Corporate Communication Effects and Crisis Type: Deriving managerial implications from theory

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Title Corporate Communication Effects and Crisis Type: Deriving managerial implications from theory
Author Sparks, Beverley; Glendon, Ian; McDonald, Lynette Maree
Publication Title Marketing : Building business, shaping society
Editor Kate Ui Ghallachoir
Year Published 2005
Place of publication US
Publisher Academy of Marketing
Abstract 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.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.academyofmarketing.org/
Alternative URI http://am2005.dit.ie/2005/
Copyright Statement Copyright remains with the authors 2005. The attached file is posted here with permission of the copyright owners for your personal use only. No further distribution permitted.For information about this conference please refer to the publisher's website or contact the authors.
ISBN 1905824009
Conference name The 5th American Marketing Association/Academy of Marketing Joint Biennial Conference
Location Dublin Institute of Technology, Ireland
Date From 2005-07-05
Date To 2005-07-07
URI http://hdl.handle.net/10072/2862
Date Accessioned 2006-01-31
Date Available 2009-12-17T22:28:25Z
Language en_AU
Research Centre Griffith Health Institute; Behavioural Basis of Health; Griffith Institute For Tourism; Centre for Work, Organisation and Wellbeing
Faculty Griffith Business School
Subject PRE2009-Advertising and Public Relations; PRE2009-Other Commerce, Management, Tourism and Services
Publication Type Conference Publications (Full Written Paper - Refereed)
Publication Type Code e1

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