The impact of a product-harm crisis on customer perceived value

The purpose of this research is to help better understand the effects of a productharm crisis on crisis and non-crisis brands’ customer perceived value and market competitive structure in the auto industry.

The impact of a product-harm crisis on customer perceived value

Baolong Ma

Beijing Institute of Technology

Lin Zhang

Truman State University

Gao Wang

China Europe International Business School

Fei Li

Tsinghua University

Introduction

The term product-harm crisis refers to well-known incidents when a firm’s products are found to be defective, harmful or even dangerous (Mullan 2004). A product-harm crisis is often associated with costly product recall, in which the implicated firm has to retrieve the products from all distribution channels and from end consumers (Chen et al.2009). One example is the recent 2009–2010 Toyota product-harm crisis, which was triggered...

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