The impact of a product-harm crisis on marketing effectiveness

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dc.contributor.authorvan Heerde, Harald J.
dc.contributor.authorHelsen, Kristiaan
dc.contributor.authorDekimpe, Marnik G.
dc.date.accessioned2009-02-01T22:30:21Z
dc.date.available2009-02-01T22:30:21Z
dc.date.issued2007
dc.description.abstractProduct-harm crises are among a firm’s worst nightmares. A firm may experience (i) a loss in baseline sales, (ii) a reduced own effectiveness for its marketing instruments, (iii) an increased cross sensitivity to rival firms’ marketing-mix activities, and (iv) a decreased cross impact of its marketing-mix instruments on the sales of competing, unaffected brands. We find that this quadruple jeopardy materialized in a case study of an Australian product-harm crisis faced by Kraft peanut butter. We arrive at this conclusion by using a time-varying error-correction model that quantifies the consequences of this crisis on base sales, and on own- and cross-brand short- and long-term effectiveness. The proposed modeling approach allows managers to make more informed decisions on how to regain the brands’ pre-crisis performance levels.en
dc.identifier.citationVan Heerde, H., Helsen, K. & Dekimpe, M. (2007). The impact of a product-harm crisis on marketing effectiveness. Marketing Science, 26(2), 230-245.en
dc.identifier.doi10.1287/mksc.1060.0227en
dc.identifier.urihttps://hdl.handle.net/10289/1962
dc.language.isoen
dc.publisherINFORMSen_NZ
dc.relation.isPartOfMarketing Scienceen_NZ
dc.relation.urihttp://mktsci.journal.informs.org/cgi/content/abstract/26/2/230en
dc.subjectbrand managementen
dc.subjectproduct recallsen
dc.subjectbrand equityen
dc.subjectmarketing and public policyen
dc.subjecterror-correction modelsen
dc.subjecttime-varying parametersen
dc.subjecttime-series modelsen
dc.subjectmissing-data problemsen
dc.subjectGibbs sampling methodsen
dc.titleThe impact of a product-harm crisis on marketing effectivenessen
dc.typeJournal Articleen
pubs.begin-page230en_NZ
pubs.editionMarch-Aprilen_NZ
pubs.elements-id32333
pubs.end-page245en_NZ
pubs.issue2en_NZ
pubs.volume26en_NZ
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