IDEAS home Printed from https://ideas.repec.org/a/pal/jobman/v28y2021i1d10.1057_s41262-020-00214-6.html
   My bibliography  Save this article

Mitigating negative spillover effects in a product-harm crisis: strategies for market leaders versus market challengers

Author

Listed:
  • Jun Zhang

    (Syracuse University)

  • Joon Soo Lim

    (Syracuse University)

Abstract

Prior research indicates that a brand’s product-harm crisis can lower consumer evaluations of competing brands within the same industry, which are known as negative spillover effects. Competing brands should proactively respond to the crisis to dissociate from the crisis-stricken brand. In the current research, two experiments were conducted to examine the relative efficacy of crisis response strategies (bolstering vs. differentiation vs. no response) in mitigating negative spillover effects on competing brands with different market positions (market leader vs. market challenger). The context of these experiments is a product-harm crisis in which a brand’s product is recalled due to food-borne illness. The moderated mediation analyses reveal that the bolstering strategy leads to similar positive indirect effects on brand attitude and purchase intention through message evaluations regardless of whether market leaders or challengers employ the strategy. In contrast, the differentiation strategy yields a more positive indirect effect on brand attitudes and purchase intentions through message evaluations when a market challenger employs the strategy rather than a leader.

Suggested Citation

  • Jun Zhang & Joon Soo Lim, 2021. "Mitigating negative spillover effects in a product-harm crisis: strategies for market leaders versus market challengers," Journal of Brand Management, Palgrave Macmillan, vol. 28(1), pages 77-98, January.
  • Handle: RePEc:pal:jobman:v:28:y:2021:i:1:d:10.1057_s41262-020-00214-6
    DOI: 10.1057/s41262-020-00214-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41262-020-00214-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41262-020-00214-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joaquin Sanchez & Carmen Abril & Michael Haenlein, 2020. "Competitive spillover elasticities of electronic word of mouth: an application to the soft drink industry," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 270-287, March.
    2. Pillai, Kishore Gopalakrishna & Goldsmith, Ronald E., 2008. "How brand attribute typicality and consumer commitment moderate the influence of comparative advertising," Journal of Business Research, Elsevier, vol. 61(9), pages 933-941, September.
    3. Xenia Raufeisen & Linda Wulf & Sören Köcher & Ulya Faupel & Hartmut H. Holzmüller, 2019. "Spillover effects in marketing: integrating core research domains," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 249-267, December.
    4. Punj, Girish & Moon, Junyean, 2002. "Positioning options for achieving brand association: a psychological categorization framework," Journal of Business Research, Elsevier, vol. 55(4), pages 275-283, April.
    5. Pechmann, Cornelia & Stewart, David W, 1990. "The Effects of Comparative Advertising on Attention, Memory, and Purchase Intentions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 180-191, September.
    6. Rebecca K. Trump & Kevin P. Newman, 2017. "When do unethical brand perceptions spill over to competitors?," Marketing Letters, Springer, vol. 28(2), pages 219-230, June.
    7. Yagci, Mehmet I. & Biswas, Abhijit & Dutta, Sujay, 2009. "Effects of comparative advertising format on consumer responses: The moderating effects of brand image and attribute relevance," Journal of Business Research, Elsevier, vol. 62(8), pages 768-774, August.
    8. Berinsky, Adam J. & Huber, Gregory A. & Lenz, Gabriel S., 2012. "Evaluating Online Labor Markets for Experimental Research: Amazon.com's Mechanical Turk," Political Analysis, Cambridge University Press, vol. 20(3), pages 351-368, July.
    9. Jewell, Robert D. & Saenger, Christina, 2014. "Associative and dissociative comparative advertising strategies in broadening brand positioning," Journal of Business Research, Elsevier, vol. 67(7), pages 1559-1566.
    10. Kathleen Cleeren & Marnik G. Dekimpe & Harald J. Heerde, 2017. "Marketing research on product-harm crises: a review, managerial implications, and an agenda for future research," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 593-615, September.
    11. Anne L. Roggeveen & Dhruv Grewal & Jerry Gotlieb, 2006. "Does the Frame of a Comparative Ad Moderate the Effectiveness of Extrinsic Information Cues?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(1), pages 115-122, June.
