000014212 001__ 14212 000014212 005__ 20240503114951.0 000014212 022__ $$a2329-3284 000014212 0247_ $$2DOI$$a10.4236/ojbm.2024.123074 000014212 037__ $$aARTICLE 000014212 039_9 $$a2024-05-03 11:49:51$$b0$$c2024-05-02 15:21:32$$d1000066$$c2024-05-02 15:11:23$$d1000066$$c2024-04-29 13:03:52$$d0$$y2024-04-29 13:03:44$$z1000016 000014212 041__ $$aeng 000014212 245__ $$aOptimal investment in advertising and quality to mitigate a possible product-harm crisis 000014212 269__ $$a2024-04 000014212 300__ $$a13 p. 000014212 506__ $$avisible 000014212 520__ $$9eng$$aProduct-harm crises are the nightmare of any firm due to their disastrous effects on sales and image. These crises lead to loss of consumer trust, severe damage to brand reputation, extensive negative media coverage, legal and financial repercussions, decline in market share, negative impact on investor confidence, and increased regulatory scrutiny. Overall, product-harm crises pose significant challenges to companies, emphasizing the critical importance of effective risk management and crisis preparedness. The present paper proposes a new model to compute the optimal investment in quality and advertising in order to reduce the probability of occurrence of a possible product-harm crisis and mitigate its effects. This method uses stochastic control theory and can be used for both tangible products and services. An extension of this method is also proposed in order to take endogenously competition. This extension uses a game theoretical approach 000014212 540__ $$acorrect 000014212 592__ $$aHEG - Genève 000014212 592__ $$bCRAG - Centre de Recherche Appliquée en Gestion 000014212 592__ $$cEconomie et Services 000014212 65017 $$aEconomie/gestion 000014212 6531_ $$9eng$$aoptimal investment 000014212 6531_ $$9eng$$aproduct-harm crisis 000014212 6531_ $$9eng$$astochastic optimal control 000014212 6531_ $$9eng$$agame theory 000014212 6531_ $$9eng$$aadvertising 000014212 6531_ $$9eng$$aquality 000014212 655__ $$ascientifique 000014212 700__ $$aMoresino, Francesco$$uHaute école de gestion de Genève, HES-SO Haute Ecole Spécialisée de Suisse Occidentale 000014212 773__ $$tOpen journal of business and management$$jVol. 12$$kNo. 3$$qpp. 1390-1402 000014212 8564_ $$yPublished version$$9ac629661-fa12-4d40-82a3-7059f9b52bc3$$s2015596$$uhttps://arodes.hes-so.ch/record/14212/files/Moresino_2024_Optimal_investment_in_advertising_and_quality_to_mitigate_a_possible_product-harm_crisis.pdf 000014212 906__ $$aGOLD 000014212 909CO $$ooai:hesso.tind.io:14212$$pECONOMIESERVICES_ALL$$pGLOBAL_SET$$pHEG_GE_ARTICLES_SCIENTIFIQUES 000014212 950__ $$aI2 000014212 980__ $$ascientifique 000014212 981__ $$ascientifique