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Examining the Effectiveness of CEO Apology as a Crisis Response Strategy, According to Media Channels and Apology Strategies

Permanent Link: http://ufdc.ufl.edu/UFE0044761/00001

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Title: Examining the Effectiveness of CEO Apology as a Crisis Response Strategy, According to Media Channels and Apology Strategies
Physical Description: 1 online resource (73 p.)
Language: english
Creator: Kim, Min Seon
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2012

Subjects

Subjects / Keywords: apologyresponse -- ceoapology -- mediachanneleffect -- socialpresencetheory
Journalism and Communications -- Dissertations, Academic -- UF
Genre: Mass Communication thesis, M.A.M.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: This study investigates the effects of media channels and strategies of CEO apology on message acceptance and corporate reputation. The experiment design was a 2 (media channel: YouTube versus newspaper) x 3(apology strategy: apology or compensation versus sympathy) factorial design to find the interactive effects of the media type and strategies of CEO apology.The results showed that CEO apology using YouTube media has a greater influence on offering effective message credibility and building post-crisis corporate reputation. This study finding suggests that CEOs would be better off adopting a YouTube media channel for CEO apology.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Min Seon Kim.
Thesis: Thesis (M.A.M.C.)--University of Florida, 2012.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2012
System ID: UFE0044761:00001

Permanent Link: http://ufdc.ufl.edu/UFE0044761/00001

Material Information

Title: Examining the Effectiveness of CEO Apology as a Crisis Response Strategy, According to Media Channels and Apology Strategies
Physical Description: 1 online resource (73 p.)
Language: english
Creator: Kim, Min Seon
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2012

Subjects

Subjects / Keywords: apologyresponse -- ceoapology -- mediachanneleffect -- socialpresencetheory
Journalism and Communications -- Dissertations, Academic -- UF
Genre: Mass Communication thesis, M.A.M.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: This study investigates the effects of media channels and strategies of CEO apology on message acceptance and corporate reputation. The experiment design was a 2 (media channel: YouTube versus newspaper) x 3(apology strategy: apology or compensation versus sympathy) factorial design to find the interactive effects of the media type and strategies of CEO apology.The results showed that CEO apology using YouTube media has a greater influence on offering effective message credibility and building post-crisis corporate reputation. This study finding suggests that CEOs would be better off adopting a YouTube media channel for CEO apology.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Min Seon Kim.
Thesis: Thesis (M.A.M.C.)--University of Florida, 2012.
Local: Adviser: Molleda, Juan Carlos.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2012
System ID: UFE0044761:00001


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1 EXAMINING THE EFFECTIVENESS OF CEO APOLOGY AS A CRISIS RESPONSE STRATEGY, ACCORDING TO MEDIA CHANNELS AND APOLOGY STRATEGIES By MIN SEON KIM A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN MASS COMMUNICATION UNIVERSITY OF FLORIDA 2012

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2 2012 Min Seon Kim

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3 To my beloved family

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4 ACKNOWLEDGMENTS It has not been easy to complete my master degree however, I can definitely say that I learned a lot from this long journey in the United States. It has b een truly great to be a graduate student in the College of Journalism and Communications at the University of Florida. I received a great deal of support from my professors and my College. I feel lucky to have so many people to whom I need to express gratitude this moment. I would like t o express my appreciation to my committee chair, Dr. Juan Carlos Molleda, for his constant guidance as I completed this thesis. I want to thank my committee members Dr. Sora Kim, who provided critical insights that improved my work and Dr. Spiro Kiousis, w h o generously enc ouraged me to go further steps. Moreover, I would like to express deep gratitude to my father, Sangshik Kim and my mother, Sungsoo Kim. I would also like to thank my precious colleagues and friends for their cheers and support. I was so happy to study with my 14 classmates in public relations department. I also extend thanks to the Korean Mass Communigators. Especially, Jieun Chung, Yoojin Chung, Jihye Kim, and Jinsook Im have been valuable friends during my stay in Gainesville. I also hope to say thank for Youngran Yoo, Hanna Lee, and Heeseon Ryu who have been precious friends in my life as well. Finally, I want to express m y special gratitude to my fianc, Jiho Ryu for his entire love and belief. It would have been impossible for me to finish this journey without him. I love and thank him.

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5 TABLE OF CONTENTS page ACKNOWLEDGMENTS ................................ ................................ ................................ .. 4 LIST OF TABLES ................................ ................................ ................................ ............ 7 LIST OF FIGURES ................................ ................................ ................................ .......... 8 ABSTRACT ................................ ................................ ................................ ..................... 9 CHAPTER 1 INTRODUCTION ................................ ................................ ................................ .... 10 2 LITERATURE REVIEW ................................ ................................ .......................... 18 2.1 Prin ciples of Apology ................................ ................................ ........................ 18 2.2 Social Presence Theory ................................ ................................ .................... 19 2.3 Situational Crisis Communication Theory ................................ ......................... 21 2.4 Apology Strategy as a Post crisis Response Strategy ................................ ...... 22 2.5 Crisis Communication and Emergent Media ................................ ..................... 24 2.6 Public Apology and Emergent Media ................................ ................................ 25 2.7 Chief Executive Office (CEO) Apology as a Crisis Response Strategy to Rescue Corporate Reputation ................................ ................................ ............. 27 2.8 Maeil Dairies Baby Milk Powder Crisis in South Korea, 2011 ........................... 30 2.9 Research Questions ................................ ................................ ......................... 32 3 METHOD ................................ ................................ ................................ ................ 34 3.1 Design and Materials ................................ ................................ ........................ 34 3.2 Procedures ................................ ................................ ................................ ....... 35 3.3 Participants ................................ ................................ ................................ ....... 35 3.4 Manipulation Check ................................ ................................ .......................... 35 3.5 Scales Used and Reliability Analysis ................................ ................................ 36 3.5.1 Message Acceptance ................................ ................................ .............. 36 3.5. 2 Post Crisis Corporate Reputation ................................ ............................ 36 4 RESULTS ................................ ................................ ................................ ............... 40 4.1 Sample Characteristics ................................ ................................ ..................... 40 4.2 Research Questions ................................ ................................ ......................... 40 5 DISC USSION AND CONCLUSION ................................ ................................ ........ 54 5.1 Summary of Results ................................ ................................ .......................... 54 5.1.1 Video vs. Print and Emerging Media vs. Traditional Media ..................... 54

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6 5.1.2 Media Channel Matters More Than Message Strategy ........................... 55 5.2 Implications ................................ ................................ ................................ ....... 55 5.3 Limitations and Future Research ................................ ................................ ...... 56 APPENDIX A QUESTIONNAIRE ................................ ................................ ................................ .. 58 Korean Version ................................ ................................ ................................ ....... 58 English Version ................................ ................................ ................................ ....... 62 B EXPERIMENTAL STIMULI ................................ ................................ ..................... 66 LIST OF REFERENCES ................................ ................................ ............................... 68 BIOGRAPHICAL SKETCH ................................ ................................ ............................ 73

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7 LIST OF TABLES Table page 2 1 Cases of CEO apology video ................................ ................................ .............. 33 3 1 Message a cceptance ................................ ................................ .......................... 37 3 2 The r eputation q uotient (RQ) ................................ ................................ .............. 38 3 3 a lpha c oefficient for d ependent v ariables ................................ ........ 39 3 4 Inter item c orrelation for d ependent v ariables ................................ .................... 39 4 1 Means and standard deviations for message acceptance as an apology strategies and media ................................ ................................ .......................... 43 4 2 Analysis of variance for message acceptance by media type ............................ 44 4 3 Means and standard deviations for message acceptance as an apology strategies and media ................................ ................................ .......................... 45 4 4 Analysis of variance for message acceptance by media type and apology strategies ................................ ................................ ................................ ............ 46 4 5 Means and standard deviations for reputa tion qu o tient (RQ) as an apology strategies and media ................................ ................................ .......................... 47 4 6 Analysis of variance for reputation quotient by media type ................................ 47 4 7 Means and standard deviations for r eputation q u o tient (RQ) as an a pology s trategies and media ................................ ................................ .......................... 48 4 8 Analysis of Variance for r eputation q uotient by m edia t ype and a pology s trategies ................................ ................................ ................................ ............ 48 4 9 Analysis of variance for reputation quotient by groups of six combinations of media type x apology strategies and one no apology condition ......................... 49 4 10 Analysis of variance simple contrasts of groups for post crisis corporate reputation ................................ ................................ ................................ ........... 49

