Product-harm crises can seriously impact the viability of a company. By considering the factors that affect the outcome of a crisis, organisations could manage crisis situations to minimise negative consequences. The aims of this paper are to (a) examine the importance of each factor of product-harm crises (that is, corporate social responsibility, organisational response, time and external effects) infl uencing consumer purchase intentions and (b) study variations in the purchase intentions across three different crisis extent levels. In order to investigate trade-offs and the relative importance of the above factors, conjoint analysis is used. The results reveal that organisational response and time are the most important factors in high-and medium-extent product-harm crises, whereas social responsibility and external effects mostly infl uence consumer purchase intentions in severe crises. Based on the importance of the factors, managerial implications are discussed.
Purpose This paper aims to examine consumer reactions during product-harm crises by measuring the impact of perceived risk, blame and trust on consumer purchase intentions. Moreover, the role of perceived crisis severity is examined as affecting the three main endogenous variables of the conceptual framework. Design/methodology/approach The study uses the real-scenario approach for empirically testing the proposed conceptual framework. Participants were called to assess the story of a defective product (i.e. a soother that was recently recalled). Findings Results of the equation modeling demonstrate that perceived severity significantly influence trust and blame while it does not affect perceived risk. In addition, trust, blame and perceived risk notably affect purchase intentions. Practical implications Based on the study’s results, companies could implement appropriate strategies for reducing the negative consequences of a product-harm crisis. Originality/value The paper presents four key originality traits: Crisis management from the consumer perspective has received little attention. The relationship between trust, perceived risk and purchase intentions has not been explored in the crisis management field. Attribution of blame is a new variable added to the perceived risk-trust-purchase intention model. Perceived severity is examined as a moderator affecting the main endogenous variables of the conceptual framework.
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