CASE STUDY SOLUTION
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SYNOPSIS
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The LI-NING brand was established in 1990 by Li Ning, China’s famous “prince of gymnastics.” After
becoming a nationally recognized brand in China, LI-NING embarked on an international development strategy
with the aim of creating a global brand. In 2018, LI-NING shone at the New York and Paris Fashion Weeks
with a perfect fusion of trendy art and traditional Chinese culture, enhancing the brand’s international influence.
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On September 20, 2022, LI-NING held a new product launch event for its autumn and winter collections at
Jingmen Zhanghe Airport in Hubei, China, titled “Chasing Dreams.” However, this time, the brand suffered an
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unprecedented online crisis of public opinion. At the time of the show itself, the unique creative concept and
dazzling atmosphere made the event a success. However, on October 15, 2020, some netizens pointed out that
some of the new designs displayed at the show resembled Japanese army uniforms from the time of the Second
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World War. This attracted significant attention and sparked heated debate online. As public outrage grew, two
senior executives at LI-NING expressed their personal views on the matter on social media two days later, further
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inflaming sentiment among netizens. As the online controversy reached a climax and the stock price became
volatile, should have LI-NING responded proactively, or should it have chosen to stay quiet?
OBJECTIVES
• Understand the influence of perception on individual behaviour.
• Understand the impact of emotions on individual behaviour.
• Understand the process of emotional contagion via social media.
• Grasp how situational crises are classified and the advantages and disadvantages of different response
strategies.
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ASSIGNMENT QUESTIONS
1. What kind of image of LI-NING was established in consumers’ minds?
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2. Why was there such a significant disparity in terms of perceptions between the company and consumers
regarding the new olive-green outfit showcased in the “Chasing Dreams” airport show?
3. What effect did the responses to the online controversy by the executives from LI-NING have?
4. Following the responses by the executives, should LI-NING have responded proactively online, or
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should it have remained quiet?
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ANALYSIS
1. What kind of image of LI-NING was established in consumers’ minds?
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3. What effect did the responses to the online controversy by the executives from LI-NING have?
The Motivational Dimensional Model of Affect
Gable and Harmon-Jones introduced motivation as a dimension independent of valence and arousal into emotion
theory and proposed the motivational dimensional model of affect.4 This model theorizes that, as the third
dimension of emotion, motivation has both direction and intensity. The direction of motivation refers to the drive
to approach or avoid an object or goal. The intensity of motivation pertains to the strength of the drive, ranging
from low to high. In other words, under a given direction of motivation, its intensity can vary from low to high.
Research indicates that not all positive emotions are associated with approach motivation, nor are all negative
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EXHIBIT -2: THREE TYPES OF CRISIS CATEGORIES
Name Description
1 Rumour False information aimed at attacking the company
Victim Crisis
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2 Disaster Sudden natural events that harm the company
External individuals or groups attacking the company, for
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3 Product tampering
example, by poisoning products
Attacks on current employees by former or current employees,
4 Workplace violence
such as shootings
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Accidental
Crisis
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