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8 LIST OF FIGURES Figure page 4 1 Mean plot for RQ1a ................................ ................................ ............................ 50 4 2 Mean plot for RQ1a ................................ ................................ ............................ 50 4 3 Mean plot for RQ1a ................................ ................................ ............................ 51 4 4 Mean plot for RQ1b ................................ ................................ ............................ 51 4 5 Mean plot for RQ1b ................................ ................................ ............................ 52 4 6 Mean plot for RQ1b ................................ ................................ ............................ 52 4 7 Me an p lot for RQ2a ................................ ................................ ............................ 53 4 8 Mean p lot for RQ2b ................................ ................................ ............................ 53

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9 Abstract of Thesis Presented to the Graduate School of the University of Florida in Partial Fulfillment of the Requirements for th e Degree of Master of Arts in Mass Comm unication EXAMINING THE EFFECTIVENESS OF CEO APOLOGY AS A CRISIS RESPONSE STRATEGY, ACCORDING TO MEDIA CHANNELS AND APOLOGY STRATEGIES By Min Seon Kim December 2012 Chair: Juan Carlos Molleda Major: Mas s Communication This study investigates the effects of media channels and strategies of CEO apology on message acceptance and corporate reputation. The experiment design was a 2 (media channel: YouTube versus newspaper) x 3 (apology strategy: apology or compensation versu s sympathy) factorial design to find the interactive effects of the media type and strategies of CEO apology. The results showed that CEO apology using YouTube media has a greater influence on offering effective message credibility and building post crisis corporate reputation. This study finding suggests that CEOs would be better off adopting a YouTube media channel for CEO apology.

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10 CHAPTER 1 INTRODUCTION An apology is a universal way to address and manage conflicts among people, gesture through which an individual splits himself into two parts, the part that is guilty of an offense and the part that dissociates itself from the delict and affirms a belief in the sometimes without consequences. It was normal that the strong people used their po wer and the weak accepted it without any resistance. In the classic film, She wore a yellow ribbon (1949), John Wayne starring as Benjamin Disraeil, Prime Minister of t first century leaders have the same idea about apology as that of leaders of the nineteenth century? This has been shown via po article, President Kennedy did not apologize for the failed the Bay of Pigs invasion of a news conference, instead (cited in Mills, 2003, p. 115). President Reagan took a similar position to avoid apologizing the Iran Contra scandal. Even though the evidence that the U.S. government aided the Iran by selling arms to diminish their responsibility for mistakes rather than to admit and make a full apology for their failure.

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11 It considered human nature that leaders accustomed to power and success feel reluctant to apologize. This is because apologizing means admitting their mistakes and accepting their responsibility (Blanchard & McBride, 2003). And thus, they become afraid of t he possibility that apologizing will make a bad situation even worse, like following lawsuit and economic loss (Tedlow, 2010). This is true that many leaders still overestimate the negative aspects of apology (e.g., the possibility of lawsuits and loss of face) while underestimating positive benefits (e.g., conflict resolution and improving relations) (Kellerman, 2006). However, these attitudes about an apology are changing and developing as modern society become more complex. We have seen many leaders w ho stepped up to the camera on television and apologized to an angry public. Kellerman concluded, apology is risky is a misconception. So, why do most people apologize? In psychology, many scholars have found that forgiveness (Govier & Verwoerd, 2002; Tavuchis, 1991; Weiner, Graham, Peter, & negative feelings, which is important in rebuilding relationships and asking for forgiveness. They consider apology as a bridge to li & Zmuidinas, 1991). Apology is a process of obtaining forgiveness from victims after a mistake. People plead for forgiveness despite wounde d pride because the relationship

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12 between people will last. The public is a potential customer for companies, and they are voters that politicians ask for support. So their forgiveness must be sought after wrongdoing to keep and develop their relationship. remorseful admission of wrongdoing is converted into a gift that is accepted and reciprocated by forgiveness, our world is transformed in a way that can only be At this point, I have doubt why to pay attention to the importance of apolog y. Kador (2009) suggested some reasons why apologies are on the rise: the global community, the development of digital technologies such as cameras in cell phones and the video sharing web sites such as YouTube, and the failure of our leaders, who are self ish individuals. However, one more critical reason needs to be: The need for social responsibility and ethics of an organization and its leaders is rising. Corporate social responsibility (CSR) has not previously been a big issue. It has evolved from the d society to the environmental responsibility to reduce CO2 emissions. As an other words, taking more responsibility means leade rs have more possibilities to apologize publicly when they do not carry it out well. Accordingly, the growth of SNS has forced communication experts to think about new, cost effective communication strategies during economic crisis. In this context, SNS i s a cost effective communication strategy tool for public relations practitioners in

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13 the rising possible media channels for communication. Its biggest challenge is that users can create and spread contents easily, which can be a double edged sword in crisi s communication because SNS can be effective to respond in a crisis while creating recent article about apologia and crisis communication, they found apology research for cri sis communication has focused on three categories: content, source, and timing. Content articles compared the crisis response strategies and found the effectiveness of apology (Goodwin & Ross, 1992; Hargie, Stapleton, & Tourish, 2010; Lucero, Kwang, & Pan public apology source in a crisis situation. Kellerman (2006) emphasized that the CEO needs to be the spokesperson in a crisis because stakeholders consider that person to be responsible for th e crisis. Timing research considered when leaders need to step forward to apologize (Kellerman, 2006; Lucero, Kwang, & Pang, 2009; Tomlinson, Dineen, & Lewicki, 2004). A number of content articles concluded that an effective apology must be sincere (Kador 2009; Lazare, 2004; Tucker, Turner, Barling, & Reid, 2006). In May of 2009, KFC announced a free chicken meal coupon promoted on Oprah, but it was failed because of a problem with the web site and miscommunication with the stores, the KFC president, Rodg er Eaton, posted a YouTube apology video (David, 2009). However, he denied that the issue arose because the new menu was so popular instead of offering a full apology; thus, it did not appeal to customers. After the apology, public opinion plummeted. This shows that even SNS, which is an effective tool for apology, can be useless if the apology is not sincere.

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14 Frandsen and Johansen (2010) proposed ethical standards for the manner of apology as a crisis response strategy: truthful sincere voluntary timel y It must address all stakeholders It must be performed in an appropriate context (Hearit, 2006, p. 64). Source: Frandsen & Johansen (2010, p. 354) They also recommended ethical standards for the content of an apology. Explicitly acknowledge wrongdoing Fully accept responsibility Express regret Identify with injured stakeholders Ask for forgiveness Seek reconciliation with injured stakeholders Fully disclose information related to the offense Provide an explanation that addresses legitimate expectations of the stakeholders Offer to perform an appropriate corrective action Offer appropriate compensation (Hearit, 2006, p. 69). Source: Frandsen & Johansen (2010, p. 355) chang on) and try to understand them. If offenders do not appeal to empathy, apology cannot lead to forgiveness (Kador, 2009; Lazare, 2004; Tucker, Turner, Barling, & Reid, 2006). One recent trend is companies using social media, particularly YouTube, to apologize to their customers effectively and as a key tool in crisis management. In South Korea, for the first time, the CEO of a food company, Maeil Dairies, apologized on YouTube because of an incident of food contamination. On March 4, 2011, staphylococcus aureus, a bacterium that can cause food poisoning, was found in

