Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

Public Relations and Crisis Communication:

The Effects of Terrorism Crises on SMEs and Consumer Discretionary Spending
Sara E. West
Pace University

Author Note
Sara E. West, Department of Media, Communications, and Visual Arts, Pace University.
Sara E. West is a graduate student in the MCVA Department at Pace University.
This research was done under the supervision of Dr. Paul Ziek of Pace University.
Correspondence concerning this article should be addressed to Sara West, contact email:
sw51090p@pace.edu.

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

Abstract
It has been theorized by Choi et al., that peoples materialistic consumption behaviors can be
influenced by social events (Choi et al., 2007, p. 1), so this researcher conducted several
experiments in order to evaluate and analyze how the current consumer public retaliates during
times of terror, and how those reactions affect small-to-medium enterprises (SMEs). Four
terrorist attacks from the last five years were investigated and assessed using two experimental
designs. With the help of Qualtrics Survey Software, public opinion in regards to terrorism and
consumer discretionary spending were gathered through an anonymous 18-question survey.
Additionally, over 100,000 publicly published Tweets were evaluated for situational-relevant
material pertaining to the four attacks. The results showed that consumers were empathetic
towards earlier attacks (in 2012 and in 2013), however, as time went on and violence and attacks
became more prevalent, the consumer public become more apathetic, possibly due to adaptation
and unconscious coping strategies (Tur-Sinai, 2013, p. 2 257). It is important to understand past
attacks in order to better grasp future trends and market policy and public relation (PR) strategy
before they are set into motion.
Keywords: consumer discretionary spending, crises, crisis communication, public relations (PR),
small-to-medium enterprises (SMEs), terrorist attacks

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

Public Relations and Crisis Communication:

The Effects of Terrorism Crises on SMEs and Consumer Discretionary Spending
Terrorist attacks directly affect the ability of commercial businesses to: create, connect,
advertise, distribute, and ultimately profit from products or services. Therefore it is often
assumed that, terrorist activity unfavorably affects the willingness of the consuming public to
trust, engage, and buy from distributors, especially from foreign markets. However, the
American public has used several past terrorist attacks as chances to boost local SMEs profits
and the communitys economy.
Literature Review
From January 1, 2010 through December 31, 2015, the United States endured 44
terrorist-related crises (Johnston, 2016). As specified by the United States Federal Bureau of
Investigation (FBI), terrorism is defined as an intended act of violence that appears to frighten, or
negatively pressure the general public or government, by mass destruction, assassination, or
kidnapping (FBI, n.d.). A common misconception in regards to terrorist attacks is that in order
for one to be considered a domestic attack, the perpetrators must be American citizens.
However, the FBI considers any terrorist attack, occur[ing] primarily within the territorial
jurisdiction of the U.S. a domestic attack (FBI, n.d.). Terrorist attacks affect all types of
business, especially SMEs, which are classified as ventures no more than 250 employees and
profit no more than $46 million in annual revenue (European Commission, 2016).
The greatest problem caused by terrorist attacks is that they breed crises. According to
Ziek (2015), for an incident to be categorized as a crisis, it needs to include the following
criteria: it must be a major, catastrophic event that gains media attention, which in turn
negatively affects both the short-term and long-term reputation of an organization (Ziek, 2015,

