Understanding Purchase Intention During Product-Harm Crises: Moderating Effects of Perceived Corporate Ability and Corporate Social Responsibility

Abstract

A company’s product-harm crises often lead to negative publicity which substantially affects purchase intention. This study attempts to examine the purchase intention and its antecedents (e.g., perceived negative publicity) during product-harm crises by simultaneously including perceived corporate ability (CA) and corporate social responsibility (CSR) as moderators. In the study’s proposed model, purchase intention is indirectly affected by perceived CA, negative publicity, and CSR via the mediation of trust and affective identification. At the same time, the influences of perceived negative publicity on trust and affective identification are moderated by perceived CA and CSR, respectively. Empirical testing using a survey of car users from 477 working professionals confirms most of our hypothesized effects except the insignificant moderating effects of perceived CA. Finally, managerial implications and limitations of our findings are discussed.