All Weather Brand Managament: Some Empirical Findings About Brands In Sunny And Cloudy Conditions
Towards Strategic Brand Management in Social Media: The Roles of Value Exchange and Multichannel Synergy
Research about the effects of firms’ activities in social media on consumer engagement and brand performance is extensive even though rather fragmented. How firms can manage the link between consumer engagement and brand performance strategically is still less understood. This study proposes a broader perspective and aims to understand how firms’ strategic approaches to manage the value exchange and multichannel synergy can amplify the link between consumer engagement and brand performance or, if mismanaged, mitigate or even reverse potentially beneficial effects. Empirical evidence is based on a sample of 10,755 daily observations of 32 global brands comprising several brand metrics measured in three major markets (US, UK, and Germany) as well as metrics for the brands’ international social media presences in three leading channels (Facebook, Twitter, and YouTube). Within the brand hierarchy, we find several moderation effects related to (1) value exchange, i.e., value proposition and value co-creation and (2) multichannel synergy, i.e., multichannel reach, multichannel integration, and multichannel activity. Our findings suggest that firms need to go beyond mere tactics and adopt a strategic approach to manage their social media activities and reach their brand performance targets.
Is there a Gap between Actual and Ideal Product Recall Strategies? The Moderating Role of Brand Equity
This research quantifies the impact of firms’ product recall strategies (partial vs. full remedy) on customer satisfaction. Firms often opt for partial instead of full remedy. Our analysis reveals that this decision is driven by firms’ brand equity, as both low and high brand equity firms are more likely to choose partial over full remedy. We combine field data with an experimental study to generate deeper insights into the underlying process. In study 1, using secondary data from product recalls, we study firms remedy choice and show that both low and high equity firms are more likely to choose partial remedy instead of full remedy. In study 2, using an experimental approach, we investigate the impact of remedy choice on customer satisfaction. We also hone in on the process and find that the impact of a firm’s remedy on customer satisfaction is not only moderated by pre-recall brand equity but also mediated by customers’ distributive justice perceptions of the remedy. Our results give evidence that choosing partial remedy is usually not optimal. In study 3, using secondary data, we not only replicate the experimental results, but demonstrate the longer-term effects of remedy on customer satisfaction. We further provide a set of customer satisfaction metrics that can help managers understand not only the impact of the product recall on customer satisfaction, but also how quickly firms recover based on their remedy choice. We offer theoretical support for our findings, discuss implications for research, and derive guidelines for practitioners.