Consumer reactions to restaurants' post-food crisis marketing strategies : a risk-benefit appraisal approach

Abstract

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT REQUEST OF AUTHOR.] Due to the huge impact of food safety events on hospitality industry, needs for planning effective restaurant post-food crisis strategies have been increased. This study attempted to adopt Protection Motivation Theory (PMT) in designing post-food crisis marketing strategies in order to minimize revenue loss and to maintain customer loyalty. A risk-benefit appraisal, one method of PMT, is used to design two different marketing strategies: benefit-enhancing strategy (price down promotion) and risk-reducing strategy (safe beef campaign). The impacts of those strategies on consumers' intention to visit restaurants are examined using a scenario-based survey. Results revealed that while the benefit-enhancing strategy failed to prevent consumers' intention from being reduced significantly, the risk-reducing strategy succeeded in maintaining the consumers' previous intention even after the outbreak of food safety event. However, young consumers react favorably to quick-service restaurants' benefit-enhancing strategies. This study can provide both academic and practical implications.