When Social Media Hits the Fan - How Customer Value is Influenced by a Brand Crisis on Social Media

Sammanfattning: Keywords: Brand Crisis on Social Media, Customer Judgements, Customer Feelings, Customer Brand Resonance, Customer Value. Purpose: The purpose of this master thesis is to investigate how a brand crisis on social media influences customer value of a brand. This is done by exploring the underlying key factors that influence customers’ perceptions during such crises. Theoretical Perspective: The thesis predominantly addresses theories on customer value, brand crisis on social media, and how customers are influenced and respond. The theoretical perspective combines Keller’s (2001) conceptualization of customer-based brand equity and Kapferer's (2012) conceptualization of customer value. As a result of the presented theoretical perspective, a conceptual framework is developed. Methodology/empirical data: The thesis follows a qualitative and abductive research approach through the utilisation of netnography together with interviews as a complement, allowing a more in-depth analysis. The netnography data derives from the social media platforms Twitter and TikTok where comments from users have been collected. Six semi-structured interviews were also held with customers of Balenciaga with different demographic backgrounds. Conclusion: The findings of this thesis present that customer value is influenced by a brand crisis on social media, mostly negative but also positive. The customer-based brand equity elements of loyalty, credibility & trust, consideration, excitement, security and social approval are all decreasing by a brand crisis on social media and are therefore value destroying. Attachment, protection and quality are instead increasing or unchanged during a crisis, while the elements' engagement and community are influenced both positively and negatively. Based on the findings we could develop a new revised conceptual framework in order to contribute both practical and theoretical.