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

p. 37). However, how the organization reacts to crises can directly affect how the public
responds. Therefore, because no organization can escape their vulnerability, nor can they fully
prevent crisis, there is an importance to having a practical knowledge about crises management
(Ziek, 2015, p. 36).
Regardless of how many terrorist attacks there are, on both American and international
soil, there is one way that civilians can fight back: consumerism. Americans have the freedom to
consume by spending discretionary income. It is argued that consumerism is one of the factors
that saved American spirits after the September 11, 2001 attacks in New York City. Fashion
consumerism were key factors in the short-term economic and emotional recovery of the United
States after September 11 consum[ing] [is] the right and duty of freedom-loving civilized
people (Pham, 2011, p. 386). Because Americans thought of it as their responsibility to
preserve the American Dream, they kept spending to show the citizens of the world that the
perpetrators had no power over them, which characterize[s] the American way of life (Pham,
2011, p. 287). Former President George W. Bush has declared that terrorists hate our
freedoms (Bush, 2001), and chief among these freedoms is consumerist liberty (Pham, 2011,
p. 287). Bush even stated that the idea of the consumer culture is to have choices, the opposite
of being oppressed (Bush, 2001 via Pham, 2011, p. 391). Therefore, the ability to demonstrate
consumerism is essential to self-expression and to American freedom (Pham, 2011, p. 391).
Contrarily, in some ways this preservation of consumerism could be characterized as a
reflexive coping mechanism, coping after a crisis by examining the role that possessions play in
maintenance of self-identity (Pavia & Mason, 2014, p. 441). Specific individuals whom,
consumption and possession of products play an important role in life, satisfying enthusiasts
needs for uniqueness, mastery, and/or affiliation (Guiry et al., 2006, p. 75), control the

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

economic bounce-back, especially after a crisis. That is because this spending group has
discretionary income, which directly influences the business of SMEs. Discretionary income is
the earnings an individual has left after paying for life necessities (i.e. food, shelter, clothing, and
bills) (Nickolas, 2016). This monetary surplus has a substantial affect in boosting the countrys
economy because these are the dollars used to make non-essential luxury purchases. Due to the
fundamental properties of discretionary income, measuring how individuals spend this extra
money is one of the most straightforward ways to assess the health of an economy via Gross
Domestic Product (GDP) rating (Nickolas, 2016). Furthermore, it should be noted the significant
difference between the variety of market goods that are, and are not, affected during times of
terror. For example, capital goods [are] more strongly affected than consumption goods (TurSinai, 2013, p. 257). Capital goods, or durable goods, are the building blocks of the economy
because they are heavy-duty, long-lasting commodities that are necessary for the production of
other goods, (i.e. professional-grade tools and construction equipment) (Adkins, 2016). In
addition, durable goods are relatively unaffected by the occurrence of a temporary shock in the
economy (Tur-Sinai, 2013, p. 267), so a dip in market sales would not necessarily affect the
long-term creation or distribution of capital goods themselves (Adkins, 2016).
Whether rooted as a coping mechanism or an act of patriotism, peoples materialistic
consumption behaviors can be influenced by social events, (Choi et al., 2007, p. 1) and thus the
idea that: mortality salience effects materialistic consum[ers] (Choi et al., 2007, p. 1). An
adaptation pattern that relies on dependency of terror is created, in regards to non-durable goods
[versus] durable goods (Tur-Sinai, 2013, p. 257). Therefore, [the] public internalize[s] the
realization that if it wishes to sustain a reasonable standard of living it must maintain consumer
behaviors and patterns before, during, and after terrorist events (Tur-Sinai, 2013, p. 267).

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

Creating a direct correlation between discretionary consumer spending habits and terrorism
crises, specifically in relation to SMEs.
Methodology
For analytical purposes, a mixed-method strategy was used to survey consumers with
discretionary income, and to probe four domestic terrorist attacks on American soil from the last
five years via Twitter. The researcher chose a mixed-method because together the two methods
would provide stronger background information and evidence in regards to consumer
discretionary spending habits, and thus lend a more powerful argument.
A survey was used in order to collect quantitative data that would give breadth and depth
to the study. Quantitative research is important because it assigns physical quantities to each
parameter being tested (Treadwell, 2014, p.14). For this survey, Qualtrics Survey Software was
used to allocate and collect answers from a convenient, non-probable (and therefore nonrandom) sample cohort. The universe was comprised of individuals who primarily fit into the
classification of, consumer. From there, the universe was broken down to create a population
composed of, consumers with discretionary income. After that, the established population was
further fragmented into a sample cohort made up of 50 individuals, whom identified as:
consumers with discretionary income who successfully completed the survey, Consumerism
During Terrorism.
Consumerism During Terrorism was an 18-question survey (West, 2016 p.1-18), which
approximately took three-to-five minutes to complete (for native-English speakers). The survey
was accessible for a five-day period starting at 04:14 PM Eastern Standard Time (EST) on
Friday, February 19, 2016, until 12:21 PM EST on Wednesday, February 24, 2016. All survey
participants were informed of the nature and purpose of the survey through a written statement

