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Effectiveness of corporate responses to brand crises: The role of crisis type and response strategies

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  • Dutta, Sujay
  • Pullig, Chris
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    Abstract

    Brand crises are adverse events that threaten brand reputations. Research indicates that corporate responses to crises play a role in restoring brand equity. However, there is confusion as to the best type of response. On the one hand, there is a strong advocacy for a singular type of response strategy, corrective action, regardless of the crisis type, while on the other, there is support for a contingency-based view suggesting that the relative efficacy of responses depends on other factors. We contribute to this contingency-based view by comparing the efficacy of three major response strategies (denial, reduction-of-offensiveness and corrective action) in restoring post-crisis brand confidence and choice likelihood. We find that the relative effectiveness of response strategies depends on the nature of the brand crisis. Consequently, a “one type fits all” strategy for post-crisis responses can be suboptimal. We discuss the implications of our findings and provide directions for future research.

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    File URL: http://www.sciencedirect.com/science/article/pii/S014829631100021X
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 64 (2011)
    Issue (Month): 12 ()
    Pages: 1281-1287

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    Handle: RePEc:eee:jbrese:v:64:y:2011:i:12:p:1281-1287

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Brand crisis; Crisis response; Brand equity; Experimental design;

    References

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    1. Ruth, Julie A. & York, Anne, 2004. "Framing information to enhance corporate reputation: The impact of message source, information type, and reference point," Journal of Business Research, Elsevier, vol. 57(1), pages 14-20, January.
    2. Yuksel, Ulku & Mryteza, Victoria, 2009. "An evaluation of strategic responses to consumer boycotts," Journal of Business Research, Elsevier, vol. 62(2), pages 248-259, February.
    3. Netemeyer, Richard G. & Krishnan, Balaji & Pullig, Chris & Wang, Guangping & Yagci, Mehmet & Dean, Dwane & Ricks, Joe & Wirth, Ferdinand, 2004. "Developing and validating measures of facets of customer-based brand equity," Journal of Business Research, Elsevier, vol. 57(2), pages 209-224, February.
    4. Dawar, Niraj & Lei, Jing, 2009. "Brand crises: The roles of brand familiarity and crisis relevance in determining the impact on brand evaluations," Journal of Business Research, Elsevier, vol. 62(4), pages 509-516, April.
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    6. Dowling, Grahame R & Staelin, Richard, 1994. " A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, University of Chicago Press, vol. 21(1), pages 119-34, June.
    7. Kim, Peter H. & Dirks, Kurt T. & Cooper, Cecily D. & Ferrin, Donald L., 2006. "When more blame is better than less: The implications of internal vs. external attributions for the repair of trust after a competence- vs. integrity-based trust violation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 99(1), pages 49-65, January.
    8. Michelle L. Roehm & Michael K. Brady, 2007. "Consumer Responses to Performance Failures by High-Equity Brands," Journal of Consumer Research, University of Chicago Press, vol. 34(4), pages 537-545, 07.
    9. Huber, Frank & Vollhardt, Kai & Matthes, Isabel & Vogel, Johannes, 2010. "Brand misconduct: Consequences on consumer-brand relationships," Journal of Business Research, Elsevier, vol. 63(11), pages 1113-1120, November.
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