ISSUES IN THE USE OF THE EVENT STUDY METHODOLOGY: AN ANALYSIS OF MARKETING STRATEGIES IN PRODUCT RECALL STUDIES

Authors : Fatma Hilal ERGEN KELEŞ, Burç ÜLENGİN

Pages : 181-198

Doi:10.14780/muiibd.582318

View : 20 | Download : 21

Publication Date : 2019-07-12

Article Type : Research Paper

Abstract :Event study methodology, which relies on market efficiency, investigates stock price changes after  an event. Despite this methodology arises in the finance literature, it found a wide execution area  including the marketing literature. Event study makes it possible to observe the effect of diverse  marketing activities on financial value and is therefore very suitable for understanding marketingfinance  interface. Empirical findings of product recall studies suggest that a product recall cause to  a decrease the firm value. Furthermore, product recall studies adopt event studies that help better  understand the reactions of the investors to different marketing strategies in a crisis context. However,  only limited studies are available in this field. This paper covers insert ignore into journalissuearticles values(1); an instruction an instruction of  the methodology, insert ignore into journalissuearticles values(2); a review that highlights the implementations of the method in the marketing  literature, insert ignore into journalissuearticles values(3); summary of studies that measure the effect of marketing strategies in the product recall  context, and insert ignore into journalissuearticles values(4); propositions for further empirical testing. We aim to guide further empirical studies.
Keywords : Event study methodology, product harm crises, product recall, marketing strategy