Image Crisis – What Is It Actually?

An image crisis can be precisely defined from a communication science perspective, specifically within the theory of image crisis, as follows:

»An image crisis is a period in which an incident or event alters or has the potential to alter the image of a corporate brand, product brand, or similar entity among economically relevant target audiences in such a way that they lose trust in the brand to a significant extent.«

see. ➚Ullrich 2023, S. 63*

What Does This Mean?

If we understand the term brand as a representative concept that includes corporate brands, product brands, personal brands, etc., the definition can be further clarified as follows:

People develop their own individual experiences with a brand. Additionally, they may become aware of the experiences others have had with that brand. The information someone gathers in this subjective manner shapes their image of the brand. The image is, therefore, a personal mental picture (derived from the Latin imago – image/picture) that someone associates with a brand.

Based on their individual character, people evaluate the information accumulated in their mental image, which in turn shapes their attitude (i. e., behavioral predispositions) toward the brand.

In economic terms, trust is the most relevant attitude. When trust in a brand is strong, economic transactions can occur at low transaction costs. Trust, particularly in commercially relevant areas, is therefore essential for market success.

An image crisis is a high-profile event that introduces new information about a company – specifically, information that contradicts the existing image and negatively deviates from expectations. In this situation, the established image is disappointed.

The consequence: Trust is weakened, lost (lack of trust), or turns negative (mistrust).

Economic Consequences of an Image Crisis

Where trust is lacking or has turned into mistrust, transaction costs increase – economic actions become significantly more difficult or even impossible. This results in:

• An immediate reduction in brand value and possibly stock value.
• Medium-term business difficulties, which, in extreme cases, can lead to a loss of market acceptance and ultimately force the company into bankruptcy.

However, this is not an inevitable development. The extent of the damage caused by an image crisis depends not only on the nature of the incident but also on the company’s visible response to it. More precisely, it depends on how the economically relevant target audiences perceive and evaluate the company’s reaction.

Why Is a Precise Definition of an Image Crisis so Important?

The definition of a crisis depends on the perspective from which it is viewed: In macroeconomics, a crisis refers to an economic downturn. In business administration, the term is associated with the threat or occurrence of insolvency (corporate crisis).
In marketing, public relations, and related fields, a crisis can refer to a range of challenging situations, such as:

• Production failures
• Human error
• Contaminated food products
• Environmental damage caused by production
• Deliberate compliance violations
• Operational disruptions, blackmail, or cyberattacks

However, simply categorizing various example cases as crises does not provide a sufficient definition.
To determine what should be done from a communication perspective in each case, a clear definition and an understanding of influencing factors (variables) are needed. This allows for theoretical consideration and, where necessary, empirical examination of how these factors can be influenced.

How Does the Definition Help in Practice?

The definition provided at the beginning of this article allows precisely this: From a communication science perspective, a crisis event consists of an information bundle that alters the perception of economically relevant stakeholders (e.g., customers, business partners) in such a way that their trust is shaken, and they change their behaviour toward the affected company.

Now, it becomes possible to examine which factors influence this trust-damaging image shift.
According to the theory of image crisis, the primary influencing factors are:

1. The image dimension affected by the incident
2. The role attributed to the company in relation to the incident
3. The level of public attention directed at the incident

Each of these factors, as well as their interactions, can now be analysed. From this, a model of an image crisis can be developed, allowing businesses to:

• Determine the appropriate crisis communication strategy based on the specific case.
• Identify preventive and post-crisis measures to minimize damage.

Without a clear conceptual understanding and a derivable model, businesses, and professionals would rely solely on subjective opinions about what they believe is the “right” approach. However, opinions cannot be empirically verified, meaning neither science nor practical application can reliably learn from them.

More Information and Services on Image Crises and Crisis Communication Can Be Found Here:

---

editorial image credit: Source rawpixel.com | ID : 3886197, edited
* Note: This is an affiliate link, meaning that if a qualified purchase is made through it, we, as an Amazon partner, would receive a commission. This does not result in any advantages or disadvantages for you.