The key finding is that media outlets and third parties can either preserve or damage consumer to brand trust. A Comparative Analysis The studies in the product-harm crisis management area integrated some previously identified variables that could affect the success or effectiveness in managing a product-harm crisis into broader factors.
Maintaining Consumer Trust In the case of the Fitbit Force, a wrist-worn product that tracks fitness activity. Even today, most Chinese mothers still avoid domestic infant formula brands and prefer paying a premium for foreign brands. What is Product-Harm Crisis?
Within this article I will attempt to examine a product-harm crisis and how management can affect whether or not the company can recover once a crisis happens. Journal of Marketing Research, 48, — This differs from research done by Vassilikopoulouwhich explains that there is a sensitivity of dealing with recalls.
Media amplification of a brand crisis and its effects on brand trust. For this reason, management needs mechanisms for making adjustments to product-harm responses Davis, An examination of strategic alternatives during product-harm crises.
Moreover, such crises indicate importance to consumer or product user behavior which can significantly affect whether they will change their attitude or opinion towards a company and purchase its new product. References Chen, Y, Ganesan, S.
Journal of Targeting, Measurement, and Analysis for Marketing, 17 165— On the other end, there was the Kryptonite bicycle lock crisis in Comparatively, Vassilikopoulou et al. Additionally, the authors stated, choosing between proactive and passive strategies, companies focused on minimizing potential financial losses associated with the product recall Chen et al.
In today's 'flat world', product-harm crises are often global. Davis Walden University December Managing a Product-Harm Crisis 2 Abstract Product-harm crisis is an important organizational management topic due to the potential detrimental business impact.
Consumer Learning in a turbulent market environment: In order to sustain reputation, and prevent a major financial loss, the company must react promptly, honestly, and clearly. The research then concluded that effective product-harm crisis management should adjust with the media and public concerns and minimize the potential negative consequence in a way that can facilitate brand trust restoring and perceived risk minimization.
This thesis advocates that companies should carefully identify the specific crisis situations that they face, and helps them evaluate the usefulness of each strategy and approach, and adopt the most effective one for their particular cases.
Krytonite eventually did address the situation weeks later with a product recall and explained that the issue dealt with all types of cylinder locks including those associated with vending machines and some automobile ignitions.
Media amplification of a brand crisis and its effects on brand trust. Consumer learning in a turbulent market environment: Therefore, the authors proposed, considering the event study results, companies should be sensitive to how the stock-market potentially synthesizes proactive product-harm strategies Chen et al.
On occasion, as proposed by Thompson as cited in Zsidisin et al.Product-harm crises are among a firm s worst nightmares. Since marketing investments may be instrumental to convince consumers to purchase the firm&apos's products again, it is important to provide an adequate measurement of the effectiveness of these investments, especially after the crisis.
Request PDF on ResearchGate | Managing Product-Harm Crises | Product-harm crises are among a firmâ€™s worst nightmares.
Vassilikopoulou () further stated that a product-harm crisis can impact a company’s sustainability. Ranking factors and relative importance do have an influence during a product-harm crisis. Understanding the likelihood of a crisis could also help create a more accurate crisis management plan.
The article explains that corporate social responsibility, organizational response, time and external. Definition of product-harm crisis A highly publicised event caused by a product being found to be defective, contaminated or even harmful to consumers.
The crisis could affect the entire product category or a subset of the category. Managing A Product-Harm Crisis Akingbasote Femi Walden University Abstract: Product-harm crisis has cut across all sphere of United States of America’s economy.
It is in all industries from nonagricultural, mining, construction, manufacturing, retail trade, transportation, information, financial services, Healthcare, Educational services. Managing a Product-Harm Crisis Robert E. Davis Walden University December Managing a Product-Harm Crisis 2 Abstract Product-harm crisis is an important organizational management topic due to the potential detrimental business impact.Download