Article
Defective Products

On investigating the Role of Network Effects as Moderating Enabler in Product-Harm Crises

Date: 06/03/2014
Author: George Siomkos, Ioannis Tsiamis
Contributor: eb™ Research Team

There is a growing interest in research regarding the antecedents that impact consumer responses in times of product-harm crises. Still, most of the existing studies seem to, either, focus on products where no network externalities are present, or, neglect the role of network effects in influencing consumer intentions. In this study, we reveal the positive impact of network effects along corporate reputation in reducing negative implications after a product–harm crisis in conjunction to other widely recognized factors that influence consumer responses. Our focus lies in the mobile communications industry and extends from the affected company to all competitors.