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The Effect of Negative Publicity on Brand Equity (Image Attitude, and Purchase Intention) in Indonesia: Case of Dolce and Gabbana Racism Scandal

Author

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  • Mawaddah Ilona Maslikhan

    (University of Hull, Hull, United Kingdom School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia)

Abstract
The paper examines the effect of negative publicity on brand attitude, brand image, and purchase intention in the context of Luxury Brand in Indonesia, by seeing 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. Additional variable on racism awareness and concern were added to see the existence of a relationship with purchase intention after being exposed to negative publicity. This variable is chosen due to the higher tendency on racism, tokenism, cultural appropriation, and misrepresentation in fashion and beauty industry. The study uses a quantitative approach through online questionnaire in which 104 responses were gathered using convenience sampling approach and analyzed using Wilcoxon Signed Rank Test and Spearman Correlation test. The result of the analysis shows that negative publicity has negative influence on brand attitude and brand image. The findings also shown the strong positive relationship is existed between brand attitude & purchase intention, and brand image & purchase intention. On the other hand, the correlation also existed between racism awareness and concern, and purchase intention after negative publicity exposure, only that it is very weak. The result may be caused by the negative information given is not about racism in Indonesia itself, but in China, so even the tendencies of Indonesian in racism awareness and concern is high, it will not necessarily result in the same degree as the purchase intention.

Suggested Citation

  • Mawaddah Ilona Maslikhan, 2019. "The Effect of Negative Publicity on Brand Equity (Image Attitude, and Purchase Intention) in Indonesia: Case of Dolce and Gabbana Racism Scandal," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(3), pages 145-154.
    • Handle: RePEc:apa:ijbaas:2019:p:145-154
    DOI: 10.20469/ijbas.5.10004-3
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    References listed on IDEAS

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    1. Kittipa Wichailert & Khanchitpol Yousapornpaiboon, 2017. "Brand equity affects brand loyalty of the bottled mineral drinking water in Thailand," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(4), pages 180-191.
    2. Grimmer, Martin & Bingham, Timothy, 2013. "Company environmental performance and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 66(10), pages 1945-1953.
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    1. Maytinee Vongtharawat∗ & Katawoot Jeambua & Santidhorn Pooripakdee, 2019. "Willingness to Use and Pro-Environmental Attitudes for Airlines’ Environment Friendly Services: The Perspective of Thai Passengers," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 5(4), pages 145-156.

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