دانلود رایگان مقاله استفاده از تبلیغات و قیمت برای کاهش تلفات در بحران محصول آسیب

Abstract

Product-harm crises are common in today’s marketplace and are expected to occur with escalating frequency as products become increasingly complex, productsafety legislation evolves, and always-demanding customers continue to pressfor more. A product-harm crisis may cause major revenue losses, lead to costly recalls, and destroy carefully nurtured brand equity. Moreover, the crisis may not only be devastating forthe affected brand, but also influence the entire category when other brands are perceived as guilty by association. Despite these enormousstakes, marketing managers are often unprepared to react appropriately to product-harm crises. Managers frequently increase advertising support or decrease price in the wake of a product-harm crisisin an attemptto regain lost consumers. Competitorsin the same category may also boost advertising expenditures or lower their prices to benefit from the misfortune of the affected brand(s). This article providesinsightsregarding the effectiveness ofthese strategies in the wake of a product-harm crisis. The extant literature has shown that the effectiveness of these strategies depends largely on the role of the brand in the crisis–—affected or not–—and the characteristics of the crisis.

4. Conclusion

Product-harm crises are among a brand manager’s worst nightmares. Affected firms not only have to deal with direct costs of the recall operation and lost revenues from the out-of-stock situation, but also face weakened or destroyed brand equity caused by the crisis. The product harm may even spill over to other, same-category brands that are not directly affected by the crisis; it has been shown that they are often perceived as guilty by association (Roehm & Tybout, 2006). As such, firms that are very careful in the manufacturing and distribution of their products are not protected against the potential harm of a product crisis in the category. Herein, we reviewed the extant academic knowledge regarding the effectiveness of advertising and price weapons in the fight against crisis situation harms. While the effectiveness of advertising spending decreased substantially after a product-harm crisis (van Heerde et al., 2007; Zhao et al., 2011), brand managers of both affected and non-affected brands in general seem to fare well with increasing advertising spending, since this weapon is still able to increase sales after the crisis. While price reductions turn out to be a good strategy for non-affected brands (Cleeren et al., 2013), there remains discussion on whether or not this strategy is advisable for affected brands.