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SARS (Severe Acute Respiratory Syndrome) is now reported to have spread to
about 3,900 cases worldwide, with 209 reported at this writing as having
died from the disease. Most recently it has been reported that 35 probable
cases of SARS have been identified in the United States. The “complete” nature of how SARS is spread
has not been determined, creating rising
fears and trepidation.
Both the World Health Organization (WHO) and Center for
Disease Control (CDC) have concentrated many of its resources on SARS—in an
attempt to prevent a worldwide health tragedy.
Economically, SARS has already had a devastating effect
on industry. Singapore Airlines reported a regional carrier would
reduce it services to a low of 35 per week, while Air China reported a
20 percent reduction in its passenger travel. If SARS continues to spread,
the economic impact could be felt worldwide—to include the United States—by
many companies, organizations, and governments.
Many still recall the economic effects of the September
11th terrorist’s attacks on the airline and other related
industries. We watched temporary, but impressionable economic effects
of
“Operation Iraqi Freedom.” Even the comparatively benign, but economically
challenging rise in fuel prices can threaten one's trust or sense of security.
When the consumer’s most foundational expressions of
trust and security are threatened by events such as SARS, terrorists attacks, food borne
illnesses, wars, etc. (fear and tragedy)—the freedom and confidence to
“purchase” and/or “subscribe to a service” can be negatively affected.
When this occurs the
great challenge becomes how a company or organization determines what
its response will be—short of removing the cause of the fear and tragedy.
Those companies that can specifically identify and
reassure the consumer’s feelings of confidence, dependence, and trust—will
minimize the effects of fear and tragedy. Fear and tragedy can literally
debilitate the consumers ability to make decisions about spending their
money on a product or service.
Unfortunately, many companies will decide to “ride out
the storm,” or attempt guesses at how the consumer can be reassured.
The most positive outcome for such scenarios will come
from companies, organizations, and governments that identify and respond to
specifically defined deficits in the consumer’s security and trust. In
such cases—and even if the cause of the fear and tragedy remain—its effect
is greatly reduced, and in some cases can be mostly nullified.
ValueCenteredă
methods of understanding human behavior and decision-making provide
actionable solutions to the economic effects of fear and tragedy by
identifying the underlying threat to the human value of security and define the path that
leads to assurance and a greater sense of personal freedom and personal
control. |
