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11 – 20 of 598Dirk Standop and Guido Grunwald
The purpose of this paper is to present the current empirical research examining communication, compensation and logistics as elements of product crises management in retailing.
Abstract
Purpose
The purpose of this paper is to present the current empirical research examining communication, compensation and logistics as elements of product crises management in retailing.
Design/methodology/approach
The advantages and disadvantages of these three elements of crises response strategies are juxtaposed drawing on relevant empirical research. For each element of crises response the major findings of research are summarized and shown how it relates to crisis management. Needs for further research that would be necessary to solidify recommendations to retail managers are derived.
Findings
The investigation finds that both communicative and compensatory response elements as well as the retailer's logistics can positively influence evaluations of customers directly and indirectly affected by product problems thus enhancing brand equity. This in turn will serve to increase consumers' trust in the retailer that could win him new customers and generally benefit his reputation.
Research limitations/implications
Most of the discussed research rests on the assumption of a given (extraneous) crisis response strategy of the manufacturer. Potential problems concerning the co‐ordination or implementation of manufacturer and retailer strategies remain open to question. Additionally, further research should examine which strategies are appropriate to which crisis situation.
Practical implications
Materially, over‐compensating customers often has a detrimental effect on solving the crisis. The impact of different compensation types on crisis resolution mostly depends on their respective signalling capabilities, the product problem constituting the crisis and consumer attributions. The use and the effects of a communicative crisis response largely depend on moderating factors such as the retailer's reputation or the existence of strong retail brands and consumer expectations. Elements of logistics seem to support the effects of communication and compensation on crisis resolution but are hardly capable of solving a product‐harm crisis.
Originality/value
The role of retailers in product‐harm crisis management has been widely neglected in research although such crises are predominant. This paper outlines the current empirical work on how different crises response elements may contribute to solving a product‐harm crisis for retailers. It derives relevant avenues for further research as well as useful insights to practitioners considering to using such response elements in their own crisis management strategy.
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Ioannis Assiouras, Ozge Ozgen and George Skourtis
The first purpose of this study is to analyse the impact of prior CSR information on the perceived degree of danger, attribution of blame, brand evaluation and buying intentions…
Abstract
Purpose
The first purpose of this study is to analyse the impact of prior CSR information on the perceived degree of danger, attribution of blame, brand evaluation and buying intentions after a product‐harm crisis in the food industry. The second purpose is to examine the moderation effect of CSR importance ascribed by the consumers on the above mentioned relations.
Design/methodology/approach
An experimental design consisting of three between‐subjects conditions was applied and three CSR initiative conditions were selected (positive, negative CSR and no CSR information as a control condition). In this framework, three different scenarios were designed and tested under the condition of a product‐harm crisis related to margarine.
Findings
This study highlights that CSR has an impact on attribution of blame, brand evaluation and buying intention but not on the perceived degree of danger. CSR importance has a moderation effect on the relationship between CSR and blame attribution, brand evaluation and buying intention.
Practical implications
Companies in the food industry should generate CSR strategies and should develop favourable CSR history not only because CSR has an impact on brand evaluation and buying intention in routine situations but because it is a part of crisis management and response strategy as well.
Originality/value
There is lack of research directly emphasizing the role of CSR in product‐harm crises, in the food industry. Besides, the assessment of CSR as an antecedent assurance factor in crisis situations has significant meaning due to the high vulnerability of food industry.
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The purpose of this paper is to examine the role of prior-CSR reputation in protecting a company’s CSR reputation during product-harm crises and how it influences consumers’ crisis…
Abstract
Purpose
The purpose of this paper is to examine the role of prior-CSR reputation in protecting a company’s CSR reputation during product-harm crises and how it influences consumers’ crisis-related behavioral intentions (i.e. supportive communication, resistance to negative information and crisis resiliency). The authors test whether the impact of prior-CSR reputation differs by crisis type as well.
Design/methodology/approach
A randomized 2 (CSR reputation: good vs bad) × 2 (product-harm crisis type: tampering vs preventable) full factorial design in two industry settings (food industry and retail industry) with consumer samples was conducted.
