New product development

New product development Need in the Market The need for an eBook in the market was evident. In the information age, where volumes of data and information need to be exchanged, created, examined and organized, there was a huge void to be filled by a handy device capable of being carried around, having an interface big enough like a book, but not the limited capacity of a paper book. The books were omnipresent, even though depleting in number with the internet coming up. But for extended reading, the computer screen was too inconvenient. It took too much time to load up. It was unwieldy to carry around. Not everything was available in a format youd want it in. To look into what exactly the need was, lets us look deeper into some specific points. To fill the current void, the market needed a product that: Was not heavy on the environment, like books. There was too much paper and ink being used for relatively miniscule amounts of information. Replicated the book in terms of readability. The computer screen was strenuous to look into for too long. Further, the computer screen could not be seen in sunlight. It also was very hard to read at angles. Facilitated exchange of information without necessarily the constriction of holding a device and keeping the users eye fixed on it. For example, in the ultra mobile culture that is emerging, many users are either driving a vehicle for a big fraction of the day. They may be users who are working around the house too. Books, because of the undivided attention they required, were slowly being drifted away from. Did not require storage space. Books took up a lot of space. Theres only so much information that can be kept in the library in the form of books. Was not heavy. Books are heavy if you realize that just to move from your living room to the park outside with a few big books is not inviting. If youre travelling, its almost impossible. Was updated in real time. Books cant be, and computers are, as we saw, unwieldy. We now see how the Kindle fulfilled these needs. The Amazon Kindle and how it filled the gap The answer was an eBook reader. One such product is the Amazon Kindle. A quick glance at its features, benefits and how it fits with the market demand identified above is presented. Amazon Kindle: a software/hardware platform by Amazon.com for displaying e-books and sometimes, other digital media. The 3 versions are: Kindle, Kindle 2, and Kindle DX. The Kindle First Generation, which was Amazons first device, was released in the US in 2007 (on November 19). The Kindle uses an E Ink brand electronic paper display. It downloads content using Amazons Whispernet (propriety online store) using mobile networks. The Kindle 2 devices use the American ATTs service and some roaming partners that give wireless access internationally. Kindle does not have to be connected to a computer, and Amazon Whispernet does not require a subscription. All Kindles come with free access to the Internet over mobile networks in the US. Here is a look at the features and benefits you can find with Amazon Kindle. The screen looks like real printed paper. Kindle also became desirable because of its 3G connection service in more than 100 countries. Users are able to get the first chapters of books before purchasing them. The actual download takes 60 seconds. The Kindle DX features a larger screen and more memory to hold more e-books. The screen size is 9.7 inches which is pretty large for comfortable reading. Even the available memory of 3.3 GB is enough to keep to the tune of 3500 books. The screen boasts not having any glare or illumination. This doubles up as a major power saver. In addition, the words of the book, once displayed on the kindle, remain that way without consuming any power. So, in the domain of utilization of power, it is very efficient. About 500,000 book titles are available at its Kindle Store for international customers. Competitive analysis Porters analysis for the eBook industry Entry Entry barriers to the e-book industry are few, if any. The manufacturing process is relatively simple; except for the screen, the technology is well developed. The Kindle uses an electronic paper display manufactured by E-Ink Corporation and this same display can be found in the Sony Reader, the iLiad, the Cybook Gen3, and the Readius. However, there is a challenge of signing agreements with publishers so that the material can be released as an e-book. Perhaps the biggest obstacle that all the companies are facing right now is the lack of growth in the industry. Jinke has been in the business since 2000 but has sold only 150,000 readers, the most of all the companies. Rivalry The e-book market is still in an early stage and because of this, market price levels are still uncertain. There are significant variations in price between different producers of e-book readers. Amazon entered the market at a significantly higher price than Sony and many other competitors, but there are also other readers selling at $700 or more. Because the consumer base is so small, all producers would rather see it expand than steal customers from other manufacturers. Consequently, there is more incentive for manufacturers to improve their product and increase interest in e-books than to compete on price. Supplier Bargaining Power Supplier bargaining power is derived from the number of suppliers, availability of substitutes, and costs associated with switching to alternative inputs. There are two main inputs to the Kindle: screen and network technology. The technology used to create the specialized display on the Kindle is manufactured by the E-Ink Corporation. E-Ink is the leading firm in the electronic paper market and is a supplier to a variety of companies, including Sony and other e-book manufacturers. Since the electronic paper market is relatively new and does not consist of many firms, substitutes are limited. Given the state of the electronic paper market and the fact that electronic paper is a recently developed technology, E-Ink needs customers and hence E-Ink does not have much supplier bargaining power over Kindle. This could change in the future, depending on the popularity of the Kindle and the development of the electronic paper market. Amazon uses EVDO network technology, supplied by the Sprin t network. Kindle users do not need to pay to connect to the network, as Amazon covers the cost. Large EVDO network providers also include Verizon and Alltel, with other competing networks using a standard other than EVDO. This means that Amazons choice of networks for Whispernet is fairly limited. While not an issue now, if Kindle becomes much more widespread in the future, the company could face a holdup problem with Sprint if Sprint wants more of Amazons profits. Thus Kindles display and network suppliers currently do not have much bargaining power, but it is highly likely that if Kindle succeeds, supplier bargaining power will increase and may become a problem for Amazon. Publisher bargaining power is also important to consider since the Kindle is fairly useless without e-books. To increase the size of Amazons e-book library, it needs to obtain publisher permission for each book it converts. Publishers have a great deal of bargaining power in this respect; while there are many publishers, for each title one publisher has a monopoly. Thus, if Amazon wants a specific book for its Kindle, it will have to pay monopoly prices to the publisher. This effect can already be seen in the market for printed books, where much of the profit on a book is retained by the publisher. For a large publishing company like Random House, its profits are on the order of 10% of its revenue. On the other hand, a book retailer like Barnes and Noble has drastically lower profitability, with profits less than 1% of revenue. Thus publishers have a great deal of supplier bargaining power since they essentially decide which books become e-books and whether those books will be availa ble for the Kindle. Publishers can also require that Amazon sell only versions of their books that include Digital Rights Management (DRM), an attempt to prevent illegal copying of the content. Consequently, all books sold through Amazon on the Kindle are available only in the proprietary AZW format. Most competing readers also specialize in their own DRM format. Buyer Bargaining Power Kindle buyers have little bargaining power. Bargaining power is derived mainly from the ease of switching to a competing product and the value of the product to the buyer. Because both the Kindle and competing readers use DRM schemes, books purchased for the Kindle cannot be transferred to other manufacturers devices and vice versa. This is not the primary reason for DRM, but it is advantageous from Amazons point of view because it increases switching costs and helps to create buyer lock-in. The market for e-book readers is still young and small, so the majority of e-book reader buyers do not have a significant existing electronic library. Existing libraries are not yet an important factor in shaping consumers purchasing decisions. However, once the market matures a significant portion of sales will be to existing owners of e-book readers. Thus buyer bargaining power will decrease over time and be very weak in the mature market. Substitutes The main substitutes for Amazon Kindle are libraries, both brick and mortar and online bookstores, and Google Books. However, unlike the online bookstores and Google books, Kindle does not require a computer. Kindles free wireless connectivity which uses the same network as advanced cell phones enables buyers to shop from the Kindle Store directly from the Kindle device. Instead of having to travel to the local library or waiting for books to arrive from online bookstores, this wireless network can download a book in 60 seconds providing customers a more efficient and direct access to books. Although Kindle does not yet have access to as many books as some of these substitutes, it is progressively adding more books. Also, the Kindle stores everything a purchaser buys online; in this way, if a customer loses the Kindle, the reading material will not be lost, as would be the case if you had a paperback. The readers also do not have to deal with heavy or numerous books because of Kindle s light portability. The Kindle display looks like ink on paper, which is easier on the eye than LCD screens and comparable to printed media. It can also increase text size which is a clear advantage over books. Physical bookstores allow customers to browse books before purchasing. Amazon attempts to emulate this feature by allowing users to download and read the first chapter of any book for free. E-book versions of new releases and New York Times Best Sellers are $9.99, saving on average 60%, and many other books can be found for less. As for Google Books, Googles aim is to help people find and discover books and learn where to buy and borrow them. Although there are books that can be read online from start to finish, this is only the case for books in the public domain and out of copyright. For these reasons, Kindle compares favourably to these substitutes. Complements The size of the e-book library, other file types such as .pdf, .doc, and .jpeg, and the service to convert files to Kindle format are all complements of Amazon Kindle. The most important compliment required is the number of books offered to Kindle users. The day Amazon Kindle was released last year, the Kindle Store had more than 88,000 digital titles available for download and now has over 115,000 Books, newspapers, magazines, and blogs. Amazon also offers an email-based service that converts .html, .doc, .jpeg, .gif, .png, and .bmp documents to their Kindle format, AZW, or can load unprotected Mobipocket or plain text content. This AZW format is only for the Kindle which is a good strategy on Amazons part to tie the complement to the product. Kindle also supports formats for audio in the form of MP3s and Audible 2, 3, and 4 audiobooks, which must be transferred to the Kindle over USB or an SD card. With a variety of book options and supported formats to accommodate more customers a nd their various needs, the Kindle is a simple and convenient alternative to reading a paper copy book. Major Competitors This competitor analysis only compared the products on the basis of the technology but to sell the product, there is much more than mere technology which has to be projected. That is where marketing steps in and that is the area where Amazon has been at the forefront with its clear marketing strategy and its proactive and subtle innovations which keep them at the forefront of the E-book reader industry. Marketing strategy The marketing strategy of Amazon