Product Management

Product Management

 

This Case Assignment focuses on Volkswagen’s emissions scandal and related brand management and business ethics issues.

Boston, W., & Houston-Waesch, M. (2015, Oct 15). Volkswagen suspends another top engineer; Berlin orders recall; transport minister says recall of tainted diesel cars is mandatory. Wall Street Journal (Online).

Carey, N., & Shepardson, D. (2017). Volkswagen pleads guilty in U.S. court in diesel emissions scandal. Retrieved from http://www.reuters.com/article/us-volkswagen-emiss…

Cremer, A. (2016, April 20). VW to pay each U.S. customer $5,000 to settle dieselgate: Die Welt. Reuters. Retrieved from http://www.reuters.com/article/us-volkswagen-emiss…

Danny, Hakim, Kessler, A. M., & Ewing, J. (2015, Sep 27). As VW pushed to be no. 1, ambitions fueled a scandal. New York Times.

Ewing, J. (2015, Sep 23). Diesel scandal at VW spreads to core market. New York Times.

Farrell, S. (2015, Oct. 26). Volkswagen loses sales top spot to Toyota after emissions scandal. Retrieved from http://www.theguardian.com/business/2015/oct/26/volkswagen-top-spot-toyota-vw-emissions-scandal.

Fung, B. (2015). Volkswagen’s U.S. CEO apologizes for emissions cheating scandal. Washington: WP Company LLC d/b/a The Washington Post.

Lane, C. (2015, Oct. 26). Emissions scandal is hurting VW owners trying to resell. Retrieved from http://www.npr.org/2015/10/26/450238773/emissions-… .

La Monica, P.,R. (2015, Sep 23). Volkswagen has plunged 50%. Will it ever recover? CNN Wire Service.

Tabuchi, H., Apuzzo, M., & Ewing, J. (2017). U.S. Charges 6 Volkswagen executives in emissions-cheating case. New York Times. Retrieved from https://www.nytimes.com/2017/01/11/business/volksw…

Here are some articles on brand equity and brand management.

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.

Helm, S., & Tolsdorf, J. (2013). How does corporate reputation affect customer loyalty in a corporate crisis? Journal of Contingencies & Crisis Management, 21 (3), p144-152.

Develop a report in terms of the following guidelines. A well-written report should have a brief introduction, headings or subheadings, and a brief concluding comment. Note that you should use some keywords as headings or subheadings such as “Brand Equity of VW,” instead of a sentence or a question. Looking at required articles on Volkswagen’s emissions scandal, as well as additional research you have done on Volkswagen’s emissions scandal, address the following issues:

  1. Briefly describe Volkswagen’s emissions scandal and provide background on the company and automobile industry.
  2. Do you think Volkswagen’s brand reputation was severely damaged by the emissions scandal? How about its brand equity? Discuss what brand equity is, and how Volkswagen’s brand equity is impacted.
  3. How should Volkswagen have handled the emissions scandal in an ethical way? Discuss the related ethical issues from both consumer and brand manager perspectives.
  4. What can you learn from this case? What suggestions could you offer to the top management at Volkswagen and other car makers?
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