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15 ed refunds, but the company rejected these requests and limited the refunds to the product that were found to be contaminated. As Association (CFDA) found nitrite in Baby W ell, a baby milk powder product made by Maeil Dairies, which had been exported to China. These products were ordered destroyed on February 28, 2011. After this emergency, Dongwook Choi, the CEO of Maeil Dairies, posted a YouTube video to apologize to ira te customers (Lim, 2011). Many studies have shown that apology is an effective strategy for corporate crisis response (Goodwin & Ross, 1992; Hargie, Stapleton, & Tourish, 2010; Lucero, Kwang, & Pang, 2009). In addition, many public relations practitioners have said that telling the truth is the first and foremost way to respond to a corporate crisis (Callison, 2001). However, there is little research on tools for crisis response strategy. While crisis communication managers and scholars have focused on th e SNS for crisis response strategy and CEO apology has been frequently conducted via SNS for a few years, One recent study researched CEO apology via Twitter (Park, Kim, Cha, & Jeong, 20 11). They assessed how Twitter users, whether followers or non followers, responded (Ling uistic Inquiry and Word Count) sentiment tool, K LIWC, which is a transparent text analysis program that counts words in psychologically meaningful categories (e.g.,

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16 had clear benefits and was applied to followers more effectively than non followers. Until the nineteenth century, an apology was a sign of weakness. However, the can be more e asily exposed than ever before (Burgess & Klaebe, 2009). Thus, apologies are becoming more appropriate and necessary (Frantz & Bennigson, 2005; Lucero et al., 2009). YouTube, Facebook, and others offer instant channels for corporate apologies. In particular, emergent media can be effective when a CEO apologizes to target or United States and en abled corporations to recover damaged reputations (Kador, 2009). The reason emergent media have created new demands on crisis communication is related to its rapid response to the crisis (Simon, 2009). Simon suggested that organizations need to build infr astructure, such as a video channel to connect with its key publics, as a kind of crisis preparedness strategy (2009). In South Korea, CEOs have published apologies in newspapers many times, but apologizing via a YouTube video is a recent phenomenon. In fact, in South Korea most CEOs have tended to avoid apologizing in person or on television, corporate videos, and/or online media sources. Even though public apologies are occurring more frequently, making an apology is still difficult to everyone, especia lly leaders. Why is it so difficult for CEOs to apologize? One of the goals of this research is to prove the benefits of CEO apologies by

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17 examining which media channel newspapers or YouTube videos makes CEO apologies more effective in South Korea. To do so, this study examines how public It also investigates how the relationship between the company and the public may have been affected. Another goal is to measure how public perceive the first CEO YouTube apology video in South Korea. This study suggests three significant elements. First, by studying the phenomena of CEO apologies, this study hopes to establish the growing importance of CEO apology. Second, this study clarifies the effectiveness of social network services (SNS) versus traditional media as a channel for CEO apologies. Last but not least, the results of this study will be concomitantly helpful for public relations practitioners to convince their clients, especially CEOs, to use public apology when the need arises with an effective strategy. The research about the effects of crisis communication on public perceptions and reactions to crisis response strategies would be valuable to crisis managers. Hopefull y, crisis managers can use this research results as guidelines for CEO Youtube apology.

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18 CHAPTER 2 LITERATURE REVIEW 2.1 Principles of Apology Since when did scholars start researching the apology? It might be hard to know the time exactly. In th e past decade, there has been considerable popular and scholarly literature on apology, across various academic fields including philosophy, political science, sociology, medicine, communications and law. Much of the literature on apology starts from Goff on speech act theory (Austin, 1962) and politeness theory (Brown and Levinson, 1987). himself into two parts, the part that is guilty of an offense and the part that dissociates distinguished transgressors from victims to describe the definition of an apology. Darby and Schl that have been broken and thus they will prevent doing the same transgression in the future. Politeness theory worked by Brown and Levinson (1978) defined an apology as onceptualized an apology as the admission of the positive value respect. negotiations between i nteractants over status and over who is seen to be in the right, which cannot simply be analyzed as reparations for face

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19 In addition to the admission of responsibility, an ideal and paradigmatic apology should consist of illocutionary force indicating device (IFID) to express feeling such as remorse or regret (Harris et al., 2006). The lack of information about the emotiona l state of the transgressor diminish the effectiveness of the apology and negative emotion and reputation of the transgressor. (Heise & Thomas, 1989). Recent popular and scholarly attention has been drawn to the importance of apologies. The following titles of several books published in the United States reflect apologies on the r p.1). It shows apologies are used and remarked in a wide range of academic field. 2.2 Social Pres ence Theory One of the purposes of this study is to compare the effectiveness of media leaders apologizing in person is more effective than writing an apology letter. Soci al presence means the degree of awareness of other people (Biocca & Nowak, 2001). Short, Williams, and Christie (1976), who first proposed the social presence theory, of the interaction [and] interacts with the purpose of the interaction to influence the

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20 ws the use 2010, p.9). an & Haenlein, 2010, p.61). To be specific, an interpersonal conversation between two communicators (e.g., face to face discussion) will generate higher social presence than mediated communication (e.g., telephone). At the same time, synchronous communic ation (e.g., live chat) generates higher social presence than asynchronous (e.g., e mail) (Kaplan & Haenlein, 2010). In the early research on social presence, computer mediated communication showed an extremely low degree of social presence compared to fa ce to face because it was difficult to convey visual and nonverbal cues such as facial expressions and posture. Rice (1993) applied social presence theory to compare seven different media; face to face is ranked highest, followed by telephone, meetings, d esktop video and videoconferencing, voice mail, test, and electronic mail which is last due to the lack of visual cues. However, the development of the Internet and social media has affected this result. Today, people can get instant feedback on social n etworking sites by using a smart phone and can also see nonverbal cues by using a camera on a computer or cell phone even though there is no face to face communication. Consequently, based on the emergence of social networking sites and smart phones, usin g interactive video and multimedia interface implies higher degrees of social presence than using text based

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21 media (Zaphiris & Ang, 2010). Based on this theory, I assume that YouTube creates a higher social presence and thus generates a more positive effe ct on CEO apology than using a newspaper. 2.3 Situational Crisis Communication Theory the selection of crisis response strategies and/or the effect of crisis response strategie s practitioners identify how much crisis responsibility an organization attributes and match an appropriate strategy to the degree of responsibility. Fundamentally, it was inspi red by s Coombs (2007) described three types of crises: victim, accidental, and intentional cluster, factors that shape how stakeholders perceive the crisis situation. If an organization is in charge of victims such as in the wake of natural disasters, it faces minimal crisis responsibility. If an organization is in charge of a preventable crisis such as man made accidents, it has a strong crisis responsibility. Stakeholders, in turn, decide how much the organization is related to the crisis according to the degree of its negative affect increases, crisis managers should utilize crisis respon se strategies with

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22 2.4 Apology Strategy as a Post crisis Response Strategy (1995, 1999, 2004, 2007) situational crisis communication strategies used the most in crisis communication research are based on the crisis situation. Hearit (2006) suggested that companies need to consider situational features to make an appropriate apo logy as a crisis response strategy. To be more specific, crisis communication research is applied to contingency theory because most crises are under a conflict situation (Cameron, Pang, & Jin, 2008). Researchers suggested that crisis communication manage rs set a strategy according to the threat type (internal or external) and threat duration (long term or short term) in a crisis situation (Hwang & Cameron, 2008; Jin & Cameron, 2007). Diers (2007) also categorized three crisis typologies: organizational t ransgressions, organizational events, and events/actions outside of the organization locus and control. First, organizational transgressions are considered crises attributable to the organization and represented as intentional or unintentional crisis even ts. an that the organization is not culpable, but the resultant impact can cause crises that the organization must manage. Post crisis communication is divided into three strategies: instructing information, adjusting information, and reputation building (Stu rges, 1994). Instructing information

