IDEAS home Printed from https://ideas.repec.org/a/vrs/auseab/v6y2018i1p5-19n1.html
   My bibliography  Save this article

Industry Specifics and Consumers’ Reactions to Business Crises

Author

Listed:
  • Kazlauskienė Asta

    (ISM University of Management and Economics, Vilnius, Lithuania)

Abstract

Different scientific studies provide many valuable recommendations how to manage crises in order to lessen their negative effect on relations with consumers. But the question whether the same business crises management rules can be applied for different industries, or they must be adapted depending on industries specifics, has not received sufficient scientific attention. Knowledge gaps about industry specific effect on consumer reactions to business crises remain. This study focuses on understanding the differences in consumers’ reactions in business crises situations with regard to controversial evaluation in the society of “the sin industries” (alcohol, tobacco, gambling, etc.) and ordinary industries (not having controversial associations). Experimental research design, including online experiment with tobacco, beer and functional soft drinks consumers (in total 306 respondents), was chosen for competing research hypotheses testing. Empirical evidence was in line with theoretical argumentation about less negative consumers’ reactions during business crises in case of “sin industries” versus ordinary industry. This study shows that consumers attitudes, such as perception of company’s product quality, trust, social responsibility and behavioural intentions, such as intention to buy and recommend company’s products, are less negative during business crises in lower reputation “sin industries” than in ordinary industries.

Suggested Citation

  • Kazlauskienė Asta, 2018. "Industry Specifics and Consumers’ Reactions to Business Crises," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 32(1), pages 5-20, December.
  • Handle: RePEc:vrs:auseab:v:6:y:2018:i:1:p:5-19:n:1
    DOI: 10.1515/eb-2018-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/eb-2018-0001
    Download Restriction: no

    File URL: https://libkey.io/10.1515/eb-2018-0001?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
    ---><---

    References listed on IDEAS

    as
    1. Chieh-Peng Lin & Shwu-Chuan Chen & Chou-Kang Chiu & Wan-Yu Lee, 2011. "Understanding Purchase Intention During Product-Harm Crises: Moderating Effects of Perceived Corporate Ability and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(3), pages 455-471, September.
    2. Rafael Currás-Pérez & Enrique Bigné-Alcañiz & Alejandro Alvarado-Herrera, 2009. "The Role of Self-Definitional Principles in Consumer Identification with a Socially Responsible Company," Journal of Business Ethics, Springer, vol. 89(4), pages 547-564, November.
    3. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    4. Margaret Lindorff & Elizabeth Prior Jonson & Linda McGuire, 2012. "Strategic Corporate Social Responsibility in Controversial Industry Sectors: The Social Value of Harm Minimisation," Journal of Business Ethics, Springer, vol. 110(4), pages 457-467, November.
    5. Johnson, Devon & Grayson, Kent, 2005. "Cognitive and affective trust in service relationships," Journal of Business Research, Elsevier, vol. 58(4), pages 500-507, April.
    6. Petroshius, Susan M & Monroe, Kent B, 1987. "Effect of Product-Line Pricing Characteristics on Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 511-519, March.
    7. Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
    8. Hong, Harrison & Kacperczyk, Marcin, 2009. "The price of sin: The effects of social norms on markets," Journal of Financial Economics, Elsevier, vol. 93(1), pages 15-36, July.
    Full references (including those not matched with items on IDEAS)

