The Effects of Faulty or Potentially Harmful Products on Brand Reputation and Social Responsibility of Business Building a strong brand requires a good management of brand reputation over time. Social
responsibility of business is a key factor in evoking a positive brand reputation. Both the
product itself and brand related actions and communications define brand reputation in the
eyes of consumers, thus influencing perceived corporate social responsibility. As a
consequence, it can be easily hindered or endangered by many product related issues such
as faulty products or potentially harmful products. The purpose of this article is to provide
an insight on the link between brand reputation and social responsibility in order to help
organizations provide better services and protection for consumers. We examined how
brand reputation is influenced by the negative bias generated by brand related
communications regarding potentially harmful products. This study also analyzes how
under normal consumption circumstances, consumers' experiences related to faulty
products can influence brand reputation. To investigate this, we propose a model based on
perceptual brand constructs and possible outcomes of brand reputation. In both
circumstances, negative spillover effects are highlighted using structural equation
modeling. The findings reveal that both faulty products and potentially harmful products
have a negative bias on brand reputation, but affected perceptual brand constructs are
different.
The Effects of Faulty or Potentially Harmful Products on Brand Reputation and Social Responsibility of Business.

Amfitreatru Economic

Volum 16 | Număr 35 | Publicat la 01/02/2014 | Pagini:  58 - 72 | ISSN  1582-9146 | eISSN  -

Autori:
Claudiu-Cătălin Munteanu [1] | Dorian-Laurenţiu Florea [2]
[1] Academy of Economic Studies Bucharest, Piata Romana 6, Bucharest, Romania - [2] Academia de Studii Economice Bucureşti
Rezumat
Building a strong brand requires a good management of brand reputation over time. Social
responsibility of business is a key factor in evoking a positive brand reputation. Both the
product itself and brand related actions and communications define brand reputation in the
eyes of consumers, thus influencing perceived corporate social responsibility. As a
consequence, it can be easily hindered or endangered by many product related issues such
as faulty products or potentially harmful products. The purpose of this article is to provide
an insight on the link between brand reputation and social responsibility in order to help
organizations provide better services and protection for consumers. We examined how
brand reputation is influenced by the negative bias generated by brand related
communications regarding potentially harmful products. This study also analyzes how
under normal consumption circumstances, consumers' experiences related to faulty
products can influence brand reputation. To investigate this, we propose a model based on
perceptual brand constructs and possible outcomes of brand reputation. In both
circumstances, negative spillover effects are highlighted using structural equation
modeling. The findings reveal that both faulty products and potentially harmful products
have a negative bias on brand reputation, but affected perceptual brand constructs are
different.
Cuvinte cheie:
brand reputation, faulty products, harmful products, social responsibility, consumers



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