Kindle can be seen through the STP (Segmentation, Targeting and Positioning) analysis of the Kindle which would give way to the marketing mix followed by the brand. A typical buyer of a Kindle can be perceived as a businessman/businesswoman who does not have enough time and space to carry along the pile of books and newspapers when they go out on a trip or a business meeting. They want multipurpose equipment with no frills attached so that they can browse their favourite book whenever, wherever they can. The popularity of the Kindle can be seen in countries such as America and Europe where these kinds of users are easy in good number. The Kindle is sold on the website of Amazon that saves Amazon a lot of cost due to a direct supply chain. The communication is basically through a series of adverts whenever one goes to the website of Amazon. Amazon has positioned the Kindle as a book carrier for the people on the go. The product is marketed heavily in A merica and not so much in Europe as books have an aesthetic value in the Europe. It considers book as a form of art which is not a case with Americans. Methodology The methodology consists of both the primary and secondary research methodology. The basic aim of the methodology is to gauge the consumer perception of the Amazon Kindle and to analyze the gap between the Brand identity portrayed by the product and the brand image which is actually created in the mind of the consumer of an Amazon Kindle. Generally, it is seen that a new product has problems filling this gap and it is one of the major threat whenever the product is launched in the market. There is a need for the company to portray itself in a manner that the gap is minimized. In order to see the success of the Kindle we tried to visit the various blogs and the website of the Kindle to look for the consumer perception and the post purchase analysis. This methodology was validated by the questionnaire floated on various internet sites and the blogs in order to get maximum responses from the people. The scope of study was narrowed down on to finally three types of units: Users of Amazon Kindle Non-Users of Amazon Kindle People who havent heard of Amazon Kindle It is very important to gauge all the three responses in order to get the birds eye view on the product and the concept delivery. While hundreds of responses were analyzed in the secondary research, we came up with 54 responses in the primary research which was covering the geographical areas of USA, India, France, Germany, Greece, Australia, South Africa, Spain, Argentina and many more nations which make the study geographically significant. The responses were analyzed by the statistical tools such as excel and SPSS in order to come up with the impact analysis of Amazon Kindle and finally the recommendations that we came up to make this process of marketing the Kindle much more efficient and focused. Observations and analysis Secondary research observations: The secondary research was performed on the following web blogs and websites: inventorspot.com ireaderreview.com www.wired.com www.bestebookreaders.com reviews.cnet.com crunchbase.com blogs.techrepublic.com www.computerworld.com wiki.mobileread.com www.hanselman.com www.macworld.com gadgets.boingboing.net arstechnica.com www.digitaltrends.com Amazons Website The blogs are the major technology blogs which constantly receive the comments of the users and the non users and are a fair indicator of the trends and perception of the new product in the market. This is majorly significant in the case of the Kindle as the marketing mix of the product significantly enhances the importance of the blogs and reviews online. The product is sold online only and thus all the users or the people who are interested in the product are more likely to be avid internet users. The first step for adaptation of any new product is the search of the information about the product and the information, in case of Amazon kindle is majorly available on these websites and the Amazons site. The user therefore pays a lot more attention to these blogs in this case. Thus these blogs are very powerful in forming the perception about a product which is sold online. The E-Paper screen is slightly smaller than that on its primary competitor, the Sony Reader, but is still quite legible and roomy E-Paper has a long way to go before it replaces ink on paper, but its comfortably on the right path Youll need to use the Kindle in the same sort of well-lit environment that youd read a normal book or magazine Some of the features such as the expandable memory and the wireless services truly make using a Kindle an unforgettable experience. However, we can never call the Kindle a radical innovation as the concept was already put in to the market by Sony via their Sony reader. But as compared to its counterparts, it is perceived as a pioneer in innovation and technology. With the latest launch of the I-PAD, there has been a lot of speculation while we compare the I-PAD to the Kindle. While both Apple and Amazon maintain that the products are not in competition but there has always been a comparison made which can be unfair to the Kindle as it is not a multipurpose device as compared to the Kindle. But Kindle has been very proactive in ensuring that they come out with the subtle innovations that would keep their nose ahead at all times. This can be seen when they launched the Kindle application for the IPAD very recently just after the launch of the IPAD. Primary Research Observations The primary research was conducted on 51 respondents who were spread all over the globe on all continents of the world. The respondents were divided into 3 categories and the perception mapping was performed. The results show high involvement of Americans over the rest of the world. This can be easily explained by the history of the Amazon Kindle which launches the new version in America first and then another version is launched in the rest of the world. There is always an international version of the Kindle which is meant for the rest of the world except America. The research had 61 percent female respondents and 39 percent male respondents. There were many avid readers among the Americans who answered the questionnaire. The total avid readers were 55 percent and out of those, 80 percent were Americans. The value sought in the Amazon Kindle was very high among these groups of people which tell us that the Kindle is very popular among the people who love to read a lot. The people were mainly fond of the fact that the kindle is very compact and easy to operate. The peoples response was mainly hinting that the Kindle is surely a device that they would like to buy but the barriers that they have put either on the initial price and on the subsequent running costs is deterring them from having a Kindle with them. According to them, there is a special place of books in there and Amazon should not compete with them. The testimony of the fact is that the 90 percent of the people preferred paperback books instead of an electronic book if given a free choice. The reason given is that the book looks much more real and there is a sense of possession when we have a book in our hand rather than when we have an eBook in our laptops of our Kindle for that matter. The Kindle had the biggest advantage over the rest of its competitors due to its wireless capabilities which actually allow you to get your favorite books within a few seconds room anywhere in the world and anytime in the world. While Americans and Australians preferred the Kindle because it saved a lot of shelf space which in other cases would have been taken by the books, the Europeans preferred Kindle because it was su pposed to save a lot of paper and it looked elegant in the hand of the possessor. Some of the other findings include the fact that while 39 percent of the respondents were actually Kindle users, there were 21 percent of the respondents who were not aware of the Kindle at all. The reason that we could thought of was that it has something to do with the less popularity of Amazon in the countries of these people as most of these people were from India(50 percent) and Thailand and other parts of Asia. This throws light on the fact that for a product which mainly sells from the internet, it is very important for the parent company to have an established base of consumers who can then communicate with them and participate in the offerings given to them in the form of products such as the Kindle. There is no distribution channel where we can push the product. The other respondents who had heard of the Kindle but never thought of buying it thought that the price of the Kindle is the major factor that deters them from even thinking of having one. For the ones who want to b uy it and do not have it as of now, the major reason is that the people associate a lot of hidden costs with the product. This was a major finding as the company never projects the actual cost to consumer throughout the life of the consumers. While the possessors liked the fact that the Kindle has good connectivity which we too found out as the point of difference of the Kindle from its competitors, the non users liked the read without glare feature the most attractive one. This lead us to one more observation that the most attractive feature is not the unique feature of the kindle so the Kindle may or may not be the first choice of the people when they go on to buy an eBook reader. This is kind of disheartening for the company as the product is highly placed on the price and the technology table and the users may not find value for money once they look to buy a Kindle. There were some serious observations made in the value that the consumers attach regarding the price of the Kindle and that comes out to be around 140 Euros that is way less than the actual price of the kindle i.e. 250 Euros. This leads us to the observations is that the barrier is too high for a large amount of potential users which can be exploited if they agree to lower the initial cost. The people were very apprehensive of the actual cost to customer and Amazon can do well to enlighten the customers about the same. Success of the product to date The Amazon kindle is unarguably the best selling product for Amazon and the adverts on the website of Amazon are a testimony of this. It is the most wished for, most desired and most searched for product on Amazon site which tells us that the product is doing very well on the international scene as well. Some of the factual data released by Amazon can also be seen below. It tells us that the product is doing wonderfully well on the international scene. The product is a very successful one and the continual improvements that it has come up with are a major factor contributing towards such a success. The revenue percentage of Amazon is as high as 2.6 percent that tells us that it is the star performer for Amazon. The fact that is not taken into consideration is that there are huge running costs that are related to each Kindle that are unfortunately not mentioned in the data. But it is clear that the Kindle is doing cery well in the market since its launch in 2008. Recommendations Amazon should focus on advertising to attract new customers to the e-book market. A large potential for growth in its base of consumers is with commuters and business travellers, who will benefit from the convenience of the Kindles portability and also possess the disposable income to afford the device in its current price range. As Ron Hawkins, vice president for portable reader systems at rival Sony, points out, Digital readers are not a replacement for a print book; they are a replacement for a stack of print books. That is where we see people, on the go, in the subway and in airports, with our device. The Kindle delivers newspapers directly to users for, on average, $10/month. This enables commuters to easily read the newspaper on a smaller medium without the unwieldiness of the print version. Similarly, businessmen will find the Kindle appealing to avoid carrying multiple books while travelling. By targeting these consumers through increased advertising in subways, airports, and on airplanes, Amazon can expand the market and reach out to new adopters of e-books. In coordination with this advertising effort, Amazon should attempt to negotiate deals with major newspapers. At a time when newspapers are struggling with declining numbers in readers and revenue, Amazon can seek to capitalize on their situation. For example, the LA Times started a task known as the Manhattan Project seeking to investigate solutions to reinvent the paper for the future. Amazon has the opportunity to approach them with the Kindle as a new venue to revive