Consumer Response To Company Communications During A Product Harm Crisis

Abstract

Industrial crises deserve serious research attention because of their increasing rate of occurrence and their negative consequences on organizations and society. A particular type of crisis of great concern to marketers and advertisers is product harm crisis which can occur from several causes such as manufacturers negligence, product misuse or sabotage. All product harm crises involve financial costs for the troubled company. However, differences exist in the way firms respond to such crises. This paper analyzes the role or organizational communications in helping a firm successfully handle a product harm crisis. The study utilizes three important factors, that is, a company’s reputation, responses, and the external effects, which affect management’s success in handling a product harm crisis, in order to examine consumers’ attitudes toward the firm’s communications.