Delivered in Tallinn, Estonia for Advertising Professionals

1. Crisis as Moment of Truth:
When a Brand is under Fire
Timothy Coombs
University of Central Florida/Tallinn University

3. Problem with crisis

4. Impacts
• Damage to Brand
• Decrease purchase intention
• Decrease in market share

6. Question
• What makes crisis communication effective?

7. Answers
• Understanding the crisis situation
• Understanding your response options
• Knowing your limits

8. Understanding Crises
Crises
Traditional
Crises
Social Media
Crises

9. Traditional
• Operational concerns and safety issues
• Perceptions of crisis responsibility

10. Ethical Base Response: Initial
Communication
• Public safety
• What happened (anxiety)
• Corrective action (anxiety)
• Expression of concern (anger)

11. Traditional
Crisis
Low Crisis
Responsibility
High Crisis
Responsibility

12. Low Crisis
Responsibility
Rumor Attack

13. Communication Options
• Denial Rumor
• Suffering Attack

14. High Crisis
Responsibility
Human-error
Accidents
Product Harm
Management
Misconduct

15. Communication Options to Rebuild
Brands
• Compensation
• Includes discounts
• Apology
• Accept responsibility
• Ask for forgiveness

16. Timing
• Benefit to Brand if organization is first to disclose the crisis

17. Traditional Crisis Brand is Asset

18. a concern that arises in or is amplified
by social media resulting in negative
news media coverage, changes in
business operations, or threatens
financial loss

19. Social Media Crisis
Primarily Brand threat
Brand is target because it has value (liability)

20. Sources of social media crises
Social
Media
Crisis
Challenges
Organizational
Misuse
Dissatisfied
Customers

21. Refined View of Social Media Crises
Social Media
Crisis
Stakeholder
Actions
Challenges
Customer
Complaints
Organizational
Actions
Misuse of
Social Media

22. Organizational misuse
• Inappropriate use (competence)
• Apologize and correct
Traditional Crisis Connection
• Purposeful misuse (moral)

23. Dissatisfied Customers
• Customer relations, not a crisis
• Resolve the concern (opportunity & transparency)
Traditional Crisis Connection
• Warning of a product harm

24. Challenges
• Stakeholder claims organization is acting in irresponsible manner
• Threat to CSR claims
• Threat to Brands

25. Social media as risk
• Stakeholders take control of organization’s social media
• Planned
• Spontaneous
• Creates negative messages

26. Social media as risk

27. Communication Options
• Refuse
• Refute
• Reform

33. Limits
• Financial cost of response
• Consistency with organizational strategy and culture

34. Tactical Advise
• Be fast (but accurate)
• Be consistent
• Be open

35. Final Comments
• Brands face Traditional and Social Media Crises
• Crisis Communication potentially valuable resource
• Reduce damage to brand
• Reduce decline in purchase intention
• Reduce loss of market share

36. Küsimused