their business through a younger tech-savvy audience. The primary goal of this advertising campaign is to increase the overall e-book market, rather than to steal customers from rivals, so competitors should not feel threatened by it. In fact, other firms may benefit from the increased awareness of e-book readers. Similarly, parallel campaigns by rivals do not pose a significant threat to Amazon, since the major challenge at hand is to grow the market and provide for future profitability. However, Amazon needs to ensure that rivals do not enter into exclusive contracts with newspapers or other content providers in general. These deals only serve to benefit individual firms in the short run and ultimately hinder expansion of a relatively small, nascent market. Long Term Positioning In the long run the market for e-books themselves is unlikely to support significant profits. The main issue stems from the large amount of publisher bargaining power that currently exists in the print book market. Publishers have a significant influence in the supply chain for books, retaining the largest portion of the producer surplus in print media. The retailer only receives a small fraction of the overall profits on the book, so it is presumable that Amazon will face similar difficulty in extracting profits from e-books. In addition, Amazons business model is reproducible and thus their current distribution advantage is not necessarily permanent. Amazons reputation would be their only substantial barrier to new entrants in the e-book sales market. Lastly, competition with free pirated e-books would present problems. Even if Amazon proves more successful than competitors in e-book retailing, as the market grows, piracy will inevitably emerge to erode profits. This has occurred o ver the last decade in the music industry as digital music and the Internet have matured. These pitfalls make it unwise for Amazon to pursue a partnership with a hardware-oriented company like Sony, in which Amazon would limit itself to selling e-book reader content. Instead, Amazon should continue to produce the Kindle itself. Due to the nature of the market, the selection of complements will not distinguish the Kindle from other readers. If Amazon can maintain comparable hardware quality to other manufacturers, switching costs and brand identity should allow Amazon to keep a stable customer base and to support some level of sustainable profits. Pricing It also might be tempting for Amazon to leverage their current advantage in e-book distribution into greater profits on the e-books. This trades larger short term profits for a weaker future position in the market, which will be much larger that it is now. Thus, Amazons pricing strategy should be consistent with the long term focus on hardware and a desire to prioritize market share over short term profits throughout the growth phase. Amazons recent price reduction from $399 to $359 reflects a shift from targeting quality sensitive early adopters to more price sensitive consumers. It should continue to drop prices in steady increments to attract wider consumer bases. Consumers are less sensitive to e-book prices than they are to hardware prices, and the decision to purchase a Kindle is more likely to be triggered by the cost of the Kindle itself. Hence, Amazon should not be overly concerned with further reducing e-book prices. These prices are currently lower than most hardbacks and trade paperbacks but higher than most mass market paperbacks. Attempting to compete with mass market paperbacks is infeasible because of publishers resistance to pricing e-books much cheaper than print versions. It already loses money on most of its e-books, priced well below what it pays publishers, and further price cuts would likely require Amazon to take losses unjustified by the small benefits in market share. However, if the Kindle is able to propel the e-book markets into a fast growing phase, publishing executives anticipate that it will not be long before Amazon begins using the Kindles popularity as a lever to demand that publishers cut prices. At this point , Amazons increased bargaining power will enable it to price more competitively without the losses from subsidies. Questionnaire Age Sex Male Female Nationality How much reading do you do in general? I am an avid reader, I cant live if I dont read I like to read, you would find me reading very often I like to read sometimes I read rarely I hate reading, i have better things to do in life What according to you is the most attractive feature of Amazon Kindle? Its sleek design and light weight The concept of an electronic reader The easy connectivity(Global 3G wireless) Long Battery Life Reads like real paper without glare, even in bright sunlight Holds up to 1,500 books Saves paper Lower prices than paper books Over 450,000 books and the largest selection of the most popular books people Other: What is it that would deter you from buying the Kindle? Price The concept of buying an E-book and limited number of reads Lack of Knowledge(less advertizing) Other: What according to you is the biggest competitor of the Kindle? Apples I-Pad The paper books Barnes Nobles Nook The Nook book reader Sony pocket touch edition

School Security: Safe but Subtle Essay -- essays papers

School Security: Safe but Subtle The most infamous and deadly act of violence to occur in a U.S. school were the events of April 20, 1999. In Littleton Colorado two teens went on a shooting and bombing spree that left 15 dead and 24 wounded before they shot and killed themselves. During the rampage, the two fired about 900 rounds of ammunition from two sawed off shotguns, a 9-mm semiautomatic carbine, and a semiautomatic handgun. Police also later found more than 30 bombs placed throughout the school (Brock, 2001). In light of recent acts of violence in the nation’s schools, school safety and security have become a hot topic. However, the issue of school safety goes beyond student violence. It includes property damage, theft, and anything else that concerns the overall well being of schools. While it is important to create a safe environment in schools it is also necessary to make sure students feel comfortable in this atmosphere. The security can not be so overbearing that it becomes a negative tactic that gets in the way of the students main objective, learning. Barely noticeable cameras, ID cards, and security guards without uniforms can help generate this safe, but comfortable learning environment. On the other hand metal detectors and mini police forces may be a little too reminiscent of George Orwell’s novel, 1984, or even modern prisons. School security should not be overbearing or obtrusive where it gets in the way of a comfortable environment that is conducive to l earning in the nation’s schools. Schools are safe places. However, the American public has become increasingly concerned with crime in schools and the safety of students. In part, this concern has been shaped by the highly publicized acts ... ...iew of School Safety Research. Retrieved April 28, 2005 from http://nssc1.org/studies/statistic%20resourcespdf.pdf. U.S. Department of Education, National Center for Education Statistics. (2002). Are America’s Schools Safe? Students Speak Out: 1999 School Crime Supplement. Retrieved April 28, 2005 from http://nces.ed.gov/pubsearch/pubsinfo.asp/pubid=2002331. U.S. Department of Education, National Center for Education Statistics. (2003). Indicators of School Crime and Safety; 2003. Retrieved April 28, 2005 from http://nces.ed.gov/pubs2004/crime03. Watson, R.J., & Watson, R.S. (2002). The School as a Safe Haven. Westport, CT: Bergin & Garvey. Wright, Joe. (2004). Let’s See Some ID. American School & University, 76(7), 56-57. Retrieved April 14, 2005 from Academic Search/EBSCO database. http://search.epnet.com/login.aspx?direct=true&db=aph&an=12649650.

Free Essays - Fatal Flaws in Hamlet -- Shakespeare Hamlet Essays

Fatal Flaws in Hamlet          In the ending to Shakespeare's Hamlet, each of the main characters fatal flaws leads them inevitably to their destruction.   The process of the play could not lead one anywhere else but to their ultimate fate.   Claudius is basically an opportunist whose blind ambition erases his moral sense.  Ã‚  Ã‚   Gertrude, through the eyes of Hamlet, is to eager to remarry her husbands brother.   Hamlet himself, driven both by his need for vengeance and his inability to act was perhaps as guilty as anyone else in the play because his behavior indirectly resulted in the deaths of Ophelia, Rosencratz and Goldenstein.   In each of these characters, the lack of the firm moral structure leads them in only one direction which is toward their death.   In the ending of the play, then, is both inevitable and fitting given the evidence that precede it.    In the case of Claudius, his actions betray a moral feeling from the start.   Having first murdered his brother in cold blood, he then proceeded ... Free Essays - Fatal Flaws in Hamlet -- Shakespeare Hamlet Essays Fatal Flaws in Hamlet          In the ending to Shakespeare's Hamlet, each of the main characters fatal flaws leads them inevitably to their destruction.   The process of the play could not lead one anywhere else but to their ultimate fate.   Claudius is basically an opportunist whose blind ambition erases his moral sense.  Ã‚  Ã‚   Gertrude, through the eyes of Hamlet, is to eager to remarry her husbands brother.   Hamlet himself, driven both by his need for vengeance and his inability to act was perhaps as guilty as anyone else in the play because his behavior indirectly resulted in the deaths of Ophelia, Rosencratz and Goldenstein.   In each of these characters, the lack of the firm moral structure leads them in only one direction which is toward their death.   In the ending of the play, then, is both inevitable and fitting given the evidence that precede it.    In the case of Claudius, his actions betray a moral feeling from the start.   Having first murdered his brother in cold blood, he then proceeded ...

The Power of a Symbol in The Yellow Wallpaper, The Glass Menagerie and

Years ago, Sister Mary Corita Kent, a celebrated artist and educator of the 1960’s and 1970’s stated, â€Å"A painting is a symbol for the universe. Inside it, each piece relates to the other. Each piece is only answerable to the rest of that little world. So, probably in the total universe, there is that kind of total harmony, but we get only little tastes of it† (Lewis "Quotes from Women Artists"). Nowadays, a painting is not the main form of art humans appreciate. In fact, literature of all sorts can be considered a different form of art and often found in literature are symbols. A "symbol" is an object, person or action which represents an abstract idea (Warren â€Å"English 102†). In literature, a symbol or set of symbols can have a wide range of meanings. For example, color is a universal symbol; some may say it is a general symbol for life. However, each color separately can symbolize something different depending on the context. Analyzing five pie ce of literature for symbolism, one will be able to gain a deeper understating of symbols. To begin, the short story by Charlotte Gilman, â€Å"The Yellow Wallpaper,† uses the deteriorating wallpaper to represent the narrator’s failing mind. The narrator is suffering and is confined in an uncomfortable house in a room she did not choose; she becomes obsessed with the wallpaper of the room. As the yellow wallpaper represents the narrator’s mind, the statement made by the narrator, â€Å"The color is repellent, almost revolting; a smoldering unclean yellow, strangely faded by the slow-turning sunlight. It is a dull yet lurid orange in some places, a sickly sulphur tint in others† refers to the condition of her mind by suggesting her condition is revolting and unclean. She is fading away in the su... ...at could these five pieces of literature possibly have in common?’ The answer to this question is very simple, these pieces of literature each possess symbolic colors that represent something different. Yellow wallpaper represents a deteriorating mind, a shabby, black box represents a gruesome, sacrificial death, green is the physical representation of power and wealth in society, a mixture of blue and yellow represents the confusion of a clear sky with dead grass and ‘Blue Roses’ and Blue Mountain represent the longing someone feels for something they can never have. Perhaps a paining is not the only symbol for the universe. Perhaps every piece of literature is related to each other in such a way that by reading each piece of literature, one can connect the different symbols an author chooses to use and recognize the complex harmony that binds the literature world.

