Corporate communication effects and crisis type: Deriving managerial implications from theory

Sparks, Beverley, Glendon, Ian and McDonald, Lynette (2005). Corporate communication effects and crisis type: Deriving managerial implications from theory. In: Kate Ui Ghallachoir, Academy of Marketing Conference Proceedings 2005: Building Business, Shaping Society. Marketing: Building Business, Shaping Society: Incorporating The 5th American Marketing Association/Academy of Marketing Joint Biennial Conference, Dublin Institute of Technology, Dublin, Ireland, (). 5-7 July 2005.

Author Sparks, Beverley
Glendon, Ian
McDonald, Lynette
Title of paper Corporate communication effects and crisis type: Deriving managerial implications from theory
Conference name Marketing: Building Business, Shaping Society: Incorporating The 5th American Marketing Association/Academy of Marketing Joint Biennial Conference
Conference location Dublin Institute of Technology, Dublin, Ireland
Conference dates 5-7 July 2005
Proceedings title Academy of Marketing Conference Proceedings 2005: Building Business, Shaping Society
Place of Publication Dublin
Publisher UK Academy of Marketing
Publication Year 2005
Year available 2005
Sub-type Fully published paper
ISBN 978-1905824007
Editor Kate Ui Ghallachoir
Language eng
Abstract/Summary Corporate crises are becoming more frequent and devastating for companies with the resultant negative publicity often generating consumer anger towards the organization and its products. This negatively impacts consumer purchase intentions, sales, market share and stock prices. Despite the fact that the organizational message communicated following a crisis may be the only element under company control at the crisis outbreak to affect outcomes, few studies have investigated message effects on consumers. In this paper it is posited that, following a crisis-precipitating event, the best organizational message to reduce negative consumer reactions may be contingent upon the perceived cause of the crisis. That is, whether the crisis cause was internal or external to the company, and whether it is controllable or uncontrollable by the company, or an ambiguous combination of these. We argue, using Weiner’s (1986, 1995) attribution theory, that consumers prefer messages that reflect the level of responsibility matching the crisis cause. A managerial decision tree is proposed to guide selection of message in the fast-paced decision-making period following a crisis. In doing so, we argue for the application of a new crisis typology based on causal conditions.
Subjects 1503 Business and Management
Keyword Corporate crisis
Attribution theory
Negative consumer reactions
Q-Index Code EX

 
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Created: Mon, 25 Jan 2010, 10:44:15 EST by Ms Therese Nolan-brown on behalf of Faculty of Social & Behavioural Sciences