Perceived Effectiveness of Meralco's Image Restoration Strategy through Infomercials as a Crisis Response

Abstract

Meralco, the sole electric company in Metro Manila, is under crisis with the numerous allegations of overpricing and unreasonable levying; and broadcasted infomercials, the Distribution Charge and System Loss ads, as their crisis response. This evaluative research study determines the infomercials' perceived effectiveness to restore their corporate image to add knowledge on crisis management, corporate reputation, and on critically assessing ad messages as consumers and even as a corporation. This is accomplished by determining the infomercial's level of viewership and exposure, its embedded image restoration strategies according to Benoit, and its perceived image. The corporate reputation is measured through Harris-Fombrun's Corporate Reputation Quotient (CRQ) and the overall crisis management of Meralco is assessed in brief. The objectives will be met through content analysis of the infomercials and a relevant broadcasted interview; and a survey of Meralco's stakeholders. The study found out that Meralco's CRQ is low with 51% score but the infomercials showed recognition from the stakeholders with 65% score and the central tendency lies on its agreeability - with an established high viewership and exposure for both ads. This result is also verified from the CRQ results with high scores for attributes the infomercials' project. The outcomes signify that the infomercials affect Meralco's corporate image and improve it but not sufficient for the company to receive good corporate reputation from their stakeholders. This is due to the infomercials' exclusion of the other determining factors that equally gives weight in evaluating corporate reputation. Thus, it is recommended that all factors for establishing corporate reputation be considered as well, both on the study and on the company's crisis management plan. The other media employed simultaneous with the infomercials should also be assessed collectively in studying Meralco's crisis response and its effectiveness. A more extensive research study ought to supplement Harris- Fombrun's CRQ with other measurement tools for corporate reputation and also consider different population or sample designs.