Search results

11 – 20 of 598
Article
Publication date: 9 October 2009

Dirk 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.

2604

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.

Details

International Journal of Retail & Distribution Management, vol. 37 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 18 January 2013

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…

6585

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.

Details

British Food Journal, vol. 115 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 December 2018

Yeonsoo Kim and Chang Wan Woo

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

1801

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.

Details

Corporate Communications: An International Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 17 January 2023

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.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 9
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 30 October 2018

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…

1095

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.

Details

Journal of Product & Brand Management, vol. 27 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 February 1994

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…

8065

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.

Details

European Journal of Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 19 September 2023

Zifei Fay Chen and Yang Cheng

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…

203

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.

Details

Internet Research, vol. 33 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 13 May 2014

Syed Tariq Anwar

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…

2203

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.

Details

Competitiveness Review, vol. 24 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 6 November 2018

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…

1077

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.

Details

Journal of Consumer Marketing, vol. 35 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 13 April 2015

– This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

300

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.

Details

Strategic Direction, vol. 31 no. 5
Type: Research Article
ISSN: 0258-0543

Keywords

11 – 20 of 598