Effect of Business Communication on Consumers' Purchase Behavior in a Product Harm Crisis

Abstract

Current research makes several unique contributions to the marketing literature by exploring a link between business response and consumers' purchase behavior in a product harm crisis. The main purpose of the current study is to find whether business communication enhances consumers' purchase behavior in a company culpable crisis. Results of the study comprised of 203 Chinese and Sri Lankan respondents suggest that their purchasing behavior vary significantly in response to crisis response strategies implemented in the crisis. Voluntary response strategy is fruitful in China whereas super effort response strategy helps to enhance Sri Lankan consumers' purchase behavior. Implementation of an inappropriate strategy causes a potential financial risk in these two markets. These findings provide useful guidance for crists managers and for further comparative research investigations.