    12. Hyunju Shin & Riza Casidy & Alyssa Yoon & So-Hyang Yoon, 2016. "Brand trust and avoidance following brand crisis: A quasi-experiment on the effect of franchisor statements," Journal of Brand Management, Palgrave Macmillan, vol. 23(5), pages 1-23, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bambauer-Sachse, Silke & Heinzle, Priska, 2018. "Comparative advertising: Effects of concreteness and claim substantiation through reactance and activation on purchase intentions," Journal of Business Research, Elsevier, vol. 84(C), pages 233-242.
    2. Bambauer-Sachse, Silke & Heinzle, Priska, 2018. "Comparative advertising for goods versus services: Effects of different types of product attributes through consumer reactance and activation on consumer response," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 82-90.
    3. Liu, Dong & Varki, Sajeev, 2021. "The spillover effect of product recalls on competitors’ market value: The role of corporate product reliability," Journal of Business Research, Elsevier, vol. 137(C), pages 452-463.
    4. Wallach, Karen Anne & Popovich, Deidre, 2023. "When Big Is Less than Small: Why dominant brands lack authenticity in their sustainability initiatives," Journal of Business Research, Elsevier, vol. 158(C).
    5. Olga Untilov & Stéphane Ganassali, 2020. "Product‐harm science communication: The halo effect and its moderators," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 1002-1027, September.
    6. del Barrio-García, Salvador & Muñoz-Leiva, Francisco & Golden, Linda, 2020. "A review of comparative advertising research 1975–2018: Thematic and citation analyses," Journal of Business Research, Elsevier, vol. 121(C), pages 73-84.
    7. Nicolas Pontes & Vivian Pontes, 2021. "Spillover effects of competitive rivalry on brand extensions," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 402-412, July.
    8. Olga Untilov & Stéphane Ganassali, 2020. "Product‐harm science communication: The halo effect and its moderators," Post-Print hal-02957579, HAL.
    9. Raoul V. Kübler & Michael Langmaack & Sönke Albers & Wayne D. Hoyer, 2020. "The impact of value-related crises on price and product-performance elasticities," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 776-794, July.
    10. Pan, Jing Yu & Liu, Dahai, 2022. "Mask-wearing intentions on airplanes during COVID-19 – Application of theory of planned behavior model," Transport Policy, Elsevier, vol. 119(C), pages 32-44.
    11. Kareklas, Ioannis & Muehling, Darrel D. & King, Skyler, 2019. "The effect of color and self-view priming in persuasive communications," Journal of Business Research, Elsevier, vol. 98(C), pages 33-49.
    12. Haase, Janina & Wiedmann, Klaus-Peter & Labenz, Franziska, 2022. "Brand hate, rage, anger & co.: Exploring the relevance and characteristics of negative consumer emotions toward brands," Journal of Business Research, Elsevier, vol. 152(C), pages 1-16.
    13. Michele Cantarella & Chiara Strozzi, 2021. "Workers in the crowd: the labor market impact of the online platform economy [An evaluation of instrumental variable strategies for estimating the effects of catholic schooling]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(6), pages 1429-1458.
    14. Robbett, Andrea & Matthews, Peter Hans, 2018. "Partisan bias and expressive voting," Journal of Public Economics, Elsevier, vol. 157(C), pages 107-120.
    15. Linlin Zheng & Yashi Dong & Jineng Chen & Yuyi Li & Wenzhuo Li & Miaolian Su, 2022. "Impact of Crisis on Sustainable Business Model Innovation—The Role of Technology Innovation," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    16. Grohs, Reinhard & Raies, Karine & Koll, Oliver & Mühlbacher, Hans, 2016. "One pie, many recipes: Alternative paths to high brand strength," Journal of Business Research, Elsevier, vol. 69(6), pages 2244-2251.
    17. Park, JungKun & Ahn, Jiseon & Thavisay, Toulany & Ren, Tianbao, 2019. "Examining the role of anxiety and social influence in multi-benefits of mobile payment service," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 140-149.
    18. Chunhao Wei & Han Chen & Yee Ming Lee, 2022. "COVID-19 preventive measures and restaurant customers’ intention to dine out: the role of brand trust and perceived risk," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 581-600, September.
    19. Masha Shunko & Julie Niederhoff & Yaroslav Rosokha, 2018. "Humans Are Not Machines: The Behavioral Impact of Queueing Design on Service Time," Management Science, INFORMS, vol. 64(1), pages 453-473, January.
    20. Mukherjee, Arka & Chauhan, Satyaveer S., 2021. "The impact of product recall on advertising decisions and firm profit while envisioning crisis or being hazard myopic," European Journal of Operational Research, Elsevier, vol. 288(3), pages 953-970.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jobman:v:28:y:2021:i:1:d:10.1057_s41262-020-00214-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.