Abstract:
After product harm crisis, the target restoration strategy of agricultural enterprises is of great significance to reduce the negative reputation from internet word-of-mouth (IWOM) spread. From the perspectives of enterprise crisis information industry base-rate and consumers’ information processing mode and applying the standard test method, this paper established a consumer online word-of-mouth spread model to analyze the impacts of enterprise restoration strategy on IWOM spread, and discussed the internal influence mechanism of the negative IWOM spreading. Results show that the interaction between the information industry base-rate and enterprise restoration strategy has significant impacts on enterprise internet reputation. Consumers normally deal with business and industry information by enabling the double information systems, and under different information industry base-rate levels, companies adopt different strategies and have different effects on consumers. When information industry base-rate is high, consumers choose heuristic information processing model and it is a better option for enterprises to adopt the reconciliation restoration strategy. When information industry base rate is low, consumers take the system information processing model and it is better for enterprises to take restoration strategies to reduce the negative reputation from IWOM spread. This research also found that for agricultural enterprise they should choose restoration strategy according to their individual enterprise situations to effectively alleviate enterprise crisis. Finally, this paper suggests that agricultural enterprises should continue to improve the quality of products, and incorporate the management of IWOM in their strategic management plan so that enterprises can maintain long-term stable development.