• Title/Summary/Keyword: Company's Response Strategy

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The Impact of Crisis Response Strategy on Brand Attitude - Focus on the Crisis Type and Cause Related Marketing - (기업의 위기대응전략이 브랜드 태도에 미치는 영향 - 위기 유형과 기업의 공익연계 마케팅을 중심으로 -)

  • Seol, Sang-Chul;Jung, Sung-Gwang;Choi, Woo-Young
    • Management & Information Systems Review
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    • v.34 no.5
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    • pp.251-276
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    • 2015
  • This study is to review the attitude of consumers on the crisis response strategy (defensive vs. receptive) that the company implements in crisis situations. Also, the interaction between the crisis response strategy that the company implements and the crisis type of companies (corporate ability vs corporate social responsibility) was discussed. In addition, the interaction between the messages (abstract vs. concrete) of public interest associated marketing implemented prior to crisis situations and the crisis response strategy implemented after crisis situations was discussed. And these results were reviewed to see if the same result can come out after controlling the involvement on consumer's public interest associated marketing as a covariate. The main results of this study are as follows. First, regarding the crisis response strategy, in the company's crisis response strategy, the receptive attitude was more favorable for the consumer's attitude than the defensive attitude. Second, it was seen that there is a significant interaction between the crisis response strategy of companies and the crisis type of companies. Third, it was seen that the crisis response strategy of companies has a significant interaction with the message type of public interest associated marketing. Lastly, the involvement showed a significant effect as a covariate and the interaction between the crisis response strategy of companies, the crisis type of company and the message type of public interest associated marketing can be confirmed even after controlling the involvement. In the conclusion of the study, the direction on implications, limitations and future.

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An Examination of the Effectiveness of Crisis Response Strategies for Repairing Competence and Integrity Violations

  • Sung, Yen-yi;Lee, Han-joon;Park, Jong-chul
    • Asia Marketing Journal
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    • v.15 no.1
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    • pp.129-154
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    • 2013
  • Product-harm crises, which are connected to defective or dangerous products, are perceived as the most common threats to a company. Product harm crises can distort long standing favorable equality perceptions, tarnish a company's reputation, cause major revenue and market-share losses, lead to costly product recalls, and devastate a carefully nurtured brand equity. However, in spite of the devastating impact of product-harm crises, little systematic research exists to asses its marketing consequences. So, the purpose of this study is to investigate how Koreans react to the crisis response in the aftermath of different crises(competence violation vs. integrity violation) and inspire additional research in crisis communication. This study has three main findings which run counter to the assumptions of Kim et al.(2007). Namely, the current study expands on the research of Kim et al. (2004, 2007) by examining how companies repair customers' trust and corporate attitude after crises. Different from previous studies, this study assumes that apology for an integrity-based crisis is the most appropriate way to repair consumer trust and corporate attitude. As for competence-based crisis, similarly, apology for competence-based crisis can be more successful repairing consumer trust and corporate attitude. Concerning silence strategy, remaining silent dose not admit or deny guilt right away, but instead of asking the perceiver to withhold judgment, suggesting that, silence could be expected to be superior to apology but inferior to denial. Finally, apology for competence violation will be expected to bemore effective than apology for integrity violation. Research conceptual model was as follows: According to the results, apology is found to be the most effective strategy to repair corporate attitude no matter the crisis is perceived as a violation of competence or integrity. Second, company may consider keeping silent as a desirable response because they does not admit nor deny responsibility but ask the public to withhold judgment. However, the result of this study shows that, in the overall crisis situations, silence strategy did not differ significantly from the denial strategy, which suggested that the public wants explanation instead of uncertainty. Third, there was the interaction effect between crisis type and crisis response strategies. In this study, apology is more effective for the competence violated situation in terms of regaining consumer trust and repairing their attitude toward company, while the apology's effectiveness is lower for the integrity-violated situation. More specifically, when the crisis is perceived due to company's lack of ability(competence violation), consumer's trust belief and attitude toward the company is more easily to repair when the company issued a sincere apology. Damaged product is perceived less intentional so participants are more likely to give the company second chance when they apology to the public. By contrast, exaggerated advertisement(integrity violation) is perceived intentionally and thus makes participants angrier toward the accused company. Although apology is perceived as the most effective strategy, when issuing apology, it also means the company admitted their intention. Therefore, in this kind of crisis situation, trust repair needs not only a sincere apology but additional efforts.

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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 (신제품 실패에 따른 기업의 대응유형전략이 소비자의 부정적 구전에 미치는 영향: 공익연계 마케팅 활동여부와 메시지전략의 조절역할)

  • Yun, Hui Kyung;Choi, Young Min;Bae, Sang Wook
    • Journal of Korea Society of Industrial Information Systems
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    • v.23 no.2
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    • pp.93-107
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    • 2018
  • 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.

