EFFECTS OF ORGANISATIONAL RESPONSE AGAINST NEGATIVE EVENT ON CONSUMER BRAND ASSOCIATION

Study examines the influences of various organisational response cases against a negative event on consumer brand associations (CBA). Intensity of, and the differences between CBA with the flag carrier in commercial airline industry in a Mediterranean country are measured aperiodically over a seven month period for four real-case situations. Findings show evidence that the no-reaction case has a significant abating effect on CBA; even far south of the case of negative event occurrence itself. The corrective-action case; on the other hand, seems to benefit the service company encountering negative event, the most. Yet, a corrective response does not fully retrieve the once-damaged CBA.