The recall of defective automobile products has been carried out in China for three years, but the recognition and responsiveness of enterprises and consumers to the recall of defective automobile products are still very low. Therefore, this paper constructs a market value evaluation model framework of defective automobile product recall based on three value systems: enterprise value, customer value and social value, so that enterprises, consumers and the government can understand the market value of defective automobile product recall system more systematically and make scientific decisions. Key words: market value of defective automobile product recall system 1. Proposition of the problem It has been more than three years since China officially implemented the Regulations on the Management of Defective Automobile Product Recall on June 65438+ 10, 2004. According to the data of the Defective Product Management Center of the General Administration of Quality Supervision, Inspection and Quarantine, as of June 2007, 65,438 defective vehicles had been recalled. Among them, in 2004, it recalled 15 times, with more than 320,000 vehicles; In 2005, it was recalled 27 times, exceeding 60,000 vehicles; In 2006, it was recalled 40 times, exceeding 340,000 vehicles; In 2007, more than 580,000 cars were recalled 23 times. As shown in the above figure, within three years after the implementation of the Regulations on the Management of Defective Automobile Product Recall, the scope and quantity of automobile recall are constantly expanding, indicating that the recognition and responsiveness of enterprises and consumers to the defective automobile product recall system are constantly improving. However, we urgently need a comprehensive and systematic evaluation of the market value of defective automobile product recall, how to understand and evaluate the value of defective automobile product recall to consumers and the whole society from the perspective of safeguarding national public safety and building a harmonious society, and how to better implement the defective automobile product recall system. 2. International Comparison of the Practice and Theory of Defective Automobile Product Recall 2. 1 International Comparison of the Practice of Defective Automobile Product Recall 2. 1 The United States recalled more than 30.6 million vehicles in 2004, and the number of vehicles in the United States in 2004 was 240 million, accounting for 14% of the total. By 2006, the number of cars in China reached 38.5 million. A total of 340,000 cars were recalled in 2006, so the number of recalls in 2006 only accounted for 0.88% of the car ownership. The recall ratio of the United States is nearly 16 times that of China, and the gap in absolute quantity is even greater. The United States began to recall defective cars as early as 1966, and the competent department was the National Highway Traffic Safety Administration (NHT-SA). According to American law, if a car manufacturer finds a safety defect, it must notify NHTSA, car owners, sellers and agents, and then repair it for free. NHTSA is responsible for supervising the manufacturer's repair measures and recall process to ensure that the repaired vehicle meets the legal requirements. France has implemented the automobile recall system for a long time, and has formed a relatively mature defective automobile recall management system. In France, automobile recall is a part of all kinds of commodity recalls, and its legal basis is the clause L22 1-5 of French Consumer Law. This clause authorizes government departments to issue mandatory recall orders for products that may cause direct and serious harm to consumers. In the actual operation process, the government rarely carries out mandatory commodity recall by issuing decrees, but encourages manufacturers to carry out commodity recall on their own. Only when the problem goods pose a serious threat to consumers, or manufacturers do not pay due attention to the existing safety problems, will they be forced to recall by legal means. Japan began to implement the automobile recall system from 1969, and the recall was written into the Law on Road Transport Vehicles from 1994, which was further revised and improved in 2002. As of 200 1, Japan * * * recalled 34.83 million defective vehicles, and only 200 1 recalled 3.29 million vehicles. Among them, most of them are recalled by enterprises independently according to law. Compared with automobile recalls in other countries in the world, most domestic manufacturers have gradually recalled their cars according to regulations, but some automobile manufacturers still have illegal acts of avoiding talking about the quality problems suspected of defects, concealing them or handling them privately through maintenance stations, which has seriously damaged consumers' rights and interests. For example, according to the information published by China Automobile Recall Network, from June 2004 18 to the latest June 2006 10, * * made 76 recalls. Of the 76 recalls, 54 were part of the global recall actions of foreign automobile manufacturers, and there were only 22 recalls of domestic automobile manufacturers, less than 65,438. Among the defects described in foreign manufacturers' recall announcements, there are 23 cases that may cause the engine to fail to work, may catch fire, may increase the risk of collision, and may increase passenger injury after collision, that is, recalls involving vehicle safety issues account for more than 60%. Of the 22 recall announcements issued by domestic manufacturers, only 4 involved vehicle safety issues. They are: the recall of FAW Car mazda 6, Shanghai GM Buick Regal 2.0, FAW-Volkswagen Bora Diesel Edition and Guangzhou Honda Fit Series. Therefore, it is very important for domestic automobile enterprises to correctly understand the value of defective automobile product recall, which is not only related to the personal safety of consumers, but also to the public safety of the whole country. 2.2 International comparison of the research on the market value scheme of defective automobile product recall. Scholars, such as Mateja and Pete, put forward that defective product recall is a crisis that is particularly harmful to enterprises, and enterprises should incorporate product recall into enterprise risk management model. Many scholars study recall management from the perspective of maximizing shareholders' interests based on value theory. Jarrell and Pelcman put forward that product recall will affect the stock price and market value of enterprises, and will obviously affect the market value of competitors. Brad H. Barber, Masacon. Darrough and Gene Koretz proved that the product recall was detrimental to the market value of the enterprise and had no obvious influence on the market value of competitors. Greg Higgins, ShellieLanda, Esters and Stephame D believe that enterprises should study how to manage the financial risks brought by recalls. According to the marketing theory. Tim and others study the product recall management model from the