The effect of corporate bankruptcy reorganization on consumer behaviour

The objective of this study is to compare the effects of a company's perceived levels of trust, reputation, risk perception, and quality, on consumers' purchasing intention in two contexts. The first context posits a company in stable financial condition, while the second a company in bank...

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Bibliographic Details
Published in:European research on management and business economics 2020-05, Vol.26 (2), p.96-102
Main Authors: Mainardes, Emerson Wagner, Mota, Ricardo Lopes, Moreira, Nadia Cardoso
Format: Article
Language:English
Subjects:
Bankruptcy
Purchase intention
Reputation
Risk
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Summary:The objective of this study is to compare the effects of a company's perceived levels of trust, reputation, risk perception, and quality, on consumers' purchasing intention in two contexts. The first context posits a company in stable financial condition, while the second a company in bankruptcy reorganization. After proposing the theoretical model, we conducted research using two questionnaires, which resulted in 187 respondents for the stable company situation, and 189 who responded to questions about companies undergoing corporate bankruptcy reorganization. The results support our assumptions that the state of a company's financial situation has an effect on the relationship of trust on perceived quality, and reputation on purchase intention. These results lead to the conclusion that an unfavourable financial situation does not generally harm consumer perceptions of the supplier company but may cause changes in perceptions of their trust and reputation.
ISSN:2444-8834
2444-8842
DOI:10.1016/j.iedeen.2020.03.002