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Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
Chapter 12: Issues Management and Crisis Communication
Test Bank
Multiple Choice
1. Which of the following describes issues management?
a. preparing for problems in advance
b. analyzing historical trends
c. monitoring customer needs and wants
d. reacting to unexpected situations
2. Which term describes the process of issues management?
a. reactive
b. anticipatory
c. circular
d. defensive
3. In most cases, what is the primary goal of issues management?
a. measuring digital media velocity
b. responding to customer concerns
c. protecting a company’s reputation
d. avoiding extensive corporate litigation
4. A company can prevent an issue from harming company’s reputation by addressing
the problem during which stage of the issue life cycle?
a. potential stage
b. current stage
c. dormant stage
d. crisis stage
5. During which stage of the issue life cycle will a firm experience the most media
coverage?
a. potential stage
b. current stage
c. emerging stage
d. crisis stage
6. According to the text, Wells Fargo focused on which of the following in the dormant
stage of the issue life cycle?
a. closing some of its branches
b. encouraging media coverage
c. repairing its damaged image
d. anticipating customer reactions
7. Which of the following involves monitoring and responding to situations as they are
identified, before they erupt?
a. measuring outcomes
b. being proactive
c. deflecting issues
d. being reactive
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
8. In the issue life cycle, when does the triggering event occur?
a. at the beginning of the emerging stage
b. at the end of the current stage
c. at the beginning of the crisis stage
d. at the end of the dormant stage
9. Which term is used by Coombs to reference a sudden, large-scale event that
seriously disrupts routines of systems and poses a danger to values and social goals?
a. crisis
b. disaster
c. problem
d. issue
10. Which of the following would be categorized as an organizational crisis?
a. short-term financial loss
b. individual workplace injury
c. ineffective PR campaign
d. nationwide product recall
11. According to both Lukaszewski and Dexenhal, the media typically focus on which
element of a crisis?
a. results
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
b. goals
c. victims
d. events
12. Which term refers to a situation that threatens a company and its stakeholders,
seriously impacts performance, and generates negative outcomes?
a. organizational crisis
b. product crisis
c. disaster
d. problem
13. An organizational crisis is typically attributable to which of the following?
a. poor product designs
b. management failures
c. external forces
d. natural disasters
14. The Wells Fargo cross-selling issue stemmed from which of the following?
a. poor customer service
b. reliance on earned media
c. inability to access capital
d. ineffective management oversight
15. According to Mike Paul, who is known as the Reputation Doctor, what is necessary
to succeed in the area of crisis communications?
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
a. strong moral foundation
b. organizational experience
c. political awareness
d. collaborative spirit
16. When the cars manufactured by an automaker have faulty airbags and the cars
must be recalled, which of the following situations is illustrated?
a. disaster
b. product crisis
c. problem
d. litigation crisis
17. Research suggests which of the following about product crises?
a. Most product crises develop into long-term litigation crises.
b. A successful follow-up product will reduce the crisis impact.
c. A product crisis is best managed through earned media.
d. Most companies are unable to recover from product crises.
18. Which statement explains the Samsung Note 7 issue?
a. The issue resulted from unethical management practices.
b. The issue shifted from a corporate crisis to a product crisis.
c. The issue was initially identified by government regulators.
d. The issue shifted from a product crisis to a corporate crisis.
19. Which of the following would likely have prevented the Samsung Note 7 issue?
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
a. addressing the needs of key stakeholders
b. releasing a newer model more quickly
c. improving quality control during manufacturing
d. engaging in CSR activities on a regular basis
20. Which of the following was part of Samsung’s reputation building efforts?
a. relying on earned rather than owned messaging
b. holding a company-wide day for volunteering
c. forming partnerships to reduce technology costs
d. making a charitable donation for every device sold
21. Which of the following is driven by the threat of a lawsuit?
a. product crisis
b. issues management
c. litigation crisis
d. disaster
22. Which of the following would most likely lead to a litigation crisis?
a. a company lacking financial transparency
b. customers being injured by products
c. customers receiving poor service
d. a company failing to deliver products
23. Which of the following enabled Taco Bell to avoid a PR disaster?
a. being transparent and aggressive
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
b. settling the customer lawsuit quickly
c. developing a newer, better product
d. making changes to a poor product
24. Benoit’s theory is used for which purpose?
a. clarifying the benefit of issues management
b. providing steps to handle a corporate crisis
c. assessing the benefit of PR in a crisis
d. analyzing crisis communications activities
25. In Benoit’s theory, which of the following occurs in the denial category?
a. asserting that the event was accidental
b. claiming the accuser lacks credibility
c. shifting the blame to another party
d. acting unknowledgeable about the event
26. According to Benoit’s theory, which of the following is a strategy used to evade
responsibility?