Establish Manufacturing Firms' Response Strategy to the Serious Accident Punishment Act Using IPA (IPA를 활용한 제조기업의 중대재해처벌법 대응방안 수립)

  • Seo, JunHyeok;SungMin Bae
    • Journal of Korean Society for Quality Management
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    • v.51 no.4
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    • pp.607-618
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    • 2023
  • Purpose: In this study, we proposed a plan to establish and implement a safety and health management system by utilizing corporate resources so that manufacturing companies can effectively respond to the Serious Accident Punishment Act. Methods: We identified critical factors and response strategies necessary for manufacturing companies to respond to the Severe Accident Punishment Act effectively and surveyed employees working at the company regarding their importance and performance. Results: In this study, we presented a method of strategically constructing the response strategies (20) shown in previous studies by matching them with the company's resources (leadership, organization, budget, education, and awareness). In particular, leadership refers to the ability of managers who can prevent serious accidents by carrying out safety and health security obligations to avoid safety and health hazards or risks to employees in the business or workplace that is controlled, operated, and managed. Conclusion: Based on the manager's firm leadership, the system's purpose and direction must be accurately set and sufficiently communicated to members. In addition, for companies to identify and improve risk factors on their own, a Process approach must be established to improve execution by referring to legal standards together with field managers and supervisors.

Aim at a Target Market of Small Groups The Case of the Brand 'Lonchel' Targeting Top Premiere Interior Market (소수의 표적시장을 선택하라: 최상위 프리미엄 인테리어 시장 지향 L사의 '론첼' 브랜드 사례)

  • Lee, Jaejin;Lee, Sung-Jun
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.18 no.3
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    • pp.97-110
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    • 2022
  • The case study looks into the case of the "extreme" market segmentation strategy of company L with its top luxury windows and door brand "Lonchel". Company L has long enjoyed a leading position in the Korean windows and doors mass market. However, it went against their already well-established flagship brand and created a completely new one called "Lonchel", pursuing an extreme market segmentation strategy focusing on the small niche market of highest-income customers exclusively. The strategy has turned out to be successful and the company has gained long-lasting competitive advantages. In this vein this study analyzes the market environment in which the top-tier brand "Lonchel" appeared, the concept of the extreme positioning and the smallest viable market, the characteristics of target customers, the company's analysis of and response to them, and the analysis of products to meet their needs. The brand operation plan and promotion will be also reviewed. Through this, we intend to draw implications related to the extreme positioning strategy that a company may pursue in a target market of small groups of people.

Effects of Essential Companywide Components of PL Response System on Company's PL Performance (전사적 PL 대응시스템의 핵심요인이 기업 성과에 미치는 영향)

  • Seo, Jun Hyeok;Bae, Sung Min
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.2
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    • pp.22-30
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    • 2017
  • PL (Product Liability) refers to the legal responsibility of a manufacturer or seller for bodily injuries or property losses caused by product defects. Therefore, it is important for companies to construct a product liability response system that strategically manage and effectively adapt to product liability. A PL response system refers to companywide operations of PL prevention (PLP) measures, product safety (PS) measures, and PL defense (PLD) measures appropriate for a company's scale and environment. To establish an enterprise product liability response system, each essential component of corporations should be systematically operated and maintained considering the scale and characteristics of the corporations. Essential components of PL response system is Strategy, Organization, Training, Technology, Investment, and Awareness. Role of essential components is that companies need specific strategies to secure product safety and protect customers from product defects, and appropriate organizations must be composed for effective operation of such strategies. The objective of this paper seeks to examine the relationships among the essential components of the product liability response system and PL performance. PL performance consists of positive performance and negative performance. In particular, positive performance include increased efforts in product or process innovation such as strengthening research and development (R&D) to produce safer products without defects. In order to carry out this research we obtained 98 questionnaire of manufacturing company. A summary of the analyses is as follows: First, the awareness and technology among essential components affect significantly to the positive performance. Second, the awareness and strategy among essential components negative affect to the negative performance.

Analysis of Web Log for e-CRM on B2B of the Make-To-Order Company (수주생산기업 B2B에서 e-CRM을 위한 웹 로그 분석)

  • Go, Jae-Moon;Seo, Jun-Yong;Kim, Woon-Sik
    • IE interfaces
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    • v.18 no.2
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    • pp.205-220
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    • 2005
  • This study presents a web log analysis model for e-CRM, which combines the on-line customer's purchasing pattern data and transaction data between companies in B2B environment of make-to-order company. With this study, the customer evaluation and the customer subdivision are available. We can forecast the estimate demands with periodical products sales records. Also, the purchasing rate per each product, the purchasing intention rate, and the purchasing rate per companies can be used as the basic data for the strategy for receiving the orders in future. These measures are used to evaluate the business strategy, the quality ability on products, the customer's demands, the benefits of customer and the customer's loyalty. And it is used to evaluate the customer's purchasing patterns, the response analysis, the customer's secession rate, the earning rate, and the customer's needs. With this, we can satisfy various customers' demands, therefore, we can multiply the company's benefits. And we presents case of the 'H' company, which has the make-to-order manufacture environment, in order to verify the effect of the proposal system.