Findings
The results revealed the determinant role of positive prior-CSR reputation in protecting reputational assets. A company with positive CSR reputation experiences no decrease in its CSR reputation during victim crises and fairly minor decreases during preventable crises. However, a company with a bad prior-CSR reputation experiences a greater decline in its CSR reputation across both crises; the level of decline during victim crises was as substantial as the decline experienced during a preventable crisis. The prior-CSR reputation directly affects consumers’ crisis-related intentions, and indirectly does so through post-CSR reputation. As post-CSR reputation becomes more positive, consumers display greater resistance to negative information, supportive communication intent and crisis resiliency.
Originality/value
This study advances the understanding of the role of corporate reputation during crises and provides additional empirical evidence of how the buffering effect of CSR can extend beyond product-related intentions among consumers. The findings can induce companies to adopt CSR programs more systematically and proactively under a long-term strategic plan.
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Junyun Liao, Siying He, Yanghong Hu, Jiawen Chen and Xuebing Dong
Global product-harm crises increased in recent years. After such crises, firms' product-recall policies varied across countries, which might cause consumers in some countries to…
Abstract
Purpose
Global product-harm crises increased in recent years. After such crises, firms' product-recall policies varied across countries, which might cause consumers in some countries to feel unfairly treated. Drawing on the relative deprivation theory, this study aims to examine how perceived unfairness of local consumers alters their attitudes toward unfairness-enacting foreign brands and competing domestic brands.
Design/methodology/approach
This framework was tested by a netnography study on two product recalls from Samsung along with a consumer survey. While this netnography study provided preliminary support to the framework, survey data collected from 501 Samsung consumers after the Galaxy Note 7 crisis validated the theoretical model again.
Findings
Perceived unfairness increases local consumers' avoidance of involved foreign brands and their intention to purchase domestic brands through evoking anger toward the foreign brands. Moreover, the detrimental impact of perceived unfairness is found to be stronger when consumers' prior relationship quality is high.
Originality/value
To the best of the authors’ knowledge, this is the first paper that investigates unfair product recalls across countries and aims to provide important insights into how consumers react to the unfair treatment of foreign brands in a global product-harm context. This study contributes to the product-harm crisis literature and provides important implications for global product-harm crisis management strategies.
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Sabrina M. Hegner, Ardion D. Beldad and Ruth Hulzink
Brands facing a crisis have to decide whether to disclose crisis-related information themselves or to wait and take the risk that a third party breaks the news. While brands might…
Abstract
Purpose
Brands facing a crisis have to decide whether to disclose crisis-related information themselves or to wait and take the risk that a third party breaks the news. While brands might benefit from self-disclosing the information, it is likely that the impact of crisis communication on customers’ evaluation of the brand depends on the type of crisis. This study aims to investigate the influence of type of crisis on the relationshp between disclosure and brand outcomes.
Design/methodology/approach
A 2 × 2 between-subjects experiment with 180 Dutch participants was conducted.
Findings
Results show that self-disclosure of a negative incident positively affects consumers’ attitude, trust and purchase intention compared to third-party disclosure. Additionally, disclosure and crisis type interact. In times of a product-harm crisis, self-disclosure does not represent an advantage to third party disclosure, while in times of a moral-harm crisis disclosure by the brand is able to maintain customers’ positive attitude towards and trust in the brand compared to disclosure by a third party. Moreover, blame attribution mediates the effect of crisis type on brand evaluations.
Originality/value
Recent research indicates that self-disclosing crisis information instead of waiting until thunder strikes has beneficial effects for a brand in times of crisis. However, these studies use the context of product-harm crises, which neglects the possible impact of moral-harm crises. Furthermore, this study adds the impact of blame attributions as a mediator in this context.
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George J. Siomkos and Gary Kurzbard
Investigates the conventional wisdom concerning consumer responsesassociated with product defect during a product‐harm crisis. Reports onan experiment relying primarily on three…
Abstract
Investigates the conventional wisdom concerning consumer responses associated with product defect during a product‐harm crisis. Reports on an experiment relying primarily on three generally recognized factors: company′s reputation, external effects from regulatory agencies and the press, and organizational responses. Shows that over‐reliance on these areas may mask hidden variables which can prove counterproductive to crisis abatement.
