The world faces a global crisis due to war, economic decline, pandemic and many other events. These events affect all countries in financial, cultural and many other aspects.
The global energy crisis is causing high prices of various products as the industries depend on electricity to produce. This problem also affects the daily lives of people as they don’t have enough money to buy products due to the increase in price.
Climate change is causing flooding, droughts, heat waves, wildfires and other environmental disasters, resulting in deaths due to malnutrition, dehydration, exposure, disease and displacement. The situation will worsen in the years to come, with experts warning that the planet has crossed multiple tipping points, including a possible sixth mass extinction, melting of Arctic ice sheets, and accelerated sea level rise.
Global crises can lead to conflict between nations and between the rich and poor. They also threaten international cooperation in preventing and managing these issues.
Research shows that consumers are more likely to accept advice from others when there is a strong institutional trust. This is particularly important when information asymmetry lurks in socially uncertain conditions such as global crises. This study investigates how consumers’ perceptions of the severity of a global crisis and their local impact influence their trust in national and international institutions responsible for responding to it. The results enrich the existing literatures on institutional branding and trust, and have implications for those involved in crisis management.