This paper aims to examine the impact that brand transgressions, and the effect of an apology or lack thereof, have on consumers’ intentions to co-create with a brand, perceived brand equity and brand love, and compares these effects on brands that are viewed positively versus brands that are viewed negatively.
Two studies were deployed. In the first study, a 2 × 2 between subjects factorial design using fictitious brands is used to test the hypotheses. The second study seeks to replicate the findings of the first study by using a brand connected to a real retailer.
Regardless of a brand issuing an apology or not, co-creation, higher perceived brand equity and increased levels of brand love, are more likely to occur when a consumer views a brand as being positive versus negative. However, the results vary when the consumer has a prior level of knowledge and a stronger relationship with a brand.
This paper focuses on consumers between the ages of 18 and 29 years. While the findings of Study 1 are mostly replicated in Study 2, a more generalizable sample could create additional insights into the impact of brand transgressions and issuing or not an apology.
The findings of this paper add to the current literature on co-creation, brand equity, brand love and theory of reasoned action, in terms of the impact of an apology, or lack thereof, on brand transgressions and consequent consumer responses.
