When beauty meets crisis: exploring the role of aesthetic design and consumer response in product failure

Purpose This study aims to investigate the role of aesthetically appealing product design in the context of product failure, focusing on the concept of “beauty premium” and “beauty penalty”. This study seeks to determine whether beauty premium, which emerges prior to product failure, can serve as a protective mechanism for firms facing adverse events and, if not, to elucidate the conditions under which beauty premium transitions into beauty penalty. Design/methodology/approach The research uses a multi-method approach, combining experiments with empirical analysis using data from the US automobile market, specifically focusing on product recalls. The experiments are designed to establish internal validity, whereas empirical data offers insights into real-world contexts. This study considers the role of emotional and cognitive responses of consumers to visual design and explores the influence of gravity on product failures. Findings The findings reveal that beauty premium persists after product failure when consumers emotionally respond to visual design. However, beauty premium turns into beauty penalty (i.e. more visually attractive designs exacerbate the decline in purchase intention after product failure) when a product failure is severe and when consumers evaluate visual design cognitively. Research limitations/implications This research extends the theoretical understanding of the interplay between visual design, consumers’ cognitive and emotional responses and product failure. It introduces beauty premium and beauty penalty, shedding light on the effects of aesthetics in both pre- and postproduct failure conditions. Practical implications This research offers practical guidance for brand managers and product designers. It is essential to maintain functional expectations and aesthetics to secure brand loyalty, especially for consumers who evaluate products cognitively in product failure cases. Originality/value This research offers unique contributions. It uncovers the protective role of visual aesthetics in mitigating the loss of consumer purchase intention and sales postproduct failure. It challenges the conventional belief that aesthetically appealing design always yields positive outcomes, introducing the possibility of beauty premium transitioning into beauty penalty. It sheds light on the dynamic relationship between product design, product failure and consumers’ emotional and cognitive responses, providing valuable insights for brand managers, product designers and marketing practitioners in an ever-evolving consumer landscape.