No abstract

No abstract

Purpose This paper aims to investigate the impact of brand equity (BE) on stock performance (i.e. stock return, volatility and beta), and compare the performance of a high brand equity stocks (HBES) portfolio with that of the overall market during market downturn, market upturn and total disturbance periods of the COVID-19 pandemic in 2020. Design/methodology/approach Stock performance data and brand valuation estimates are obtained from various sources to assemble a portfolio of HBES and conduct the analyses. Econometric models are estimated to examine the impact of BE on stock performance and compare the HBES portfolio performance versus the overall market. Findings BE was positively associated with stock return and negatively associated with both types of risk (volatility and beta) during the COVID-19 pandemic. Specifically, during the market downturn period, BE was positively related to stock return and negatively related to stock volatility; during the market upturn period, BE was negatively associated with both types of risk; and during the total disturbance period, BE was positively associated with stock return and negatively associated with both types of risk. Finally, the HBES portfolio outperformed the market (S&P 500 index). Research limitations/implications The findings advance the extant research by providing evidence pertaining to brands' role in mitigating the impact of unpredictable market shocks and crises, such as the COVID-19 pandemic, on stock performance. While brands are mostly viewed as drivers of sustained competitive advantage and profitability, their protective role in crisis times is noteworthy. Practical implications The research findings potentially help marketing and brand managers to justify marketing spending and craft their strategies to enhance firm performance during crises similar to COVID-19. Originality/value The marketing–finance interface can benefit from insights offered by the COVID-19 pandemic, as such crises are becoming prevalent and are capable of damaging various stakeholders' outcomes (firms, investors and customers). The empirical examination is separately conducted on the market downturn, market upturn and total disturbance period attributable to the COVID-19 pandemic.

Frontline employees (FLEs) often face customer incivility—rude or demeaning remarks, verbal aggression, or hostile gestures. Although incivility from customers is rising at an alarming rate, most organizations refuse to act decisively to protect their FLEs and stop customer incivility. This research asserts that an organizational policy of ignoring and accepting incivility from customers is neither a wise business strategy nor has positive outcomes. In contrast, customer incivility should be handled promptly and decisively. Specifically, the authors present FLE Constructive Resistance (FLE CR) as a strategy to confront customer incivility. The authors conduct interviews with FLEs, develop a Constructive Resistance (CR) scale to fit the context of FLE–customer encounters, and test a conceptual model to examine the impact of CR by FLEs. The results suggest that customers who observe incivility perpetrated by fellow customers respond positively to FLE CR, including greater future purchase intention, greater positive word-of-mouth intention, and reduced future misbehavior intention. These effects are mediated by the observer’s perceived fairness of the FLE’s CR. Finally, the indirect effects of FLE’s CR on observer outcomes are more likely to manifest in customers with higher moral identity as well as newer customers.