Resolve Product Harm Crisis for Manufacturing System: A Simultaneous Equation Model

Abstract:

Product-harm crisis which can also be defined as: well publicized events wherein products are found to be defective or even dangerous. Product-harm crisis often occurs in manufacturing system and has negative impacts on companies. This paper implemented empirical research and structural equation model to study how repair strategies protect purchase intention of brand and restore satisfaction of manufacturing system. Based on the empirical result, we suggest that managers should consider consumers’ perceived fairness to the repair strategies and focus on how win consumers’ forgiveness, so as to maintain customer satisfaction of manufacturing system.

• Periodical: Applied Mechanics and Materials (Volume 252)
• Pages: 398-403
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.252.398
• Online since: December 2012
• Authors: Zheng Fang, Yang Yang, Fu Min Deng
• Keywords: Manufacturing System, Product Harm Crisis, Repair Strategy

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