Understanding firm survival in a global crisis

PurposeGlobal crises create an environment that is characterized by a fight for survival by countries, companies and citizens. While firms have adopted business initiatives to ensure survival in a global crisis, many measures are geared toward preventing customer churn, declining revenues and eroding market share. Such short-term focus raises an important question regarding long-term survival – how can firms survive a global crisis? The purpose of this study is to investigate how firms can survive a global crisis.Design/methodology/approachThis study considers pandemics as the study context and uses a triangulation methodology (past research, managerial insights and popular press articles) to advance the organizing framework. Using the process study approach, the proposed framework recognizes the onset characteristics of a global crisis with a focus on pandemics and the government actions that reflect the pandemic onset. The framework also identifies a logical order of three marketplace reactions to the pandemic – management response, consumer response and critical business transformations that ultimately lead to firm survival – and advances related research propositions of such reactions.FindingsBy deploying critical business transformations, firms can ensure firm survival in a pandemic by fostering engagement with customers, employees and resources. Additionally, the moderators that influence the relationships between (1) management response and critical business transformations, (2) consumer response and critical business transformations, and (3) critical business transformations and firm survival are identified. Finally, this study presents an agenda for future research.Research limitations/implicationsTo the authors' best knowledge, this is the first study to adopt an interdisciplinary approach to study firm survival in a global crisis such as a pandemic. This study answers the call for more research to the growing field of pandemic research in the areas of marketing research and marketing strategy.Practical implicationsThe learnings from this study can help firms on what to anticipate and how to respond in a crisis such as a pandemic.Social implicationsSocietal welfare is accounted for as firms plan to deal with a crisis.Originality/valueThis is the first study to propose a strategic framework to deal with a crisis that is largely unanticipated where the duration and the impact is not predictable.

The Effect of Social Media Marketing to Satisfaction and Consumer Response: Examining the Roles of Perceived Value and Brand Equity as Mediation

Social media has become a part of people's lives and an inseparable part of marketing strategies in the emerging digital era. This set of technologies creates new mechanisms and communication tools for companies to interact and engage with potential consumers. This study explores the effect of social media marketing (SMM) on satisfaction and consumer response through perceived value and brand equity. Based on an online survey of 325 users who follow smartphone brands on social media in Indonesia, data were collected and analyzed using partial least squares. The results show that SMM directly affects perceived value and brand equity and indirectly affects satisfaction and consumer response. This study emphasizes satisfaction and consumer response in responding to social media marketing by the company.

Nutritious mushroom protein crisp – healthy alternative to starchy snack

Global salty snacks category had reached USD 137 billion in sales in 2018. Due to growing health concerns and awareness, consumers are looking for healthy snack choices by avoiding ingredients such as fat, sugar, cholesterol, and sodium and selecting baked and salt free multigrain chips. A sizable number of consumers are concerned about snack nutrition and look for quality ingredients and minimally processed foods called as “Good Health Snack (GHS)”. In this work, we present the development of method of producing and testing mushrooms protein crisps (MPC), a healthy alternative to conventional starchy snacks that are rich in protein, nutraceutical compounds, minerals, vitamin, dietary fiber, and immunity inducing beta-glucans. The methods of producing MPC with different seasoning and hydrolyzed protein, calorie, nutritional and chemical composition, consumer response, shelf life after packing and market analysis are described. These systematic studies will help to market potential of this product which is a healthy alternative to other calorie rich snacks sold in the market benefiting the consumers. Graphical abstract

The effects of donation amount and ad orientation of cause-related marketing on consumers’ response

Purpose Cause-related marketing (CRM) is an increasing popular marketing strategy in which a firm donates a specific amount to a designed cause when customers engage in revenue-providing exchanges. Based on balance and attribution theory, this paper aims to explore the interaction effect of donation amount and ad orientation, two important factors of formulation and communication of CRM, respectively, on consumer response and the mediating effect of consumers’ perceived company motives. Design/methodology/approach Two 2 (donation amount: small vs large) × 2 (ad orientation: product- vs cause-oriented) between-subjects experimental studies were conducted in marketing course with 284 and 157 Chinese undergraduate students participating in Studies 1 and 2, respectively. ANOVA and regression were used to test the hypotheses. Findings Study 1 shows the significant interaction effects of donation amount and ad orientation on consumers’ response. When CRM has a large donation amount, cause-oriented (vs product-oriented) ad leads to consumers’ more positive company attitude and higher purchase intention. The opposite is true for the small donation amount condition. Study 2 shows that the above interaction effect is mediated by consumer-attributed company motives. The attributed motive of sincerely caring about social cause has significant positive effect on consumer response, whereas the attributed motive of increasing sales or improving corporate image does not. Originality/value This paper contributes to the literature by empirically examining the interaction effect of donation amount and ad orientation on consumer-inferred motives and behavioral response. The findings are valuable because they indicate the importance of matching between factors at formulation and communication stage. In addition, this paper found that consumers are “tolerant” of companies using CRM to promote product sales and improve brand image.