    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. repec:zbw:bofrdp:2013_013 is not listed on IDEAS
    2. Matemba, Elizabeth D. & Li, Guoxin, 2018. "Consumers' willingness to adopt and use WeChat wallet: An empirical study in South Africa," Technology in Society, Elsevier, vol. 53(C), pages 55-68.
    3. Scarpi, Daniele & Pizzi, Gabriele & Raggiotto, Francesco & Mason, Michela, 2018. "A qualitative comparative analysis (QCA) of satisfaction toward extreme sporting Events," Australasian marketing journal, Elsevier, vol. 26(4), pages 358-368.
    4. Han, Heesup & Yu, Jongsik & Kim, Wansoo, 2019. "An electric airplane: Assessing the effect of travelers' perceived risk, attitude, and new product knowledge," Journal of Air Transport Management, Elsevier, vol. 78(C), pages 33-42.
    5. Leventis, Stergios & Hasan, Iftekhar & Dedoulis, Emmanouil, 2013. "The cost of sin: The effect of social norms on audit pricing," International Review of Financial Analysis, Elsevier, vol. 29(C), pages 152-165.
    6. Tsai, Yuan-Hui & Lin, Chieh-Peng & Ma, Hwa-Chun & Wang, Rong-Tsu, 2015. "Modeling corporate social performance and job pursuit intention: Forecasting the job change of professionals in technology industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 14-21.
    7. Saif Ullah & Ravi S. Mateti, 2021. "Do appearances deceive? The curious case of CSR activities and shunned companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 11-29, January.
    8. Abubakr Saeed & Muhammad Saad Baloch & Hammad Riaz, 2022. "Global Insights on TMT Gender Diversity in Controversial Industries: A Legitimacy Perspective," Journal of Business Ethics, Springer, vol. 179(3), pages 711-731, September.
    9. Yang Zhang, 2018. "Corporate Governance Effects on Risk Management and Shareholder Wealth: The Case of Mergers and Acquisitions," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 4-2018, January-A.
    10. Leventis, Stergios & Hasan, Iftekhar & Dedoulis, Emmanouil, 2013. "The cost of sin: The effect of social norms on audit pricing," Bank of Finland Research Discussion Papers 13/2013, Bank of Finland.
    11. Leventis, Stergios & Hasan, Iftekhar & Dedoulis, Emmanouil, 2013. "The cost of sin: The effect of social norms on audit pricing," International Review of Financial Analysis, Elsevier, vol. 29(C), pages 152-165.
    12. A. Beldad & S. Hegner, 2018. "Determinants of Fair Trade Product Purchase Intention of Dutch Consumers According to the Extended Theory of Planned Behaviour," Journal of Consumer Policy, Springer, vol. 41(3), pages 191-210, September.
    13. Zhe Ouyang & Chris Nengzhi Yao & Xi Hu, 2020. "Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1797-1808, May.
    14. Kim, Heetae & Park, Eunil & Kwon, Sang Jib & Ohm, Jay Y. & Chang, Hyun Joon, 2014. "An integrated adoption model of solar energy technologies in South Korea," Renewable Energy, Elsevier, vol. 66(C), pages 523-531.
    15. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    16. Diletta Acuti & Marco Bellucci & Giacomo Manetti, 2024. "Preventive and Remedial Actions in Corporate Reporting Among “Addiction Industries”: Legitimacy, Effectiveness and Hypocrisy Perception," Journal of Business Ethics, Springer, vol. 189(3), pages 603-623, January.
    17. Linda Jansen & Peggy Cunningham & Sandra Diehl & Ralf Terlutter, 2024. "Corporate social responsibility in controversial industries: A literature review and research agenda," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4398-4427, September.
    18. Kalinic, Zoran & Marinkovic, Veljko & Molinillo, Sebastián & Liébana-Cabanillas, Francisco, 2019. "A multi-analytical approach to peer-to-peer mobile payment acceptance prediction," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 143-153.
    19. Maria Andersson & Ola Eriksson & Chris Von Borgstede, 2012. "The Effects of Environmental Management Systems on Source Separation in the Work and Home Settings," Sustainability, MDPI, vol. 4(6), pages 1-17, June.
    20. Tran Huy Phuong & Thanh Trung Hieu, 2015. "Predictors of Entrepreneurial Intentions of Undergraduate Students in Vietnam: An Empirical Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(8), pages 46-55, August.
    21. Clara Cardone-Riportella & María José Casasola-Martinez & Isabel Feito-Ruiz, 2014. "Do Entrepreneurs Come From Venus Or Mars? Impact Of Postgraduate Studies: Gender And Family Business Background," Working Papers 14.04, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration), revised Sep 2014.

    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:vrs:auseab:v:6:y:2018:i:1:p:5-19:n:1. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.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.