the impact of time on product harm crises
DESCRIPTION
Conference presentation, 2013TRANSCRIPT
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The Impact of Time on Product-Harm Crises:
The Case of IKEA’s Meatballs
Dr. Aikaterini Vassilikopoulou
Peter J Stavroulakis
1st WSEAS International Conference on COMPUTER SUPPORTED EDUCATION
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CRISIS: A DISRUPTION THAT AFFECTS THE ENTIRE CORPORATE SYSTEM AND THREATENS ITS BASIC
PRINCIPLES
Pauchant & Mitroff, 1992
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Product-harm crises areincidents where a product isfound to be unsafe forconsumers, defective ordangerous.
Dawar & Pillutla, 2001
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Brand Crises Typology:
o Performance-relatedo Values-related
Dutta & Pullig, 2011
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•Denial to Super-Effort (Shrivastava and Siomkos , 1989)
•Three Basic Accommodative Strategies (Coombs, 2007)
The Organizations’ Response to a Crisis May Significantly Affect
Consumers’ Attitudes, Perceptions and Reactions
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The impact of time on product-harm crises
Literature is limited
Time span may be critical (Standop, 2006)
Consumers seem to forget (Vassilikopoulou, 2009)
Limitations: Research was based on hypotheticalscenarios and a great deal of time had passedbetween the crisis and the research
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IKEA Meatball Crisis Timeline
Feb 25th 2013, traces of horsemeat are found in samples of IKEA’s meatballs in the Czech Republic and the information goes public, IKEA recalls meatballs from 14 EU countries
7 weeks afterwards the meatballs are back on the shelves with a discounted retail price
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Methodology
Three days after the crisis goes public
124 respondents given a questionnaire
41% men
56% college graduates
30% were 18-25 years old
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Questionnaire
I have a good impression about IKEA
How would you characterize the decision of whether to buy meatballs from IKEA’s restaurant?
I hold IKEA responsible for the product harm
I feel angry about the event
How severe was the event
I intend to buy meatballs from IKEA’s restaurant in the future
I intend to buy furniture from IKEA in the future
All items were formulated in 7-point Likert-type scale format.
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Results
Mean ScoresItem 3 days after 1 week
after2 weeksafter
4 weeksafter
6 weeksafter
Impression 3.45 4.67 4.66 4.89 5.01
Perceived risk 4.91 4.20 4.13 3.87 3.65Item 3 days after 1 week
after2 weeksafter
4 weeksafter
6 weeksafter
Anger 5.09 4.32 4.22 3.75 3.73
Severity 4.88 4.52 4.44 4.29 3.95
Purchaseintentions(meatballs)
2.54 3.68 4.16 4.54 4.69
Purchaseintentions
(furniture)
5.89 6.02 6.07 6.12 6.20
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Impression and Perceived Risk
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Blame, Anger and Severity
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Purchase Intentions
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Conclusions
While it may take people years to forgetnegative experiences deriving from a crisisand for them to form more positiveperceptions (Kanso, Levitt and Nelson, 2010),
it would seem that the crisis has beenmitigated
Time is an altering factor
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Future Directions
Model of estimating the temporal impact of a crisis utilizing growth curves
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Thank you for your attention!