Moving beyond negative spillover: The positive consequences of an innocent brand's responses to another brand's crisis

This study investigated (a) the negative spillover effects of brand's food‐safety crisis on an entire industry, dominant and nondominant innocent brands in the same product, and (b) the impacts of the innocent brand's response on the responded brand and the entire industry. The study condu...

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Bibliographic Details
Published in:Journal of contingencies and crisis management 2023-09, Vol.31 (3), p.489-499
Main Author: Chang, Bugil
Format: Article
Language:English
Subjects:
Between-subjects design
brand crisis
Crises
Food safety
foodborne outbreak
market position
response strategy
spillover effect
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Summary:This study investigated (a) the negative spillover effects of brand's food‐safety crisis on an entire industry, dominant and nondominant innocent brands in the same product, and (b) the impacts of the innocent brand's response on the responded brand and the entire industry. The study conducted a 2 (market position: dominant vs. nondominant) × 2 (response: no‐response vs. response) between‐subjects design with one additional control group. The findings showed that the negative impact of the dominant brand's crisis spilled over only to nondominant brands, but the innocent brand's response served to overcome the negative effect by recovering the consumer's deteriorated beliefs about the brand and its products to the pre‐crisis level. However, the innocent brand's response did not significantly affect the industry.
ISSN:0966-0879
1468-5973
DOI:10.1111/1468-5973.12454