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This study aims to propose a model that delineated the diffusion process of product-harm misinformation on social media. Drawing on theoretical insights from cue diagnosticity and…
Abstract
Purpose
This study aims to propose a model that delineated the diffusion process of product-harm misinformation on social media. Drawing on theoretical insights from cue diagnosticity and corporate associations, the proposed model mapped out how consumers' information skepticism and perceived content credibility influence their perceived diagnosticity of the product-harm misinformation and corporate ability (CA) associations with the company being impacted, which in turn influenced their trust toward the company and negative word-of-mouth (NWOM) intention.
Design/methodology/approach
A survey was conducted with 504 US consumers to empirically test the proposed model. Following the survey, in-depth interviews were conducted with 11 communication professionals regarding the applicability of the model.
Findings
When exposed to product-harm misinformation on social media, consumers' perceived diagnosticity of misinformation was negatively impacted by their information skepticism and positively impacted by perceived content credibility of misinformation. Perceived diagnosticity of product-harm misinformation negatively impacted consumers' CA associations, which then led to decreased trust and increased NWOM intention. Findings from the interviews further supported the diffusion process and provided insights on strategies to combat product-harm misinformation. Strategies shared by the interviewees included preparedness and social listening, proactive outreach and building strong CA associations as preventative measures.
Originality/value
This study incorporates the theoretical frameworks of cue diagnosticity and corporate associations into the scholarship of misinformation and specifically addresses the unique diffusion process of product-harm misinformation on social media. This study provides insights and tangible recommendations for communication professionals to combat product-harm misinformation.
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The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness…
Abstract
Purpose
The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness.
Design/methodology/approach
By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the paper uses content analysis to compare and contrast toy recalls, product hazards and country of origin issues of 721 toy recalls in the US market between 1974 and 2008, covering 270 million recalled toys.
Findings
Findings of this work reveal that most of the recalled toys were manufactured in China, although a wide variety of toy brands were designed in the USA. Major hazards of toy recalls included choking, lead poisoning, aspiration, fire/burn and other injuries.
Research limitations/implications
The study relied on the CPSC's data that seemed representative of the toy industry in the US market, but missed other markets of Europe and Asia. Also, there was availability of detailed data in sub-categories of the toy industry.
Practical implications
The paper provides useful academic and managerial implications that can help us understand the issues of product recalls and product-harm crises.
Social implications
Toys are one of the most widely available products in the world; the industry is a $50 billion industry and has transformed itself from a small-scale business sector into a well-established industry.
Originality/value
This investigation is particularly important in the areas of firm-specific competitiveness, business ethics and regulatory and societal issues.
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Aikaterini Vassilikopoulou, Apostolos Lepetsos and George Siomkos
This paper aims to examine consumer reactions during product-harm crises by measuring the impact of perceived risk, blame and trust on consumer purchase intentions. Moreover, the…
Abstract
Purpose
This paper aims to examine consumer reactions during product-harm crises by measuring the impact of perceived risk, blame and trust on consumer purchase intentions. Moreover, the role of perceived crisis severity is examined as affecting the three main endogenous variables of the conceptual framework.
Design/methodology/approach
The study uses the real-scenario approach for empirically testing the proposed conceptual framework. Participants were called to assess the story of a defective product (i.e. a soother that was recently recalled).
Findings
Results of the equation modeling demonstrate that perceived severity significantly influence trust and blame while it does not affect perceived risk. In addition, trust, blame and perceived risk notably affect purchase intentions.
Practical implications
Based on the study’s results, companies could implement appropriate strategies for reducing the negative consequences of a product-harm crisis.
Originality/value
The paper presents four key originality traits: Crisis management from the consumer perspective has received little attention. The relationship between trust, perceived risk and purchase intentions has not been explored in the crisis management field. Attribution of blame is a new variable added to the perceived risk-trust-purchase intention model. Perceived severity is examined as a moderator affecting the main endogenous variables of the conceptual framework.
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– This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Although product-harm crises can pose serious consequences for firms in both financial and intangible ways, continuous investment in brand equity can mitigate the negative consequences.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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