Crisis Decision Theory

and Impact of Online Media

Osei Appiah, Ph.D.

Associate Professor

School of Communication

The Ohio State University

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Definition

Crisis decision theory predicts the actions people take (or choose not to take) in

response to negative life events

The theory addresses responses to negative events that have already occurred and not

proactive attempts to prevent the occurrence of negative events

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Crisis decision theory describes the processes

involved in responding to negative events and

the processes involved in making choices by:

A) Assessing the severity of the negative

event

B) Determining response options

C) Evaluating response options

Woman awakens in the night to the smell of

smoke; quickly assess the situations and

considers her options: 1) ignore the smell go

back to sleep; 2) call 911; 3) gathers a few

belongings and exits the house before calling

for help

Loss of job vs. loss of wallet

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 1: Assessing the Severity of the Negative Event

People seek information in an attempt to understand the threat they face

People consider past experiences, causes, and consequences to develop an

understanding of how to address the negative event

Person must judge the event to be sufficiently threatening to warrant further

consideration

CEO of Bank of America response to the protest and petition of the debit fee

Extremely severe events might lead to an inability or unwillingness to further consider

implications of the event

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 1: Assessing the Severity of the Negative Event:

Information About Causes (Internal cause or External cause of events)

People are most likely to make active attempts to respond to a negative event when

they feel a sense of responsibility for both the problem and the solution

Research has suggested that events perceived to be caused by one’s own actions may

be more likely than externally caused events to prompt active attempts to find a solution

to the situation (e.g., BP Oil Spill, Firestone, Dow Corning & Breast Implants)

People responsible for events see them as more severe and, unless the responsibility

is overwhelming, are more likely to take action to address the situation

People are most likely to take action in response to an event for which they feel

moderate responsibility (inverted-U shaped relationship; benign crisis vs. severe)

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 1: Assessing the Severity of the Negative Event:

Comparative Information

Crisis decision theory suggests that people can compare negative events to existing

event schemas when assessing the severity of an event (e.g., cancer schema—death

sentence or treatable)

The event will seem more severe to the extent that:

Event is similar to other severe events (e.g., Exxon Valdez & BP Oil spill; Katrina vs. Sandy)

Extent to which there is no prior experience with the negative event (e.g., Hurricane Katrina)

Extent that people can imagine a better alternative (or scenario)

Events that people perceive as controllable lead to more upward comparisons

(comparisons with better possible alternatives) whereas events that people perceive as

uncontrollable lead to more downward comparisons (comparisons with worse possible

outcomes)

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 1: Assessing the Severity of the Negative Event:

Comparative Information—Alternative Outcomes

Expectations

People compare their outcomes to a negative event to scenarios they expected or

desired prior to the negative event

People experience a range of negative emotions in response to a negative event (e.g.,

sadness, anger, grief)

The more expectations exceed outcomes, the more intense the disappointment

“C” on an exam feels worse for a student who expected an “A” than for a student who

expected to receive a “C”

*Crisis decision theory suggests that negative events will seem more severe when

people can easily imagine alternative, better outcomes

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 1: Assessing the Severity of the Negative Event:

Information About Consequences

1) Events that are likely to result in negative consequences will seem more severe

Woman who awakens to the smell of smoke depends largely on her perception of whether the

smoke indicates fire

2) Events that have the potential to bring relatively serious consequences will also seem more

severe

3) People perceive events that are highly self-relevant as having more severe consequences

(death of close family member more significant vs. distant relative)

Events that affect many people or that deeply affect a few people will likely seem more severe than

events that touch few lives or make little impact

4) Events that have the potential to cause more damage to a public image will seem more severe

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 2: Determining Response Options: “Controllability of Outcomes vs. Feasibility”

After people assess the severity of a negative event, they next consider how they could respond to

the event: “What can I do about this problem?”

People’s perception of control over negative outcomes determines the availability of

certain response options

If negative outcomes are avoidable, people are likely to consider active response

options

If negative outcomes are unavoidable, people are likely to consider relatively passive

response options

Limited resources restrict response options by rendering them unfeasible

People may be unable to consider the most effective response because they do not

have the time, money, social support, strength, or ability required to take the necessary

actions (e.g., small business)

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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Stage 3: Evaluating Response Options

At this stage people weigh the pros and cons of each response option they generated in the

previous stage

Man diagnosed with kidney failure may avoid thinking about the effort and cost involved in

undergoing dialysis if he perceived dialysis as his only viable option (e.g., drinking water)

