duan, G., & Yu, W. (2012). Research on the impact of negligent and deliberate product harm crises on brand portfolio purchase intentions—The mediating role of consumer negative emotions. Modern Management, (2), 29-31.

Dunn, L., & Dahl, D. W. (2012). Self-Threat and Product Failure: How Internal Attributions of Blame Affect Consumer Complaining Behavior. Journal of Marketing Research, 49(5), 670-681. https://doi.org/10.1509/jmr.11.0169

Fang, Z., Jiang, M., Yang, Y., et al. (2010). Research on the impact of product harm crisis response strategies on brand equity—The moderating role of corporate reputation and crisis type. Management World, (12), 105-118.

Hu, L., Tang, Y., & Mao, Y. (2015). Factors affecting the usage of small electric vehicles based on the technology acceptance model. Research on Science and Technology Management, 35(5), 122-125,130.

Li, Q., Li, X., & Wei, X. (2020). Consumer community group buying research integrating SOR and commitment-trust theory. Journal of Xi’an Jiaotong University (Social Science Edition), (2), 25-35.

Liu, Y., Shankar, V., & Yun, W. (2020). Crisis management strategies and the long-term effects of product recalls on firm value. Research on Economics and Management, (3).

Qiao, J., & Song, Z. (2020). Research on the impact of brand crises on customer purchase intentions—An empirical analysis based on perceived risk and brand trust. China Advertising, (1), 73-75.

She, Q. (2012). Psychological mechanisms of consumer brand boycotts. Huazhong University of Science and Technology.

She, S., Wang, Z., & Huang, H., et al. (2013). Empirical research on the communication strategies of automotive product harm crises from an emotional perspective. Presented at the 8th (2013) Annual Conference of Chinese Academy of Management—Management and Decision Science Session.

Swanson, S. R., & Hsu, M. K. (2011). The effect of recovery locus attributions and service failure severity on word-of-mouth and repurchase behaviors in the hospitality industry. Journal of Hospitality & Tourism Research, 35(4), 511-529.

Wang, Y., & Li, Y. (2013). Empirical study on consumer purchase intentions for new energy vehicles based on perceived risk and involvement. Statistics and Management, 32(5), 863-872.

Wen, Y. (2018). Research on the impact of consumer perceived risk on purchase intentions in new energy vehicle purchases. Guangxi University.

Wen, Z., Zhang, L., Hou, J., & Liu, H. (2004). The procedure and application of the mediation effect test. Psychological Science, (5), 614-620.

Ye, T. (2019). Research on the impact of automotive product harm crises on consumer purchase intentions. University of Science and Technology of China.

Yu, W., Zhang, Q., & Duan, G. (2012). Research on the impact of product harm crisis severity on consumer negative emotions and resistance intentions. Management Research, 7(3), 52-67.

Zhang, B., Zhang, Q., & Zhao, C. (2021). The impact of live streaming features in e-commerce on consumer purchase intentions—The mediating role of consumer perception. China Circulation Economy, 35(6), 52-61.

Zhao, J. (2023). Research on the impact of functional brand crisis response strategies on consumer purchase intentions. Lanzhou University of Finance and Economics.

Zhou, G., Zhou, N., Yu, M., et al. (2020). The impact of brand crisis level on corporate performance—A panel analysis based on crisis reports of China’s top 100 brands. Research on Economics and Management, 41(3), 117-132.




DOI: https://doi.org/10.24294/jipd.v8i9.6561

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Xue Meng, Kanakarn Phanniphong, Wenjin Cheng

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.