The effect of competitive actions and social media perceptions on offline car sales after automobile recalls |
| |
| Institution: | 1. Department of Systems and Technology, Harbert College of Business, Auburn University, Auburn, AL, 36849, USA;2. School of Accountancy & MIS, DePaul University, Chicago, IL, 60604, USA;3. Department of Marketing, Eli Broad College of Business, Michigan State University, East Lansing, MI, 48824, USA;1. Graduate Institute of Global Business and Strategy, National Taiwan Normal University, Taipei, Taiwan;2. National Taipei University of Education, Taipei, Taiwan;1. Management Information Systems Group, Indian Institute of Management Calcutta, Kolkata, India;2. Research School of Management, Australian National University, Canberra, Australia;3. Marketing Group, Indian Institute of Management Calcutta, Kolkata, India;1. Department of Telecommunication Engg., M.S Ramaiah Institute of Technology, Bengaluru 560054, India;2. Department of Electrical Engg., Indian Institute of Technology Madras, Chennai 600036, India;1. College of Business Administration, University of Sharjah, P.O. Box 27272, Sharjah, United Arab Emirates;2. Faculty of Commerce, Helwan University, Cairo, Egypt;3. College of Computing and Informatics, University of Sharjah, P.O. Box 27272, Sharjah, United Arab Emirates;1. Information Technology University, 346-B, Ferozepur Road, Lahore, Pakistan;2. Department of Operations, Technology, Events and Hospitality Management, Manchester Metropolitan University, Manchester, United Kingdom;1. University of North Carolina at Greensboro, Information Systems & Supply Chain Management Dept. 516 Stirling St., Greensboro, NC, 27412, USA;2. University of New South Wales, School of Information Systems Technology and Management, Sydney, Australia |
| |
| Abstract: | This paper explores the joint effect of competitive actions and social media related interactions on offline car sales after automobile recalls. Our analysis of all the mid-size automobile recall events in the U.S. from 2010 to 2015, the corresponding social media discussions of the recall and the competitive actions taken by the recalling firms and their competitors revealed that after recalls: (1) fewer competitive actions by the recalling firm are more effective in influencing car sales; (2) although social media discussions can increase awareness and sales, the change in perceptions of the brand on social media can negatively affect sales; and (3) the positive effect of social media on offline car sales is amplified when the recalling firm conducts fewer competitive actions, regardless of strategic or tactical actions, but is attenuated when competitors conduct more competitive actions. The current study adds to the competitive actions literature by considering the boundary conditions under which recalling firms can construct their competitive actions more effectively and extends the social media literature by incorporating both the focal and non-focal firms’ perspectives when examining the role of social media. Managerial implications for those responsible for steering companies through product recalls are also discussed. |
| |
| Keywords: | Social media Competitive actions Strategic actions Tactical actions Automobile recalls |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