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

that accompanied a clickable link (which was compatible with most Internet or Wi-Fi-capable
devices) (see Appendix A). The interactive link was sent out via personal text messages, through
iMessages (specific to Apple products), and individually in Facebook Messenger messages
(specific to Facebook Messenger). In addition, the link was available through the creators
personal Facebook page via a status update and as a part of a clickable link on the creators
personal Instagram account (accessible through the Instagram phone application or website).
The 18-questions were oriented around the NOIR method which stands for four basic
levels of measurement: nominal, ordinal, interval, and ratio (Treadwell, 2014, p. 79). There
were nine nominal questions, which allowed the participant to label or attach meaning to the
answer choices (see Appendix B). Four of the questions were ordinal, which allowed for items
to be ranked in preferential order (see Appendix C). One of the 18 questions was an interval
question, which gave insight about overall statistics (see Appendix D). And lastly, there were
four ratio-based questions, to provide more sophisticated statistical information (Treadwell,
2014, p. 79) (see Appendix E). The first six questions were broader, with the intention of
warming up the participants in hopes that they would be more inclined to give more honest and
accurate answers later on in the survey when questions became more personal. For the
remaining two-thirds of the survey, questions were funneled into being increasingly more
explicit in detail- especially those queries concerning personal income and discretionary
spending habits.
Qualitative data provides in-depth knowledge (Treadwell, 2014, p. 193), and was
collected and analyzed via Twitter. This social media platform was specifically chosen as the
basis for research because of the unavoidable parameters the application itself puts on those who
interact with it. Tweets are only allowed to be a maximum of 140-characters in length (including

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

spaces). Posts can be made through any Internet- or Wi-Fi-capable device directly through
Twitters website or on the free, downloadable, phone (or desktop) application.
The samples used for the qualitative study were composed of four universal groups which
included anyone who had every made a Tweet about a terrorist attack. However, this universe
was far too massive of a group to work with, so each universe was further broken down into a
specific sample that met the following criteria: people who published a publicly-accessible
Tweet, with at least one character of text, and included a situational-specific hashtag. The four
aggressions examined were: the Aurora Theater Shooting (Friday, July 20, 2012), the Boston
Marathon Bombing (Monday, April 15, 2013), the Colorado Springs Planned Parenthood
Shooting (Friday, November 27, 2015), and the San Bernardino Incident (Wednesday, December
2, 2015).
Statistical boundaries were set and tangible manifest data was collected. This data
included the total number of Tweets with crisis-specific hashtags that were published during the
30-day period following the attacks. The crisis-specific hashtags that were considered for this
assessment were according to the trending hashtag at the time of the event. For the Aurora
Theater Shooting, it was #AuroraShooting; for the Boston Marathon Bombing,
#BostonMarathon; for the Colorado Springs Planned Parenthood Shooting, #StandWithPP; and
for the San Bernardino Incident, #SanBernardino. The Tweets were then scrutinized according
to occurrence frequency and systematically recorded. It was necessary to assign worth to the
data, so an analytical framework was put into motion in which six basic words (and their
conjugated variations) were examined and allocated a value. The words of interest included:
thoughts/think, prayers, help, shop, charity, and give (see Appendix F, Appendix G, Appendix H,
and Appendix I).

