Analyses the possible effects of product liability legislation on marketing activity. Studies the effects on consumer behaviour of such legislation by means of a buying behaviour…
Abstract
Analyses the possible effects of product liability legislation on marketing activity. Studies the effects on consumer behaviour of such legislation by means of a buying behaviour model. Uses these effects to further analyses the same effects on various components of the manufacturers' marketing mix and strategy. Concludes that, generally, although the declared purpose of product liability legislation is to protect consumers from specific purchasing hazards, it actually rather causes harm and infringes their economic welfare. Reveals, also, that, on the producer's side, market structure will be more unstable.