Brand Vulnerability: Concept and Influencing Factors
Modern brands function in the markets that are defined by uncertainty. Brand when functioning in the environments characterized by uncertainty has become the vulnerable asset of an organization. Brand vulnerability is the premise for the formation of brand risk. Despite theoretical and practical relevancy of a brand vulnerability conception, brand vulnerability is not developed and a new topic in marketing literature. First of all, it is important to define the concept of brand vulnerability and distinguish factors, potentially influencing it.
The article presents the concept of brand vulnerability, which will be followed and, referring to the analysis of research literature and the deduction method, the premise that brand vulnerability forms due to brand equity is made. By combining these concepts, the concept of brand vulnerability is defined.In the article, referring to the distribution of the powers influencing brand evolution presented by Tellis and Crawford (1981), the factors influencing brand vulnerability are grouped into two groups. As a result of comparative analysis of research literature, the decomposition of two-factor groups, management decisions and the factors of external environment determining brand vulnerability, is presented.