Toyota Car Crisis

Halmstad University School of Business and Engineering Master in Management of Innovation and Business Development Toyota Crisis: Management Ignorance? – A Swedish Case of Consumers Perceptions Master’s Dissertation in Management of Innovation and Business Development, 15 ECTS Final seminar 2010-05-27 Authors: Yuanyuan Feng Supervisor: Mike Danilovic Hamlstad University Feng(2010) TOYOTA CRISIS: MANAGEMENT IGNORANCE? – A SWEDISH CASE OF CONSUMERS PERCEPTIONS Yuanyuan Feng School of Business and Engineering, Halmstad University, Sweden AbstractSince the late 2009, the famous vehicle manufacture Toyota has suffered a severe crisis due to unintended quality problems in its cars which had triggered Toyota’s largest officially recalls of its cars around the world. This crisis threatens the company’s previous reputation of good quality cars, as well as the brand image built up over time. This study aims to elaborate on the Toyota crisis in order to unders tand why Toyota faces this crisis and how they deal with the crisis; and investigate consumers’ perceptions of Toyota brand as the outcome of the crisis, with a focus on Swedish market.A qualitative research along with a number of face-to-face interviews with Toyota Swedish dealer and Swedish vehicle consumers is conducted. The findings reveal that the impact of the Toyota crisis in Sweden is not as serious as that in America; there remain satisfied and loyal Toyota’s customers who are not swayed by the negative publicities; While Toyota should manage the crisis even in a better way in order to retain its good reputation. Crisis, Toyota, Corporate Reputation, crisis management, consumer perception Key Words INTRODUCTION We deeply regret the inconvenience and concern caused to our customers and others by our recent recalls of multiple vehicle models across multiple regions. † – Aki Toyoda, the CEO of Toyota Motor Corporation1 (Toyota website). Since the abo ve apologetic speech was addressed by Aki Toyoda at a press conference in February 2010, it had been highlighted at the front page of Toyota’s official website for a few months. Beside the regretful expression we can learn from this public release, it also implies that the Toyota, one of the world’s largest automakers, is suffering in their recent recalls of millions of vehicles round the globe.Safety recalls are common issues occurring in automobile industry, few may have long run impact on the automakers involved if handled correctly. However, in this case, the disaster engulfing Toyota is of a different order (The Economist, Feb. 6, 2010). Toyota’s quality brand has been at a risk due to its sedans’ safety problems sequentially emerged recently. 1 Toyota Motor Corporation is the full name of the company, however, in this article the word â€Å"Toyota† will be used instead of Toyota Motor Corporation in order to make it short. Hamlstad University Feng(2010) In 2008 Toyota became the world’s largest carmaker when it successfully exceeded General Motors in sales and production. However, this leading position of Toyota had changed since the end of 2009. In United States, Toyota’s largest marketplace, a fatal crash of a Lexus ES 350 happening on August 28th 2009 was highly publicized, due to the gas pedal was stuck and the car was out of control (Los Angeles Times, Oct. 25, 2009).Since then, Toyota’s vehicles have been largely exposed to a series of issues associated with unintended acceleration problems, which had triggered Toyota’s escalating crisis and its massive recalls of approximately 9 million vehicles globally within six months. For Toyota, this is indeed a tragedy not only related to heavy financial losses due to repairing costs, market share lost and production suspending, but also to Toyota’s reputation for matchless quality and management.The firm's reputation for quality cars, on which the business was built over time, is shattered. Problem Discussion Toyota has long been regarded as the pinnacle of Japanese innovation, manufacturing quality and industrial pioneer (The Economist, Feb 13, 2010). Its vehicles are well known for economy, reliability and fuel efficiency. Its ‘lean’ manufacturing techniques and culture of continuous improvement were the envy of the business world (ibid). It is absolutely astonishing that Toyota has been embroiled in such a serious quality issues with its vehicles.Just within six months, almost 9 million cars have to be taken back for modification under the potential problems with floor mat, acceleration pedals, and braking, all of which were related to unintended acceleration problems by publics. As we know, cars nowadays have become more complicated in features and functionality. The growing numbers of wires, sensors and computer chips embedded in auto electronics have profoundly changed the automobile in the last decade (Krisher, 2010).As more and more hi-tech systems are fitted to modern cars, it has become more and more perplexing in quality-control testing along with troublesome interferences and uncertainties. Any small electronic flaws randomly happened in the complicated machine, as well as the influence of environmental factors, can easily lead to a failure of a car. In the Toyota crisis, we would wonder if the massive recalls were simply as a result of mechanical problems that could happen in any automaker potentially, or were caused by other errors of the company that can be avoided in term of their technology and management.No matter how, the recalls stories made the headlines worldwide. Especially in United State, Toyota has received unprecedented attentions from mass media, most of which have published a lot of negative news related to this issue, questioning to the quality problems of Toyota’s car and its reputation. Negative events usually come unexpectedly with the pote ntial to bring an organization into reputational crises and thereby imperil its future profitability, growth, and survival (Greyser, 2009).Whether the negative impacts are immediate or sustained over months and years, crises would probably affect both internal and external stakeholders of the company (Weiner, 2006). Suffering in such disaster, Toyota has taken action to manage the crisis, in order to retrieve their reputation and rebuild trust from stakeholders, especially the most important groups – consumers. Toyota has been in the hot center of coverage in United State, where the crisis is originally initiated. While, other countries involved in Toyota recall issues seem to pay less attention to this event than that of North America.Since the recalls have been conducted across regions globally not only in North America, it would be interesting to see how vehicle consumers in non-American regions perceive the crisis and the Toyota brand. 2 Hamlstad University Feng(2010) Pur pose and Research Questions With the above problems in mind, this study aims to elaborate on the Toyota crisis in order to understand why Toyota faces this crisis and how they deal with the crisis. This can be achieved through a detailed overview on what have happen in Toyota related to the crisis on a general level, as the recalls had been released globally.Moreover, the purpose of this research is also to investigate consumers’ perceptions of Toyota brand as the outcome of the crisis. To be specific in this aspect, Swedish market will be the focus of the research where Swedish vehicle consumers are examined. Accordingly, the research questions can be set as following: What are the reasons that force Toyota coming to the troublesome crisis? How does Toyota handle this crisis in order to retrieve its reputation? What are the Swedish consumers’ perceptions of Toyota brand as the outcome of the crisis?Although this research is inspired by an empirical case, the findings would also help to develop our understanding on how an organization can more effectively respond to crises, as well as building new knowledge to the area of corporate reputation and crisis management. It can also draw practical implication for crisis managers in auto motor and other industries. RESEARCH METHOD This study is done in a way of focusing on the Toyota case, it is therefore a case study that has an emphasis on empirical finding.Through empirically studying the Toyota crisis, which typically represents organizational crisis, the intent of this research is to develop an understanding of organizational response to crises and brand images management in auto motor industry and other industries. An explorative research along with descriptive characteristic is thus employed, by raising open questions to illustrate the crisis phenomenon and try to explore relatively new knowledge for organizational crisis management. A qualitative strategy is selected for formulating questions, p urpose and gathering data.Characteristics of this approach are closeness to the respondents, to capture their values, attitudes and perceptions based on their own words and meanings (Bryman and Bell, 2007). According to the study purpose and the research questions placed above, this research is conducted from two perspectives: the Toyota itself on a general base and the vehicle consumers in a specific market. When formulating the purpose and research questions, here raise a problem with the selection of consumer respondents.Although the Toyota crisis occurs on a global level, it is impossible to conduct the research targeting consumers in all the markets around the world. Furthermore, compared to the United States where triggered the crisis and dominantly receive extensive coverage negatively related to Toyota’s stumble, other countries and regions that are involved in the recalls are less focused and could present more pertinent opinions toward this issue. Consequently, in o rder to gain more reasonable insights, I would like to look into a specific market instead of American market.Since I live in Halmstad city of Sweden, the sampling respondents – Toyota dealer and vehicle consumers – will be targeted within Halmstad city, for the purpose of convenient location to conduct the research. 3 Hamlstad University Feng(2010) In order to elaborate on the Toyota crisis, secondary data associating with Toyota crisis on global level is examined and collected initially through different sources, such as media coverage, official releases from government regulatory bodies, critics’ comments in journals, and Toyota official websites.This is done to provide an overview on what exactly happen in Toyota connected to the crisis basically. In addition, to be more specific, primary data collection is considered significantly critical since it is a more exploratory-oriented study. In this research, face-to face interview manner, which is one of the mos t important sources for a case study (Yin, 1994), is employed to investigate the reflections toward this crisis both from Toyota’s dealer and vehicle consumers in Halmstad city.Consequently, in Toyota dealer store which is named as Toyota Center in Halmstad, a face-to face Interview with the sales executive is conducted, lasting about 40 minutes by following a semi-structure interview guide (see Appendix I). On the other hand, the consumer respondents are randomly targeted by separating into two distinct groups: 1) Toyota customers, who own Toyota cars or have the intention to buy a Toyota car, are found when they are visiting in Toyota dealer store; 2) other consumers, who are using other rands’ car, are randomly selected in some gasoline stations or large parking places in Halmstad city. It might be interesting to make comparison between these two consumer groups for the possibility to draw valuable insights on consumers’ perception of Toyota brand and the cri sis. As a result, total 21 consumer respondents are interviewed (9 Toyota consumers and 12 other brands’ consumers). The interviews with consumer respondents last with a range of time from 3 to 6 minutes respectively.Although pre-designed interview guides are used as well (see Appendix II & III), questions for consumers are asked flexibly and may not follow on exactly in the way outlined on the schedule (Bryman and Bell, 2007). This is to allow the consumer interviewees to have a great deal of leeway in how to reply according to specific situations (ibid). Despite the collected numbers of consumer respondents are too small