Effects of Brand Hate on Brand Equity: The Role of Corporate Social Irresponsibility and Similar Competitor Offer

Abstract

This paper summarises the arguments and counterarguments based on the assumptions of the theory of hate. The study is aimed at testing the mediating role of brand hate elicited in the relationship among the similar competitor offer, corporate social irresponsibility and brand equity. The study sample consisted of 550 participants from the education sector in Pakistan. The methodological tool of the research was structural equation modelling. Purposive sampling technique was used to reach the appropriate respondents for the study. This study was time-lagged conducted in three times data periods: in Time 1 a total of 800 surveys were distributed, out of which 722 were returned from respondents; in Time 2 722 surveys were distributed to same respondents, out of which 600 were returned; in Time 3 600 surveys were again distributed to the same respondents, out of which 550 were returned. The obtained results confirmed the mediating role of brand hate. Herewith, findings revealed that due to similar offers individual feelings such as loss of self-individuality usually developed and be negatively perceived. Thus, it yields to decline in product value. Likewise, corporate social irresponsibility found to have a more negative relationship with brand equity. Results of the current study revealed that negative feelings due to the similarity in competitor offer could stem from diverse sources. Therefore, it could result in an undesired personality self-loss, if a brand represented a similar brand as its competitors ultimately perceived negative and yielded a decline in value of product/service. The current study also unveiled that corporate social irresponsibility is a strong predictor of negative feelings. Corporate social irresponsibility motivates consumers towards brand hate, thus hampering brand equity. According to the mentioned above, there must be careful management of corporate social responsibility to avoid the negative effect on brand equity. In turn, brand hate mediating the relationship between similarity to competitor offer and brand equity alters consumer perception towards a brand. Thus, companies must fulfil consumers’ expectations to minimise brand hate which eventually increases brand equity. This study stands novel and considered as the first attempt to empirically explore the role of similarity to competitor offer and corporate social irresponsibility in eliciting brand hate that could adversely affect on brand equity. The study provided the limitations for future researchers, implications for managers and future directions. Keywords duplex theory of hate, tetra-Pak consumer, similar competitor offer, brand hate, brand equity, corporate social irresponsibility.

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