Online Brand Community Response to Negative Brand Events: the Role of Group eWOM

Abstract

Purpose– Brand communities now play a significant role in building brand loyalty. Past researches focus on how brand community facilitates brand loyalty under normal market situations. Yet, limited research examines consumer responses to negative events within the brand community context. Drawing from social identity theory and the theory of involvement, the present study aims to reveal the role that group eWOM plays in influencing brand community members’ evaluation on negative brand decisions. Design/methodology/approach– By using an experimental study, the current research adopts far brand extension as the empirical testing ground. Findings– This research illustrates that group eWOM`s influence on brand community member`s attitude toward the negative brand information is affected by member`s level of brand community identification and brand involvement. When the group eWOM opposes far extension, high brand community identified members are driven by social creativity to resist negative impacts to the brand. However, when the group eWOM supports far extension, high brand involved members are strengthened by group eWOM to promote favorable brand evaluations and attenuate negative impacts to the brand. Practical implications– Firms should leverage the ingrained associations between brand community identification, brand involvement and group eWOM in affecting brand community’s responses to insulate brand community from the impacts of negative events. Originality/value– The present study extends prior research on customer loyalty from an individual perspective to reveal the significance of group dynamics in influencing brand community’s response to negative events.