Advertisement

Corporate Reputation Review

, Volume 22, Issue 2, pp 48–60 | Cite as

Brand Crisis-Sentiment Analysis of User-Generated Comments About @Maggi on Facebook

  • Mridula S. MishraEmail author
  • Ruppal W. Sharma
Original Article
  • 57 Downloads

Abstract

This paper examines the brand crisis faced by Maggi, Nestle’s brand of instant noodles in India, and analyzes the extent to which a health-related crisis can impact consumer response on social media (Facebook) for a strong and trusted brand. The sentiment analysis of the consumer comments and posts was done using Lexalytics and brand associations were ascertained through generation of word clouds. It was found that the impact of negative consumer sentiments on net polarity score during the crisis was mitigated to a significant extent by high positive valence of counterarguments put forth by committed consumers. Today, social media has emerged as a major platform for brand crisis and reputation management and this paper contributes to literature, by proposing a conceptual model based on consumer sentiment in response to corporate communication by the affected brand and its key competitor on social media, both during and post the brand crisis. The findings and implications of this research can help brand managers formulate their social media strategy for effective crisis management.

Keywords

Brand crises Sentiment analysis Facebook Social media 

References

  1. Aaker, J., S. Fournier, and A.S. Brasel. 2004. When good brand do bad. Journal of Consumer Research 31 (1): 1–16.Google Scholar
  2. Ahluwalia, R., R.E. Burnkrant, and R. Unnava. 2000. Consumer response to negative publicity: the negative role of commitment. Journal of Marketing Research 37 (2): 203–214.Google Scholar
  3. Akdeniz, B., R. Calantone, and C. Voorhees. 2012. Effectiveness of marketing cues on consumer perceptions of quality: the moderating roles of brand reputation and third-party information. Psychology and Marketing. 30: 76–89.  https://doi.org/10.1002/mar.20590.Google Scholar
  4. Barton, L. 2001. Crisis in organizations II, 2nd ed. Cincinnati: College Divisions South-Western.Google Scholar
  5. Betwa, S. 2015. Maggi noodles: the precise reasons why lead and MSG are bad for you. http://www.huffingtonpost.in/2015/06/04/maggi-noodles_n_7509126.html. Accessed 16 Feb 2015.
  6. Birch, J. 1994. New factors in crisis planning and response. Public Relations Quarterly. 39 (1): 31–34.Google Scholar
  7. Borah, A., and G.J. Tellis. 2016. Halo (spillover) effects in social media: do product recalls of one brand hurt or help rival brands? Journal of Marketing Research 53 (2): 143–160.Google Scholar
  8. Byrd, S. 2012. Incorporating a stewardship-based social media strategy to maintain brand reputation during a crisis. Corporate Communications. 17 (3): 241–254.  https://doi.org/10.1108/13563281211253502.Google Scholar
  9. Carroll, C. E. 2004. How the mass media influence perceptions of corporate reputation: exploring agenda-setting effects within business news coverage. diss., The University of Texas, Austin, Texas.Google Scholar
  10. Carroll, C.E., and M. McCombs. 2003. Agenda setting effects of business news on the public’s images and opinions about major corporations. Corporate Reputation Review 16: 36–46.Google Scholar
  11. Cleeren, K., M.G. Dekimpe, and K. Helsen. 2008. Weathering product harm crises. Journal of the Academy of Marketing Science 36 (2): 262–270.Google Scholar
  12. Cleeren, K., M.G. Dekimpe, and H.J.J. Van Heerde. 2017. Marketing research on product harm crises: a review, managerial implications and an agenda for future research. Journal of the Academy of Marketing Science 45: 593–615.  https://doi.org/10.1007/s11747-017-0558-1.Google Scholar
  13. Coombs, W. 2007. Protecting organization reputations during a crisis: the development and application of situational crisis communication theory. Corporate Reputation Review. 10 (3): 163–176.Google Scholar