to cover the whole sampling population in terms of generalization, it’s important to note that this research is not aimed to simply generate a universalized outcome covering the whole Swedish vehicle consumers.Instead, it intends to capture consumer respondents’ cognitive and affective values, attitude and perception, to explore new insights b ased on their own words. Their responses collected on a face-to-face interviews basis are therefore considered as valid and reliable to achieve this inclination, as well as to some extent standing for what the Swedish vehicle consumers really perceive toward the Toyota crisis. LITERATURE REVIEW When facing a crisis the former and present reputation of a firm would be shaken, and it might be twisted in something unfavorable for the organization.How a firm communicatively responds to the crisis can influence its stakeholders’ perceptions of the corporate reputation, and in turn impact their future purchase intentions. In this part, theoretical literature regarding corporate brand and reputation, crisis management and consumer perception about the post-crisis outcomes are mainly reviewed in order to serve as pre-understanding knowledge for better analyzing the Toyota case later on. Corporate Branding and Reputation A brand can convey a numbers of facets, such as attributes, bene fits, values, ulture, personality, and user identity (Kotler, 2003). Through a set of symbols and characteristics a brand convey, consumers 4 Hamlstad University Feng(2010) can easily identify what a brand stand for, what value it represents, how it differentiate from others. Corporate branding draws on the traditions of product branding with the same objective of creating differentiation and preference to customers, while it involves more complex activities at organizational level, and requires to manage interactions with multiple stakeholder audiences (Knox and Bickerton, 2003).Branding on corporate agenda has been increasingly recognized as a strategic tool that leads to a dramatic extension of the applications and scope of branding (ibid). Urde (2003) emphasizes that the importance of core values created in corporate branding process, in which the core values are linked to organizational mission, vision, culture and organizational values, all of which affect the brand architectu re, product attributes, brand positioning and communication strategy.Consumers tend to identify with the personification of brands through the association of the companies or brands to traits such as values, characteristics, attitudes, and ideals. Therefore, to personify the corporate brand, the impressions that the communication creates must be consistent with the values that the company claims to stand for (Urde, 2003). In addition, Benefit associations provide a central reason for consumer’s choice of a specific brand over other in the category (Dawar and Lei, 2009).To gain customer-based brand equity the consumers must be aware of, and familiar with, the value offering (brand awareness), and hold brand associations that are strong, favorable and unique in comparison with other brands offered in the same category (brand image) (Petruzzellis, 2010). Corporate reputation is the cornerstone in corporate branding. It is of significant importance to all organizations, regardles s of being commercial, governmental, or not-for-profit organizations (Watson, 2007). Essentially, orporate reputation is an aggregate evaluation made by stakeholders of how well a company is meeting stakeholder’s expectations based on its past behaviors (Wartick, 1992). The value of a brand is determined by both its tangible and intangible assets, and brand image and reputation forms a critical part of the intangible assets (Wang, 2005). Fill (2006) suggests that reputations are developed over time from the image, and it is more embedded and stable; while image is more transient and can be instantaneous and reality superficial.Watson (2007) argues that reputation does not occur by chance, it relates to leadership, management, and organizational operations, the quality of products and services, relationships with stakeholders, and communication activities and feedback mechanisms. A favorable corporate reputation can convince the undecided to choose a certain product or service and dissuade existing customers from moving to a competitor; whereas a damaged reputation can be irreparable and, in extreme cases, lead to a company’s downfall (O’Rourke, 2004).Fombrun (1996) claims that in order to build a favorable reputation four attributes need to be developed: credibility, trustworthiness, reliability and responsibility. Everything an organization does, and does not do, has a direct impact on their reputation (Dolphin, 2004). Stakeholders will develop expectations as to how the firm will act in a given situation. When customer’s expectations are satisfied, they will feel safety, credibility, and security as perceived value in this relationship, which all together increase trust and then enhance customer’s loyalty (Ravald and Gronroos, 1996).However, failure to meet those expectations may cause a negative reputational impact. Furthermore, despite firms have achieved overall and continued marketing success, it would appear that the r eputation of corporate brands can be tarnished when facing crises (Fill, 2006). Therefore, reputation may offer both benefits and challenges to organizations. Nevertheless, the strength of the brand, as well as the management’s 5 Hamlstad University Feng(2010) flexibility and willingness to be open and transparent with questioning publics, can protect the organization’s reputation in the long run (ibid).Crisis Management In such business environment the need of a robust, corporation-wide plan to deal with unexpected crises is required. Crisis management researches investigate the essences of organizational crises and how appropriate organizational response influences post-crisis outcomes for the entity involved (De Blasio and Veale, 2009). Through crisis management planning and implementation, organizations can be better prepared to deal with unforeseen events that may cause serious or irreparable damage (Zhao and Fan, 2007).Threats of Crisis Crises are rare events tha t disrupt the normal operations of an organization, with knocks on the implications for its assets, its future relationships with a company’s stakeholders and which threaten the very survival of the organization (Carroll, 2009). Crises are seen as threats to the organizational reputation, and could harm an organization’s future profitability, growth and possibly its survival (Tucker and Melewar, 2005). The extent to which a crisis threaten corporate reputation is rather complex.Some crises can be sudden and unexpected while others can be the result of problems that festered over time (Greyser, 2009). A business might face local citizens, competitors, industry commentators, statutory bodies, pressure groups, the media and academics as influencers of its reputation (Tucker and Melewar, 2005). Greyser (2009) proposes some typical sources of corporate brand crises, which are caused by: product failure, social responsibility gap, corporate misbehavior, poor business results , executive misbehavior, poor business results, loss of public support, and controversial ownership, etc.Tucker and Melewar (2005) argue that news media and internet are certainly a substantial threat to any corporate reputation since the public are more sensitive to a corporate scandal. When a crisis emerges, a wide range of stakeholders are adversely affected by a crisis including community members, employees, customers, suppliers and stockholders (Coombs, 2007). Most stakeholders will learn about a crisis through news reports and online social media, therefore the news media and the internet play a critical role in affecting people’s perception in a crisis (ibid).The headline-hungry media has vicarious appetite for obtaining newsworthy material. Their claims often go unchallenged if there is a possibility to create a sensational story (Tucker and Melewar, 2005). There is also the temptation for journalists to sensationalize any ‘corporate gossip’ which they mi ght hear, in order to maximize their own revenues, especially in the powerful news (ibid). As a result, crises pose certain risks to an company – potentially affecting critical aspects like reputation, image, brand equity, credibility, publicity, financial viability, legitimacy, community standing, etc. Smudde, 2001). The more respected a firm’s reputation the more sensational a corporate scandal will be and so these firms are subjected to the most intense scrutiny (Tucker and Melewar, 2005). A corporate reputation needs to be stable and consistent, if it is to withstand the scrutiny of many factors influencing it (Greyser, 2009). If a reputation shift from favorable to unfavorable, stakeholders can change how they interact with a corporate, and they may even server 6 Hamlstad University Feng(2010) ties to the organization and/or spread negative word of mouth about the organization (Coombs, 2007).Crisis Communication Strategies When facing a crisis, how the company han dles the crisis and what the reputation of the company is viewed by stakeholders may imply whether the firm can survive/recover or not. It's critical for organizations to recognize what is the issues generating the reputational threats, who is/are involved, and figure out what and how to respond the crisis (Greyser, 2009). In crisis management, corporate communication is widely acknowledged to play the key role in overcoming crises and repairing reputation.Sturges et al. (1991) suggest that communication content as a component of crisis management must meet three needs depending on different objectives: 1) instructing information tells stakeholders how they should behave in a crisis context; 2) adjusting information allows affected stakeholders to cope with the emotional aspects of crisis; 3) internalizing information is absorbed by stakeholder members and forms the basis for long-term judgments about the organization’s image as it endures a crisis.This is supported by Coombs (2007), who argues that since a crisis causes uncertainty and stress for the stakeholders, companies need to be more open with sincere information to their stakeholders in order to helps them cope with the psychological threat from the crisis; furthermore, stakeholder want to know what corrective actions are being taken to protect them from similar crises in the future and thereby reduce their psychological stress.When examining the role of corporate communication in crisis situations, the theory of image restoration have become perhaps the most dominant paradigm in this field (Dardis and Haigh, 2009)). Based on image restoration theory, Benoit (1995, cited in Fortunato, 2008) identifies a typology of five main communication strategies that can be used to restore image and reputation in face of crises: (1) Denial strategy – the organization attempts to remove any connection between the organization and the crisis by claiming that there is no crisis and offers a simple denial that it did not perform the act in question. 2) Evasion of responsibility – the organization attempts to reduce responsibility for the crisis by claiming that it was either forced into the crisis by another culprit and its inability to prevent the crisis that causes a mistake, or there were good intentions in its act. (3) Reducing the offensiveness of the crisis – the organization attempts to minimize perceived damage caused by the crisis and reinforce the good traits of the organization by creating a more complete context with which the organization should be evaluated. 