How company responses and trusting relationships protect brand equity in times of crises

Brands are susceptible to various forms of crises, regardless of whether a brand’s conscious deviation from socially acceptable practices or forces and activities beyond the brand’s control prompted a crisis. Undeniably, crises can have negative ramifications for the brand’s consumer relationships and financial assets. An experimental study with 187 residents of the Netherlands was conducted to determine whether or not crisis response strategies influence post-crisis brand equity. In addition, the research also investigated the influence of pre-crisis brand trust on the relationship between crisis response and post-crisis brand equity. Results show that the ways in which brands react to a crisis have an influence on brand equity. Non-response leads to the depreciation of brand equity. Furthermore, pre-crisis brand trust can serve as a buffer for a brand during a crisis and even after it.