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 ScandalCourse: RMC301

Supervisor: Mrs Tạ Ngọc Linh

2 Nguyễn Ngọc Yến NhiSS1811683 Phạm Nguyễn Thanh NhưSS181310

1

Theories Reasoned Action (TRA)

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

H2: The negative publicity resulting from the Dolce andGabbana racism scandal will lead to a decrease inconsumers' perception of the brand's credibility andtrustworthiness Reasoned Action (TRA)

H3: The Dolce and Gabbana racism scandal will result ina decline in consumers' emotional attachment and loyaltyto the brand Euclid “What Kills Customer LoyaltySurvey”

H4: The negative publicity surrounding the racismscandal will have a stronger impact on the brand's equityamong existing customers compared to potential newcustomers Reasoned Action (TRA)

H5: The negative impact on the brand's equity, imageattitude, and purchase intention due to the Dolce andGabbana racism scandal will be more pronounced inregions or markets with higher awareness and sensitivitytowards racial and social justice issues.(The Crash andBurn of Dolce & Gabbana.Racism and arrogance aboutChina has imperilled the brand.( NewYork Times))

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

Mediating Variables: Credibility, Emotional Attachmentand Loyalty

Moderating Variables: Personal Identification, MarketSensitivity

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

Utilise secondary data analysis to investigate changes inbrand equity, image attitude, and purchase intentionbefore and after the Dolce and Gabbana racism scandal.Design and administer survey include questions relatedto brand equity, image attitude, purchase intention,negative publicity awareness, and demographics.

2

IntroductionBackground and Context

The paper examines the effect of negative publicity on brand attitude, brand image, andpurchase intention in the context of luxury brand by seeing the influence of negative publicityhas on both brand attitude, and brand image, which later on correlated with purchaseintention 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 usingHeider’s “Common Sense” Theory.

Problem Statement

-The theoretical or practicalresearch problemthat my group wants to address impact ofnegative feedback, particularly related to racial discrimination, on brand attitude, brandimage, and purchase intention in the luxury fashion industry Existing studies have shownthat 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 theissue of racial discrimination, especially regarding skin colour discrimination.It is known thatnegative feedback can cause significant damage to brand attitude and purchase intention.However, these studies often focus on Western customers and pay little attention toconsumers from different cultural backgrounds Cultural differences can significantly affecthow consumers react to negative feedback.Furthermore, very few studies have focused on therelationship between awareness and concerns about racial discrimination in the fashionindustry and their impact on purchase intention after exposure to negative feedback Thisresearch aims to fill this gap by examining the impact of negative feedback on the brandattitude and brand image of Dolce & Gabbana, as well as the relationship between brandattitude, 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 ofnegative feedback on brand attitude and brand image of Dolce & Gabbana to provideadditional references and insights into how the public and consumers react to sensitive issuessuch 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 toallegations 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 Dolceand Gabbana's brand reputation?

● How did Dolce and Gabbana manage the crisis surrounding the racism scandal, and whatstrategies 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 fashionindustry in terms of cultural sensitivity, diversity, and inclusion?

3

● How can fashion brands learn from this scandal and implement effective measures to preventand 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 controversialadvertisement campaign that was perceived as racially insensitive and offensive towards theChinese community This incident sparked outrage and raised important questions aboutcultural 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 Fashion3 Examining Brand Crisis Management4 Promoting Diversity and Inclusion

This research is relevant to various stakeholders, including fashion brands, marketingprofessionals, consumers, and scholars in the fields of fashion, marketing, cultural studies,and social sciences By examining the Dolce and Gabbana racism scandal, researchers cancontribute to a deeper understanding of the impact of cultural insensitivity, foster discussionson diversity and inclusion, and provide insights and recommendations for promoting greatercultural sensitivity and respect in the fashion industry and beyond.

4

Literature reviewKey Concepts

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

The key concepts of the article: Negative Publicity and Advertising,Brand Attitude, BrandImage, 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 peopleobserve others, analyse their behaviour, and come up with their own common sense explanations forsuch 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 areblamed on individual characteristics and traits.

