Ricky works in the communications division of a large toy manufacturer. Recently, his company was forced to issue a nationwide recall after it was discovered that lead paint had been used on some of the toys. The news has spread like wildfire, and rumors have begun to replace facts. Ricky has been constantly busy answering questions from the media, assuring the public that it was taking appropriate action, fielding calls from government officials, and more. He has come up with a statement acknowledging the incident on the corporate Facebook page and its website. He is also helping the CEO craft a response. Ricky has learned the difficult lesson that
A)government regulators always fine firms when they have to issue a massive recall.
B)managers spend more resources responding to negative word of mouth than positive word of mouth.
C)it is impossible for managers to develop an adequate response to a major crisis event.
D)the company's response will not be able to quell the misinformation regarding a crisis event.
E)it is impossible to develop a crisis management plan because nobody knows what crisis is going to hit.

Question

Quizplus · Accepted Answer

Ricky's experience highlights the fact that managing negative word of mouth requires significant resources and can be a big challenge for managers. This is particularly true in crisis situations where rumors and misinformation can spread quickly among the public. While developing a crisis management plan can help organizations respond more effectively, it cannot completely eliminate the challenge posed by negative word of mouth.

Ricky Works in the Communications Division of a Large Toy