Running head: PUBLIC RELATIONS AND CRISIS COMMUNICATION

Because this study was also concerned with the effects on SME market trends, it was also
important to look at overall habitual spending progression, specifically in regards to consumer
discretionary spending on non-durable goods. Using data sets and charts made available by The
United States Department of Commerce Bureau of Economic Analysis, the researcher was able
to see the average amount of billions of dollars in personal discretionary spending in regards to
non-durable goods for the month prior to each terrorist crises as well as the month following (see
Appendix J, Appendix K, Appendix L, and Appendix M).
Results
Answers collected from the survey varied in degree of usefulness. However, after going
over the results in detail, several things became apparent in terms of shopping preferences,
discretionary spending trends, and consumer habits. For example, participants were asked what
they spent the majority of their discretionary income on. Eleven choices were provided which
covered 11 fields of consumer interest (see Appendix N). Overwhelmingly, the majority of
people chose the third option: eating out at a restaurant (e.g. not cooking at home). This was
significant, because contrary to what the research had assumed, it proved that the general public
would rather put their dollars towards purchases that provide instant gratification, like enjoying a
meal at a restaurant, versus buying a lasting tangible product.
Another discovery was the seemingly lackadaisical response to possibly the most
important question on the survey. Question six explicitly asked respondents to rate on a scale
from one-to-five (one being the least and five being the most), how much global terrorism
worries you (see Appendix O). The majority of those surveyed indicated that they were more
neutral in regards to how much worry they dedicated towards the thought of global terrorism.
The average response, 3.11, was just barely over the midline of 3.0. This median illustrates

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almost complete neutrality in regards to whether or not the average American consumer worries
about global terrorism. Furthermore, because it is assumed that the sample cohort appropriately
represents the current U.S. population, this finding is perhaps the most impactful. This detached
response demonstrates a startling trend in terms of a national attitude adjustment, if you will, that
has not only recognized terrorist crises as inevitable, but perhaps even accepted the state of crises
as the new standard of normal. As argued by Tur-Sinai (as cited in Kirschenbaum, 2006, p. 133):
The longer the terror continue[s], the more the public accepts the possibility that [they]
will be in this situation for the long term; therefore, deviation from ordinary consumer
behavior steadily declines after each terror incident (Tur-Sinai, 2013, p. 257).
Behavioral adaptations minimize the ongoing crises, reflecting an admission that crisis is now a
part of daily life and society (Tur-Sinai, 2013, p. 258).
Discussion
Breaking down Twitter verbiage provided functionally applicable information that was
directly relatable to the content analysis of the consumer spending data sets. After the Aurora
Theater Shooting in July 2012 and the Boston Marathon Bombing the following year,
discretionary spending actually jumped higher the month following each attach. Hence, there
was an increase in discretionary spending. Additionally, after both the Aurora Theater Shooting
and the Boston Marathon Bombing, there was an increase in Tweets related to shopping locally
(see Appendix P). Also, many companies gave back to the recently attacked community through
charitable fundraisers and giving back percentages of each purchase to those in need (see
Appendix P).

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However, it seemed as if by 2015, Americans had grown weary of terrorist attacks. After
both the Planned Parenthood Shooting and the San Bernardino Incident of 2015, the following
months there was actually a drop in total consumer discretionary expenditures (see Appendix L
and Appendix M). Although there was still some unanimity among those who Tweeted in
regards to the Planned Parenthood Shooting, it was more of a movement of consensus to do as
the hashtag suggests, and stand with Planned Parenthood (see Appendix Q). There was also an
overall decrease in the amount of Tweets for both the Planned Parenthood Shooting and the San
Bernardino Incident, in comparable proportion to the amount of Tweets published after the
Aurora Theater Shooting and the Boston Marathon Bombing.
SMEs are vital to the U.S. economy because they comprise more than 50% of all
domestic business (Suominen, 2014). Because many SMEs are local businesses, they are
directly affected by local commerce trends, grassroots PR campaigns, and how the community
rallies together. Ergo, the fact that the communities banded together, specifically after the
Aurora Theater Shooting (2012) and the Boston Marathon Bombing (2013), illustrates that
communal Tweeting can directly affect SME revenue. That trend is further supported by the
increase in discretionary spending that was seen in the national consumer reports (see Appendix
J and Appendix K).
We cannot predict when terrorist attacks are going to occur. Therefore, these findings are
particularly important because they can propose how SMEs should act after a terrorist crisis. By
holding charitable sales and events, not only does the business drum up foot traffic for them, but
also the organization is able to illustrate a more humanitarian side. Similarly, the organizations
choice of message strategy affects both how people perceive the crises and the image of the
organization (Stephens et al., 2005, p. 391). In other words, consumers will remember which

