How Do Consumers React To A Product Harm Crisis?
When it is highly publicized that a product is defective, contaminated or harmful, this is known as a product harm crisis. In this video HELENA PERRONE explores how consumers react to such an event. Focusing on the French “mad cow” crisis which began in 2000 and combining a theoretical model with a comprehensive dataset, Perrone finds that small drops in sales in response to such a crisis can conceal consumers’ real feelings about a product. Demonstrating that the substitutability of a product plays a key role, Perrone suggests ways in which both firms and governments can respond more effectively.
DOI:
https://doi.org/10.21036/LTPUB101023University of Mannheim (Universität Mannheim)
For generations, the University of Mannheim has been preparing students to take on leadership roles in business, academia, and society. One of the university’s strengths in this task is its profile, which is characterized by the economic and social sciences. It is in these fields that the University of Mannheim has repeatedly been ranked as one of the top 20 European research institutions. Key focuses of Mannheim researchers include decision-making processes and elections, governance, regulation, competition and innovation, migration and multilingualism, and the culture of change. The campus surrounding Mannheim’s baroque palace is a place where bright minds from across the globe come together to learn, discuss, research, and prepare to make their mark on the world.
Original Publication
Consumers’ costly responses to product-harm crises
Rosa Ferrer
,Helena Perrone
Published in 2022