Impact of Personal Influence on Purchase Intention in a Product Harm Crisis: A Cross-national Study between Chinese and Sri Lankan Young Consumers' Moral Reputational Perspective

The objectives of the current study are to examine the impact of product harm crisis on consumers‟ moral reputation toward the affected company and brand, and to investigate the impact of close friends on purchase intention of the affected brand. A self administered, pre-tested questionnaire containing a hypothetical crisis scenario was distributed to 100 Chinese and Sri Lankan consumers. Regression and independent samples t test reveal that product harm crisis causes significant negative effect on consumers‟ moral reputation toward the affected company and brand, and subsequent detrimental impact on consumer based brand equity. Hierarchical multiple regression analysis recognizes the role of close friends that moderates the relationship between consumer based brand equity and purchase intention of the affected brand in Chinese culture. This study provides useful insights for crisis managers and for further research investigations.