4) Corrective strategy – the organization implements steps to solve the problem and prevent a repeat of the crisis by taking corrective actions; (5) Mortification strategy – the organization takes full responsibility for the crisis and asks for forgiveness. Based on Benoit’s typology, Coombs (2007) characterizes crisis response strategies by their level of acceptance by critical s takeholders. He identifies a full apology as having very high acceptance, where the organization takes responsibility for the crisis and requests forgiveness from stakeholders.There is also high acceptance for corrective action, where the organization conveys a notion that actions are being taken to prevent a recurrence of the crisis; while a denial strategy has no 7 Hamlstad University Feng(2010) acceptance even when the crisis occurred or attacking the accuser (Fortunato, 2008). However, in rumor and challenge crises, managers need to deny and argue that there is no ‘real’ crisis (Coombs, 2007).To effectively implementing different kinds of response strategies, crisis management often has a strong focus on public relations to recover any damage to public image and assure stakeholders that recovery is on-going. Public relations is defined as the practice of managing communication between an organization and its publics (Huang, 2004). It enables the organization to expo se themselves to stakeholders by using topics of public interest and news items.It is usually conducted in communication activities including speaking at conferences, working with social media, interacting with stakeholders, etc. In public relations, researchers also argue the need to form en executive ‘crisis-handling team’ directing to crisis response. Because the crisis-handling team can provide access to detailed crisis plans, control knowledge in terms of tactics, empirically established relationships, propositional facts, and strategies for making use of factual and procedural knowledge (Nunamaker, Weber and Chen, 1989, cited in Hale, 1997).In addition, the role of CEO is recognized to be important spokesman in crisis communication, as corporate reputation and CEO reputation are increasingly intertwined and the CEO is inevitably cast in the role of chief communicator (Watson, 2007). Therefore, what an organization says and does during/after a crisis can affect a v ariety of important crisis communication outcomes including the organizational reputation, anger, negative word-of-mouth, and account acceptance (Coombs and Holladay, 2009).Choosing appropriate crisis communication responses mitigating negative consumers, public and stakeholders’ perceptions are critical to managing corporate reputation (De Blasio and Veale, 2009). Consumer Perception of the Post-Crisis Outcomes As mentioned above, how effectively a company deals with a crisis will influence the post-crisis outcomes related to its survival or recovery. The more acceptable the crisis communication strategies are to consumers, the less serious outcomes occur to the company.In addition, the post-crisis outcomes perceived by consumers are also determined by other factors, such as consumer attribution of crisis responsibility, and company’s prior image and reputation, which will be discussed as follows: Crisis Seriousness and Crisis Responsibility According to Coombs and Ho lladay (2002), the evaluation of a crisis situation and its reputational threat to a company is largely a function of consumers’ attributions of crisis responsibility, which implies how much consumers believe organizational actions caused the crisis, and whether the crisis was accidental (e. . , technical error) or intentional actions (e. g. , human errors) by the organization. They identify the relationship between attributions of crisis responsibility and the threat to reputation through a range of crisis types, which are classified into three clusters based on attribution of crisis responsibility: 1) the victim crises (e. g. , natural disaster, rumor, workplace violence and product tampering), in which the company is regarded as a victim of the crises and thus is attributed to have low level of crisis responsibility; 2) the accidental crises (e. g. technical-error accidents, technical error, product harms and challenges) are considered unintentional or 8 Hamlstad Universit y Feng(2010) uncontrollable by the organization, and thus cause moderate attributions of organizational responsibility; 3) the preventable crises (e. g. , human-error accident, human-error product harm and organizational misdeed) are viewed as intentional and inappropriate actions taken by organizations to place people at risk, or violate a law/regulation, thus lead to high attributions of crisis responsibility (Coombs and Holladay, 2002; Coombs, 2007).Crisis responsibility is negatively related to corporate reputation (Coombs, 2007). The more responsible an organization is held to be for a crisis, the more negative the perceptions and the greater the damage to brand, image and reputation (De Blasio and Veale, 2009). Hence, a preventable crisis which leads to greatest attributed crisis responsibility in turn results in the greatest harm to organizational reputation (ibid).Crisis responsibility triggers affective reactions as well as being a reputational threat, especially the intent ional crisis cluster (Coombs, 2007). Negative emotions can cause stakeholders to criticize a company (engage in negative word of mouth) or to cease interactions with the organization (ibid). The more serious a crisis is perceived to be, the more involved the public become, the more negative emotions are triggered and, subsequently, the greater damage posed to organizational reputation (De Blasio and Veale, 2009).The Effect of Favorable Prior Brand Image and Reputation Researchers have demonstrated that good prior brand image and reputation have the potential to protect a company from harm caused by crises (Dawar and Pillutla, 2000; Coombs and Holladay, 2006; Dawar and Lei, 2009). When encountering negative publicity, consumers differentially weight aspects of the crisis information, such as the dangers of the product and the firm’s responsiveness, depending on their prior expectations (Dawar and Pillutla, 2000).The informational basis and other strength-related characteristic s of a prior attitude will influence subsequent judgments and evaluations (Pullig, Netemeyer and Biswas, 2006). Dawar and Lei (2009) suggest that consumers perceive familiar brands to carry less â€Å"responsibility† for the crisis, because when a crisis occurs at a familiar brand, consumers’ direct or indirect experiences with the brand will allow them to easily retrieve he pro-attitudinal information, which in turn reduces the influence of the crisis information. Therefore, the positive prior evaluations of familiar brands create a hypothesis-confirming context in which consumers interpret crisis information, leading to diminished negative impact on brand evaluations (Dawar, and Pillutla, 2000). In this way, Consumers’ existing positive expectations may provide firms with a form of insurance against the potentially devastating impact of crisis (ibid).By linking benefit association with a brand, Dawer and Lei (2006) argue that the perceived seriousness of a cri sis and the impact of the crisis on brand evaluations are a function of the relevance of the crisis to the brand’s key benefit associations. Since benefit association provide a central reason for consumer’s choice of a specific brand over other in the category, consumers may assess how seriously the crisis damages the brand depending on how relevant the crisis is to the key associations (Dawer and Lei, 2006).The less relevant the crisis is to the key associations, the less serious the crisis is perceived, the fewer damages occur to the brand image. In addition, proposed by Coombs and Holladay (2006), a favorable prior reputation can act as halo effect that protects an organization’s reputation during a crisis in two aspects: 1) halo as benefit of the doubt, which means if a consumer holds a general favorable view of the company, the consumer might assign the company less crisis responsibility which in turn result in less reputational damage 9Hamlstad University Feng(2010) from the crisis; 2) halo as shield, which serves as a part of the larger psychological phenomenon of expectancy confirmation, emphasizing that stakeholders will focus on the positive aspects of the organization and ignore the recent negative information created by the crisis. In these ways, a good prior reputation perceived by consumers plays as halo effect that has the potential to reduce its attributed crisis responsibility and dismiss the impact of the crisis on the brand (Coombs and Holladay, 2006).Therefore, the stronger and more positive the organizational image and reputation, the more resilient it may be to potential damage to its reputation. Post-crisis Reputation and Buying Intention On a macro-level, an organization is expected to suffer some loss in reputation capital from a crisis (Coombs and Holladay, 2006). As discussed above, how much reputational damage occur and how about the post-crisis reputation looks like in the mind of consumers may mainly rely on h ow the consumers perceive the company’s prior reputation and brand image, attributed crisis responsibility, and its handling of the crisis (Coombs, 2007).The more positive these aspects they have perceived, the less negative post-crisis reputation they declare, and the more likely they generate positive attitude and behavioral consequences for the company, such as, loyal attitude, buying intentions; vice versa (ibid). Consumers’ overall perceptions towards a company in the context of crisis can affect consumer’s trust in that company and its product and service (De Blasio and Veale, 2009). According to Morgan and Hunt (1994), trust is one of the most important moderators of long-term relationship; it plays an important role in developing loyalty.Corporate reputation is rooted in trust and ethically shaped over time, and can be a highly visible signal of an organization’s capabilities and reliability providing information about future performance (Dolphin, 2004). When consumers hold good overall perceptions about the affected company, they are likely confident that the company will correct its mistakes from the crisis and has the capability to perform better in the future, on the basis of their trust beliefs.Trusts are developed in relationship, where consumers have direct interactions with the company over times. Such consumers’ experience-based beliefs are powerful, it reinforce and strengthen the brand meaning with existing customers, generate positive word-of-mouth, and stimulate new customer trials (Berry, 2000) TOYOTA CASE FINDINGS Toyota is the one of the world’s largest automakers, based in Toyota, Aichi, Japan. Since its establishment in 1937 in Japan, Toyota has a long history of building safety, reliable and high quality vehicles.Today, the company manufactures vehicles and parts at 53 production sites in 27 countries and regions around the globe, with a variety of sub-brands categories such as Lexus, Yaris, Corolla, Camry, Toyota trucks, and the world’s first gas/electric hybrid Prius, etc. (Toyota website). Its vehicles have been well known for quality, reliability and fuel efficiency. Recent years, Toyota’s fast global expansion made it successfully exceed General Motors in production and sales in 2008 to become the world's largest automaker.Its success has long been regarded as the pinnacle of Japanese innovation, manufacturing quality and industrial strength (The Economist, Feb 13, 2010). Its â€Å"lean† manufacturing techniques and culture of continuous improvement were the envy of the business world (ibid). This pioneering lean manufacturing technique includes continuous process improvement, flexible production with just-in-time principle, and removing waste without removing 10 Hamlstad University Feng(2010) value (Angel, 2008).So far, America has become Toyota’s largest market, where Toyota is rank as one of the top-selling brands (Toyota USA website) . Toyota Crisis Overview However, Toyota’s leading position has changed since the end of 2009. A highly publicized fatal crash of a Lexus ES 350 happening on August 28th, 2009, which killed four passengers of a family inside the car in United States (Los Angeles Times, Oct 25 2009), has triggered Toyota’s largest officially recalls and brought Toyota to the crisis misery.So far, Toyota has announced recalls of approx 9 million vehicles globally across a wide range of its sub-brands (Toyota website), due to problems associated with â€Å"unintended acceleration†. According to Stewart (2010), Toyota has a full-blown crisis on its hands, but the problem has been compounded by a long-delayed and less-than-reassuring response from Toyota. By looking back from the beginning of the horrific Lexus accident, quality complaints and safety problems involved in Toyota vehicles have been brought to light with the increasing investigations by The National Highway Traffic Safe ty Administration (NHTSA) in North America.Toyota American Sales organization (TMS) previously attributed the problem in the Lexus to an incompatible floor mat that may potentially interfere with accelerator pedal (Los Angeles Times, Oct 25th 2009). They issued a public safety advisory on Sep 29th 2009 inform the owners of specific Toyota and Lexus models of the ill-fitting floor mat problem, and then followed by the first large-scale recall announcement in November 2009 for remedy of this problem (Toyota USA Newsroom).However, Toyota’s explanation of ill-fitting floor mats was questioned by NHTSA, stating that the problem was â€Å"related to accelerator and floor-pan design† (Stewart, 2010). Consequently, the problem of gas pedals that get stuck led to Toyota’s second large recalls of 2. 