Memory for Investor Relations Messages: An Information-Processing Study of Grunig's Situational Theory

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Abstract
Marketing managers have used segmentation techniques to divide mass markets into specialized markets for some time, and many public relations practitioners have adopted the same techniques for their practices. Most marketing techniques segment markets more effectively than publics, however, and thus have limited value in public relations. Few public relations scholars have developed segmentation techniques for publics that are comparable to those used to segment markets in marketing. Grunig and Childers (1988) developed a situational theory of publics that has been tested and used widely by academic researchers. The theory segments publics by the activeness and passiveness of their communication behaviors and the extent to which their behavior affects organizations. Grunig maintained that active publics are more likely to process information actively and to remember it than are passive publics. This study uses the context of investor relations to test the cognitive effects of Grunig's theory. In doing so,...