<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Different scientific studies provide many valuable recommendations how to manage crises in order to lessen their negative effect on relations with consumers. But the question whether the same business crises management rules can be applied for different industries, or they must be adapted depending on industries specifics, has not received sufficient scientific attention. Knowledge gaps about industry specific effect on consumer reactions to business crises remain. This study focuses on understanding the differences in consumers’ reactions in business crises situations with regard to controversial evaluation in the society of “the sin industries” (alcohol, tobacco, gambling, etc.) and ordinary industries (not having controversial associations). Experimental research design, including online experiment with tobacco, beer and functional soft drinks consumers (in total 306 respondents), was chosen for competing research hypotheses testing. Empirical evidence was in line with theoretical argumentation about less negative consumers’ reactions during business crises in case of “sin industries” versus ordinary industry. This study shows that consumers attitudes, such as perception of company’s product quality, trust, social responsibility and behavioural intentions, such as intention to buy and recommend company’s products, are less negative during business crises in lower reputation “sin industries” than in ordinary industries.</p></abstract>

Different scientific studies provide many valuable recommendations how to manage crises in order to lessen their negative effect on relations with consumers. But the question whether the same business crises management rules can be applied for different industries, or they must be adapted depending on industries specifics, has not received sufficient scientific attention. Knowledge gaps about industry specific effect on consumer reactions to business crises remain. This study focuses on understanding the differences in consumers’ reactions in business crises situations with regard to controversial evaluation in the society of “the sin industries” (alcohol, tobacco, gambling, etc.) and ordinary industries (not having controversial associations). Experimental research design, including online experiment with tobacco, beer and functional soft drinks consumers (in total 306 respondents), was chosen for competing research hypotheses testing. Empirical evidence was in line with theoretical argumentation about less negative consumers’ reactions during business crises in case of “sin industries” versus ordinary industry. This study shows that consumers attitudes, such as perception of company’s product quality, trust, social responsibility and behavioural intentions, such as intention to buy and recommend company’s products, are less negative during business crises in lower reputation “sin industries” than in ordinary industries.

Industry Specifics and Consumers’ Reactions to Business Crises

Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Industry Specifics and Consumers\u2019 Reactions to Business Crises"}

Different scientific studies provide many valuable recommendations how to manage crises in order to lessen their negative effect on relations with consumers....

Industry Specifics and Consumers’ Reactions to Business Crises

Published Online: Feb 07, 2018

Page range: 5 - 20

DOI: https://doi.org/10.1515/eb-2018-0001

Keywords
Business crises, consumer attitudes, consumer reactions, experiment, industry specific, sin industries, purchase intension

© 2018 Asta Kazlauskienė, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Industry Specifics and Consumers’ Reactions to Business Crises

Published Online: Feb 07, 2018

Page range: 5 - 20

DOI: https://doi.org/10.1515/eb-2018-0001

KeywordsBusiness crises, consumer attitudes, consumer reactions, experiment, industry specific, sin industries, purchase intension

© 2018 Asta Kazlauskienė, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Business crises, consumer attitudes, consumer reactions, experiment, industry specific, sin industries, purchase intension