The Dynamic Impact of Product-Harm Crises on Brand Preference and Advertising Effectiveness: An Empirical Analysis of the Automobile Industry
研究了汽车召回事件如何动态影响品牌偏好和广告效果，发现媒体关注度、危机严重性和消费者对质量的先验信念会加剧负面反应，且召回子品牌的广告效果下降会波及同母品牌下的其他子品牌。
Product-harm crises (recalls) carry negative product information that adversely affects brand preference and advertising effectiveness. This negative impact of product-harm crises may differ across recall events depending on media coverage of the event, crisis severity, and consumers’ prior beliefs about product quality. We develop a state space model to capture the dynamics in brand preference, advertising effectiveness, and consumer response to product recalls; integrate it with a random coefficient demand model; and estimate it using a unique data set containing 35 automobile brands, 193 auto sub-brands, and 359 recalls during 1997–2002. Our results reveal that consumers respond more negatively to product recalls with greater media attention, more severe consequences, and higher perceived product quality. Furthermore, they show that sub-brand advertising effectiveness declines by a greater amount than parent-brand advertising and the decline in effectiveness of the recalled sub-brand’s advertising spills over to other sub-brands under the same parent brand. This paper was accepted by Pradeep Chintagunta, marketing.