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 TheorySweeny, 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 TheorySweeny, 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 TheorySweeny, 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 ones 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 TheorySweeny, 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 schemadeath
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 TheorySweeny, 2008
Crisis Decision Theory
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Stage 1: Assessing the Severity of the Negative Event:
Comparative InformationAlternative 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 TheorySweeny, 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 TheorySweeny, 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?
Peoples 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 TheorySweeny, 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
1Required Resources to engage in a response options: organizations want to use a few
resources as possible (e.g., Firestone, Dow Corning breast Implants)
2Direct Consequences of the response in changing the event (e.g., cancer patients surgery)
3Indirect 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 TheorySweeny, 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 guys 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
5Molly Katchpole Protests Bank of America New Fee
4CBS Early Morning: Molly Katchpole Protests Bank of America
2ABC News Tracks Down Bank of America, CEO
3ABC News: Overview Major Step In B of A campaign
1ABC News: B of A, Molly Katchpole, Drop $5 Fee
6B 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 overweb perpetuates the
bad news even after the fact (e.g., KFC)

Managing Crisis in an Online WorldGonzalez, 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 Ones Accuser: Attempt to reduce the accusers 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 Event6 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 Event6 Strategies
5Molly Katchpole Protests Bank of America New Fee
Social Media & Crisis Communication
4CBS Early Morning: Molly Katchpole Protests Bank of America
1ABC News: B of A, Molly Katchpole, Drop $5 Fee
2ABC News Tracks Down Bank of America, CEO
3ABC News: Overview Major Step In B of A campaign
5B 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 PracticesExamples of Companies Using Social Media Well
Social Media & Crisis Communication
Dominos Pizza Turnaround
Oreo Cookie
Burger King