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23 in alleviate crisis victims psychologicall y, represented as taking actions to prevent a repetition of the crisis and conveying sympathy for victims (Sellnow, Ulmer, & Snyder, 1998). Reputation building considers potential reputation threats from the crisis (Coombs & Holladay, 2008), and strategie s range in their amount of accommodation (Coombs, 1999). A low accommodative strategy contains denial and scapegoating, a moderate accommodative strategy involves excusing and justification, and a high accommodative strategy covers compensation and apolog y (Benoit, 1995; Coombs, 1999). To be specific, compensation consists of monetary gifts or services and apology accepts responsibility and asks for forgiveness. Additionally, bolstering is considered a secondary crisis response strategy (Coombs, 2007). Bolstering is used to remind audiences of the good they used to possess. It can be categorized in three ways: reminders, ingratiation, and victimage. A Ingratiation is whe n a crisis communication manager praises the past good deeds acc omplished by the organization. Victimage is used to convince stakeholders that the best used as supp 172). Therefore, a bolstering crisis response posture is considered not a separate strategy but supplemental to other response strategies. The character of an apology can be divided i nto two categories: full and partial. A full apology is when an apologizer accepts full responsibility and asks for forgiveness for a crisis. On the other hand, a partial apology is represented as just regret instead of a

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24 formal apology and concern for v ictims (Kellerman, 2006). Based on this, Coombs and Holladay (2008) suggested three apology strategies (e.g., Apology, compensation, sympathy) as a post crisis response strategy in their study. They said that an apology is defined as the accepting responsi bility of the organization for their wrongdoing. According to this, the sympathy and compensation response can be added to this definition. Therefore, this study will use the three apology strategies (e.g., apology/full responsibility, sympathy and compens ation) and test the effectiveness between these three strategies and media types. 2.5 Crisis Communication and Emergent Media The rapid emergence of Social Network Sites (SNS) allows not only accelerating information spreads but also managing widespread co mmunication. Kaplan and Haenlein (2010) distinguished SNS from other online media by communication, SNS users can generate content that contains skeptical views or negative positions on an organization, which can lead to a crisis situation. Moreover, Coombs (2008) emphasized the development of knowledge about SNS crisis communications and said to crisis managers that it is time to consider SNS tools such as blogs, podcasts, and videos. important po int for crisis response. However, information spreading speed via SNS is sometimes faster than traditional media. For example, when a US Airways Flight landed safely in the Hudson River, pictures taken by the public were posted on Twitter first. Among SNS

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25 tools, Twitter is rising quickly because of its retweeting speed. A recent study of Twitter 10, p. the 2 nd 3 rd and 4 th hops away from the source, signifying fast diffusion of information after the 1 st 2.6 Public Apology and Emergent Media In recent years, leaders have apologized for past events in which their countries were involved. It means that there has been intense pressure around the world for leaders to offer public apologies. In this atmosphere, CEOs of corporations cannot a that since the 1990s, the frequency of corporate public apology has increased as companies attempt to maintain and recover their reputations from blame. He listed thre e factors that have spurred this phenomenon: 1) the success of various social to recoup their investments. The case of Intel is considered to be representative of corpora te public apologies. In 1994, Intel ran large institutional advertisements in many cized television commercial to apologize for flight delays due to a climate disast er (Neeleman, 2007). That same year, United Airlines chose the same method to apologize for its

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26 ans disrupted while flying United Airlines. If you were one of them, I want to apologize personally on behalf United Airlines Commercial Jim Goodwin apology, 2007) Soon after, the heads of Ford and Bridgestone/Firestone embarked on apology campaigns as a result of tire failures. In television and newspaper advocacy advertisements, the president tire was replaced. At Bridgestone/Firestone, CEO Masatoshi O no was even more before you, to apologize to you the Americ 1 shows the cases of CEO apology video. As the CEO apology video has become p opular as a channel to resolve a crisis, Simon (2009) suggested three elements that a successful video should contain. First of all, it is mandatory that the message and the video recording be produced by professionals. A spokesperson should look into th e camera without any hesitation and video is also essential. Posting the content to social network sites such as Twitter and Facebook is easy, and this method will quic kly reach many viewers. Lastly, measuring video hits or websites links. Simon (2009) emphasized that corporations need to prepare an apology video and a media channel as a crisis response strategy. Coombs (2012), the originator of the Situational Crisis Communication Theory (SCCT), mentioned the popularity of CEO YouTube apology in his latest edition. He said that the need for CEOs to employ YouTube as a way to apologize is increasing and

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27 that the c 96). 2.7 Chief Executive Office ( CEO ) Apology as a Crisis Response Strategy to Rescue Corporat e Reputation Apologies have been considered one tactic for reputation management (Benoit, 1995). In this context, if the spokesperson is a leader, it has a huge meaning. apology because it symbol for his or her organization. However, some recent research about apologies argued that their apologies also create conflict and debate (i.e., they backfire) if they do not seem to be sincere (Harris et al., 2006; Tucker, Turner, Barling, Reid, & Elving, 2006). Every corporation faces the possibility of unexpect ed crises and thus needs to prepare response strategies. Consequently, Coombs (1998) suggested crisis response strategies: (1) attack the accuser, (2) denial, (3) scapegoat, (4) excuse, (5) justification, (6) compensation, and (7) apology for crisis manag ers to set proper response strategies after crisis and repair its damaged reputation. Among these crisis response strategies, apology has been examined in scholarly researches as a most effective way to diminish utation of a corporation (Benoit, 1995; Bradford & Garrett, 1995; Dean, 2004; Fukuno & Ohbuchi, 1998; Ohbuchi, Kameda & Agarie, 1989).

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28 When an organization faces crisis, it causes not only financial but reputational and credible risks (Coombs 2007; Heath 1997). Reputation and credibility of a corporation are considerably regarded as valuable resources as much as finance of a company part on how stakeholders evaluate an or crisis response strategy to encourage positive result after crisis (Heath 1997). He crisis must be able to tell a credible story, one that has factual fidelity that can withstand the scrutiny of reporters, governmental corporate reputation and credibility a fter crisis follows positive crisis outcome. When a catastrophe occurs, crisis communication managers need to pay attention to the safety of stakeholders first and then consider the possible damage to the A corporate apology is currently considered to be an important role to manage and repair a damaged corporate reputation (Coombs, Frandsen, Holladay, & Johansen, 2011). Furthermore, stakeholders want to know what corrective actions are conducted as a cris is response then they feel reassured by corrective actions (Sellnow, Ulmer, & Snider, 1998). t focus of the crisis communication research is on reputation management efforts. They specifically mentioned that reducing negative emotions lowers the reputation threat posed by the crisis and the likelihood of negative word of mouth while it increases

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29 purchase intention. In addition, the corporate reputation can be damaged by a crisis, which also can be repaired by an apology. In such a situation, the CEO as a spokesperson can play a strategic role to assert leadership and convince the public. Theref ore, organizations should decide on one key spokesperson to speak with one voice (Wilson & Patterson, 1987). Kellerman (2006) emphasized that the CEO should be the spokesperson in a crisis because stakeholders consider that person to be responsible for th e crisis. CEO apology has become a pivotal strategy for crisis response, but it needs to be developed as not only a practical strategy but as a theoretical base (Coombs et al., 2011). Hearit (1997, 1999, 2001, 2006; Hearit & Brown, 2004) has gradually de veloped research on corporate apologia for a crisis. He suggested that an ethical apologia has six traits: truthful, sincere, timely, voluntary, addresses all stakeholders, and has an appropriate context. First of all, a truthful apology should be charact rd, apology needs truly ethical apologetic response must speak to the concerns and interests of all parties location, or medium they will employ. The forum needs to be easily accessible to all stakeholders.

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30 2.8 Mae il Dairies Baby Milk Powder C r isis in South Korea, 2011 considered as a case and scenario for this experimental study. On March 4, 2011, news report said staphylococcus aureus, which can cause food poisoning, wa s found in the date August 5, 2012. After the news produced, consumers demanded refunds from the headquarters but they were rejected and limited the refunds to the produ cts that were found to be contaminated. Three weeks later, on March 24, Lee, Nak Yon who is in the Democratic Party and a member of the committee of Public Health and Social Welfare revealed that the export name: Geumjeonyeomjak Ingpuan, 300g, canned type), produced by Maeil Dairies Co., Ltd. was found to contain nitrite and ordered to be discarded by the Metrology Inspectorate in Yeontai, China, which is inquired into th e data submitted by the Korea Food & Drug Administration (Yoo, 2011). am deeply sorry to worry all of you regarding the report on the Premium Plus 2 Step staphylococcus virus, we demanded 11 authorized inspection agencies perform a second investigation. No viruses were found in 6 out of 36 canned products including Choi (Lim, 2011).

