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Managing crises in real-time: A research into the effects of live streaming in crisis communication

Cavallo, L.A. (2021) Managing crises in real-time: A research into the effects of live streaming in crisis communication.

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Abstract:Live streaming is a steadily growing and developing technology especially popular within social media networks. Current literature already suggests live streaming to have significant effects on people’s emotions within entertainment environments. The aim of this paper is, however, to explore the technology of live streaming in a corporate setting. This study examines the impact of live streaming as a crisis communication tool on consumer's trust, anger, and purchase intentions and how live streams behave in different crisis types and while using various crisis response strategies. A scenario-based 2 (crisis type: accident vs. transgression) x 2 (response strategy: denial vs. full apology + remediation) x 2 (channel interactivity: live stream vs. pre-recorded video) experiment was set up, and responses of 164 German participants within the age of 18 to 30 were collected. Multivariate analyses based on the gathered data showed that the usage of live streams indeed have positive effects on consumer’s trust, purchase intentions, and lowered customer’s anger. It was also revealed that there is a significant interaction effect between the channel interactivity, the response strategy, and trust, stating that live streams are especially useful when applying a denial response strategy when dealing with a corporate crisis. Finally, the analyses displayed that consumer's purchase intentions are higher when the crisis is accidental and that a denial response strategy has a positive effect on customer's trust and anger. These findings suggest that companies should always carefully assess the crisis and apply a matching response strategy. This paper also argues that the usage of live streams as a crisis communication tool has great potential for companies when dealing with future corporate crises, especially when a denial approach is inevitable. To confirm this first attempt of exploring the effects of live streaming in a corporate setting, further scientific studies should be undertaken.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:05 communication studies
Programme:Communication Studies BSc (56615)
Link to this item:http://purl.utwente.nl/essays/86466
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