Article: Hacking´s Brand-Equity Nexus

Question 1

What is brand equity?

Answer 1

• Consumer perception of a product or service´s value or attractiveness
• > Two key determinants: perceived quality and brand loyalty

Question 2

How is brand equity linked to cyberattacks?

Answer 2

• The brand´s value decreases significantly
• > E.g. when consumer data is compromised
• > E.g. “Buzz-Index” decreases
• Product´s are perceived as being of lower quality
• Brand loyalty declines
• Linked to consumers´ perception of the organization´s cybersecurity practices or lack thereof and the postbreach response
• > companies have to react quickly and aggressively