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31 Meanwhile, the director of the National Veterinary Research and Quarantine Service (NVRQ), investigator from the Surveillance Department of NVRQ found the virus in the Premium Plus 2 milk powder throu gh testing methods approved by the livestock hygiene laws. On March 9 and 10, a concerned representative from Maeil visited the laboratory, listening to the detailed explanations regarding the inspection, and checked everything carefully, demonstrating the transparency of the inspection results, submitting the complete report on March 15. NVRQ, a qualified microbiological testing authority conforming to the Food Examination Performance Assessment Scheme (FEPAS) adopted by the U.K government, did extensive and stringent tests, using the authorized testing procedures according to the livestock hygiene laws, reporting the results through an in depth 2 (expiration date the Pyeongtaek factory, one of Maeil Dairies Co., Ltd factories, with a total production volume of 49,774 cans (39,819.2kg). 12,060 cans out of the total were stored in the manufacturing facilities, with the remaining 37,714 cans distributed nationwide. Finally, last April 4 and 5, Maeil had public meetings in Busan and Pyeongtaek, inviting 15 consumers, with a final meeting in Seoul on Oct. 8, 2011. The CEO Choi Consumer Meeting. Chief and director of Nutrition Science and Research for Maeil, Jeong Jia (Pediatrics nutrition specialist and medical doctor) clarified that the

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32 2 (expiration date Aug. 5, 201 painfully awar feel uneasy even though we added more telephone lines due to a lot of telephone efforts to mothers through fostering specialists for customer response and diversified 2.9 Research Questions The foregoing literature review suggests the following research questions. RQ1 a : Between YouTube and a newspaper, which media channel is more likely to yield effective message acceptance (credibility/persuasiveness/truthfulness) for a CEO apology? RQ1b: Between YouTube and a newspaper, which media channel using the apology strategies (apology/compen sation/sympathy) is more likely to yield effective message acceptance (credibility/persuasiveness/truthfulness) for a CEO apology? RQ2a : Between YouTube and a newspaper, which media channel is more likely to be effective at building post crisis corporate reputation for a CEO apology? RQ2b: Between YouTube and a newspaper, which media channel using the apology strategies (apology/compensation/sympathy) is more likely to be effective at building post crisis corporate reputation for a CEO apology? RQ3: Betwee n YouTube and a newspaper, which media channel using the apology strategies (apology/compensation/sympathy) is more likely to be effective at building post crisis corporate reputation for a CEO apology compared to the no apology condition?

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33 Table 2 1. Case s of CEO apology video Company Crisis Case Spokesperson Video Posted Date of Hitting Crisis Date of posting apology video JetBlue Airways Flight delays from snow storm David Neeleman (CEO) Television commercial February 14, 2007 February 19, 2007 United Airlines Cancel flights due to labor dispute Jim Goodwin (Chief Executive) Television commercial June 20, 2007 December 20, 2007 Mattel Toy safety violations and recall Bob Eckert (Chairman & CEO) Official website August 2, 2007 August 14, 2007 Domino Pizza Two of kitchen staffs deliberately contaminated the pizzas and posted the video on Youtube Patrick Doyle (President, YouTube April 13, 2009 April 18, 2009 Eurostar Passengers trapped for hours because Eurotunnel hitted out over train breakdowns Richard Brown (Chief Executive) YouTube December 18, 2009 December 19, 2009 Toyota, U.S.A Auto recall Jim Lentz (President and COO) YouTube January 21, 2010 February 1, 2010 KLM Airline Late response to the unprecedented ash crisis in Europe Peter Hartman (President and CEO) YouTube April 14, 2010 April 19, 2010 BP The gulf spill crisis Tony Hayward (CEO) YouTube April 20, 2010 June 3, 2010

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34 CHAPTER 3 METHOD 3.1 Design and Materials A 2 (media: YouTube and a newspaper) x 3 (apology strategy: apology, compensation, and sympathy) factorial design was used to investigate the research questions. The experimental study used is an empirical analysis of a case study. It tested a real conditi on of the apology by the CEO of Maeil Dairy via YouTube for the baby milk powder crisis in South Korea. First, the YouTube apology video was edited according to the strategies, creating the first stimuli using the apology strategy (duration: 1 min), the se cond using the compensation strategy (duration: 1 min 5 s), and the third using the sympathy strategy (duration: 58 s). To measure the effect of the CEO apology via a newspaper, the material was manipulated using the same script as the YouTube apology in o rder to avoid any possible effects from different dialogic communication message intentions. In sum, t he same script using to the different apology strategies was presented via YouTube and a newspaper. Lastly, no apology condition was added as a control gr oup. In addition to this, no apology condition was added as a control group. To be specific, no CEO did not mak e From this material, seven different scenarios using the actual messa used the same news article that describes the crisis situation facing Maeil Dairy and provides both a subjective view and factual information about the situation. Based on the news arti apology via YouTube and a newspaper were examined.

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35 3.2 Procedures The survey was conducted online with Qualtrics web based survey software. First, participants were provided with a consent form and a cover page with directions. Then, they were shown the print news story which describes the crisis situation without revealing the name of the newspaper. Participants were instructed to read one of seven scenarios randomly distributed among them After reading the scenario, respondents were required to fill out the questionnaire. To check for media type manipulation, a question of the media type given to participants was included. 3.3 Participants This study population was individual adult Inter net users (18 years old or older) and members of online communities who did not have any knowledge about this crisis. Specifically, the study population was composed of South Korean Internet users who belonged to various communities in two major portal web sites, Naver.com, the leading portal site in South Korea which handles 77 percent of all Web searches, and Daum.net, which accounts for 11 percent of Web searches (Choe, 2009). With seven experimental conditions, the study needed at least 140 participants divided among seven cells of at least 20 participants each. The actual number of all participants were The average number of participants in each cell 3.4 Manipulation Check To check for media type manipulation, a question regarding the media type given to participants was included. To be specific, after the respondents watched one of the manipulated media channels YouTube and a newspaper and then they answered which media cha nnel faced. Among 131 respondents without 20 respondents in a control group, 11 respondents who got incorrect answers about selecting the media

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36 channel they watched as a stimulus were eliminated based on the manipulation check question. Therefore, the rema ining 140 including 20 control group respondents were used for further data analysis. 3.5 Scales Used and Reliability Analysis This study had two fundamental objectives. First, it measured public message acceptance of a CEO apology issued through differen t media and employing different apology strategies (RQ1). This study also investigated post crisis corporate reputation following a CEO apology issued through different media and employing different apology strategies (RQ2). 3.5.1 Message Acceptance The q uestions posed for RQ1 were based on the criteri a of message acceptance (Table 3 1 ) identified by Lee, Kim, and Son (2010): credibility, persuasiveness, and truthfulness using the seven credibility, per suasive ness, and truthfulness were .870, .876 and .935 (Table 3 3 and Table 3 4 ). 3.5.2 Post Crisis Corporate Reputation RQ2 and RQ3 were conducted according to the reputation quotient scale (RQ, Table 3 2 ) developed by Fombrun, Gardberg and Sever (2000). Coombs et al. (2011) perceptions and reactions to crisis response strategies is valuable to crisis managers. Crisis managers can use the research re items used the seven

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37 The reliability coeffic for reputation quotient scale, respectively (Tab le 3 3 and Table 3 4) Table 3 1 Message a cceptance Credibility I can trust this message This message has convinced me This message has increased my sympathy Persuasiveness This message is persuasive This message is objective I can understand this message very well Truthfulness This message is truthful This message seems to admit and seek to correct faults This message seems to have sincerity Adapted from Lee, H., Kim, S. & Son, S. (2010). The effects of ingratiation strategy during corporate crisis. Korean Academic Society for Public Relations. 14 (1), pp. 5 32.

