THE EFFECT OF NEGATIVE PUBLICITY ON BRAND EQUITY (IMAGE, ATTITUDE, AND PURCHASE INTENTION) IN INDONESIA: CASE OF DOLCE AND GABBANA RACISM SCANDAL

• Main Author: Ilona Maslikhan, Mawaddah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41976
• Institution: Institut Teknologi Bandung

The paper examines the effect of negative publicity has 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. Additional variable on racism awareness and concern were added to see the existence of relationship with purchase intention after being exposed to negative publicity. This variable is chosen due to the higher tendency on racism, tokenism, cultural appropriation, and misrepresentation in fashion and beauty industry. The study use quantitative approach through online questionnaire in which 104 responses were gathered using 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 towards 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.