This paper discusses resilience strategies required to be demonstrated by the brands after a product harm crisis, taking into consideration Samsung, one of the leading brands, as a case study. Product harm crisis often bring an organization into a conflicting position. Not only does the crisis affect the reputation of the brand negatively, but also the media focus on the same allows the consumers to judge the brand in a manner which is not the usual course. Samsung had to face a similar situation when S7 launched by the company turned out to be failure due to multiple instances of exploding of the handset. At such a point of time, the brand not only requires to manage its reputation which is at stake at the time of product failure but is also required to demonstrate resilience and act agile. Consumer beliefs toward a brand also get distorted in the case of product failure that affects their future intention to purchase from the brand along with the WOM (Word of Mouth) which act as referrals. Therefore, it impacts the way how the future consumers would like to interact with the company. Limited research has been done on the factors that affect the brand resilience and the recovery steps taken by the brand to compensate for the loss of image caused due to product harm crisis. This research paper therefore tries to examine the strategies adopted by Samsung as a brand after the crises to regain consumer trust and act as a resilient brand.

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Case Study of Brand Resilience with Special Reference to S7 Crisis of Samsung Electronics

  • Shweta Manchanda,
  • Mamta Mohan

摘要

This paper discusses resilience strategies required to be demonstrated by the brands after a product harm crisis, taking into consideration Samsung, one of the leading brands, as a case study. Product harm crisis often bring an organization into a conflicting position. Not only does the crisis affect the reputation of the brand negatively, but also the media focus on the same allows the consumers to judge the brand in a manner which is not the usual course. Samsung had to face a similar situation when S7 launched by the company turned out to be failure due to multiple instances of exploding of the handset. At such a point of time, the brand not only requires to manage its reputation which is at stake at the time of product failure but is also required to demonstrate resilience and act agile. Consumer beliefs toward a brand also get distorted in the case of product failure that affects their future intention to purchase from the brand along with the WOM (Word of Mouth) which act as referrals. Therefore, it impacts the way how the future consumers would like to interact with the company. Limited research has been done on the factors that affect the brand resilience and the recovery steps taken by the brand to compensate for the loss of image caused due to product harm crisis. This research paper therefore tries to examine the strategies adopted by Samsung as a brand after the crises to regain consumer trust and act as a resilient brand.