The effect of adverse publicity on sales: A case study |
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Authors: | Stephen K. Happel |
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Abstract: | This paper estimates lost sales resulting from adverse publicity for a small company soon after it began selling solar hot-water units. Ordinary least squares analysis generates estimates from seasonally adjusted data. To capture the structural shift in sales, alternative series of dummy variables are tested along with other explanatory variables. The ‘best’ of the equations is reported, and the outcome of the court suit is discussed. |
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