Giannetti, V orcid.org/0000-0001-5703-789X and Srinivasan, R (2021) The Cloud and its Silver Lining: Negative and Positive Spillovers from Automotive Recalls. Marketing Letters, 32 (4). pp. 397-409. ISSN 0923-0645
Abstract
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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2021. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
Keywords: | Automotive industry; Country-of-origin; Product recalls; Spillovers |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Marketing Division (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Apr 2021 14:38 |
Last Modified: | 25 Jun 2023 22:37 |
Status: | Published |
Publisher: | Springer |
Identification Number: | 10.1007/s11002-021-09568-6 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:172926 |