Support for small businesses during a health crisis

Abstract

Purpose

Crises threaten the operations of small businesses and endanger their survival; however, when the crisis is not attributable to the firm, consumers may rally around the business. This study aims to examine how attitudes toward helping others can create support for small businesses, which in turn can direct consumers to help businesses with increased financial support. It is hoped that this paper will inform how consumers will help firms pivot during crises.

Design/methodology/approach

A conceptual model was proposed which linked support for helping others to increased willingness to tip/amount tipped. The model was tested using structural equation modeling from two surveys given to customers of two small businesses, a coffee shop and an independent movie theater, respectively.

Findings

During a crisis, support for helping others has a positive impact on feelings of support for small businesses. Consumers direct their support to small businesses that they are interested in seeing survive and continue operations. They either tip more or tip when they otherwise would not have tipped.

Practical implications

Firms that pivot their operations because of a crisis imposed on them can still generate revenues. Consumers who have a self-interest in the continuing operations of the firm want to support it, and by pivoting their business model, the firm gives consumers the opportunity to give the firm and its employees more than they would have in the form of tips.

Originality/value

Prior work in crisis management has focused primarily on how firms recover and respond to a crisis of their doing. Overwhelmingly, consumers have been shown to punish firms during times of crisis. However, for a crisis that is imposed on the firm, consumers may rally behind the firm and respond by supporting it more than they are required to.

Citation

Majid, K.A., Kolar, D.W. and Laroche, M. (2021), "Support for small businesses during a health crisis", Journal of Services Marketing, Vol. 35 No. 5, pp. 671-683. https://doi.org/10.1108/JSM-08-2020-0344