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companies offered an olive branch during tough times, and in addition, will show loyalty to those
who give back to the neighborhood.
In order to have a well-rounded study, it is critical that the facilitator be cognizant of the
inevitable problems of reliability and validity, as well as the studys limitations. One specific
limitation was that at least four survey participants referenced home as not in the U.S., but
instead in Western Europe. Because this study is specifically concerned with terrorism crises
in the U.S., the information gathered from Western Europeans may have skewed reliability and
validity. Not only may these individuals differ in consumer attitudes and beliefs, but also the
structural integrity and economics of SMEs in Western Europe slightly differ to those in the
United States. Another limitation with the survey was the lack of concrete definitions. For
example, the word terrorism was never clarified for the survey candidate. If the definition had
not previously been established, a persons frame of reference would affect how the question and
answers were interpreted. Similarly, several questions used vague measures to assess specific
feelings. Phrases such as least enjoyable versus most enjoyable and varying degrees of
how likely one is to do something, can be easily misinterpreted.
Limitations related to the validity of the Twitter content analysis have to do with the
availability of Tweets through private and public functions that are allowed to each person and
their profiles settings. Because Twitter is a social media platform, it allows each user to choose
whether published Tweets can be seen by everyone (publicly) or just by people who follow the
Tweeter (privately). Consequently, that means there is an undisclosed number of Tweets that the
researcher was not able to access because of privacy settings.

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Conclusion
At some point the consuming population will adopt a survival strategy, in order to
minimize the expected impact of a terror incident (Tur-Sinai, 2013, p. 257). In just a relatively
short five-year span of time, it is already been illustrated that consumers are getting fed up with
the persistent assaults. Tweeting decreased following each event, sales no longer rose in the
following months, and an apathetic tone is took reign. Almost as if Americans are indicating,
that terror [has] become part of daily life (Tur-Sinai, 2013, p. 258).
Terrorism is inescapable; and every terrorist attack is going to rattle fiscal commerce and
heighten consumer concern, to an extent. Therefore, it has become increasingly important for
PR practitioners to understand market trends set into motion by these attacks. As someone who
is interested in working in the PR field for the SME marketplace, it is absolutely necessary that I
be able to create and maintain survival strategies and adaptations, especially during and
following times of crises.
By gaining an understanding of the general consumers attitude about terrorist activity, I
will learn to anticipate different retail environment trends as companies and consumers acclimate
to the unfolding events.

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References
Adkins, W.D. (2016). What is the difference between durable goods and non-durable goods?
Retrieved from http://smallbusiness.chron.com/difference-between-durable-goodsnondurable-goods-34928.html
Becker, G.S. & Rubinstein, Y. (2004). Fear and the response to terrorism: an economic analysis.
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Bush, G.W. Joint session of Congress and the Nation. (2001, September 20). President Bush
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Chamie, B.C. & Ikeda, A.A. (2015). The Value for the consumer in retail. Brazilian Business
Review, Victria, 12, 2, 3, 46-65. Retrieved from
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untid=13044
Choi, J., Kwon, K.N., & Lee, M. (2007). Understanding materialistic consumption: a terror
management perspective. Journal of Research for Consumers, 13, 1-4. Retrieved from
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European Commission. (2016, February 26). What is an SME? Retrieved from
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Guiry, M., Mgi, A.W., & Lutz, R.J. (2006). Defining and measuring recreational shopper
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Johnston, W.R. (2016, February 16). Terrorist attacks and related incidents in the United
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income? Retrieved from http://www.investopedia.com/ask/answers/033015/whatdifference-between-disposable-income-and-discretionary-income.asp
Pavia, T.M & Mason, M.J. (2014). The reflexive relationship between consumer behavior and
adaptive coping. Journal of Consumer Research, Inc., 441-454. doi: 10.1086/422121

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Pham, M.T. (2011). The right to fashion in the age of terrorism. Signs: Journal of Women in
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Stephens, K.K., Malone, P.C., & Bailey, C.M. (2005). Communicating with stakeholders during
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Suominen, K. (2014, February 5). State of SME finance in the United States 2014: Year of new
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The Federal Bureau of Investigation (FBI). (n.d.). Terrorism: definitions of terrorism in the U.S.
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The United States Department of Commerce Bureau of Economic Analysis. (n.d.). National
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West, S.E. (February 2016). Consumerism during terrorism [Online survey]. Retrieved from
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Appendix A
Pre-Survey Consent Statement
The following is a screenshot from the survey distributors personal Facebook page. The
intention of the survey was clearly state in a three-sentence declaration, which was to be read
prior to participation.