-Theory of ReasonedAction(TRA)

Maintains that volition and intention predict behaviour According to TRA, if people evaluatethe suggested behaviour as positive (attitude) and if they think others want them to performthe behaviour (subjective norm), this results in a higher intention (motivation) and they aremore likely to perform the behavior.These authors have emphasised the importance ofintention more than the reality of usage Actually, people who buy something do it in relationto what they feel like doing and not really because of an actual need related to the model theybelong to.

Negative Publicity and Advertising:

-Negative publicity refers to potentially harmful information about a brand or company thatcirculates through media channels or word-of-mouth(Cho, 2005; Ramly & Omar, 2016).-Negative information tends to have a stronger impact on consumer decision-makingcompared 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 whichis more affected by the negative publicity rather than Gucci and Prada racism issue(Fernandez, 2019).

Brand Attitude:

5

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

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

-Negative brand information has a direct and negative impact on consumers' overall attitudestowards 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 purchaseintention (DeCarlo, Laczniak, Motley,& Ramaswami, 2007; Raju, Unnava, & Montgomery,2009).

Racism Issue Awareness and Concern in the Fashion Industry:

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

- Consumers are increasingly unwilling to connect with brands that exhibit racist behaviouror poor judgement ( Referring to Euclid Analysis in 2017, consumers are no longer willing toconnect with brands).

-Studies show that a significant portion of consumers would boycott brands or companies thatare perceived as racist or sexist.( From the Euclid “What Kills Customer Loyalty Survey”report surveying American consumers, shows that 58% of the respondents will undoubtedlyboycott the brands or companies which appeared to be racist and 50% would boycott thosewho 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 andcontroversies in this field, including the impact of negative advertising, the long-term effects

6

of negative information, and the role of brand image The author's intention to investigate therelationship between racism concern and awareness in Indonesia regarding brand value afterthe Dolce & Gabbana racial discrimination scandal and consumers' purchase intentionprovides 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, brandattitude, brand image, and purchase intention in consumer behaviour However, there are afew gaps in the existing knowledge that this study aims to address.

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

-The role of brand attitude in the context of negative brand information needs furtherexamination While previous research has indicated that negative brand information has anegative impact on brand attitude, it is important to delve deeper into the underlyingmechanisms and factors that mediate this relationship.

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

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

7

Research design and methodsResearch design

1 Secondary sources would be used in addition to original data collecting as part of thestudy plan.Original research refers to a type of research that involves the collectionand analysis of new and original data to answer a specific research question or to testa hypothesis In secondary research, look at existing data from other researchers, suchas academic journals, government agencies, or national statistics.

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

3 A descriptive approach would be the main emphasis of the study strategy The goal ofdescriptive 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 toqueries on the nature, consequences, and manifestations of the scandal Even if thequalitative data may show correlations between the variables, the study's main goalwould still be to get a thorough knowledge of the problem rather than demonstratecausal linkages Variable manipulation experimental designs would not be appropriatefor this kind of study.

Methods and Sources

1 When: In order to obtain pertinent information and responses, data collection andanalysis would normally take place following the Dolce & Gabbana crisiscontroversy The researcher's judgement and the data's accessibility would determinethe precise time range (Nov 23,2018)

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

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

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

8

Gabbana websites.Gather original sources, significant publications, and pertinent datato build an extensive dataset.( The NewYork Times, CNN, )

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

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

Practical Considerations

Data management: Create policies and processes to handle the gathered information For thepurpose 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 torecommendations, worries, and feedback from stakeholders This might entail setting upmeetings, facilitating distant collaboration via technology, and maintaining opennessthroughout the whole study process.

9

Implications and contributions to knowledgePractical Implications

1 Crisis management: provide valuable insights for companies facing negative publicitycrises then develop effective strategies to manage such crises, including timely and sincereapologies, 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 candevelop targeted brand image repair strategies.

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

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

10