How Causal Dimensions of Product Harm Crises Shape Firm’s Financial Status: from Sri Lankan’s Moral Reputational Perspective

Ganganee Chandima Samaraweera, Chongguang Li and Ping Qing

International Journal of Financial Markets, 2015, vol. 1, issue 1, 22-40

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.

Keywords: product harm crisis; consumer based brand equity; causal attribution; moral reputation; societal dam (search for similar items in EconPapers)
Date: 2015
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