3 million vehicles in U. S. market, as well as the third recall announcement of 1. 8 million vehicles in European markets in January 2010.Meanwhile, Toyota released the decisi on about temporarily suspending production at most of its North American plants and halting sales of eight popular models in U. S. market (Toyota USA Newsroom). These issues put Toyota’s reputation at a high risk. Suspicion and criticism toward Toyota were full of headline among mass media, especially in North America. By late January 2010, Toyota began issuing apologies and promises to do better; its engineers brought up a fix for the accelerator pedals and began rushing it to dealers around the world (Welch, 2010).In face of the blame from mass media presses, Toyota maintained that the recalls and actions were taken voluntarily rather than the insistence from NHTSA, with the intention to â€Å"help ensure the safety of our customers and restoring confidence in Toyota†, according to Group Vice President and Toyota Division General Manager Bob Carter (Toyota USA Newsroom). Subsequently, Jim Lentz, president of Toyota’s U. S. organization TMS, apologized for the recall and acknowledged it was embarrassing for the company that built its reputation on the reliability of its vehicles (Linebaugh, Mitchell and Wakabayashi, 2010).Despite Toyota announced remedy solutions to fix the recalled cars, fresh reports of sudden-acceleration incidents continued to crop up from American Toyota owners involving vehicles excluded in the recalls, raising suspicions that whether the company has identified all of the factors that could cause unintended acceleration, which was closely linked to a failure of vehicle’s heart ‘the vehicle electronic throttle control system’ (ibid). In a conference call with reporters, Mr. Jim Lentz gave explanation that â€Å"these two fixes solve the issues that we know 11 Hamlstad University Feng(2010) f,† and â€Å"we have done exhaustive testing, and we have found no evidence of problems with the electronics† (ibid). Akio Toyoda, Toyota’s CEO, issued his public apology candidly at a news conference in Tokyo on Feb 5th 2010, emphasizing that they will â€Å"go back to the basics of â€Å"customer first† and â€Å"genchi genbutsu†(means ‘go to the source to find the problem’) by improving products quality around the world. He added that he will be the head of a global quality task force newly formed to lift quality standards within the company (Toyota Website). However, bad news seemed not to end up.Toyota’s tragedy were aggravated again with their further recall announcements in February 2010 including: the Hybrid vehicles containing the celebrated Prius with antilock brake problems in Japan and American markets; and the Tacoma trucks with drive shaft problems in American regions (Toyota USA website). After years of being the benchmark for quality, Toyota has been losing its edge even as its rivals catch up (Welch, 2010). Some analysts estimated that the immediate impact of Toyota’s global recalls and sales stoppages could c ost Toyota more than $2 billion USD (Trottman and Mitchell, 2010; Businessweek. om). Meanwhile Toyota could be forced to spend considerable amounts on advertising, sales incentives and legal bills (Linebaugh et al. , 2010). Moreover, Toyota has been blamed for its misreading and mishandling of the crisis. The longer-term damage to the automaker's brand could be much larger, according to Linebaugh et al. (2010). To respond those negative issues, Toyota maintains that they never misled regulators and they properly responded to potential safety problems (Linebaugh, et al. , 2010). We’re committed to doing everything we can – as fast as we can – to restore consumer trust in Toyota, and these recalls are part of this effort,† said Mr. Jim Lentz (Toyota USA website). Toyota President Akio Toyoda also outlined the company’s plans for earning customer trust back, stating that: â€Å"we are taking responsibility for our mistakes, learning from them and acti ng immediately to address the concerns of consumers and independent government regulators† (Toyota website). As BusinessWeek reported on Jan. 9, the company planned to break its silence, with an explanatory newspaper ad, as well as more tools such as the internet, social media, cable TV, etc. (Bush and Thomaselli, 2010). Special recall web pages were created in late January 2010 with latest recall and repairing information, along with posing some updated statements officially released by Toyota. Through various online or offline communicating tools, Toyota has attempt at highlighting its existing goodwill on, for instance, innovative technologies, excellent engineers, brilliant history, as well as its consistent social mission for making contribution to sustainable environment.In the American market, in order to solve quality problems involved in its cars, one area that Toyota has to focus on is how it manages its relationships with suppliers, which as outside firms play a big role in making engineering components for Toyota (Welch, 2010). There are reports pointing out that in recent years Toyota has been demanding that suppliers make parts more cheaply (ibid). Those accelerate pedals which had the potential sticking risk were mainly made by Toyota’s major supplier CTS Corp.Toyota American organization addressed that they have been working closely with supplier CTS on a revised design that effectively remedies the problem associated with accelerator pedals. In addition, an independent North American Quality Advisory Panel consisting of external distinguished group of safety and quality experts has been formed to advise the company’s North American affiliates on quality and safety issues. In retrieving customers, TMS in March 3rd 2010 announced plans to launch the company’s most far-reaching sales promotion programs for American customers 12Hamlstad University Feng(2010) includes 0% APR financing, low leasing rate, and complimentary two-year premium maintenance offers (Toyota USA Newsroom). Although Toyota has working on the crisis, the way they handling the crisis in United State seems not easy to go: they had to confront with three times testimonies in the American Congressional hearing; to pay $16. 4 million civil penalty imposed by NHTSA for accusing Toyota of a deliberate delay in recalling the vehicles by hiding its defects; and Toyota have been withstanding intense investigation from U. S. overnments and extensively keen-edged coverage from mass media. Dealing with the issues after a serious crisis is a long way to go before everything is back again. As Toyota stating, they are now â€Å"working as one, and putting all their efforts into new initiatives aimed at rebuilding consumer trust and contributing to society through our products and services. † (Toyota website). In sum, the following table shows the related events including five times’ major recalls and other issues that lead to the escalating crisis involved in Toyota since August 2009: Table 1 – Toyota crisis events Aug. 8th, 2009 A fatal crash of a Lexus car in USA due to the gas pedal was stuck was highly publicized that brought â€Å"unintended acceleration† problems of Toyota cars to the light with increasing investigations by NHTSA in USA. Toyota attributed the problem in the Lexus to the incompatible floor mat, but their explanation couldn’t convince NHTSA and public in USA. Toyota issued a public safety advisory suggesting owners of specific model about the ill-fitting floor mat issues in North America. 1st large Recall for potential accelerator pedal entrapment problems (ill-fitting floor mat), U.S. market, 4. 2 million vehicles. nd 2 large Recall for sticking accelerator pedal problems, U. S. market, 2. 3 million vehicles covering 8 models. Toyota Temporarily suspends production and sales of selected vehicles in the U. S. market. rd 3 large Recall for potential accelerator pedal issues, European markets; 1. 8 million vehicles. Toyota began issuing apologies and breaking silence with response to the crisis under the tense pressures from public media and governments in America. Toyota’s CEO Akio Toyoda made public apology for the recalls and nnounced global quality task force for focus on quality issues. th 4 Recall for antilock brake system (ABS) software problems on 2010 model-year Toyota Prius and Lesus HS 250, Japan and U. S. markets. th 5 Recall for inspecting the front drive shaft on 2010 model year Tacoma 4WD trucks, U. S. market. Three times testimonies to the Congressional Hearing in USA. Toyota agree to pay $16. 4 million civil penalty imposed by NHTSA in USA related to Toyota’s recall for slow-to-return and sticky accelerator pedals, but Toyota denies NHTSA's allegation that it violated the Safety Act or its implementing regulations.Source: Toyota Website (2010) Late of Sep. 2009 Sep. 29 , 2009 Nov. 25 , 2009 Jan. 21st, 2010 Jan,26 , 2010 Jan,29 , 2010 Late Jan. 2010 Feb. 5 , 2010 Feb. 09 , 2010 Feb. 12th, 2010 Late Feb. to Mar. 2010 Apr. 19, 2010 th th th th th th 13 Hamlstad University Feng(2010) Toyota Crisis in Sweden From the above information we could find that the serious impacts of the crisis on Toyota were mostly coming from the United State. To investigate the influence of the crisis in a more specific way, Halmstad market in Sweden is researched.The following sections present the primary data collecting from interviews with Toyota’s dealer and car consumers in Halmstad city, showing what the Toyota crisis is perceived in Swedish market. Toyota Swedish Dealer’s Reflection Compared the strenuous troubles in USA, it is surprising to find that Toyota has a different situation in Swedish market. The crisis is not a really big deal that influence Toyota brand in Sweden. According to the sale executive in Toyota center in Halmstad of Swden, what recently happened in Toyota is ot a big issue sin ce those quality problems never happen in Toyota’s vehicles in Sweden. He insists that Toyota didn’t have real quality problems with its cars, all the recalls made by Toyota are voluntary for the purpose to reduce potential risks within the affected models as well as reassuring its customers; the recall is normal issues in car industry, there are no repairs in the recalled vehicles but just little modification to make the affected cars even better.Those negative coverage related to Toyota in USA are not consistent with what things really are within Toyota. â€Å"When you became largest, the other competitors envy you and always want to put you down, this would happen in many biggest companies not only in Toyota†, the dealer says. While the recall news were exposed negatively, they would tend to eliminate unnecessary anxieties among customers through clarifying what really happen in Toyota when the customers made calls. We explain to customers and assure them the re are no such problems happen in Sweden; we never want to sell cars with brake problems or something defective; we are always concern about our consumer, concern about the safety quality of our cars. † According to the interviewed sales executive in Toyota Center in Halmstad, they have a head office named Toyota Sweden AB in Stockholm, which is responsible for guiding and communicating with other dealers around Sweden, as well as in charge of the recall issues in Sweden. Swedish dealers can get consultant advices from this head office.Accordingly, when Toyota officially released the