An empirical investigation of brand resilience through disclosure of negative information: A consumer preference perspective

Abstract

Many consumer brands present some level of harm. Consumers, however, are not always aware of the level of harm involved (Rundle-Thiele et al., 2008). A repeated measure Best-Worst design was used to measure consumers' stated choice preference for three brands of baby shampoo before and after information on the effects of petrochemicals on baby's skin was disclosed. A total of 323 valid questionnaires were collected before and a total of 79 valid questionnaires were collected after information disclosure. Preferences for the brand containing petrochemicals decreased and preferences for one competing brand which contained natural ingredients increased following disclosure of information on the effects of petrochemicals on baby skin. This study contributes to the literature showcasing how a repeated measure Best-Worst design can be used to predict the consequences of disclosing harmful information on brands to the public and, how consumers' purchase preferences can be predicated according to brand resilience.