A COMPARISON BETWEEN PRE AND POST-CRISIS CONSUMER RESPONSES: DOES REPUTATION REALLY ACT AS A SHIELD?
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2020
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Abstract
A good corporate reputation is not only a critical intangible asset but is also stands out asa shield during crises. Humans have a natural tendency to question the underlying causesof events and real reasons behind the situations, and they also differentiate between intentional and unintentional actions. We would expect high reputation companies to engagein activities compatible with their reputation; however, this is not always the case as theymight partake in some incompatible actions. A crisis poses an example of such unfavorable actions that are likely to haunt high reputation companies. In this 2X2 experimentalstudy, a comparative analysis of pre and post-crisis consumer reactions was conducted,where reputation and intentionality of the company were manipulated at two levels. Theresults revealed that reputation might not act as a shield in every situation, and consumersmay consider other factors to see the goodwill of the company