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38 Table 3 2 The r eputation q uotient (RQ) Emotional Appeal I have a good feeling about this company I admire and respect this company I trust this company Products and Services Stands behind its products and services Develops innovative products and services Offers high quality products and services Offers products and services that are a good value for the money Vision and Leadership Has excellent leadership Has a clear vision for its future Recognizes and takes advantage of market opportunities Workplace Environment Is well managed Looks like a good company to work for Looks like a company that would have good employees Social and Environmental Responsibility Supports good causes Is environmentally responsible Maintains high standards in the way it treats people Financial Performance Has a strong record of profitability Looks like a low risk investment Tends to outperform its competitors Looks like a company with strong prospects for future growth Adapted from Fombrun, C. J. (2000). The reputation quotient: A multi stakeholder measure of corporate reputation. The Journal of Brand Management, 7 (4), 241.

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39 Table 3 a lpha c oefficient for d ependent v ariables M SD alpha Message Acceptance Credibility 3.43 1.36 0.870 Persuasiveness 3.48 1.22 0.876 Truthfulness 3.36 1.44 0.863 Reputation Quotient 3.79 0.89 0.916 Note. Table 3 4 Inter item c orrelation for d ependent v ariables Credibility Persuasiveness Truthfulness RQ Credibility 1.000 Persuasiveness .749 1.000 Truthfulness .842 .774 1.000 RQ .644 .712 .685 1.000 Note.

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40 CHAPTER 4 RESULTS 4.1 Sample Characteristics The sample from 21 to 57 years, ; 76 (54.3%) were 20 to 29 years old, 43 (30.7%) were 30 to 39 years old, 14 (10%) were 40 to 49 years old, and 7 (5%) were 50 to 59 years old. Of these participants, 57.1% were male, and 42.9% were female. In terms of education, 71 (50.7%) of the respondents had or were working were high school gradu ates, and 2 (1.4%) had finished just middle school. The participants had varied vocations; 68 (48.6%) were current undergraduate or graduate students, 28 (20%) were office workers, 20 (14.3%) expert officials, 8 (5.7%) others, 6 (4.3%) service and sales pe rsons, 4 (2.85%) business owners, 4 (2.85%) housewives, and 2 (1.4%) farmers and engineers. 4.2 Research Questions RQ1 a examined the effects of the two media types (YouTube/newspaper) on the message acceptance variables (apology/sympathy/compensation). Th e results of the one way MANOVA discovered a significant main effect for media type for credibility ( but not for persuasiveness ( or truthfulness ( Respondents to the YouTube video condition reported more favorable credibility scores than those to the newspaper condition See Table 4 1 and 4 2 for statistical test results and means. Graphical representations are depicted in Figure 4 1 4 2 and 4 3

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41 RQ1b evaluated the effects of the two types of media (YouTube/newspaper) and apology message strategies (apology/sympathy/compensation) on the each message acceptance variables (credibility/persuasiveness/truthfulness). 2x3 between subject s multivariate analysis of variance (MANOVA) was performed on three dependent variables: message credibility, persuasiveness, and truthfulness. The results of the MANOVA revealed a significant main effect for media type for credibility ( but not for persuasiveness ( or truthfulness ( On the other hand, there was no significant main effect for a pology strategy for credibility ( persuasiveness ( or truthfulness ( and the interaction effect between media type and apology strategies was not statistically si gnificant for any of the three message acceptance variables ( See Table 4 3 and 4 4 for statistical test results and means. Graphical representations are depicted in Figure 4 4, 4 5, and 4 6 RQ2a asked how CEO ap ologies using different media channels affect the way people react to the post crisis corporate reputation. Using one way ANOVAs, the result showed a significant main effect for media type on corporate reputation ( Corporate reputation levels were significantly higher for the CEO apology on YouTube than for the newspaper apology See Table 4 5 and 4 6 for statistical test results and means. Graphical representations are depicted in Figure 4 7

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42 RQ2 b was answered using two way ANOVAs on one dependent variable. This question asked how CEO apologies using different media channels and apology strategies affect the way people react to the post crisis corporate reputation. The result showed a significa nt main effect for media type on corporate reputation ( However, neither the main effect for apology strategies in post crisis corporate reputation ( nor the interaction ef fect between media type and apology strategies on corporate reputation were statistically significant ( See Table 4 7 and 4 8 for statistical test results and means Graphical representations are depicted in Figure 4 8 RQ3 suggested drawing a contrast that compares each of the apology condition groups (e.g., six combinations of media channels and apology strategies and one no apology condition) because they tell us whether or not the apologies had an effect on the post c risis corporate reputation. Comparing six combinations of media channels and apology strategies to the no apology condition, the ANOVA contrast results showed that there are significant differences in corporate reputation ( Therefore, genuine group differences exist. See Table 4 9 and 4 10 for statistical test results and means

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43 Table 4 1. Mea ns and standard deviations for message acceptance as an apology s trategies and media Message Acceptance Media Channel M SD N Credibi lity YouTube 3.71 1.38 60 Newspaper 3.15 1.28 60 Persuasiveness YouTube 3.57 1.22 60 Newspaper 3.38 1.21 60 Truthfulness YouTube 3.52 1.47 60 Newspaper 3.21 1.41 60

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44 Table 4 2. Analysis of variance for message a cceptan ce by media t ype Source SS df MS F Sig. Partial Eta Squared Message Credibility Corrected Model 9.269 c 1 9.269 5.212 .024 .042 Media Channel 9.269 1 9.269 5.212 .024 .042 Error 209.821 118 1.778 Total 1629.026 120 Corrected Total 219.090 119 Message Truthfulness Corrected Model 2.801 a 1 2.801 1.348 .248 .011 Media Channel 2.801 1 2.801 1.348 .248 .011 Error 245.198 118 2.078 Total 1605.889 120 Corrected Total 247.999 119 Message Persuasiveness Corrected Model 1.134 b 1 1.134 .766 .383 .006 Media Channel 1.134 1 1.134 .766 .383 .006 Error 174.791 118 1.481 Total 1625.000 120 Corrected Total 175.925 119 R Squared = .011 (Adjusted R Squared = .003) a R Squared = .006 (Adjusted R Squared = .002) b R Squared = .042 (Adjusted R Squared = .034) c Note. **

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45 Table 4 3 Mea ns and standard deviations for message acceptance as an apology s trategies and media Msg Acceptance YouTube Newspaper Total n M S.D. n M S.D. n M S.D. Credibility Apology 20 3.97 1.44 20 3.13 1.42 40 3.53 1.47 Compensation 20 3.80 1.37 20 2.87 1.12 40 3.31 1.31 Sympathy 20 3.50 1.35 20 3.45 1.29 40 3.45 1.31 Persuasiveness Apology 20 3.57 1.29 20 3.33 1.27 40 3.45 1.27 Compensation 20 3.62 1.20 20 3.00 1.31 40 3.31 1.28 Sympathy 20 3.53 1.24 20 3.80 .96 40 3.67 1.10 Truthfulness Apology 20 3.60 1.46 20 3.15 1.28 40 3.38 1.37 Compensation 20 3.52 1.41 20 3.12 1.55 40 3.32 1.48 Sympathy 20 3.43 1.62 20 3.37 1.44 40 3.40 1.52

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46 Table 4 4 Analysis of variance for message acceptance by media type and apology s trategies Source SS df MS F Sig. Partial Eta Squared Message Credibility Corrected Model 16.672 c 5 3.334 1.862 .106 .075 Media Channel 11.011 1 11.011 6.148 .015 .051 Apology Strategy .968 2 .484 .270 .764 .005 Media Strategy 4.694 2 2.347 1.310 .274 .022 Error 204.160 114 1.791 Total 1651.410 120 Corrected Total 220.832 119 Message Persuasiveness Corrected Model 7.664 b 5 1.533 1.038 .399 .044 Media Channel 1449.075 1 1449.075 981.775 .000 .896 Apology Strategy 2.606 2 1.303 .883 .416 .015 Media Strategy 3.924 2 1.962 1.329 .269 .023 Error 168.261 114 1.476 Total 1605.889 120 Corrected Total 247.999 119 Message Truthfulness Corrected Model 3.816 a 5 .763 .356 .877 .015 Media Channel 2.801 1 2.801 1.308 .255 .011 Apology Strategy .146 2 .073 .034 .966 .001 Media Strategy .869 2 .434 .203 .817 .004 Error 244.183 114 2.142 Total 1605.889 120 Corrected Total 247.999 119 a. R Squared = .015 (Adjusted R Squared = .028) b. R Squared = .044 (Adjusted R Squared = .002) c. R Squared = .075 (Adjusted R Squared = .035) Note. **

