What are the different forms that an MPR crisis can take? Give a specific example of each type in your answer
What will be an ideal response?
For marketers, a crisis can take a multitude of forms. It can be an instance when a company's product actually does harm to the person or property of a customer. Examples of this type of crisis include the case of seven people dying as a result of ingesting cyanide-laden Tylenol capsules in 1982 and the increased number of rollover accidents in Ford Explorers in the late 1990s and early 2000s that was attributed to a particular model of Firestone tires.Crises can also emanate from situations in which customers or publics discover that their perception of a company, its brands, or products are not in line with reality. In 2005 and 2006, for example, BP (formerly British Petroleum) suffered a fatal refinery explosion and a pipeline leak while in the midst of repositioning itself as an environmentally and socially responsible energy company with its "Beyond Petroleum" campaign. Subsequent cuts in production and employee allegations of inadequate maintenance and inspection practices exacerbated the impact of these events. The behavior and practices of the people within a firm can create predicaments for marketers as well. For example, in 2002, marketers at General Electric had to respond to publicity surrounding an affair and subsequent messy divorce of recently retired CEO Jack Welch. The media frenzy surrounding Welch brought up questions about his lavish retirement package and seemingly extravagant personal expenses that GE picked up during his tenure. In addition, the timing of this crisis increased the likelihood of Welch and GE being painted with the same brush as other embattled CEOs and their companies, such as Bernie Ebbers of WorldCom and Kenneth Lay from Enron.
You might also like to view...
Which of the following is a characteristic of purchase panels (Table 4.3 in the text)?
A) household purchases recorded through electronic scanners in supermarkets B) households provide specific information regularly over an extended period of time; respondents asked to record specific behaviors as they occur C) verification of product movement by examining physical records or performing inventory analysis D) data banks on industrial establishment created through direct inquiries of companies, clipping services, and corporate reports
Which of the following reasons explain why federal regulators adopted a policy of regulatory forbearance toward insolvent financial institutions in the early 1980s?
A) The FSLIC lacked sufficient funds to cover insured deposits in the insolvent S&Ls. B) The regulators were reluctant to close the firms that justified their regulatory existence. C) The Federal Home Loan Bank Board and the FSLIC were reluctant to admit that they were in over their heads with problems. D) All of the above are reasons. E) Only A and B of the above are reasons.