Research On The Influence Of Perceived Risk On Brand Asset In Product Crisis Event

In recent years, with the economic and consumption level improving, consumer's perception of risk awareness and rights have greatly increased, consumers have increasingly concerned about product safety which related to their health, and they also pay more attention to product quality. At the same time, computer technology, information network technology and the rapid development of mass media technology, makes the information of the company spread to consumers rapidly. Those information include negative information of the company which consumers pay special attention to. Once these negative information being disclosed, consumers will fell panic, and it will lead to product crisis event.Lots of survey data show that a high proportion of enterprises are in Medium and high risk status. Brand equity is an important intangible asset, but the company's brand equity is very weak, as brand equity based on customers'knowledge and trust of products, once consumers get the negative information of enterprise, consumers' brand awareness and trust of the brand will be changed. Many enterprises in the product crisis suffered considerable damage, even worse, such as "Sanlu" brand completely disappeared, although some brands experienced product-crisis but didn't disappeared as "Sanlu", but have these intangible assets been hit then? To solve this problem, this paper start from the consumer's perceived risk, to research the influence of products crisis on brand assets. This paper put forward to some suggestions hoping to inspire and do some contributions to prevents and respond to the product crisis.This article first elaborate literature review about product crisis, perceived risk, brand equity and the relationship between them, based on previous studies I have found a research opportunity. Then the paper interpretate the concepts of product crisis, perceived risk and brand equity. Finally, through empirical research to study the influence of products crisis on brand assets event. The results showed that:perceived risk include financial risk, functional risk, security risk, psychological risk and social risk; Brand equity include brand loyalty, perceived quality, perceived value and purchase intention, financial risk on the three dimensions of brand equity brand loyalty, perceived value, purchase intention significantly negative effect; performance risk on the four dimensions of brand equity, there were significant negative effects; functional risk, risk in the car that the product is especially important; and social risk and psychological risk to the dimensions of brand equity is not very significant.According to the results of empirical research, this paper puts forward the several suggestions to prevent and response enterprise crisis. This paper recommends that companies should establish and improve the quality management system, including product quality and service quality, in order to prevent crisis events. Companies should also establish effective and stable price system. Consumer's perception of financial risk is one of the most significant risks. Perceived risk are generated most because of information asymmetry, so this paper propose that companies should make sure a more effective information dissemination. Dissemination of information, including consumers, the public and government.Innovation of this paper is the research perspective. The main point of this paper is that what really affect brand equity are five kinds of customer's perceived risk. Then according to empirical research conclusions, this paper put forward several recommendations. In this paper use normative theory and quantitative analysis to research product crisis, customer perceived risk and brand equity.