The effects of product-harm crisis on brand performance

Baolong Ma, Lin Zhang, Fei Li and Gao Wang

The purpose of this paper is to offer a better understanding of the effects of product-harm crisis on a brand’s performance and market structure.

The effects of product-harm crisis on brand performance

Baolong Ma

Beijing Institute of Technology

Lin Zhang

Truman State University

Fei Li

Tsinghua University

Gao Wang

China Europe International Business School

Introduction

The term ‘product-harm crisis’ refers to well-known events related to product defects or harm associated with some brands (Siomkos & Kurzbard 1994). For example, in 2000, when news spread that more than 100 people had died in accidents involving defective Firestone tyres, the company had to recall millions of its products (Advertising Age2000). In September 2008, 6244 babies in China were diagnosed as suffering from numerous ailments...

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