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47 Table 4 5. Means a nd standa rd deviations for reputation qu o tient (RQ) as an apology s trategies and media Media Channel M SD N Reputation Quotient YouTube 3.9675 .86665 60 Newspaper 3.6167 .88742 60 Table 4 6. Analysis of variance for reputation quotient by media t ype Source SS df MS F Sig. Partial Eta Squared Corrected Model 3.693 a 1 3.693 4.800 .030 .039 Media Channel 3.693 1 3.693 4.800 .030 .039 Error 90.777 118 .769 Total 1820.058 120 Corrected Total 94.470 119 a. R Squared = .039 (Adjusted R Squared = .031)

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48 Table 4 7 Mea ns and standard deviations for r eputation q u o tient (RQ) as an a pology s trategies and media DV YouTube Newspaper Total n M S.D. n M S.D. n M S.D. Reputation Quotient Apology 20 4.03 1.14 20 3.56 .94 40 3.79 1.06 Compensation 20 3.92 .62 20 3.59 .89 40 3.75 .77 Sympathy 20 3.96 .79 20 3.71 .88 40 3.83 .83 Table 4 8 Analysis of Variance for r eputation q uotient by m edia t ype and a pology s trategies Source SS df MS F Sig. Partial Eta Squared Corrected Model 4.075 a 5 .815 1.028 .405 .043 Media Channel 3.693 1 3.693 4.657 .033 .039 Apology Strategy .128 2 .064 .081 .922 .001 Media Strategy .254 2 .127 .160 .852 .003 Error 90.395 114 .793 Total 1820.058 120 Corrected Total 94.470 119 a. R Squared = .043 (Adjusted R Squared = .001) Note. <.01, ** <.001

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49 Table 4 9 Analysis of variance for reputation quotient by groups of six combinations of media type x apology strategies and one no apology condition a. R squared = .213 (adjusted R squared = .177) Note ** Table 4 10 Analysis of variance simple contrasts of groups for post crisis corporate reputation Groups Std. Error Sig. YouTube*Apology vs. No Apology .280 .000** YouTube*Compensation vs. No Apology .280 .000** YouTube*Sympathy vs. No Apology .280 .000** Newspaper*Apology vs. No Apology .280 .001* Newspaper*Compensation vs. No Apology .280 .001* Newspaper*Sympathy vs. No Apology .280 .001* Note ** Source SS df MS F Sig. Corrected Model 28.232 a 6 4.705 5.991 .000 Groups 1837.151 1 1837.151 2338.978 .000** Error 28.232 6 4.705 5.991 .000 Total 104.465 133 .785 Corrected Total 1969.848 140

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50 Figure 4 1. Mean plot for RQ1 a Figure 4 2. Mean plot for RQ1a

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51 Figure 4 3. Mean plot for RQ1a Figure 4 4. Mean plot for RQ1 b

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52 Figure 4 5. Mean plot for RQ1 b Figure 4 6 Mean plot for RQ1 b

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53 Figure 4 7 Mean p lot for RQ2 a Figure 4 8 Mean p lot for RQ2 b

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54 CHAPTER 5 DISCUSSION AND CONCLUSION This study focused on the effects of media channel selection ( YouTube/newspaper) and three different apology strategies (apology/compensation/sympathy) on CEO apologies. While some studies have researched the effectiveness of different types of media, spokespeople, and strategies, these elements have not been connected in a single study of CEO apologies issued in different media channels. Additionally, there is little research about the effectiveness of CEO apologies issued via emerging media suc h as Facebook and Twitter in comparison to traditional media. The findings give meaningful insights into the comparative effectiveness of different media channels for CEO apologies: (a) video vs. print media and (b) emerging media vs. traditional media. 5 .1 Summary of Results 5.1.1 Video vs. Print and Emerging M edia vs. Traditional M edia Comparisons of YouTube video and newspapers as mediums for CEO apologies can be done from two different angles: video vs. print media and emerging media vs. traditional media. Based on the social presence theory, this study found that a CEO stepping up to the camera in a YouTube video to apologize in person more effectively built message credibility and post crisis corporate reputation than writing an apology in a newspaper. In contrast to prior findings by Coombs and Holladay (2009) that print media yielde d more positive reputation levels than video, the video condition (YouTube) resulted in more positive reputation levels than the print media condition. With regards to message acceptance, YouTube as an emergent media is more effective than newspapers as traditional media at generating message credibility and restoring post crisis corporate reputation. Surprisingly, people accept higher message

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55 credibility from YouTube than from a newspaper, contrary to a popular belief that messages spread by social media build less credibility than messages in traditional newspapers which are more reliable and neutral news sources. Therefore, for a CEO to apologize succes sfully, it might be important to issue an apology on YouTube as well as in a newspaper. 5.1.2 Media C h annel Matters More Than Message S trategy This study found that using a CEO as a spokesperson in a YouTube apology strongly affected public acceptance of CEOs are perceived as more credible and, therefore, are more effective at eliciting apology strategies alone produced a si gnificant effect on message acceptance and post crisis corporate reputation. It appears that all of these three apology strategies produce similar effects. This finding suggests that any of these strategies can communicate that a corporation apologizes for wrongdoing. The media channel turned out to be a more influential factor in determining the effectiveness of a CEO apology than the particular apology strategy. This finding indicates that corporations considering CEO apologies should put more weight on s electing the appropriate media channel than on their apology strategy. 5.2 Implications This study contributes to the knowledge of the practice of crisis communications. Many scholars and practitioners think that a real crisis is the best method to learn crisis communication, so this study used an actual crisis as experimental stimuli to examine a potential significant relationship between the effectiveness of different media channels in CEO apologies. The findings confirmed that YouTube has greater influe nce than

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56 traditional print media on the message credibility of a CEO apology and its ability to build corporate reputation. Therefore, crisis managers should pay more attention to using YouTube for CEO apologies and strategically consider their media choic e in light of media use by their target audience. As well, it might be helpful for crisis managers to convince their clients, especially CEOs, to adopt YouTube as a medium for issuing apologies. 5.3 Limitations and Future Research This study had several l imitations, including the nature of the crisis being compensation to victims, so the stimulus for a compensation strategy might not be strong in comparison to other apology strat egies such as apology and sympathy. Different results might be found if the attributions of compensati on strategy were strong. Additionally, the use of an existing, real life CEO apology on YouTube made it impossible to set the exact amount of time for eac h YouTube video stimuli. In addition, the majority of respondents were male, and this may have biased their perceptions sampling method, the results could have more external validity. It also can provide the possible outcomes by including additional crisis strategies such as bolstering, denial, and so on. Finally, this study was conducted online with Qualtrics software and not in a restricted laboratory setting, which could re duce the external validity of this research. This research examines the effects of media channel selection on CEO apologies only in South Korea. Although the importance of CEO apologies is growing, many researchers an d practitioners still have doubts about it. Crises are increasingly

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57 becoming worldwide due to the globalization of businesses and the development of social media, but little research has been done on the international aspects of crisis communication and CE O apologies. Future research should focus not just on the media effect of CEO apologies, but also on how effectively different med ia channels spread the message. In addition to this, the influence of the media channels and apology strategies and their sequ ence on the impact of a CEO apology must be investigated extensively in future research.

