Does a leader’s behaviour influence product demand? A brand professor weighs in on the Elon Musk case for Helsingin Sanomat

The Finnish newspaper Helsingin Sanomat interviewed brand professor Saila Saraniemi regarding the influence of Musk’s behaviour on the demand for products associated with the companies he leads. Saraniemi emphasises that the alignment of a company’s values with those of its consumers is a critical factor in purchasing decisions.

“A company’s brand develops over the long term. A single controversy may not necessarily sever the relationship between the consumer and the brand, but repeated negative incidents can cause lasting damage,” Saraniemi explains.

Tesla, X (formerly Twitter), and SpaceX are closely tied to Musk’s persona, heightening the significance of his actions. However, the impact manifests at different speeds. For instance, it is relatively easy for consumers to abandon a social media channel like X, whereas replacing a car is a long-term decision.

Saraniemi suggests that competitors could exploit the situation by offering appealing alternatives.

“If competitors succeed in matching Tesla’s innovations, the threshold for consumers to switch brands may be lowered. However, in the automotive industry, such effects tend to appear with a delay,” she notes.

Original news article: Elon Musk’s Behaviour Took Such a Strange Turn That a Professor Believes the Effects Will Creep Into Car Sales