  14. Coombs, W.T., and S.J. Holladay. 2002. Helping crisis managers protect reputational assets: initial tests of the situational crisis communication theory. Management Communication Quarterly. 2002 (16): 165–186.Google Scholar
  15. Coombs, W.T., and S.J. Holladay. 2005. Exploratory study of stakeholder emotions: affect and crisis. In Research on emotion in organizations: volume 1: the effect of affect in organizational settings, ed. N.M. Ashkanasy, W.J. Zerbe, and C.E.J. Hartel, 271–288. NewYork: Elsevier.Google Scholar
  16. Dahlén, M., and F. Lange. 2006. A disaster is contagious: how a brand in crisis affects other brands. Journal of Advertising Research 46 (4): 388–397.Google Scholar
  17. Dawar, N., and M.M. Pillutla. 2000. Impact of product-harm crises on brand equity: the moderating role of consumer expectations. Journal of Marketing Research 37 (2): 215–226.Google Scholar
  18. Druckman, J.N. 2001. The implications of framing effects for citizen competence. Political Behavior 23 (3): 225–256.Google Scholar
  19. Edwards, K., and E.E. Smith. 1996. A disconfirmation bias in the evaluation of arguments. Journal of Personality and Social Psychology 71 (1): 5–24.Google Scholar
  20. Ehrenberg, A., B. Kennedy, and H. Bloom. 2002. Brand advertising as creative publicity. Journal of Advertising Research. 42 (4): 7–18.Google Scholar
  21. Einwiller, S.A., C.E. Carroll, and K. Kati. 2010. Under what conditions to the news media influence corporate reputation? The roles of media dependency and need for orientation. Corporate Reputation Review 12 (4): 299–315.Google Scholar
  22. Euromonitor Passport. 2015. Rice, noodles and pasta category breifing. http://www.euromonitor.com/rice-pasta-and-noodles-in-india/report. Accessed 12 Feb 2016.
  23. Fiske, S.T. 1980. Attention and weight in person perception: the impact of negative and extreme behaviour. Journal of Personality and Social Psychology 38 (6): 889–906.Google Scholar
  24. Fombrun, C., and M. Shanley. 1990. What’s in a name? Reputation building and corporate strategy. The Academy of Management Journal 33 (2): 233–258.Google Scholar
  25. Fombrun, C.J., N.A. Gardberg, and J.M. Sever. 2000. The reputation qutotient SM: a multi-stakeholder measure of corporate reputation. The Journal of Brand Management 7 (4): 241–255.Google Scholar
  26. Fry, E. 2016. Nestle. http://fortune.com/nestle-maggi-noodle-crisis/. Accessed 7 Mar 2017.
  27. Goel, V. 2014. G.M. Uses social media to manage customers and its reputation. https://www.nytimes.com/2014/03/24/business/after-huge-recall-gm-speaks-to-customers-through-social-media.html?_r=0. Accessed 12 Feb 2016.
  28. Gotsi, Manto, and Alan M. Wilson. 2001. Corporate reputation: seeking a definition. Corporate Communications: An International Journal 6 (1): 24–30.  https://doi.org/10.1108/13563280110381189.Google Scholar
  29. Gross, S.R., R. Holtz, and N. Miller. 1995. Attitude certainity. In Attitude strength: antecedents and consequences, ed. R.E. Petty, 215–245. Mahwah: Lawrence Eibaum Assocaites.Google Scholar
  30. Hattori, A., and Y. Nadamoto. 2013. Tip information from social media based on topic detection. Journal of Web Information Systems. 9 (1): 83–94.Google Scholar
  31. Hsu, L., and B. Lawrence. 2015. The role of social media and brand equity during product recall crisis: a shareholder value perspective. International Journal of Research and Marketing. 33 (1): 59–77.Google Scholar
  32. Kasperson, J.X., R. Karsperson, N. Pidgeon, and P. Solvic. 2003. The social amplification of risk: assessing fifteen years of research and theory. In The social amplification of risk, ed. N. Pidgeon, 13–45. Cambridge: Cambridge University Press.Google Scholar
  33. Keller, K.L. 1993. Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing. 57 (1): 1–22.Google Scholar
  34. Khobzi, Hamid, and Babak Teimourpour. 2014. How significant are users’ opinions in social media? International Journal of Accounting & Information Management 22 (4): 254–272.  https://doi.org/10.1108/IJAIM-02-2014-0010.Google Scholar
