Strategies to offset performance failures: The role of brand equity

摘要: Abstract In this research, we examine the role of brand equity as a strategy to offset negative effects performance failure. Two independent studies, spanning four industries and involving 669 respondents are employed investigate issue. Results suggest that high leads more favorable satisfaction evaluations behavioral intentions than low equity. The effect is identified prevailing advantage spans entire failure recovery sequence. This an important finding because it implies advantages theoretically can apply all failures, not just those for which attempted. Further inspection, however, reveals despite advantage, high-equity failures lead drastic decline in customer immediately after episode. Managerial implications future research addressed.