An influence of crisis situations on customer perceptions of corporate reputation in Malta : Volkswagen case study

Abstract

PURPOSE: The objectives of this study revolve around the aim of identifying those factors which influence a customer’s perception of corporate reputation following a crisis, with particular reference to the Volkswagen scandal. The economic reputation attributes will serve as a basis to gain an in depth analysis of the subject matter. The means of how the individuals informed themselves on the scandal will also be investigated. DESIGN: In meeting these objectives, a quantitative research methodology was adopted. The data collection was undertaken using questionnaires which were handed out to individuals meeting the eligibility criteria. FINDINGS & CONCLUSION: This study showed that out of the five economic reputation attributes, quality ranked amongst the most important when purchasing a car. On the other hand, environmental safeguards were the least important factor that VW users and non-VW users look at in this regard. This was further confirmed when the respondents maintained that their perception of VW’s approach towards the environment remained unchanged following the scandal. Additionally, except for the said environmental attribute, bias was exhibited by VW users in ranking the cars manufactured by company based on the remaining four attributes. Furthermore, those individuals who had deemed reputation as being an unimportant factor in their car purchasing decision were not affected by the scandal, whereas on the other hand, the overall outlook of non-VW users on the company was negatively impacted following the scandal. Finally, the most popular mediums used by individuals in their car purchasing decision is WOM, whereas the most popular forms of media used by participants to learn about the scandal were TV/ Radio and social media.