Momentum in Social Media and Offline Car Sales after Automobile Recalls

Many firms have turned their attentions to social media to manage their recall campaigns due to the unique nature of social media. However, the role of social media before and after recalls has only received limited attention. This study attempt to (1) investigate the impact of social media contents related to customers’ attentions to U.S. mid-size vehicle recalls on offline car sales, and (2) examine how the role of momentum in social media before and after the recall process is associated with automobile sales. We obtained all mid-size automobile recall events and supplemented with social media data on customers’ discussion on defected vehicles and firms’ recall process from around 1,000 different social media platforms from 2010 to 2015. Our results suggest that social media is a double-edged sword in the setting of vehicle recalls. Implications and future plans are discussed.

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