Abstract

Exaggerated projections of the 3rd-person effect of crisis news on target groups may play a key role in escalating corporate crises. A 2 (locus of control: internal vs. external) × 2 (product category of crisis: food vs. laptop) experiment found that the 3rd-person perception varies as a function of product category. Our results indicated that in a laptop product category crisis, participants perceived target audiences to be more influenced than themselves when locus of control was internal rather than when it was external. This study delved into the potential effect on target groups and the corporation resulting from possible exaggerated perceptions of the impact of the crisis on the target groups. This perception may prompt or even pressure target audiences to react more strongly in keeping with the perceived impact, not their actual concern with the crisis. In turn, corporations may respond to a target audience based on the reaction the target audience feels obligated to portray in response to perceived impact, not actual impact measured independently in various ways.

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