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Product-harm crisis management: Time heals all wounds?

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  • Vassilikopoulou, Aikaterini
  • Siomkos, George
  • Chatzipanagiotou, Kalliopi
  • Pantouvakis, Angelos

Abstract

This paper focuses on product-harm crises and examines consumer responses associated with product defect in three time periods (i.e., 3 days, 3 months and 1 year after a crisis). An experiment was conducted based on three widely accepted- influences on product-harm crisis management (i.e., crisis extent, social responsibility and organizational responses). The fourth influencing factor, time, was introduced in the present study. The four-factor model for measuring the effectiveness of product-harm crisis management was tested with particular attention to the impact of time. Crises were described in scenarios for a fictitious mobile phone. The results demonstrate that the effects of a crisis are minimal a few months after the crisis has occurred. Consumers tend to “forget†about the crisis and its effects, especially in cases when the company is socially responsible, and when the company issues a voluntary recall of its product.

Suggested Citation

  • Vassilikopoulou, Aikaterini & Siomkos, George & Chatzipanagiotou, Kalliopi & Pantouvakis, Angelos, 2009. "Product-harm crisis management: Time heals all wounds?," Journal of Retailing and Consumer Services, Elsevier, vol. 16(3), pages 174-180.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:3:p:174-180
    DOI: 10.1016/j.jretconser.2008.11.011
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    References listed on IDEAS

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    Cited by:

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    2. Ganganee C. Samaraweera & Chongguang Li & Ping Qing, 2014. "Mitigating Product Harm Crises and Making Markets Sustainable: How does National Culture Matter?," Sustainability, MDPI, vol. 6(5), pages 1-16, May.
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    4. Liu, Yang & Ouyang, Zhe & He, Mujia, 2022. "Why and when firms respond accommodatively to the product-harm crisis: An institutional perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    5. Pérez-Mesa, Juan Carlos & García Barranco, Mª Carmen & Serrano-Arcos, Mª Mar, 2023. "The agri-food crisis in the post-truth age: an application to the Spanish greenhouse sector," MPRA Paper 119882, University Library of Munich, Germany.
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    13. Sojung Kim & Sejung Marina Choi, 2018. "Congruence Effects in Post-crisis CSR Communication: The Mediating Role of Attribution of Corporate Motives," Journal of Business Ethics, Springer, vol. 153(2), pages 447-463, December.
    14. Yang, Zhiyong & Freling, Traci & Sun, Sijie & Richardson-Greenfield, Pam, 2022. "When do product crises hurt business? A meta-analytic investigation of negative publicity on consumer responses," Journal of Business Research, Elsevier, vol. 150(C), pages 102-120.
    15. Komal Nagar & Paramdeep Kour, 2018. "Measuring Young Consumers’ Response to Brand Scandals: A Brand Love Perspective," FIIB Business Review, , vol. 7(4), pages 304-315, December.
    16. Yijing Wang & Louisa Wanjek, 2018. "How to Fix a Lie? The Formation of Volkswagen’s Post-crisis Reputation Among the German Public," Corporate Reputation Review, Palgrave Macmillan, vol. 21(2), pages 84-100, June.
    17. Francesca Magno & Fabio Cassia & Marta Ugolini, 2017. "Impact of voluntary product recalls on utilitarian and hedonic attitudes: Is it the same for all brands?," Australian Journal of Management, Australian School of Business, vol. 42(1), pages 161-174, February.
    18. Sandra Escamilla-Solano & Antonio Fernández-Portillo & Jessica Paule-Vianez & Paola Plaza-Casado, 2019. "Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
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    20. Escamilla Solano, Sandra & Plaza Casado, Paola & Flores Ureba, Sandra, 2016. "Análisis de la divulgación de la información sobre la responsabilidad social corporativa en las empresas de transporte público urbano en España," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(2), pages 195-203.
    21. Pangarkar, Aniruddha & Fleischman, Gary M. & Iacobucci, Dawn, 2022. "Enhancing frontline employee support during a product-harm crisis: Evidence and strategic managerial implications for firms," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).

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