Question

Q1: Consider the following scenario.

A company operating in the airline sector has been experiencing a brand crisis following a video posted in social media showing rude behavior of staff. A brand crisis has significant impact on customers’ intention to buy from the brand, or to recommend it to family/friends.

Propose a qualitative research strategy to assess the impact of this brand crisis on the company’s revenue. Ensure to detail and motivate your recommended strategy including potential limitations of qualitative research in this case.

Answer 1

Answer) I will answer the given question in following 6 parts and will try to include case facts,concepts and assumptions as an when required.

1. Important case points
2. Description of suggested qualitative strategy
3. Elements of strategy
4. What we aim to measure
5. Potential limitations of strategy
6. Conclusion

1. Important case points-Company is facing a brand crisis owing to a video posted on social media showing rude bahaviour of staff,it is a very serious issue as hospitality is a major point in airline industry.
2. When we talk about qualitative research strategy,we talk about research involving in depth communications and discussions to find out about an issue,its impact,people 's thoughts about it.The strategy I would deploy is focus groups that is conducting the research through groups of 6-10 people and asking them questions about this incident ,reason for choosing this strategy is that it will give us specific answers and what are thoughts of different people,this method also gives us a view on how bad the situation that is if the whole group strongly believes that incident would be very bad for airlines then we can deduce that incident was very bad ,in following points we will see some points to discuss during those focus groups.
3. Elements of strategy-In those focus groups we have to ask how did the respondents feel about the incident,would this incident affect their choice in future,what can be done to remedy this incident and how can brand turn this around and turn this negativity to positivity.These questions are pin point and give us clear view of how big is the problem,how much revenue will be gone and what is the remedy.
4. we aim to measure revenue impact as in if we had 100 customers before now how many would we have or how much of a hit in frequency we will take,another measure is regarding word of mouth recommendation and revenue loss owing to this incident,we also aim to measure revenue hit in terms of potential customers looking to switch.
5. Potential limitations are that this method does not give us concrete data,it suffers from recency bias,it does not tell us how much % loss will be there owing to this incident and how much could be owing to some other cause,finally this method does not give us a trend across board with full accuracy.
6. To conclude this research can be helpful in positioning our strategy and getting an overall view on how bad the impact was but in terms of revenue we will get a general picture and would require data points after this incident to assess more accurate damage.

Answer is complete.Thank you!