a. denying any connection to a crisis
b. claiming that intentions were good
c. asserting that the crisis is a minor one
d. making restitution to any victims
27. Based on Benoit’s theory, a firm that uses puffery to build its image is attempting to
do which of the following?
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
a. reduce the offensive act
b. evade responsibility
c. deny any responsibility
d. reduce the accuser’s credibility
28. Which term is used by Benoit to describe a company that admits guilt and
apologizes for a problem?
a. compensation
b. mortification
c. differentiation
d. minimization
29. What are the stages of Coombs’ crisis communication model?
a. signal detection -> damage containment -> recovery
b. prodromal -> acute -> chronic -> resolution
c. potential crisis -> current crisis -> crisis dormancy
d. precrisis -> crisis impact -> crisis recovery
30. Which of the following occurs in the precrisis stage of crisis communications?
a. categorizing customers and publics
b. developing response plans and protocols
c. responding to stakeholder concerns
d. expanding social responsibility efforts
31. What should be the focus during the crisis impact stage of crisis communications?
a. returning to normal business operations
b. altering the reputation of the organization
c. developing new stand-by statements
d. supporting people affected by a crisis
32. The PR team at SRA Enterprises wants to develop a crisis communications plan.
The team has scheduled a meeting with a representative group of SRA employees
including security personnel, sales representatives, HR managers, IT specialists, and
senior managers. What should occur at this initial meeting?
a. brainstorming potential crises that could impact SRA
b. establishing media monitoring and notification systems
c. creating a list of key SRA audiences and stakeholders
d. developing stand-by statements and press releases
33. Which of the following describes the primary goal for a company in the precrisis
phase of crisis communications?
a. searching for emerging trends
b. identifying potential crises
c. selecting key spokespeople
d. designating a crisis response team
34. Which of the following reduces the likelihood that a company will experience a
crisis?
a. encouraging two-way communication
b. providing employees with crisis training
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
c. engaging in issues management
d. clarifying core values and policies
35. The crisis phase typically begins with which of the following?
a. a trend that emerges on social media
b. an event that disrupts normal operations
c. a lawsuit filed against an organization
d. a misunderstanding with stakeholders
36. Which of the following occurs in a postcrisis review session?
a. developing additional stand-by crisis plans
b. determining the best crisis spokesperson
c. planning a CSR activity for positive PR
d. assessing the crisis plan’s effectiveness
37. Why did Wells Fargo launch an initiative in 2017 with Habitat for Humanity?
a. to meet stakeholder demands
b. to address social media complaints
c. to improve its corporate reputation
d. to widen its organizational influence
38. According to a 2015 Pew Research study, which statement about social media
usage is true?
a. Urban dwellers use social media more than rural residents.
b. Women use social media significantly more than men.
c. Whites use social media significantly more than Hispanics.
d. High and low income earners use social media equally.
39. In relation to issues management and crisis communications, what is a positive
aspect of social media?
a. A company can control the information that is circulated on social media.
b. When monitored actively, social media offers an early warning of a crisis.
c. With only a few major social media sites, a company can streamline messaging.
d. Designated company gatekeepers can verify social media posts and block trolls.
40. Which of the following would have helped BP America manage the PR aspect of the
Deepwater Horizon crisis better?
a. correcting inaccuracies in the media
b. using Facebook to answer questions
c. posting accurate information on Twitter
d. having a stronger social media presence
41. Which digital factor is determined by measuring the number of media mentions or
social media posts?
a. variety
b. volume
c. velocity
d. veracity
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
42. Company X is experiencing a major crisis, and its PR team is measuring the number
of tweets per second about the situation. Which digital factor is being measured?
a. variety
b. volume
c. velocity
d. veracity
43. A passenger on North Airways was forcibly removed from an airplane by police
officers. Soon afterwards, videos of the incident appeared on Facebook and YouTube,
images appeared on Instagram, and hashtags showed up on Twitter. Given this
information, the North Airways incident possesses which digital factor?
