The Effect of Negative Publicity on Brand Equity (Image Attitude, and Purchase Intention) in Indonesia: Case of Dolce and Gabbana Racism Scandal



Volume 5, Issue 3
Mawaddah Ilona Maslikhan

Published online: 21 June 2019
Article Views: 35

Abstract

The paper examines the effect of negative publicity on brand attitude, brand image, and purchase intention in the context of Luxury Brand in Indonesia by seeing the influence of negative publicity has on both brand attitude, and brand image, which later on correlated with purchase intention to see the relationship purchase intention has on brand attitude and brand image. The study uses a quantitative approach through an online questionnaire in which 104 responses were gathered using a convenience sampling approach and analyzed using Wilcoxon Signed Rank Test and Spearman Correlation test. The result of the analysis shows that negative publicity has negative influence on brand attitude and brand image. The findings also shown the strong positive relationship is existed between brand attitude & purchase intention, and brand image & purchase intention. On the other hand, the correlation also existed between racism awareness and concern, and purchase intention after negative publicity exposure, only that it is very weak. The result may be caused by the negative information given is not about racism in Indonesia itself, but in China, so even the tendencies of Indonesian in racism awareness and concern is high, it will not necessarily result in the same degree as the purchase intention. Hopefully, this research will be useful and give the proper managerial implication for luxury brand companies when they encounter such negative publicity, emphasizing cultural and racism issues.

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To Cite this article

Maslikhan, M. I. (2019). The effect of negative publicity on brand equity (image attitude, and purchase intention) in Indonesia: Case of Dolce and Gabbana racism scandal. International Journal of Business and Administrative Studies, 5(3), 144-154. doi: https://dx.doi.org/10.20469/ijbas.5.10004-3