the effect of negative publicity on brand equity image attitude and purchase intention case of dolce and gabbana racism scandal

Theories Reasoned Action TRAH1: The Dolce and Gabbana racism scandal will have asignificant effect on the brand''''s equity, leading to adecline in image attitude and purchase intention.Rea

FPT UNIVERSITY - CAMPUS HO CHI MINH

Research Proposal

The Effect of Negative Publicity on Brand Equity

(Image Attitude, and Purchase Intention)

Case of Dolce and Gabbana Racism Scandal

Course: RMC301

Supervisor: Mrs Tạ Ngọc Linh

2 Nguyễn Ngọc Yến Nhi SS181168

3 Phạm Nguyễn Thanh Như SS181310

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Theories Reasoned Action (TRA)

Hypothesis

H1: The Dolce and Gabbana racism scandal will have a significant effect on the brand's equity, leading to a decline in image attitude and purchase intention Reasoned Action (TRA)

H2: The negative publicity resulting from the Dolce and Gabbana racism scandal will lead to a decrease in consumers' perception of the brand's credibility and trustworthiness Reasoned Action (TRA) H3: The Dolce and Gabbana racism scandal will result in

a decline in consumers' emotional attachment and loyalty

to the brand Euclid “What Kills Customer Loyalty Survey”

H4: The negative publicity surrounding the racism scandal will have a stronger impact on the brand's equity among existing customers compared to potential new customers Reasoned Action (TRA)

H5: The negative impact on the brand's equity, image attitude, and purchase intention due to the Dolce and Gabbana racism scandal will be more pronounced in regions or markets with higher awareness and sensitivity towards racial and social justice issues.(The Crash and Burn of Dolce & Gabbana.Racism and arrogance about China has imperilled the brand.( NewYork Times))

Variables

Independent Variable: Independent Variable Dependent Variables: Brand Equity, Brand Image, Purchase Intention

Mediating Variables: Credibility, Emotional Attachment and Loyalty

Moderating Variables: Personal Identification, Market Sensitivity

Methods

Conduct a comprehensive review of existing literature, academic articles, and industry reports to gain insights into the impact of negative publicity on brand equity, image attitude, and purchase intention

Utilise secondary data analysis to investigate changes in brand equity, image attitude, and purchase intention before and after the Dolce and Gabbana racism scandal Design and administer survey include questions related

to brand equity, image attitude, purchase intention, negative publicity awareness, and demographics

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Introduction Background and Context

The paper examines the effect of negative publicity on brand attitude, brand image, and purchase intention in the context of luxury brand by seeing the influence of negative publicity has on both brand attitude, and brand image, which later on correlated with purchase intention to see the relationship purchase intention has on brand attitude and brand image The study uses a qualitative approach through contents about the scandal and analysed using Heider’s “Common Sense” Theory

Problem Statement

-The theoretical or practicalresearch problemthat my group wants to address impact of negative feedback, particularly related to racial discrimination, on brand attitude, brand image, and purchase intention in the luxury fashion industry Existing studies have shown that negative feedback can have a negative impact on brand attitude and purchase intention However, very few studies have focused specifically on the luxury fashion industry and the issue of racial discrimination, especially regarding skin colour discrimination.It is known that negative feedback can cause significant damage to brand attitude and purchase intention However, these studies often focus on Western customers and pay little attention to consumers from different cultural backgrounds Cultural differences can significantly affect how consumers react to negative feedback.Furthermore, very few studies have focused on the relationship between awareness and concerns about racial discrimination in the fashion industry and their impact on purchase intention after exposure to negative feedback This research aims to fill this gap by examining the impact of negative feedback on the brand attitude and brand image of Dolce & Gabbana, as well as the relationship between brand attitude, brand image, awareness, and concerns about racial discrimination with consumers' purchase intention

The reason for this study is to rely on the data from a research paper on the impact of negative feedback on brand attitude and brand image of Dolce & Gabbana to provide additional references and insights into how the public and consumers react to sensitive issues such as racial discrimination in the fashion industry, especially in luxury brands

Research Questions

State the specificquestion(s)that you aim to answer

● What were the specific elements of Dolce and Gabbana's advertisement campaign that led to allegations of racism and cultural insensitivity?

● How did the public, including the Chinese community and the global fashion industry, respond to the scandal, and what were the short-term and long-term consequences for Dolce and Gabbana's brand reputation?

● How did Dolce and Gabbana manage the crisis surrounding the racism scandal, and what strategies did they employ to address the issue and rebuild their brand image?

● What broader implications does the Dolce and Gabbana racism scandal have for the fashion industry in terms of cultural sensitivity, diversity, and inclusion?

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● How can fashion brands learn from this scandal and implement effective measures to prevent and address issues of racism and cultural insensitivity in their marketing campaigns?