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58 APPENDIX A QUESTIONNAIRE Korean Version Section 1 Message Acceptance ( ) CEO (1~7) 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Section 2 Corporate reputation CEO (1~7)

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59 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7

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60 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Section 3 ( .) 1. ? ________________ 2. ? 3. ? ( / ) ( / ) 4. ? ( )

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61 5. ? 100 101~200 201~300 301~400 401

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62 English Version Section 1. Message Acceptance Regarding the messages of a CEO apology through different types of media, please indicate your level of agreement or disagreement with each statement about how you accept the messages of CEO apology. Strongly disagree disagree Somewh at disagree neutral S omewh at agree agree Strongly agree I believe I can trust this message 1 2 3 4 5 6 7 I believe this message have convinced me 1 2 3 4 5 6 7 I believe this message have sympathized me 1 2 3 4 5 6 7 I believe this message is persuasive 1 2 3 4 5 6 7 I believe I can understand this message very well 1 2 3 4 5 6 7 I believe this message is truthful 1 2 3 4 5 6 7 I believe this message seems to admit and to correct faults 1 2 3 4 5 6 7 I believe this message seems to admit and to correct faults 1 2 3 4 5 6 7 Section 2. Corporate reputation In this section, I ask how you feel about Maeil apology as a crisis response strategy. 20 statements are listed below. Please identify your level of agreement or disagreement with each statement. Strongly disagree disagree Somewh at disagree neutral Somewh at agree agree S trongly agree I believe this corporation takes advantage of market opportunities 1 2 3 4 5 6 7

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63 I believe that the corporation has excellent leadership 1 2 3 4 5 6 7 I believe that the corporation has clear vision for the future 1 2 3 4 5 6 7 I believe that the corporation supports good causes 1 2 3 4 5 6 7 I believe that this is an environmentally responsible company 1 2 3 4 5 6 7 I believe that the corporation is responsible in the community 1 2 3 4 5 6 7 I feel good about company 1 2 3 4 5 6 7 I believe that the corporation inspires admiration and respect 1 2 3 4 5 6 7 I feel that the corporation inspires trust 1 2 3 4 5 6 7 I believe that the corporation offers high quality products and/or services 1 2 3 4 5 6 7 I believe that the products and/or services of this company are innovative 1 2 3 4 5 6 7 I believe that the corporation provides good value for money 1 2 3 4 5 6 7 I believe that the corporation stands behind its products and/or services 1 2 3 4 5 6 7 I believe that the corporation rewards employees fairly 1 2 3 4 5 6 7 I believe that this looks like a good company to work for 1 2 3 4 5 6 7 I believe that the corporation has good employees 1 2 3 4 5 6 7 I believe that the corporation outperforms competitors 1 2 3 4 5 6 7

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64 I believe that the corporation has record of bring profitable 1 2 3 4 5 6 7 I believe that the corporation is low risk investment 1 2 3 4 5 6 7 I believe that the prospects 1 2 3 4 5 6 7 Section 3. Demographic information 1. In what year were you born? ________________ 3. What is your highest level of school you have completed? If currently enrolled, mark the previous grade or highe st degree received. th grade (no diploma) degree (e.g., PhD or EdD) 4. What is your occupation? employed 5. What is yo ur average income level?

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65 Thank you so much for your participation!

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66 AP PENDIX B EXPERIMENTAL STIMULI Stimuli 1: Media (YouTube, Newspaper) X Apology strategy (Apology Full responsibility) Dear all customers, I am CEO Choi Dong Wook of Maeil Dairies Co.,Ltd. (Apology Full Responsibility strategy) I am deeply sorry for causing you distress, regarding the news report of Premium Plus 2 Step. We will re emerge as a more humble company that you can trust, sparing no efforts to make you proud. We humbly request your encouragement and support. Thank you. Stimuli 2: Media ( YouTube, Newspaper) X Apology strategy (Compensation) Dear all customers, I am CEO Choi Dong Wook of Maeil Dairies Co.,Ltd. (Compensation strategy) We, Maeil Dairies Co.,Ltd, are trying our utmost to relieve your concern. If you still have any problem with our powdered milk products, please call our customer center. Our counselors will be with you and try to find solution. We will re emerge as a more humble company that you can trust, sparing no efforts to make you proud. We humbly request your encour agement and support. Thank you. Stimuli 3: Media (YouTube, Newspaper) X Apology strategy (Sympathy) Dear all customers, I am CEO Choi Dong Wook of Maeil Dairies Co.,Ltd.

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67 I am deeply sorry for causing you distress, regarding the news report of Premium Plus 2 Step. (Sympathy) Most of all, it pains me and our staff greatly so much to imagine all mothers frightened at the unexpected news and feel sorry for their kids. We w ill re emerge as a more humble company that you can trust, sparing no efforts to make you proud. We humbly request your encouragement and support. Thank you.

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71 Kim, S. (2011, April 8). The CEO of Maeil Dairies Co., Ltd meets parents as consumers. iBabynews. Retrieved on http://www.ibabynews.com/News/NewsView.aspx?CategoryCode=0010& NewsCo de=201104081329148840002600#z Krauze, A. (1998, May 29). Never apologize, never explain. New Statesman 4. Kwak, H., Lee, C., Park, H., & Moon, S. (2010). What is twitter, a social network or a news media? International conferenc e on World wide we b, 19(3), 591 600. Lee, H., Kim, S. & Son, S. (2010). The effects of ingratiation strategy during corporate crisis. Korean Academic Society for Public Relations. 14(1), pp. 5 32. Lim, H. W. (2011). The CEO of Maeil Dairies Co., Ltd. showed on YouTube and said Economic Daily. Retrieved on September 27, 2011 from http ://www.hankyung.com/news/app/newsview.php?aid=201103291568i Lucero, M., Kwang A. T. T., & Pang, A. (2009). Crisis leadership: When should the CEO step up? Corporate Communications: An In ternational Journal, 14(3), 234 248. McCall, B. (2001, April 22). The perfect non apology apology. The Newyork Times. Retrieved on October 10, 2011 from http://www.nytimes.com/2001/04/22/weekinreview/the perfect non apolo gy apology.html in J. Greene and B. Burleson (eds) Handbook of Communication and Social Interaction Skills pp. 357 401. Mahwah, NJ: Lawrence Erlbaum. Mills, S. (2003) Gender and Politeness Cambridge: Cambridge University Press. Ohbuchi, K., Kameda, M., & Agarie, N. (1989). Apology as aggression control: Its role in mediating appraisal of and response to harm. Journal of Personality and Social Psychology, 56, 219 227. RICE, R. R. E. (1993). Media appropriateness. using social presence theory to compare traditional and new organizational media. Human Communication Research, 19 (4), 451 484. Sellnow, T. L., Ulmer, R. R., & Snider, M. (1998). The compatibility of corrective action in organizational crisis communication. Communication Quarterly, 46(3), 60 74. She Wore a Yellow Ribbon. (2011). In Encyclopdia Britannica Retrieved on September 29, 2011 from http://www.britannica.com/EBchecked/topic/688314/She Wore a Yellow Ribbon

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72 Short, J., Williams, E., & Christie, B. (1976). The social psychology of telecommunications London: Wiley. Simon, D. (2009). Fast forward: Using Web video to r espond in a crisis. Public Relations Society of America. Retrieved on Septerber 29, 2011 from http://www.prsa.org/intelligenc e/tactics/articles/view/8149/101/fast_forward_using_ web_video_to_respond_in_a_crisi Sturges, D. L. (1994). Communicating through crisis: A strategy for organizational survival. Management Communication Quarterly, 7(3), 297 316. Tedlow, R. S. (2010). Deni al: Why business leaders fail to look facts in the face and what to do about it. New York: Portfolio. Weiner, B. (1986). An attribution theory of motivation and emotion. New York, NY: Springer Verlag. Wilson, W. J. (1987). The truly disadvantaged: The inner city, the underclass, and public policy Chicago: University of Chicago Press. Yoo, H. (2011, March 24). Maeil Dairies Co. Ltd., appeal to the controversy on staphylococcus aureus. The financial news daily corp. Retrived from http://www.fnnews.com/view?ra=Sent1001m_View&corp=fnnews&arcid=1103241 51941&cDateYear=2011&cDateMonth=03&cDateDay=24 Zaphiris, P., & Ang, C. S. ( 2010). Social computing and virtual communities Boca Raton: Chapman & Hall/CRC Press.

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73 BIOGRAPHICAL SKETCH on. After graduation, she worked at various fashion magazine companies for two years as an editor in South Korea Then she entered the University of Florida in 2010 and received her Master of Arts in Mass Communications degree in August 2012.