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A moderation of business misdeeds on corporate remedy strategies

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  • Lei Huang

    (The State University of New York (SUNY) at Fredonia)

Abstract

Firms take various approaches to mitigate the negative impacts from different misdeeds and repair the subsequent damages. By adopting an empirical study, this study examines the moderation role of business ethics related (BER) and product performance related (PPR) misdeeds on the relationship between three crisis remedy strategies and the purchase intentions of both current and potential consumers. The results from 440 participants suggest that a prompt apology is more important for current than potential consumers. However, a response plan has less impact on the current consumers for BER than PPR misdeeds while a correction plan is more effective for PPR than BER misdeeds; for the potential consumer, on the contrary, a response plan has less impact for PPR than BER misdeeds. These findings extend the crisis management literature to the domain of existing and potential consumers in the context of business misdeeds. This research also provides a framework for brand managers to craft just-right and just-in-time remedy strategies.

Suggested Citation

  • Lei Huang, 2023. "A moderation of business misdeeds on corporate remedy strategies," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(1), pages 21-31, March.
    • Handle: RePEc:pal:jmarka:v:11:y:2023:i:1:d:10.1057_s41270-021-00153-4
    DOI: 10.1057/s41270-021-00153-4
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