Can an apology change after-crisis user attitude? The role of social media in online crisis management

2019 ◽  
Vol 32 (4) ◽  
pp. 802-827
Author(s):  
Ying Li ◽  
Ke Yang ◽  
Jin Chen ◽  
Sumeet Gupta ◽  
Feiyang Ning

Purpose Drawing upon the Elaboration Likelihood Model, the purpose of this paper is to examine how the characteristics of social media moderate the effect of a firm’s apology on the attitude of its customers. Design/methodology/approach An online experiment including 360 active users of internet was employed to test the research model. Findings Results revealed that an after-crisis apology and firm reputation both have a positive effect on after-crisis user attitude toward the firm. Furthermore, the positive effect of apology becomes stronger as online media interactivity increases, whereas the positive effect of reputation becomes weaker. Research limitations/implications This study included only one important characteristic of social media, and experimental scenarios were limited to car recall crisis. Considering that social media has so many platforms that may have different kinds of interactivity, further studies can be conducted to figure out the most suitable social media for firms to deal with an online crisis. Practical implications The results inform managers of the importance of after-crisis apology and firm reputation. It is worthwhile for managers to find out the levels of online media interactivity at which users focus on apology and reputation and accordingly conduct an effective online crisis management response strategy. Originality/value This study extends the literature on online crisis management and the literature on ELM by highlighting the role of online media interactivity in influencing the persuasive effectiveness of firm’s crisis response in the context of social media.

2019 ◽  
Vol 29 (2) ◽  
pp. 209-222 ◽  
Author(s):  
Michail Vafeiadis ◽  
Denise S. Bortree ◽  
Christen Buckley ◽  
Pratiti Diddi ◽  
Anli Xiao

Purpose The dissemination of fake news has accelerated with social media and this has important implications for both organizations and their stakeholders alike. Hence, the purpose of this study is to shed light on the effectiveness of the crisis response strategies of denial and attack in addressing rumors about consumer privacy when non-profit organizations are targeted on social media. Design/methodology/approach To test the hypotheses, a 2 (response type: denial vs attack) × 2 (privacy concerns: low vs high), between-group online experiment was conducted via Qualtrics. Findings The results indicated that one’s involvement level in the issue determines the effectiveness of the crisis response strategy. Data showed that attacking the source of fake news (as a crisis response) reduces the message’s credibility more than denying fake news. Furthermore, highly involved individuals are more likely to centrally process information and develop positive supportive intentions toward the affected non-profit brand. High issue involvement also predicted organizational and response credibility. Conversely, an attack rebuttal message increased the credibility of the circulated malicious rumors for low involved individuals. Research limitations/implications The findings suggest that issue involvement plays a key role in message perceptions of false information regarding consumer privacy in social media. Practical implications Practically, this study offers insights for organizations that are developing response strategies in the current environment of fake news. Findings from this study suggest that organizations need to consider the degree to which audiences are currently involved in an issue before deciding how aggressively to respond to perpetrators of fake news. Originality/value The present study examines the intersection of fake news and crisis management in the non-profit sector, with an emphasis on various response strategies and issue involvement. This is one of the first attempts to experimentally investigate how social media strategies can defend and protect non-profit reputation in the fake news era.


2018 ◽  
Vol 19 (3) ◽  
pp. 310-327 ◽  
Author(s):  
Saeed Pahlevan Sharif ◽  
Ken Kyid Yeoh

Purpose This paper aims to investigate the effect of excessive use of social networking sites on online compulsive buying, and whether this effect is mediated by the dimensions of money attitude (i.e. power-prestige, distrust and anxiety) in young Malaysian adults. Design/methodology/approach A correlational cross-sectional, questionnaire-based design was adopted. A total of 1,155 university students completed an online survey. A parallel multiple mediator model was then developed and tested using covariance-based structural equation modeling. Findings Excessive use of social media had a positive effect on money attitude dimensions and online compulsive buying. Also, power-prestige and anxiety dimensions of money attitude mediated the positive effect of excessive use of social networking sites on online compulsive buying. Practical implications Several implications for the parents of young adults, institutions of higher learning as well as banks that provide services to these youths have been suggested. Originality/value Little is known about the effect of excessive use of social media on compulsive online buying and the mechanisms behind it. This study contributes to the literature by testing the mediating role of money attitude in the effect of use of social networking sites on online compulsive buying.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Audra Diers-Lawson ◽  
Amelia Symons ◽  
Cheng Zeng