Establish Company's Response Strategy by Revision Product Liability Law through Delphi-SWOT Method (Delphi-SWOT 분석을 이용한 제조물책임법 개정에 따른 기업의 대응전략 수립)

  • Seo, JunHyeok;Bae, SungMin
    • Journal of Korean Society for Quality Management
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    • v.46 no.4
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    • pp.911-922
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    • 2018
  • Purpose: This study provides an overview of the Product Liability Act which was revised in 2017 and took effect in 2018. It analyzes the effects of the revised Act on corporate management from internal and external perspectives to present coping strategies so that companies can synthetically respond to such effects. Methods: In order to achieve the purpose of this study, experts like companies, academia, governmental institutions, and consultants were invited, and Delphi techniques were applied to derive means, standard deviations, and Content Validity Ratio. Results: In this study, based on two expert questionnaire surveys, strengths and weaknesses of the internal environment of companies and opportunities and threats of the external environment were derived, followed by provision of S/O, W/O, S/T, and W/T strategies. Conclusion: To fundamentally remove the causes of accidents on their products, the relevant companies should strengthen the activities to increase product safety. They shall cooperate with suppliers to arrange the measures to speedily secure safety of consumers.

A Study on the Retailer's Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group (소매업체의 글로벌 확장전략과 공급사슬관리에 관한 연구: 메트로 그룹을 중심으로)

  • Kim, Dong-Yun;Moon, Mi-Jin;Lee, Sang-Youn
    • Journal of Distribution Science
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    • v.11 no.12
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    • pp.25-37
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    • 2013
  • Purpose - The structure of retailing has changed as retailers develop markets in response to business environment changes. This study aims to analyze the general situation of retailers in order to predict future global strategy using case studies of overseas expansion strategy and the Metro Group's global strategy. Research design, data, and methodology - The backgrounds to the new retail business model and retailer classification are analyzed as theoretical data. In addition, the key success point of the Metro Group's "cash and carry" strategy is analyzed as is the Metro Group's global CFAR (collaborative planning, forecasting, and replenishment) strategy. Finally, the plan for cooperation and precise forecasting under the Metro Group's supply chain management are analyzed from the promotion environment viewpoint. Related materials analyzed included the 2012 annual report, the Metro Group's web page, and a video interview with the executive in charge of global strategy and the new market development department. Some data were revised to avoid disrupting essential aspects of the case studies. Results - The important finding was that the Metro Group could be a world-class retail company with its successful global expansion strategy. The Metro Group's global strategy's primary goal is to have a leading business position in Eastern and Western Europe. The "cash and carry" strategy is highest priority in its overseas expansion strategy. Moreover, the Metro Group has standardized product planning capacity, which could be applied in various countries with different structural and cultural backgrounds. This is the main reason that the Metro Group could rapidly become successful in the Eastern Europe and Asian markets through its structural overseas expansion strategies. In addition, the Metro Group emphasizes the importance of supply chain management. Conclusions - First, retailers should create additional value through utilizing the domestic market, market power, and economies of scale to launch a global strategy to maximize benefits from diversification. Second, the political, economic, and cultural background of the target country needs to be understood to successfully implement the overseas expansion strategy. Third, the main factor of successful cooperation with a local partner is how quickly the company gains total understanding of the business resources and core competence of its partner. All organizations should focus on the achievement of goals in order to successfully operate the partnership. Fourth, retailers should improve their business, financial and organizational structure. Moreover, the work processes and company culture should also be improved to respond strongly in the competitive global market. Fifth, the essential point of a successful retail business is the control capacity of its branding and format. The retailer could avoid forecasting errors through supply chain management by perfectly distributing the actual amount of its inventory. In addition, the risks along the supply chain are effectively shared between the supply chain partners. Finally, the central tendency of the market is to gain in strength with this taking place across all parts of the business.

Industry's Response to the Green Movement

  • Little, Barry F.P.
    • Analytical Science and Technology
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    • v.8 no.4
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    • pp.1075-1078
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    • 1995
  • This paper describes how industry has responded to the environmental challenge. Benefits include compliance with environmental legislation; genuine reductions to environmental impact; sustainable improvements to profitability in the face of increased competitive pressure. National and international Standards for environmental management offer security and direction for a company wishing to improve environmental performance and coupled with a waste minimisation strategy many financial and environmental benefits can be achieved. Introduction of new technical skills, techniques and worker understanding to aid motivation is an essential component of such a strategy. Monitoring and targeting has a key role to play in the establishment of improved environmental performance.

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