Product-harm crisis and perceived betrayal: The moderating effect of cognitive bias

Abstract

This study utilised an experimental design to examine the moderating effect of cognitive biases (availability of information and herd effect) on the relationship between product-harm crisis and perceived betrayal. In a series of three studies involving 596 young adults (college students: n = 386; female = 51.04%, male= 48.96%; mean age = 21.18 years, SD = 3.50 years) and general population: (n = 210; female= 47.60%, male= 52.40%; mean age= 31.76 years, SD = 12.79 years) we compared whether the single enterprise product-harm crisis perception, group product-harm crisis would lead to higher perceived betrayal. Results from regression analysis and ANOVA indicate that product-harm crisis perceptions predicted perceived betrayal. Group product-harm crisis led to higher perceived betrayal than that of single enterprise product-harm crisis. More importantly, the availability of information and herd effect strengthened the influence of product-harm crisis on perceived betrayal. The present findings are consistent with the theory of attribution of responsibility on crisis management and suggests a need for inclusive crisis management strategies under different perceived crises and cognitive states.