a. variety
b. volume
c. velocity
d. veracity
44. Which of the following actions by a communications team is most useful during a
crisis?
a. ignoring negative or satirical media content
b. focusing on data volume more than data variety
c. analyzing data for trends, patterns, and insights
d. relying mostly on conventional media approaches
45. Effective issues management relies significantly on which of the following?
a. forming a crisis response team
b. tracking emerging trends
c. managing corporate risk
d. taking corrective actions
46. Conway Computers tracks requests for warranty repairs and notices a significant
increase in the number of keyboard problems on one of its laptop models. A Conway
Computers team is formed to study the matter, determine if there is a keyboard defect,
and recommend corrective action before a product recall is necessary. Which term best
describes the actions of Conway Computers?
a. litigation risk management
b. crisis communications
c. business planning
d. issues management
47. A Super Taco customer becomes ill after eating a burrito tainted with e-coli. Super
Taco pays the customer’s medical bills and gives the customer $500 in food vouchers.
Based on Benoit’s typology, what is Super Taco trying to accomplish?
a. reduce the offensive act
b. evade responsibility
c. deny any responsibility
d. reduce the accuser’s credibility
48. Stanton Farms, a California-based company, grows strawberries and blackberries
year round and delivers them to grocery stores across the country. A blizzard on the
East Coast delays shipments to stores in New York and Massachusetts leading to a
berry shortage. Which term describes this situation?
a. controversy
b. disaster
c. crisis
d. problem
49. Mike Paul, the Reputation Doctor, recommends which of the following tools for
success in crisis communications?
a. emotional intelligence
b. organizational skills
c. theoretical knowledge
d. creativity
50. Based on information in the text, what did both Samsung and Wells Fargo do during
the crisis recovery stage?
a. added social media gatekeepers to their PR teams
b. improved their customer service response times
c. expanded their social responsibility efforts
d. developed better replacement products
Difficulty Level: Medium
True/False
1. Issues management is reactive, while crisis communication is proactive.
2. Tracking emerging trends is a key step in the issue management process.
3. Differentiating between a problem and a crisis is a challenge in both issues
management and crisis communications.
4. Benoit’s theory serves as a list of steps that companies should follow when
addressing a crisis.
5. By engaging in issues management and preparing a litigation response protocol in
advance, Taco Bell avoided permanent damage to its reputation when faced with the
“seasoned beef” lawsuit.
6. In the Samsung Note 7 situation, a minor corporate crisis transitioned into a major
litigation and product crisis.
7. In the precrisis stage of Coombs’ crisis communication model, organizations try to
eliminate or reduce the risk of a crisis by forming crisis response teams and monitoring
social media.
8. In the crisis impact stage of Coombs’ crisis communication model, a firm focuses on
returning to business and repairing any damage to the company reputation.
9. Research indicates that social networking has increased in the past decade and that
men and women use social media at similar rates.
10. Crises faced by firms today are fueled by the volume, velocity, and variety of digital
information.
Short Answer
1. Define issues management.
2. How does a firm engage in issues management? What is the benefit of issues
management?
3. When would an organization or government entity be blamed for the results of a
natural disaster? Illustrate your answer with a brief real-life example of such a situation.
4. Differentiate between a product crisis and a litigation crisis. Provide an example of
each.
5. According to experts, what should be the focus for a company in the recovery stage
of a crisis?
Instructor Resource
Page, Introduction to Strategic Public Relations, 1e
SAGE Publishing, 2019
Essay
1. In a brief essay, contrast the handling of the Wells Fargo cross-selling issue and the
Hertz corporate relocation issue. Your response should address the stages of the issue
life cycle.
2. Summarize the Taco Bell “seasoned beef” crisis. How did the company use both
issues management and crisis communication to avoid a PR disaster?
3. Describe Benoit’s image restoration theory. How can the theory be applied by PR
professionals? Provide examples of corporate actions or messages for each category in
the theory.
4. Describe each stage of Coombs’ three-stage model of crisis communications. What is
the focus of each stage? Which stage do you think is most important? Why?
5. In relation to an organization’s issues management and crisis communication
activities, what are the positive and negative aspects of social media? Illustrate your
response with an example of an organization that has been either helped or harmed by
social media during a crisis.
