[KSCI] Korea Science Citation Index Service

http://dx.doi.org/10.9723/jksiis.2018.23.2.093

The Effects of a Company's Response Type Strategy due to New Product Failure on Consumers' Negative WOMs : The Moderating Roles of both Cause-related Marketing Activity and Message Strategy

Yun, Hui Kyung (부경대학교 경영학과)
Choi, Young Min (동의대학교 평생교육원)
Bae, Sang Wook (부경대학교 경영학과)

Publication Information

Journal of Korea Society of Industrial Information Systems / v.23, no.2, 2018 , pp. 93-107 More about this Journal

Abstract

The Purpose of This Study is to Investigate Consumers' Negative WOMs due to the Crisis Response Strategy that Companies Perform in Crisis Situations due to the Failure of New Products. To do This, the Crisis Scenarios and Response Strategies were Manipulated Using a Virtual Laptop Company, and then an Experiment was Performed. The Results of This Experimental Design are as Follows. First, According to The Response Type Strategies, It is Found that Apologizing rather than Denying for the Crisis Response Mitigates the Negative WOMs more. Second, It is Found that the Companies that have Engaged in Cause-Related Marketing Activities before the Crisis Caused by New Product Failure Mitigate Consumers' Negative WOMs more than those which have not. Third, It is Shown that the Message Strategy of the Firm does not Affect Consumers' Negative WOMs. Fourth, the Interaction between the Response Type Strategy and the Cause-Related Marketing Activities are Found to Exist, but the Interaction Between The Response Type Strategy and the Message Strategy does not Appear.

Keywords

New Product Failure Crisis; Response Type Strategy; Message Type Strategy; Cause-Related Marketing Activity; Negative WOMs;

Citations & Related Records

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