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Appendix B
Nominal Question Example
Below is a screenshot from one of the nine nominal questions that were asked in the survey,
Consumerism During Terrorism.

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Appendix C
Ordinal Question Example
Below is a screenshot from one of the four ordinal questions that were asked in the survey,
Consumerism During Terrorism.

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Appendix D
Interval Question Example
Below is a screenshot from the interval question that was asked in the survey, Consumerism
During Terrorism.

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Appendix E
Ratio-Based Question Example
Below is a screenshot from one of the four ratio-based questions that were asked in the survey,
Consumerism During Terrorism.

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Appendix F
Aurora Theater Shooting Qualitative Research and Twitter Verbiage Breakdown
Thirty days following the July 20, 2012 Aurora Theater Shooting, over 12,000 Tweets were
published with the relevant hashtag, #AuroraShooting. The following is the qualitative research
gathered in regards to the Aurora Theater Shooting, as well as the specific Twitter verbiage
breakdown of those Tweets.

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Appendix G
Boston Marathon Bombing Qualitative Research and Twitter Verbiage Breakdown
After the Boston Marathon Bombing on April 15, 2013, Twitter was inundated with personal
opinions and news reports. During the 30-days immediately following the attack, over 64,000
Tweets that included the hashtag, #BostonMarathon, were publicly published. The following is
the qualitative research gathered in regards to the event, as well as the specific Twitter verbiage
breakdown of those Tweets.

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Appendix H
Colorado Springs Planned Parenthood Shooting Research and Twitter Verbiage Breakdown
On November 27, 2015, Robert Lewis Dear Jr. carried out a shooting in Colorado Springs,
Colorado. For the next 30 days, there were over 20,000 Tweets with the situational-relevant
hashtag, #StandWithPP. The following is the qualitative research gathered in regards to the
event, as well as the specific Twitter verbiage breakdown of those Tweets.

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Appendix I
San Bernardino Incident Research and Twitter Verbiage Breakdown
Over 13,000 Tweets were publicly published with the hashtag, #SanBernardino, over the 30 days
immediately following the San Bernardino attacks on December 2, 2015. The following is a
screenshot of the qualitative research gathered in regards to the San Bernardino Incident, as well
as the specific Twitter verbiage breakdown of those Tweets.

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Appendix J
The Monthly Personal Consumption Spending Chart of 2012
The monthly breakdown of consumer discretionary spending habits on non-durable goods in the
United States during 2012.

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Appendix K
The Monthly Personal Consumption Spending Chart of 2013
The monthly breakdown of consumer discretionary spending habits on non-durable goods in the
United States during 2013.

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Appendix L
The Monthly Personal Consumption Spending Chart of 2015
The monthly breakdown of consumer discretionary spending habits on non-durable goods in the
United States during 2015.

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Appendix M
The Monthly Personal Consumption Spending Chart of 2016
The monthly breakdown of consumer discretionary spending habits on non-durable goods in the
United States during 2016.

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Appendix N
Data Reduction of Survey Question Nine
Below illustrates the response variation according to the 50-person cohort sample that completed
the survey, Consumerism During Terrorism.

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Appendix O
Data Reduction of Survey Question Six
Below illustrates the response variation according to the 50-person cohort sample that completed
the survey, Consumerism During Terrorism.

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Appendix P
Boston Marathon Tweets
The following collection of screenshots were collected after the Boston Marathon Bombing and
illustrate the consumer and producer rallying that took place.

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Appendix Q
Collection of Tweets that Incorporated #StandWithPP
The following collection of Tweets that were positive and called for fraternity of mutual
supporters of Planned Parenthood.