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Product-harm crisis management: Time heals all wounds?

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  • Vassilikopoulou, Aikaterini
  • Siomkos, George
  • Chatzipanagiotou, Kalliopi
  • Pantouvakis, Angelos

Abstract

This paper focuses on product-harm crises and examines consumer responses associated with product defect in three time periods (i.e., 3 days, 3 months and 1 year after a crisis). An experiment was conducted based on three widely accepted- influences on product-harm crisis management (i.e., crisis extent, social responsibility and organizational responses). The fourth influencing factor, time, was introduced in the present study. The four-factor model for measuring the effectiveness of product-harm crisis management was tested with particular attention to the impact of time. Crises were described in scenarios for a fictitious mobile phone. The results demonstrate that the effects of a crisis are minimal a few months after the crisis has occurred. Consumers tend to “forget†about the crisis and its effects, especially in cases when the company is socially responsible, and when the company issues a voluntary recall of its product.

Suggested Citation

  • Vassilikopoulou, Aikaterini & Siomkos, George & Chatzipanagiotou, Kalliopi & Pantouvakis, Angelos, 2009. "Product-harm crisis management: Time heals all wounds?," Journal of Retailing and Consumer Services, Elsevier, vol. 16(3), pages 174-180.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:3:p:174-180
    DOI: 10.1016/j.jretconser.2008.11.011
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    References listed on IDEAS

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    1. Weinberger, Marc G. & Romeo, Jean B., 1989. "The impact of negative product news," Business Horizons, Elsevier, vol. 32(1), pages 44-50.
    2. Weinberger, Marc G. & Romeo, Jean B. & Piracha, Azhar, 1991. "Negative product safety news: Coverage, responses, and effects," Business Horizons, Elsevier, vol. 34(3), pages 23-31.
    3. Shrivastava, Paul, 1995. "Industrial/environmental crises and corporate social responsibility," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 24(1), pages 211-227.
    4. Standop, Dirk, 2006. "Product Recall versus Business as Usual: A Preliminary Analysis of Decision-Making in Potential Product-related Crises," 99th Seminar, February 8-10, 2006, Bonn, Germany 7761, European Association of Agricultural Economists.
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