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The cloud and its silver lining: negative and positive spillovers from automotive recalls
Marketing Letters ( IF 2.5 ) Pub Date : 2021-04-28 , DOI: 10.1007/s11002-021-09568-6
Verdiana Giannetti , Raji Srinivasan

Product recalls hurt the sales of non-recalled products in the category because of negative spillovers. Recently, there has been some evidence of positive spillovers from recalls on the sales of non-recalled products. We focus on spillovers from brand- (i.e., same brand), firm- (i.e., same firm, but not same brand), and country-level (i.e., same country-of-origin, but not same firm) recalls on the sales of non-recalled products. Furthermore, we examine how advertising and price of non-recalled products interact with brand-, firm-, and country-level recalls to affect their sales. We use data on 124 cars in the USA in 2006–2015. Results indicate that brand-level (country-level) recalls hurt (benefit) the sales of non-recalled products. Higher advertising and price of non-recalled products weaken the negative effect of brand-level recalls, while lower advertising and price strengthen the positive effect of country-level recalls. Finally, firm-level recalls result in positive spillovers when advertising is high.



中文翻译:

云及其一线希望:汽车召回产生的正面和负面影响

产品召回由于负面溢出而损害了该类别中未召回产品的销售。最近,有一些证据表明,召回非召回产品的销售产生了积极的溢出效应。我们重点关注品牌(即同一品牌),公司(即同一公司,但不是同一品牌)和国家/地区级别(即同一原产地,但不是同一公司)在产品召回中的溢出效应。销售未召回产品。此外,我们研究了非召回产品的广告和价格与品牌,公司和国家/地区召回之间如何相互作用以影响其销售。我们使用2006–2015年美国124辆汽车的数据。结果表明,品牌级(国家级)召回损害(受益)未召回产品的销售。广告的增加和非召回产品的价格降低了品牌级召回的负面影响,而较低的广告和价格则增强了国家级召回的积极作用。最后,当广告投放量很大时,公司层面的召回会带来积极的溢出效应。

更新日期:2021-04-29
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