How Do Consumers React To A Product Harm Crisis?

Helena Perrone
Profile Picture of - Helena Perrone

Helena Perrone

Abstract information

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/LTPUB101023

Researcher

Helena Perrone is an Assistant Professor in the Department of Economics at the University of Mannheim. Among other responsibilities, she is on the steering committee of the Association of Competition Economics and a research affiliate of the CEPR. Having completed her PhD at Toulouse School of Economics, Perrone has previously held positions at the Barcelona Graduate School of Economics and at Pompeu Fabra University. Her main research interests include empirical industrial organization, quantitative marketing and applied microeconomics. Perrone has been principal investigator on several projects that have been funded by organizations including the German Science Foundation and the Economic and Social Research Council.

Institution information

University of Mannheim (Universität Mannheim)

The University of Mannheim is frequently cited as the “Harvard of Germany,” primarily due to its world-class reputation in business administration and economics. Centered within the magnificent Mannheim Palace, one of the largest baroque buildings in Europe, the university provides a unique architectural setting for its academic pursuits. It is highly regarded for its research-driven curriculum and strong ties to the corporate sector, consistently ranking as the top German institution for social sciences and business. With a focused profile and a highly international outlook, it remains a premier destination for future leaders in finance, politics, and academia.
University of Mannheim (Universität Mannheim)
Cover Photo of - University of Mannheim (Universität Mannheim)

Original Publication

Consumers’ costly responses to product-harm crises

Rosa Ferrer,

Helena Perrone

Published in

Citation

Helena Perrone, 

Latest Thinking, 

How Do Consumers React To A Product Harm Crisis?, 

https://doi.org/10.21036/LTPUB101023, 

Credits:

© Helena Perrone 

and Latest Thinking

This work is licensed under CC-BY 4.0