Effect of locus of the crisis on purchase intention of the crisis brand: Sri Lankan young consumers’ view

Abstract

Locus of the product harm crisis influences how a consumer responds to that particular event . The purpose of the study is to examine the effect of the locus of the crisis on consumer purchase intention of the crisis brand . The main objective is t o find whether the locus of the product harm crisis shapes consumer purchase intention of the brand in crisis. Fictitious product harm crisis scenarios related to company locus and consumer locus product harm crises were used. A fictitious yogurt brand was considered as a stimulus brand in both cases. Results related to the 250 young consumers revealed that company located product harm crisis affects adversely on purchase intention of the crisis brand whereas consumer locus product harm crisis affects posit ively on purchase intention of the crisis brand, revealing the negative and positive links between company located and consumer located product harm crisis with purchase intentions of the crisis brand. This study provides new insights for companies to pro tect their financial status, as they know these positive and negative links attached to the purchase intention of the crisis brand and to ensure the market of the crisis brand during product harm crises.