Relevance and Importance of the Research

The Dolce and Gabbana racism scandal, which occurred in 2018, involved a controversial advertisement campaign that was perceived as racially insensitive and offensive towards the Chinese community This incident sparked outrage and raised important questions about cultural sensitivity, diversity, and inclusivity in the fashion industry

Research can provide valuable insights and contribute to several aspects:

1 Understanding the Impacts

2 Exploring Cultural Sensitivity in Fashion

3 Examining Brand Crisis Management

4 Promoting Diversity and Inclusion

This research is relevant to various stakeholders, including fashion brands, marketing professionals, consumers, and scholars in the fields of fashion, marketing, cultural studies, and social sciences By examining the Dolce and Gabbana racism scandal, researchers can contribute to a deeper understanding of the impact of cultural insensitivity, foster discussions

on diversity and inclusion, and provide insights and recommendations for promoting greater cultural sensitivity and respect in the fashion industry and beyond

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Literature review

Key Concepts

Through Dolce and Gabbana's racism scandal, we discuss and analyse the effects of negative publicity on brand value (Image attitude and purchase intention) Thereby, we can also see negative impacts on this luxury brand

The key concepts of the article: Negative Publicity and Advertising,Brand Attitude, Brand Image, Purchase Intention,Racism Issue Awareness and Concern in the Fashion Industry

Theories and Studies

-Theory Heider’s“CommonSense”Theory

In his 1958 book The Psychology of Interpersonal Relations, Fritz Heider suggested that people observe others, analyse their behaviour, and come up with their own common sense explanations for such actions Heider groups these explanations into either external attributions or internal attributions External attributions are those that are blamed on situational forces, while internal attributions are blamed on individual characteristics and traits

-Theory of ReasonedAction(TRA)

Maintains that volition and intention predict behaviour According to TRA, if people evaluate the suggested behaviour as positive (attitude) and if they think others want them to perform the behaviour (subjective norm), this results in a higher intention (motivation) and they are more likely to perform the behavior.These authors have emphasised the importance of intention more than the reality of usage Actually, people who buy something do it in relation

to what they feel like doing and not really because of an actual need related to the model they belong to

Negative Publicity and Advertising:

-Negative publicity refers to potentially harmful information about a brand or company that circulates through media channels or word-of-mouth(Cho, 2005; Ramly & Omar, 2016) -Negative information tends to have a stronger impact on consumer decision-making compared to positive or neutral information(Claeys & Cauberghe, 2014)

- It can harm both the company and its stakeholders(Claeys & Cauberghe, 2014)

- The duration of negative publicity's impact on public perception can vary between brands (Cleeren, Van Heerde, & Dekimpe, 2013) for example Dolce & Gabbana racism issue which

is more affected by the negative publicity rather than Gucci and Prada racism issue (Fernandez, 2019)

Brand Attitude:

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-Brand attitude refers to consumers' evaluation and feelings towards a brand's product or service (Aaker, 2009; Hajdas, 2017; Keller, 1993)

- It is an important component of brand equity and influences consumers' purchase intentions(Park et al., 2010)

-Negative brand information has a direct and negative impact on consumers' overall attitudes towards the affected brand (Solomon, 2008)

Brand Image:

-Brand image refers to how consumers perceive a brand based on its attributes(Keller, 1993; Magnusson, Krishnan, Westjohn, & Zdravkovic, 2014) and uniqueness (Faircloth, 2005)

- It plays a crucial role in customers' purchase intentions(Chao, Liao, et al.,2016)

- Negative brand information can harm brand image and, consequently, influence purchase intention (DeCarlo, Laczniak, Motley,& Ramaswami, 2007; Raju, Unnava, & Montgomery, 2009)

Purchase Intention:

-Purchase intention refers to consumers' likelihood to buy a specific brand or product (Schiffman & Kanuk, 2000)

- It is an indicator of consumers' decision-making and eagerness to purchase Brand image(Tariq, Nawaz, Nawaz, & Butt, 2013) and brand attitude (Study The study conducted

by Hernández and Küster (2012)) significantly influence consumers' purchase intentions

Racism Issue Awareness and Concern in the Fashion Industry:

-The discussion highlights the growing awareness and concern about racism in the fashion industry, particularly through social media

- Consumers are increasingly unwilling to connect with brands that exhibit racist behaviour

or poor judgement ( Referring to Euclid Analysis in 2017, consumers are no longer willing to connect with brands)

-Studies show that a significant portion of consumers would boycott brands or companies that are perceived as racist or sexist.( From the Euclid “What Kills Customer Loyalty Survey” report surveying American consumers, shows that 58% of the respondents will undoubtedly boycott the brands or companies which appeared to be racist and 50% would boycott those who appeared sexist)

Key Debates and Controversies.

