How Causal Dimensions of Product Harm Crises Shape Firm’s Financial Status: from Sri Lankan’s Moral Reputational Perspective
Journal Title: International Journal of Financial Markets - Year 2014, Vol 1, Issue 1
Abstract
Causative dimensions of product harm crisis influence how a consumer responds. This research explores through a new empirical angle and makes several unique contributions to the existing marketing literature by exploring how causal attributions of product harm crisis shape consumer moral reputation toward the affected company, thereby purchase intention of the affected brand. Results revealed that internal-company; stable, controllable causative dimensions affected negatively on moral reputation of the affected company and brand, thereby affect adversely on consumer based brand equity and purchase intention of the affected brand. Perceived societal damage of the crisis further downgraded the moral reputation of the affected company in the eyes of consumers. In contrast, external-consumer, unstable, uncontrollable causal dimensions caused to increase consumers’ moral reputation toward the affected company, thereby subsequent enhancement of purchase intention of the affected brand. Interestingly, this positive impact on purchase intention triggers when combined with the societal damage of the crisis. Therefore, study reveals that all types of product harm crises are not escorting to negative financial impact on the wounded company. Further study uncovers that moral reputation is an important bridging connection between the attribution process and consumers based brand equity. This study provides new insights for the companies to protect their moral reputation, while safekeeping the financial status in midst of product harm crisis.
Authors and Affiliations
Ganganee Chandima Samaraweera, Chongguang Li, Ping Qing
Keywords
Related Articles
- EP ID EP28699
- DOI -
- Views 384
- Downloads 10
Households’ Debt and Financial Sustainability in South Africa
The objective of this study was to analyse South African household sectors’ financial behaviour in respect of how households historically reacted to their aggregate debt position during the period 1990-2013. Following...
My Data: A new Prediction Model Simulator for Stock Market
Over the last few decades, the average person's interest in the stock market has grown exponentially. This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody ca...
Bankers Perception of Economic Determinants of Non-Performing Loans in Ghana
The study looks at perception of bankers on economic variables causing Non-Performing Loans (NPLs) in Ghana since 2005. The research was design to use primary data collection from bankers who evaluate loans and approvi...
Appraising the Money Market in the Economic Development of Nigeria: Challenges and Prospects
The growing importance of the money market in the Nigerian economy since the last decade has helped to stimulate interest among a wide variety of people in the study and practice of money market structure. This growing...
Effect of Stock Market Dynamics on Economic Growth: Evidence from Ghana Stock Exchange
The purpose of this study was to examine the effect of stock market dynamics on economic growth. It relied on a quantitative time series approach, using real GDP as a measure of economic growth and aggregate stock pric...