  35. Lexlytics. 2012. Lexlytics for Excel. https://www.lexalytics.com/technology/sentiment. Accessed 22 Jan 2016.
  36. Liu, Y., and V. Shankar. 2015. The dynamic impact of product harm crisis on brand preference and advertising effectiveness: an empirical analysis of the automobile industry. Management Science 61 (10): 2514–2535.Google Scholar
  37. Liu, Y., Y. Chen, S. Ganesan, and R. Hess. 2012. Product-harm crisis management and firm value. In Handbook of marketing and finance, ed. S. Ganesan, 293–314. Cheltenham: Edward Elgar.Google Scholar
  38. Lorenzon, K. 2013. Creating meaningful customer experiences and campaigns in social media: case study of O2 (Telefonica of UK). Journal of Digital and Social Media Marketing 1 (1): 32–38.Google Scholar
  39. Loureiro, Sandra Maria Correia, Eduardo Moraes Sarmento, Goulwen Le Bellego, and Len Tiu Wright. 2017. The effect of corporate brand reputation on brand attachment and brand loyalty: automobile sector. Cogent Business & Management 4: 1.  https://doi.org/10.1080/23311975.2017.1360031.Google Scholar
  40. Medows, D. 2008. Falling in love 2.0: relationship marketing for the facebook generation. Journal of Direct Data Digital Marketing Practice 9 (3): 245–250.Google Scholar
  41. Mitra, S. 2015. Nestlé sells 45 mn Maggi packs within two weeks of relaunch. http://www.livemint.com/Companies/rC595TZsFFMfovci6E6kEN/Nestl-sells-45-mn-Maggi-packs-within-two-weeks-of-relaunch.html. Accessed 18 Feb 2016.
  42. Mitroff, I.I., and G. Anagnos. 2001. Managing crises before they happen: what every executive and manager needs to know about crisis management. New York: AMACOM.Google Scholar
  43. Nestle India. 2015. MAGGI Noodles timeline of events. https://www.nestle.in/aboutus/ask-nestle/answers/maggi-noodles-india-overview-timeline. Accessed 25 Feb 2016.
  44. Pangarkar, N. 2016. A framework for effective crisis response. Journal of Organizational Change Management. 29 (4): 464–483.  https://doi.org/10.1108/JOCM-04-2015-0063.Google Scholar
  45. Patterson, B. 1993. Crises impact on reputation management. Public Relations Journal 49 (11): 47–48.Google Scholar
  46. Quelch, John A., and Lisa R. Klein. 1996. The internet and international marketing. Sloan Management Review 37 (3): 60–75.Google Scholar
  47. Rindova, Violina P., Ian O. Williamson, Antoaneta P. Petkova, and Joy Marie Sever. 2005. Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational Reputation. The Academy of Management Journal 48 (6): 1033–1049.Google Scholar
  48. Roberts, P.W., and G.R. Dowling. 2002. Corporate reputation and sustained superior financial performance. Strategic Management Journal 23 (12): 1141–1158.Google Scholar
  49. Siomkos, G., and G. Kurzbard. 1994. The hidden crisis in product harm crisis management. European Journal of Marketing 28 (2): 30–41.Google Scholar
  50. Social Media Research Foundation. 2014. NodeXL: network overview, discovery and exploration for excel. https://nodexl.codeplex.com/. Accessed 2 Jan 2016.
  51. TRA Research. 2014. Brand Trust Report. http://www.trustadvisory.info/. Accessed 16 Feb 2016.
  52. van Heerde, H.J., K. Helsen, and M.G. Dekimpe. 2007. The impact of a marketing science, product-harm crisis on marketing effectiveness. Marketing Science 26 (2): 230–245.Google Scholar
  53. Yannopoulou, K., E. Kornis, and R. Elliot. 2011. Media amplification of brand crisis and its effect on brand trust. Journal of Marketing Management. 27 (5–6): 530–546.Google Scholar
  54. Zhao, Y., Y. Zhao, and K. Helsen. 2011. Consumer learning in a turbulent market environment: modeling consumer choice dynamics in the wake of a product-harm crisis. Journal of Marketing Research 48 (2): 255–267.Google Scholar

Copyright information

© Springer Nature Limited & Reputation Institute 2018

Authors and Affiliations

  1. 1.Majestic Research Services and SolutionsMumbaiIndia
  2. 2.S P Jain Institute of Management and ResearchMumbaiIndia

Personalised recommendations