The literature review emphasises the significance of negative advertising, brand attitude, brand image, and purchase intention in consumer behaviour It identifies key debates and controversies in this field, including the impact of negative advertising, the long-term effects

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of negative information, and the role of brand image The author's intention to investigate the relationship between racism concern and awareness in Indonesia regarding brand value after the Dolce & Gabbana racial discrimination scandal and consumers' purchase intention provides an opportunity to contribute to the existing knowledge in this area

Gaps in Existing Knowledge

Show what is missing and how your project will fit in

The existing literature provides valuable insights into the impact of negative publicity, brand attitude, brand image, and purchase intention in consumer behaviour However, there are a few gaps in the existing knowledge that this study aims to address

-There is a need to explore the specific effects of negative advertising on consumer behaviour While previous studies have acknowledged the power of negative information, further research is required to understand how negative advertising campaigns influence brand perception, attitude, and purchase intention

-The role of brand attitude in the context of negative brand information needs further examination While previous research has indicated that negative brand information has a negative impact on brand attitude, it is important to delve deeper into the underlying mechanisms and factors that mediate this relationship

-The study aims to investigate the influence of brand image on purchase intention in the aftermath of a racism scandal Understanding how negative brand information affects consumers' perception of a brand's image and subsequently influences their intention to purchase can provide valuable insights for brand managers and marketers

-The study aims to explore the level of concern and awareness about racial discrimination in Indonesia and its relationship with purchase intention This specific context has not been thoroughly researched, and examining the relationship between the level of concern, awareness, and purchase intention can contribute to a better understanding of consumer behaviour in the Indonesian market and the Asian market in general

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Research design and methods

Research design

1 Secondary sources would be used in addition to original data collecting as part of the study plan.Original research refers to a type of research that involves the collection and analysis of new and original data to answer a specific research question or to test

a hypothesis In secondary research, look at existing data from other researchers, such

as academic journals, government agencies, or national statistics

2 Qualitative research: design might be suitable in this situation Investigating and comprehending the varying subjective experiences, viewpoints, and interpretations connected to a certain phenomena is the main goal of qualitative techniques such as focus groups, interviews, and observations In addition, context, background details, and public reactions to the controversy may be found in primary and secondary sources such as news stories, social media posts, government documents, and public remarks

3 A descriptive approach would be the main emphasis of the study strategy The goal of descriptive study is to give a thorough explanation of a phenomena, in this example, the racism incident involving Dolce and Gabbana It aims to provide answers to queries on the nature, consequences, and manifestations of the scandal Even if the qualitative data may show correlations between the variables, the study's main goal would still be to get a thorough knowledge of the problem rather than demonstrate causal linkages Variable manipulation experimental designs would not be appropriate for this kind of study

Methods and Sources

1 When: In order to obtain pertinent information and responses, data collection and analysis would normally take place following the Dolce & Gabbana crisis

controversy The researcher's judgement and the data's accessibility would determine the precise time range (Nov 23,2018)

2 Where: The most common site for data collecting is online To learn more about the controversy, researchers can visit a variety of websites, including news sites, social media pages, debate boards, and the official Dolce & Gabbana websites Additionally, depending on the situation and the participants' availability, in-person or remote interviews with market experts and insiders in the fashion business may be undertaken

3 How: The steps involved in gathering, choosing, and analysing data are broken down here:

Data collection: Look for news stories, analyses, and comments about the Dolce & Gabbana crisis scandal using search engines.Visit pertinent websites, such as discussion boards, social networking sites, news websites, and official Dolce &

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Gabbana websites.Gather original sources, significant publications, and pertinent data

to build an extensive dataset.( The NewYork Times, CNN, )

Selection of Data:Examine the gathered information to make sure it is reliable and relevant.Select original sources, noteworthy stories, and data that most accurately capture the scandal surrounding the Dolce & Gabbana issue and its effects.( using google scholar, websites ending in eu, )

Data Analysis: To evaluate and classify the gathered data, apply content analysis techniques.Examine the data for themes, trends, and patterns.Examine the scandal's substance, background, and society responses

Practical Considerations

Data management: Create policies and processes to handle the gathered information For the purpose of facilitating efficient access to and use of the data throughout the study process, ensure data integrity, security, and organisation

Feedback and communication: Create a responsive and efficient mechanism for responding to recommendations, worries, and feedback from stakeholders This might entail setting up meetings, facilitating distant collaboration via technology, and maintaining openness throughout the whole study process

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Implications and contributions to knowledge Practical Implications

1 Crisis management: provide valuable insights for companies facing negative publicity crises then develop effective strategies to manage such crises, including timely and sincere apologies, transparent communication, and taking corrective actions to restore public trust

2 Brand image repair: help organizations understand the specific dimensions of brand equity, such as image attitude, affected by negative publicity Based on the findings, companies can develop targeted brand image repair strategies

3 Consumer behavior: shed light on how negative publicity influences consumer perceptions and purchase intentions Companies can use this knowledge to predict and manage consumer behavior during times of negative publicity

Theoretical Implications

1 Heider's "Common Sense" Theory validation: the research can contribute to the validation and applicability of Heider's theory in the context of brand equity and negative publicity

2 Brand equity dimensions: potentially expand the existing theoretical framework of brand equity By examining the impact on image attitude and purchase intention, researchers can identify the specific aspects of brand equity that are most vulnerable to negative publicity

3 Consumer response to negative publicity: have implications for theories related to information processing, cognitive dissonance, and persuasion By investigating the effect of negative publicity on purchase intention, the study can contribute to the theoretical knowledge of how consumers form attitudes and make purchase decisions in the face of negative information

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