Crisis Management And The Effect of Negative Publicity In An Organization

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Crisis Management And The Effect of Negative Publicity In An Organization

Abstract

Negative publicity can harm a organisation in many ways. It can influence the consumers perception towards a firm or brand. This article examines how negative publicity deriving from a corporate crisis influences consumer loyalty. Throughout a literature study the effects of negative publicity and consumer loyalty were examined resulting in a theoretical model showing how negative publicity potentially influences consumer loyalty. The model proposed exists of two parts. The first part dedicated to negative publicity and the second part to consumer loyalty. Consumer loyalty exists of two important constructs. That is, behaviour loyalty and attitudinal loyalty. Both are important for true loyalty to exist. This means that a consumer must have a positive attitude towards a brand or firm in order to be loyal. Most studies on the effects on negative publicity on consumers found out that negative publicity influences consumer attitude. This effect is moderated by both consumer related factors as firm related factors. Most of these factors have in their presence a protective effect against negative publicity. If absent, negative publicity has more room to influence consumer attitude. On theoretical grounds both parts of the model are linked together, forming an overall model which shows how negative publicity influences consumer loyalty. The model proposes that throughout the change in the consumers overall attitude, as a result of negative publicity, attitudinal loyalty is affected and therefore consumer loyalty is affected

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