TY  - GEN
AB  - Product-harm crises are the nightmare of any firm due to their disastrous effects on sales and image. These crises lead to loss of consumer trust, severe damage to brand reputation, extensive negative media coverage, legal and financial repercussions, decline in market share, negative impact on investor confidence, and increased regulatory scrutiny. Overall, product-harm crises pose significant challenges to companies, emphasizing the critical importance of effective risk management and crisis preparedness. The present paper proposes a new model to compute the optimal investment in quality and advertising in order to reduce the probability of occurrence of a possible product-harm crisis and mitigate its effects. This method uses stochastic control theory and can be used for both tangible products and services. An extension of this method is also proposed in order to take endogenously competition. This extension uses a game theoretical approach
AD  - Haute école de gestion de Genève, HES-SO Haute Ecole Spécialisée de Suisse Occidentale
AU  - Moresino, Francesco
DA  - 2024-04
DO  - 10.4236/ojbm.2024.123074
DO  - DOI
EP  - pp. 1390-1402
ID  - 14212
JF  - Open journal of business and management
KW  - Economie/gestion
KW  - optimal investment
KW  - product-harm crisis
KW  - stochastic optimal control
KW  - game theory
KW  - advertising
KW  - quality
L1  - https://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf
L2  - https://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf
L4  - https://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf
LA  - eng
LK  - https://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf
N2  - Product-harm crises are the nightmare of any firm due to their disastrous effects on sales and image. These crises lead to loss of consumer trust, severe damage to brand reputation, extensive negative media coverage, legal and financial repercussions, decline in market share, negative impact on investor confidence, and increased regulatory scrutiny. Overall, product-harm crises pose significant challenges to companies, emphasizing the critical importance of effective risk management and crisis preparedness. The present paper proposes a new model to compute the optimal investment in quality and advertising in order to reduce the probability of occurrence of a possible product-harm crisis and mitigate its effects. This method uses stochastic control theory and can be used for both tangible products and services. An extension of this method is also proposed in order to take endogenously competition. This extension uses a game theoretical approach
PY  - 2024-04
SN  - 2329-3284
SP  - pp. 1390-1402
T1  - Optimal investment in advertising and quality to mitigate a possible product-harm crisis
TI  - Optimal investment in advertising and quality to mitigate a possible product-harm crisis
UR  - https://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf
VL  - Vol. 12
Y1  - 2024-04
ER  -