PurposeData security breaches are an increasingly common and costly problem for organizations, yet there are critical gaps in our understanding of the role of stakeholder relationship management and crisis communication in relation to data breaches. In fact, though there have been some studies focusing on data breaches, little is known about what might constitute a “typical” response to data breaches whether those responses are effective at maintaining the stakeholders' relationship with the organization, their commitment to use the organization after the crisis, or the reputational threat of the crisis. Further, even less is known about the factors most influencing response and outcome evaluation during data breaches.Design/methodology/approachWe identify a “typical” response strategy to data breaches and then evaluate the role of this response in comparison to situation, stakeholder demographics and relationships between stakeholders, the issue and the organization using an experimental design. This experiment focuses on a 2 (type of organization) × 2 (prior knowledge of breach risk) with a control group design.FindingsFindings suggest that rather than employing reactive crisis response messaging the role of public relations should focus on proactive relationship building between organizations and key stakeholders.Originality/valueFor the last several decades much of the field of crisis communication has assumed that in the context of a crisis the response strategy itself would materially help the organization. These data suggest that the field crisis communication may have been making the wrong assumption. In fact, these data suggest that reactive crisis response has little-to-no effect once we consider the relationships between organizations, the issue and stakeholders. The findings show that an ongoing program of crisis capacity building is to an organization's strategic advantage when data security breaches occur.


2019 ◽  
Vol 20 (3) ◽  
pp. 407-429 ◽  
Author(s):  
Danielle LaGree ◽  
Douglas Wilbur ◽  
Glen T. Cameron

Purpose Using the National Football League (NFL) concussion crisis context, the purpose of this paper is to provide sports marketers with a strategic approach to sports crisis management through consideration of crisis media coverage and organizational reputation. Design/methodology/approach An online experiment assessed the impact of two crisis response strategies, fan involvement and exposure to crisis media coverage on emotional response, corporate message credibility, crisis perception and perceived corporate reputation. Findings The accident response strategy was associated with more favorable perceptions of the NFL and corporate message credibility. Sports fan involvement facilitated more favorable perceptions of the NFL’s reputation, while exposure to media coverage of the NFL’s crisis created negative perceptions of the NFL’s reputation. Exposure to media coverage of the NFL concussion crisis increased feelings of anger, which in turn decreased perceptions of corporate message credibility. Research limitations/implications A limitation for this study is the specific crisis scenario that was used. The NFL concussion crisis is different from other crisis types in that it does not directly impact the audience’s well-being, but instead affects their perceptions of an iconic institution. Practical implications In light of study findings, it is suggested that sports marketers consider the following when dealing with crises: carefully determine proper framing methods when crafting a crisis response as different response types affect consumers in different ways; leverage public relations (PR) practices by engaging in media monitoring to inform an appropriate crisis response to control the narrative; and examine forces exernal of the organization that influence consumer emotions, paying special attention to feelings of anger as anger negatively impacts consumer perceptions of corporate credibility. Originality/value This paper addresses sports crisis strategy from both marketing and public relations perspectives. It describes how strategic efforts protect a sports organization’s reputation, thus increasing marketing effectiveness.


2020 ◽  
Vol 120 (8) ◽  
pp. 1521-1542 ◽  
Author(s):  
Chao Feng ◽  
Nannan Xi ◽  
Guijun Zhuang ◽  
Juho Hamari

PurposeDespite the relatively long research continuum on IT capability and performance, the “IT capability-performance” link has remained hazy especially related to the mediating role of IT-based communication and networking overall. Therefore, this study investigates how IT capability affects Internet interactive practice and how it further affects marketing effectiveness and firm success.Design/methodology/approachThe authors collected the survey data from 504 manufacturers in China, and structural equation modeling is used to test the hypotheses.FindingsThe results indicate that (1) IT capability has positive effects on both interorganizational systems (IOS)-enabled and social media (SM)-enabled interactive practice; (2) IOS-enabled interactive practice has a significant positive effect on both marketing and financial performance while SM-enabled interactive practice has a positive effect on marketing performance but no effect on financial performance; (3) IOS-enabled interactive practice mediates the effect of IT capability on marketing and financial performance while SM-enabled interactive practice only mediates the effect of IT capability on marketing performance; (4) marketing performance mediates the impact of IOS-enabled and SM-enabled interactive practice on financial performance.Originality/valueThis study has highlighted the role of social media practice in the relationship between IT capability and firm performance, which makes certain theoretical contributions to the existing research.


