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Abstract
Purpose - Drawing on an interdisciplinary scholarship, this study seeks to explore and explain the nature and characteristics of the emerging phenomenon of "consumer nationalism" and its critical impact on corporate reputation in the global marketplace.
Design/methodology/approach - The paper sets out to define the concept of consumer nationalism and then formulate an analytical framework of consumer nationalism dynamics that provides a deeper, more precise understanding of the various elements at play in a consumer nationalism crisis and the process by which multinational businesses and their corporate reputation might be affected by such nationalistic advocacy. Based on the proposed model, the paper identifies and discusses management options to protect and maintain corporate reputation in the event of consumer nationalistic outbursts. In conclusion, the paper outlines general recommendations for pursuing public/corporate diplomacy and for proactively managing consumers' perception of brands' national association as part of pre-crisis communication strategy.
Findings - As nationalism goes hand-in-hand with globalization, consumer nationalism cannot be ignored.
Originality/value - The study provides a deeper understanding of what consumer nationalism is and how it may affect multinational businesses. It offers a comprehensive account of this emerging phenomenon by integrating existing perspectives on the nationalistic consumer base and "focusing events", and introduces the concept of corporate susceptibility and its components. The study also highlights the centrality of corporate reputation during consumer nationalistic outbursts, and offers suggestions as to how multinational businesses may take steps to fend off the damage consumer nationalism events may do to their reputation.
Keywords Consumer behaviour, Corporate image, Multinational companies, Globalization
Paper type Research paper
As a core component of a company's intangible asset, corporate reputation is gaining increasing importance to business objectives (Corporate Reputation Watch, 2003). In a competitive marketplace, businesses naturally do their utmost to protect and maximize their reputation capital (Benoît, 1995; Fombrun, 1996). But managing corporate reputation is not getting any easier, especially for global players. While the world's economy is becoming increasingly borderless and people's awareness of a larger, more interdependent world is heightened, other divisions, and in particular symbolic boundaries, are growing more visible and prominent (Barber, 1996). Against the backdrop of the seemingly inexorable path towards economic and consumer globalization, multinational corporations (MNCs) are now grappling with a set of new...