Elon Musk’s apparently solid upward drift has led to actions and statements that have sparked a lot of controversy over the past couple of years. Musk, the revolutionary leader of X Corp. and the CEO of Tesla, SpaceX, is a person attempting to bring people to Mars. Additionally, he is the wealthiest person on the planet.
Most recently, these controversies include his endorsement and support of Germany’s far-right Alternative for Germany ( AfD ) party, gestures interpreted as a Nazi salute during Donald Trump’s presidential inauguration and accusations of election interference.
In January, profits of Tesla vehicles slumped across five Western countries – the UK, France, Sweden, Norway and the Netherlands. California, the state with the largest car market in the US, saw profits decline as well. And Musk and his politics, in at least one review, might be a major contributor to the issue.
When Directors are in the public eye, their private companies and beliefs, and those of the firms they represent, can be hard to distinguish. Our research has discovered that frequently, the CEO’s brand identity and popularity will be impacted by the person’s popularity and reputation, and vice versa.
As a human being, Musk’s specific actions and statements directly impact the corporations he represents. His public image makes it difficult to tell the two apart due to his high profile.
Some Tesla customers have turned off by Musk’s controversial remarks and political endorsements, specially in progressive markets like California and Europe.
In these locations, Tesla has previously been famous with environmentally conscious consumers. When a CEO’s patterns and his or her product don’t align, this can compromise the company benefit of both the CEO and the business.
Artists, officials, CEOs and other public figures tend to attract viewers whose personal values is at times depart from those of the leader. Where this occurs, devoted followers could be at a loss as to how to react to these numbers or the goods of the individuals or organizations they are associated with.
A popular misconception is that fascinated fans are also obsessed with expressing their dislike. Instead, they are more likely to acquiesce ferociously and defend their champions ‘ deeds. Intense deeds of “fan forces” on social media platforms have certainly helped with these beliefs.
But in truth, our research has shown that devoted fans may be important. We found that more than less committed consumers are more likely than not to react in severe criticism when they feel betrayed by the actions of people they associate with or hold dearly dear.
Devoted fans and consumers could react in a variety of ways to personalities like Musk, whose businesses produce physical goods. Some obstinate Tesla supporters and supporters may dismiss criticism of his conduct as an assault on their own beliefs or free speech.
They are likely to continue to purchase Teslas despite, and they may even change their own opinions to fit their “hero”‘s.
Out of phase
For other users, owning a Tesla may never longer sign essentially their views about sustainability. There may be a smile to ideologies or political affiliations that conflict with theirs.
If Tesla’s behaviour is perceived as dangerous in their social networks, some consumers may want to cut him off from Tesla. Nevertheless, as a purchase requiring large engagement and devotion, switching from Tesla to another Volt may be difficult.
The current trend of Tesla users displaying explanation tags on their cars is a way to reduce the strain between owning one and the actions of the CEO they don’t like.
The stickers give people a way to separate themselves from Musk’s activities while avoiding being severely perceived by their social networks. This is more likely to lead to a continuous product erosion than a drop in sales right away.
On the other hand, clients of businesses like BrewDog, a brand that has previously been accused of instilling a culture of fear, may be more apt to respond to negative CEO behavior. They at least have the option to move to a different company for a reasonable price. ( BrewDog, for its part, apologiszd and said it was” committed to doing better”. )
And if Live voters oppose engineer James Dyson’s position on Brexit, they might be offended but still be able to justify keeping a mid-priced object like a vacuum cleaner until it breaks, probably switching for new ones rather than abandoning them completely.
When a leader CEO disappoints them, users may react in a variety of ways. But brands risk losing blind, unquestioning loyalty, perhaps from devoted fans.
James Obiegbu is lecturer in experienced advertising and control, Bournemouth University and Gretchen Larsen is professor in advertising, Durham University Business School, Durham University
This content was republished from The Conversation under a Creative Commons license. Read the original content.