2019 ◽  
Vol 29 (4) ◽  
pp. 921-939 ◽  
Author(s):  
Stefan Stieglitz ◽  
Milad Mirbabaie ◽  
Tobias Kroll ◽  
Julian Marx

Purpose The purpose of this paper is to investigate the communication behaviour on Twitter during the rise of a preventable corporate crisis. It aims to contribute to situational crisis response strategies, and to broaden the authors’ understanding of legitimacy management. In September 2015, Volkswagen’s (VW) emission scandal became public and caused debates also in social media. By applying complementing tools of data analysis to the Twitter communication around the “Dieselgate” crisis, this study unfolds a field of tension between corporate strategy and public perception. Design/methodology/approach The authors collected Twitter data and analysed approximately 2.1m tweets relevant to the VW crisis. The authors approached the data by separating the overall communication in peak and quiet phases; analysing the peaks with social network analysis techniques; studying sentiments and the differences in each phase; and specifically examining tweets from VW’s corporate accounts with regard to the situational crisis communication theory (SCCT) and legitimacy. Findings VW’s very few tweets were not able to reduce the emotionality and sentiment of the ongoing Twitter discussion. Instead, even during quiet phases, the communication remained rather negative. The analysis suggests that VW followed a strategy not covered by SCCT, i.e. keeping silent. Practical implications The discovered strategy of keeping silent extends the SCCT and is linked to legitimacy management. Learnings from this study help decision makers to put social media response strategies into practice to swiftly recover from crises or refrain from certain strategies to avoid further reputational damage. Social implications Examining the underlying communication patterns of a crisis case with societal magnitude such as “Dieselgate” helps sensitising customers and executives to utilise social media channels more comprehensible in future crises. Originality/value The study uncovers the unconventional and yet barely addressed crisis response strategy of a global enterprise while devising unique realisations for practitioners and communication researchers. It contributes to existing knowledge about situational crisis response strategies, and broadens the authors’ understanding of legitimacy management in times of social media ubiquity.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sasithorn Suwandee ◽  
Aurathai Lertwannawit ◽  
Olimpia C. Racela ◽  
Pattana Boonchoo

PurposeThis study applies social network theory to examine the moderating effects of two online social media network characteristics, namely homophily and consensus, on the influence of negative electronic word of mouth (NeWOM) and of firm crisis response on consumer attitude toward a company.Design/methodology/approachHypotheses were tested using a mixed-model experimental design of three between-subjects factors, including manipulations of homophily (high vs low), consensus (high vs low), and firm crisis response (accommodative vs defensive), and one repeated measure within-subjects factor of attitude toward the company at three different points in time (A0, A1, A2). Data were collected from 328 Thai participants who were randomly assigned to one of the eight experimental conditions.FindingsHigh homophily and high consensus online social media network conditions worsen the negative impact of NeWOM on consumer attitudes. However, high homophily and high consensus strengthen the positive influence of an accommodative response in regaining favorable attitude toward the company. Low homophily and low consensus negate the impact of the firm's defensive response, preventing any further deterioration of attitude toward the company.Practical implicationsMarketers need to understand the relational patterns among members of online social media networks in order to assess the extent to which consumers are influenced by others in the network. In doing so, the firm can better anticipate and manage the impact of NeWOM and can launch an appropriate response strategy that optimizes the recovery, or minimizes the deterioration, of lost company image and reputation.Originality/valueThis study provides a dynamic view of consumer attitudes and highlights the substantial impact that others in the online social media network have on consumers' evaluation of NeWOM and of firm recovery efforts.


2021 ◽  
pp. 232948842199969
Author(s):  
Hayoung Sally Lim ◽  
Natalie Brown-Devlin

Using a two (crisis response strategy: diminish vs. rebuild) × three (source: brand organization vs. brand executive vs. brand fan) experimental design, this study examines how brand fans (i.e., consumers who identify with a brand) can be prompted to protect a brand’s reputation during crises and how the selection of a crisis spokesperson can influence consumers’ evaluations of the crisis communication. Being buffers for their preferred brands, brand fans are more likely to accept their brand’s crisis response and engage in positive electronic word-of-mouth on social media. Brand fans are more likely to evaluate other brand fan’s social media accounts as a credible crisis communication source, whereas those who are not brand fans are more likely to evaluate brand and/or brand executives as credible. Findings provide theoretical applications in paracrisis literature pertaining to social media but also practical implications for brand managers to strategically utilize brand fans in crisis communication.


2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.


2017 ◽  
Vol 32 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Tuan Luu

Purpose The interaction between opening and closing behaviors of ambidextrous leadership produces “change” force throughout the organization in proactive response to market forces. This research aims to assess the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and market responsiveness. The research also seeks an insight into how external supply chain integration moderates the positive effect of EO on market responsiveness. Design/methodology/approach Research data were collected from 327 meso-level managers and 517 subordinates from chemical manufacturing companies in the Vietnam business context. Findings Research findings shed light on the positive effect of ambidextrous leadership on EO, which in turn contributes to market responsiveness. The moderation role that external supply chain integration plays on the EO–market responsiveness linkage was also grounded on the data set. Originality/value Through the identification of the predictive roles of ambidextrous leadership and EO for market responsiveness, the current research indicates the convergence between leadership, EO and market responsiveness research streams.


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