Is Corporate Advertising Effective in a Crisis? The Effects of Crisis Type and Evaluative Tone of News Coverage

Abstract

The present study examines how consumers respond to corporate advertising during a corporate crisis. In particular, it examines what impact two factors—crisis type and the evaluative tone of a news story—have on consumer responses to corporate advertising. Results of the experimental study suggest that the crisis type—an accident or a transgression crisis—is a critical factor affecting ad credibility and changes, between pre- and post-tests, in perceptions of and attitudes toward the corporation. In addition, the results reveal that while the effect of the evaluative tone of the news story is not statistically significant for each of the dependent variables, the marginally significant effect on the set of dependent variables calls for more careful attention to this issue in future research.

KEYWORDS:

• corporate crisis
• corporate advertising
• crisis type
• evaluative tone