Addressing the Damage of Deception: Determining Effective Crisis Response Strategies Following Allegations of Deceptive Advertising

Abstract

Governmental agencies and other watchdog organizations are tasked with detecting deceptive advertising and punishing those who employ it. Finances, company image, and consumer–brand relationships are at risk if a company is found to be guilty of employing deceptive advertising. It is important to understand effective responses to such allegations. Drawing on the situational crisis communication theory framework, this research examines the impact of different types of deceptive advertising on consumer behavior and explores which response strategies are appropriate for companies accused of deceptive advertising. The moderating influence of consumers’ skepticism toward advertising is also investigated. We conclude with recommendations for advertisers, who seek to restore public trust.