recall announcements of affected vehicles involved in Sweden, Toyota Sweden AB in Stockholm is responsible for informing the Swedish owners of the affected cars with mail letters, by suggesting those consumers to contact their local dealer for arranging fix appointments. The interviewed sales executive states that they are satisfied with the interaction process with the head office in Stockholm; t hey are confident that Toyota is taking effective and professional measures in dealing with the problems.As for consumer complaints, he points out consumer complaints could always take place due to different daily indisposition in cars, regardless of the recalls issues happen or not. Since Toyota in Sweden didn’t have the similar issues as exposed in USA, the recall crisis do not have significant impact on the sales of the dealer. â€Å"We don’t have the same problems, but it of course more or less influences our sales when bad things were reported†, the interviewed sales executive says, â€Å"I’m not sure how much he effect occur, but in Sweden that [issues] haven’t affected [us] too much, because now we are selling the same numbers as we did a half of year ago, so I don’t think Toyota’s situation is really bad in Sweden. † 14 Hamlstad University Feng(2010) Swedish Consumers’ Reflection Since the consumer respondents ca n be separated into two distinct groups – the Toyota customers and other brands’ consumers, it is interesting to compare their reflections to see how the both groups’ consumers perceive differently on Toyota crisis as well as the brand.Some typical statements among the consumer respondents are showed in Table 2, which clearly reflects their cognitive and affective opinion toward Toyota crisis and the brand. The Toyota customers. The respondents within this group are mainly found in Toyota’s store. Some of them have owned Toyota cars before, while the others are new customers who didn’t have Toyota cars but visit the dealership store with purchasing intentions. The Toyota customers as observed are mostly in the middle age and elderly people, who usually tend to drive the cars with relatively lower speeds within cities.Being less influenced by news coverage about the crisis, Toyota customers in Sweden are not as sensitive as American stakeholders per ceive toward negative aspects of Toyota, such as quality problems, delayed handling crisis, etc. Being different from the affected American consumers, Toyota owners and new customers in Sweden do not exhibit much anxiety and panic by the recall events. Their attitudes toward the issues are mostly depended on their real past experiences with the brand or friends’ word-of-mouth effects.Accordingly, customers in this group have showed relatively loyal attitude toward Toyota, as well as presenting strong affective bonds to the brand. Their opinions about the brand are kind of positive even though Toyota is undergoing the troublesome crisis. They tend to trust in Toyota’s reputation, without perceiving the crisis as big as what has been reported in American mass media. Although with a little worry about potential safety problem, most of loyal consumers still think that Toyota cars are quality and energy saving with relatively good prices.Despite realizing that Toyota is get ting some troubles with the massive recalls and involving serious problems in USA, they believe that Toyota will solve this out and make it better in the future. Still, when stepping into Toyota dealership store, these customers would be willing to buy Toyota cars according to their own interests and needs, regardless of recall events. The other brands’ consumers. Compared with the above Toyota customers groups, the respondents within this group have shown relatively different opinions toward the crisis issues and Toyota brand.Since the respondents in this group are randomly selected in gasoline stations and parking places in Halmstad city, the backgrounds of the interviewees are mixed across a wide range of age, with different professions and interests. Therefore, their answers are various, depending on their background and the degree of awareness of the recall issues. Those who have little knowledge about Toyota’s troublesome recalls show little interests in talking about the crisis. While, the others who know much about cars are more willing to share their knowledge, which help to increase the opportunity to gain more deepened insights about the case.Since the interviewed consumers of this group are using other brands’ cars, most of them do not have direct experience in driving Toyota cars. Their knowledge about Toyota mainly depend on their awareness of Toyota’s brand image, as well as making evaluation by instinctively comparing Toyota with the brands they are using. Furthermore, most of them admit the situation in Toyota is kind of troublesome in USA but not in Sweden. They think car recalls is normal in car industry, not only happen in Toyota. As for the buying intention, most of the respondents in this group reveal their 15Hamlstad University Feng(2010) Table 2 – Typical Statements of Swedish Vehicle Consumers Toyota customers (owners and new customers) â€Å"I have a Yaris and it is reliable and economical. † Other brands’ consumers â€Å"I think it’s a wide brand with high function. † â€Å"It’s about fuel efficiency and fit for those who want an economical car, but if you enjoy fast driving, Toyota is not that kind. † â€Å"Toyota could be good in sustainable and innovative things, but since I’m Swedish, I more prefer our national brands which also have very quality function and more suitable for my personality. â€Å"I don’t think it is a bigger thing as media and newspaper report†¦it’s serious of course what happen in USA, but it can happen in any cars and I don’t think it’s so important to quality safe. Maybe in USA I don’t’ know, but in Europe I don’t think so. † â€Å"I’m not sure how exactly Toyota is handling this, I didn’t read much about this, but I guess they’ll solve this out with professional. † â€Å"[As being an engineer working in another a utomaker], I know too much [about cars]†¦ I don’t think Toyota should take the full responsibility for the problem.It is always customer complaining accelerate pedal get to stuck, but maybe they press the accelerate pedal as the brake pedal, and they are so sure they didn’t [do wrong]! So it’s hard to handle those issues, and no one trusts the technical specialist from the car manufacturer thing. But I think Toyota should handle this earlier to be clearer to the customers and the governments. However, the picture we have is that Toyota have a long time trying to buy this down and just say we don’t have any problems, and now they have this huge crisis caused by this. â€Å"Handling this serious now, keeping the public informed in time, then I think they may gain reputation again, but it takes time. † â€Å"They have lost some credits from safety point of view right now because of the crisis. In two years, they will recover, but right now, mayb e they have lost sales. They had sales stops [in America] because the recalls. † Prior brand Image Toyota Crisis Crisis handling Post-crisis reputation â€Å"Toyota is my favorite brand,†¦we driving too much, me and my wife, we are saving for much gasoline, saving about 7 thousand SEK per year. † â€Å"Capability, good technology, good service, and you can go with very good quality. â€Å"My friend who works with cars said it is a good car, and you can get a good car for nice money. † â€Å"We have two Toyota cars [which have been] running so many kilometers and just worked perfect. There’re not any such serious problems with my cars at all. I don’t think the problem is really so big, but maybe the news media is more so become reporting problems than reporting good things. † â€Å"[I’ve heard that they have] the problems with the brake and the gas pedal†¦but I don’t think it is a serious problem, because the first I know it is a good brand for years. â€Å"Actually I haven’t heard much about Toyota response†¦ I do care about [quality], I see the news, but since I have good experience with Toyota, I still very trust in Toyota, they will be nice to recall the cars together and fix alright. † â€Å"I got the recall notification letter, the dealer told me there was nothing wrong with it and that is just a voluntary recall for small modification. But since I more care about safety problem, I think Toyota parent company needs to report honestly what has happen, to be more open to the public. Toyota has given me years of reliable service, and I’ve always had respect for Toyota. I believe they’ll be getting better in the future. † â€Å"Perhaps Toyota has some troubles right now due to such big recalls, but I hope Toyota gets this solved correctly and still retains their reputation. † â€Å"Toyota will definitely have my trust as long as they stay honest and avoid the same mistakes happening again. † â€Å"So far it has been good, I want to buy another one. † â€Å"This is the first time we checking Toyota, if the price is suitable, I would consider to buy one. â€Å"Because we drive mostly in the city, it is good to have a car that driven by electricity, not so much by gas. † Buying intention â€Å"It depends on the price, and what it can help to hold money many years a car if it is new or not or whatever and the guarantee as well. † â€Å"Buying a car is a big decision, I’ll consider about price, service, insurance guarantee, quality, living place and other things as a whole, other than to be simply influenced by recall issues. † Source: primary data collection from interviews with Swedish vehicle consumers 16 Hamlstad University Feng(2010) reference in the brands they are using, while pointing out that they would not be influenced so much by a recalled crisis, instead, what can really inf luence their buying intention depend on many factors as a whole, such as the price, the guarantee, the insurance, the design, brand personality, etc. Overall, the perceptions of the Swedish drivers toward the Toyota crisis are quite mixed, but one common thread is that the Swedish respondents do not think the Toyota has so many serious quality problems as what extensively reported in America. Toyota’ crisis situation in Sweden is comparatively less serious.The Swedish consumers all believe that Toyota will recover in the future and regain its reputation. ANALYSIS The analysis will be made on a basis of combination with the pre-understanding of crisis management theory and the empirical data, by answering the three research questions respectively as follows: (1) What are the reasons that force Toyota coming to the troublesome crisis? Crises pose certain risks to an company – potentially affecting critical aspects like reputation, image, brand equity, credibility, public ity, financial viability, legitimacy, community standing, etc. Smudde, 2001). In auto industry vehicle recalls happen all the time and everywhere. However, the Toyota massive recalls show a very different situation and involves more serious consequences. We have seen that almost 9 million of Toyota vehicles around the world had to be recalled within a few months, and the potentially defective quality involved were mainly focused on unintended acceleration problems, which were closely related to the most important thing for drivers – safety driving. It’s thus hard to believe that there was nothing wrong with Toyota’s â€Å"quality† cars.The massive recalls were indeed a disaster for Toyota: not only means that they had to pay for the extensively financial losses due to repairing costs, market and stock share dropping down, production suspending, civil penalty, and other relevant expenses for dealing with the troublesome issues; but also it has heavily hit to Toyota’s intangible assets – its brand image and reputation of quality, which have been ethically shaped over time (Fill, 2006; Dolphin, 2004) and in turn influence the brand value (Wang, 2005).Although Swedish consumers do not blame Toyota itself that much for the crisis, by looking through the whole process it is obvious to find that the sequentially massive recalls were not just a couple of simple faults mechanically in the complicated machine; there should be something ignorant in the their management. Reputational troubles can come in many forms, from a wide variety of causes and from many pu