Effect Of Product’s Negative Impact On Product’s Brand Peformance

In recent years, many enterprises have taken place the negative impact ofproducts. They caused the crisis of confidence of brands from consumers, andit brings negative impact to enterprises and brands very much. Not only itbrings irreparable pain and harm to consumers, but also it brings great regretand loss to enterprises.Firstly, the paper reviews china and western scholars’ research andrelated concepts about product’s negative impact, brand performancemeasures, the model of Dirichlet. On this basis, the paper introduces theprinciple of the model of Dirichlet, and we estimate the performance indicatorsof the brand by using the model of Dirichlet and excel. The reader will beaware of the product’s negative impact on brand performance by learning thechanging of product’s brand performance indicators before and after thenegative impact of product.Secondly, in order to better interpret the effect of the negative impact ofproduct on brand performance of enterprise, the paper choose “yili” whatoccurred the incident of Melamine in august2008as the sample. According tothe date of incident when September11,2008as the line, and according to thesales data of one company from September11,2007to September11,2009as the sample data, and two years of data will be divided into four time periods that they are the semi-annual cycle. The first two time periods are before eventand the latter two time periods are after event, then we can contrast whetherthe indicators of brand performance are a significant changed for event.Finally, the paper use the model of Dirichlet to study the result what “liyi”had occurred, estimating the parameters by maximum likelihood method, andderiving indicators of brand performance measures, then enterprises realizethe effect of product’s negative impact on product’s brand performance andcause the importance of enterprises. At the same time we will learn thereasonable recovery strategy of the yili after the event and different treatmentmethods and effects of the different enterprises by learning the actualresponse of yili after event and analyzing the occurrence of food safety cases,then we will put forward the reasonable suggestions and opinions forenterprises according to the actual situation, and enterprises will make thework of defense and warning well before the negative impact and make thework of improvement and response after the negative impact, thus theenterprises will restore market as soon as possible and regain the consumers’confidence to company.