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Corporate crises often result in negative publicity, threatening the image of the company. The present study investigated the effects of company reputation for social responsibility prior to a crisis event, response to a crisis event, and responsibility for the event on overall consumer regard for the firm. The study is, in part, an experimental test of image restoration strategies conceptualized in the literature. Each of the three factors was found to exhibit a significant main effect. For the crisis scenario used in this study, responsibility explained the largest proportion of variance and response explained the least. An unexpected finding was that an inappropriate response by a "bad" company resulted in an increase in regard toward the firm, whereas the same response by a "good" company resulted in a decrease in regard for the firm.

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Advertisements containing product endorsements by a third-party organization (TPO), product endorsements by a celebrity, or no endorsement were compared for their ability to affect the dependent variables ofperceived product quality, attitude toward the manufacturer, purchase risk, and information value of the ad. In addition, prior brand evaluation and source (endorser) trustworthiness were tested as moderators of the endorsement effect. In two factorial experiments, one for a desktop computer and one for auto insurance, significant main effects were found for endorsement and brand but not for trustworthiness. Brand interacted with endorsement in the quality perception ofcomputers. In both experiments, TPO endorsement was particularly effective in enhancing respondent perceptions ofproduct quality. It is concluded that TPO endorsement may function as an extrinsic quality cue in advertising.

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This article reports the findings of 2 studies that examined the effects of low price guarantees (LPG) in retail advertisements within the framework of signaling theory. Overall, an LPG in an ad resulted in higher value perceptions and shopping intentions. Findings also suggest that the effect of an LPG is likely to be moderated by other price cues such as reference prices and by the price image of the store. An LPG resulted in higher value perception and shopping intention when reference prices were low or absent, but lowered search intention in the presence of a high reference price. Additional findings suggest that intention to search for a better price was lower, particularly when an LPG was offered by a low price image store. For high price image stores, an LPG increased value perceptions and shopping intentions, while also increasing search intentions, indicating the possibility that LPGs can act as a double-edged sword in certain instances. Managerial and public policy implications are also noted.