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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

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.

Suggested Citation

  • Dutta, Sujay & Pullig, Chris, 2011. "Effectiveness of corporate responses to brand crises: The role of crisis type and response strategies," Journal of Business Research, Elsevier, vol. 64(12), pages 1281-1287.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:12:p:1281-1287
    DOI: 10.1016/j.jbusres.2011.01.013
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:touman:v:54:y:2016:i:c:p:209-220 is not listed on IDEAS
    2. Dutta, Sujay & Pullig, Chris, 2015. "A commentary on reporting effect size and confidence intervals: Response to Palmer and Strelan (2014)," Journal of Business Research, Elsevier, vol. 68(5), pages 1082-1085.
    3. Kashmiri, Saim & Brower, Jacob, 2016. "Oops! I did it again: Effect of corporate governance and top management team characteristics on the likelihood of product-harm crises," Journal of Business Research, Elsevier, vol. 69(2), pages 621-630.
    4. repec:eee:jbrese:v:81:y:2017:i:c:p:156-162 is not listed on IDEAS
    5. repec:eee:ijrema:v:33:y:2016:i:1:p:59-77 is not listed on IDEAS
    6. Robbins, J.A. & Franks, B. & Weary, D.M. & von Keyserlingk, M.A.G., 2016. "Awareness of ag-gag laws erodes trust in farmers and increases support for animal welfare regulations," Food Policy, Elsevier, vol. 61(C), pages 121-125.
    7. Zou, Peng & Li, Guofeng, 2016. "How emerging market investors' value competitors' customer equity: Brand crisis spillover in China," Journal of Business Research, Elsevier, vol. 69(9), pages 3765-3771.

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