Crisis decision theory suggests that people take three broad considerations into account when

evaluating their response options

1—Required Resources to engage in a response options: organizations want to use a few

resources as possible (e.g., Firestone, Dow Corning breast Implants)

2—Direct Consequences of the response in changing the event (e.g., cancer patients surgery)

3—Indirect Consequences of the response

One criticism of the crisis decision theory is that little attention is given to how people

might act in “irrational” ways

Crisis Decision Theory—Sweeny, 2008

Crisis Decision Theory

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An increasing number of companies and individuals are using social media outlets to engage the

sentiments of their publics, prevent crisis or cope with crises (e.g., rumors)

Outlets such as Facebook, Twitter, and YouTube were among the most utilized by Crisis

Communication agents (e.g., Jet Blue)

In 2009, Southwest gaged passengers’ reaction to the emergency landing of a flight in Charleston

by scanning Twitter, Facebook, blogs, and websites

While monitoring Twitter, Coca-Cola Company found a post from a frustrated customer indicating

difficulty redeeming a prize from My Coke reward program

Coke posted an apology on the guy’s Twitter profile (10,000 followers) and assisted guy getting the prize

Discuss Bank of America protest and petition

Social Media, Chapter 5, Fearn-Banks, 2011

Social Media & Crisis Communication

5—Molly Katchpole Protests Bank of America New Fee

4—CBS Early Morning: Molly Katchpole Protests Bank of America

2—ABC News Tracks Down Bank of America, CEO

3—ABC News: Overview Major Step In B of A campaign

1—ABC News: B of A, Molly Katchpole, Drop $5 Fee

6—B of A Walkout, Guy Mad as Hell and Not Going to Take it Anymore

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The use of digital technology has facilitated the emergence

of new tactics and tools in crisis communication such as the

use of web sites, interactive chats, real-time video, or audio

files

The Internet acts as a catalyst, accelerating the crises

news cycle, and giving people a new and viral dimension

In this new online age companies need to find ways to

avoid or minimize any negative impact of a given issue

Must monitor the online world for potential problem issues

Corporations must engage influential bloggers by

responding to their postings (e.g. Jet Blue)

Respond quickly to avoid or limit negative impact

Almost impossible to eradicate negative publicity from the

Internet, even when a crisis is over…web perpetuates the

bad news even after the fact (e.g., KFC)

Managing Crisis in an Online World—Gonzalez, 2010

Social Media & Crisis Communication

KFC Responds to Rats at KFC/Taco Bell in NYC

Rats Take Over KFC/Taco Bell in NYC

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1. Bolstering: Emphasizing good traits and/or beneficial past acts in an effort to offset

damage from wrong act

2. Minimization: Attempt to portray the wrongdoing as minor and unimportant

3. Differentiation: Suggests that an offensive act should be distinguished from other

similar but more offensive acts

4. Transcendence: Attempts to place a misdeed as part of a larger context where more

important values would pervade the situation

5. Attack One’s Accuser: Attempt to reduce the accuser’s credibility, thus reducing the

offensiveness and/or plausibility of the accusation

6. Compensation: Offers payment or restitution to the victim of the offensive act

Reducing the Offensiveness of an Event—6 Strategies

Discuss these in the context of Sears, Dow Corning, and Texaco,

Image Restoration Theory

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Corrective Action

Fixing the damage from the wrongful act and/or taking steps to assure the problem

never occurs again

Mortification

Is an apology, an expression of sorrow or regret for the offensive act

Reducing the Offensiveness

Image Restoration Theory

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1. KFC Rats Incident in NYC, 2007

2. Tiger Woods Incident

3. Molly Katchpole, petition on Facebook asking Bank of America to cancel debit

card fees

Reducing the Offensiveness of an Event—6 Strategies

5—Molly Katchpole Protests Bank of America New Fee

Social Media & Crisis Communication

4—CBS Early Morning: Molly Katchpole Protests Bank of America

1—ABC News: B of A, Molly Katchpole, Drop $5 Fee

2—ABC News Tracks Down Bank of America, CEO

3—ABC News: Overview Major Step In B of A campaign

5—B of A Walkout, Guy Mad as Hell and Not Going to Take it Anymore

Rats Take Over KFC/Taco Bell in NYC

KFC Responds to Rats at KFC/Taco Bell in NYC

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1. Oreo Cookie

2. Burger King

3. Dominos Pizza

Best Practices—Examples of Companies Using Social Media Well

Social Media & Crisis Communication

Dominos Pizza Turnaround

Oreo Cookie

Burger King