perspective of how to improve customer loyalty. The research of Triplett and Tim shows that effective product recall improves the customer loyalty of enterprises. Toy, S.Driscoll, L's research shows that the lack of perfect product recall management may lead to the failure of re-listing of enterprise products and endanger the survival and development of enterprises. Bruce Kelly's research shows that unreasonable product recall management activities will seriously affect customers' satisfaction and loyalty to enterprises. Daniel, E.Becnel Jr and others study the management mode of defective product recall from the perspective of legal affairs. It is pointed out that product defects will lead to a large number of lawsuits, which will seriously affect the image and reputation of enterprises and undermine the public relations of enterprises. Therefore, manufacturers are encouraged to fully test products before they go on the market, face possible defects responsibly, and establish a perfect legal service system to deal with recall lawsuits. Dirk C.Gibson and others put forward that product recall is extremely harmful to the public relations between enterprises and consumers, so the recall event is potentially disastrous to the public relations of enterprises, and it is necessary for enterprises to establish a perfect recall public relations management system. Although the factors affecting the recall effect are complicated, enterprises can adopt 12 communication skills to improve the recall effect and corporate image. G.rider, S.milkovic and others are committed to studying the risk assessment method of enterprise product recall. Abstract: The recall of defective automobile products has been carried out in China for three years, but the recognition and responsiveness of enterprises and consumers to the recall of defective automobile products are still very low. Therefore, this paper constructs a market value evaluation model framework of defective automobile products based on three value systems: enterprise value, customer value and social value, so that enterprises, consumers and the government can understand the market value of defective automobile product recall system more systematically and make scientific decisions. Key words: market value of defective automobile product recall system 1. Proposition of the problem It has been more than three years since China officially implemented the Regulations on the Management of Defective Automobile Product Recall on June 65438+ 10, 2004. According to the data of the Defective Product Management Center of the General Administration of Quality Supervision, Inspection and Quarantine, as of June 2007, 65,438 defective vehicles had been recalled. Among them, in 2004, it recalled 15 times, with more than 320,000 vehicles; In 2005, it was recalled 27 times, exceeding 60,000 vehicles; In 2006, it was recalled 40 times, exceeding 340,000 vehicles; In 2007, more than 580,000 cars were recalled 23 times. As shown in the above figure, within three years after the implementation of the Regulations on the Management of Defective Automobile Product Recall, the scope and quantity of automobile recall are constantly expanding, indicating that the recognition and responsiveness of enterprises and consumers to the defective automobile product recall system are constantly improving. However, we urgently need a comprehensive and systematic evaluation of the market value of defective automobile product recall, how to understand and evaluate the value of defective automobile product recall to consumers and the whole society from the perspective of safeguarding national public safety and building a harmonious society, and how to better implement the defective automobile product recall system. 2. International Comparison of the Practice and Theory of Defective Automobile Product Recall 2. 1 International Comparison of the Practice of Defective Automobile Product Recall 2. 1 The United States recalled more than 30.6 million vehicles in 2004, and the number of vehicles in the United States in 2004 was 240 million, accounting for 14% of the total. By 2006, the number of cars in China reached 38.5 million. In 2006, 340,000 cars were recalled, so the number of recalls in 2006 only accounted for 0.88% of the car ownership. The recall ratio of the United States is nearly 16 times that of China, and the gap in absolute quantity is even greater. The United States began to recall defective cars as early as 1966, and the competent department was the National Highway Traffic Safety Administration (NHT-SA). According to American law, if a car manufacturer finds a safety defect, it must notify NHTSA, car owners, sellers and agents, and then repair it for free. NHTSA is responsible for supervising the manufacturer's repair measures and recall process to ensure that the repaired vehicle meets the legal requirements. France has implemented the automobile recall system for a long time, and has formed a relatively mature defective automobile recall management system. In France, automobile recall is a part of all kinds of commodity recalls, and its legal basis is the clause L22 1-5 of French Consumer Law. This clause authorizes government departments to issue mandatory recall orders for products that may cause direct and serious harm to consumers. In the actual operation process, the government rarely carries out mandatory commodity recall by issuing decrees, but encourages manufacturers to carry out commodity recall on their own. Only when the problem goods pose a serious threat to consumers, or manufacturers do not pay due attention to the existing safety problems, will they be forced to recall by legal means. Japan began to implement the automobile recall system from 1969, and the recall was written into the Law on Road Transport Vehicles from 1994, which was further revised and improved in 2002. As of 200 1, Japan * * * recalled 34.83 million defective vehicles, and only 200 1 recalled 3.29 million vehicles. Among them, most of them are recalled by enterprises independently according to law. Compared with automobile recalls in other countries in the world, most domestic manufacturers have gradually recalled their cars according to regulations, but some automobile manufacturers still have illegal acts of avoiding talking about the quality problems suspected of defects, concealing them or handling them privately through maintenance stations, which has seriously damaged consumers' rights and interests. For example, according to the information published by China Automobile Recall Network, from June 2004 18 to the latest June 2006 10, * * made 76 recalls. Of the 76 recalls, 54 were part of the global recall actions of foreign automobile manufacturers, and there were only 22 recalls of domestic automobile manufacturers, less than 65,438. Among the defects described in foreign manufacturers' recall announcements, there are 23 cases that may cause the engine to fail to work, may catch fire, may increase the risk of collision, and may increase passenger injury after collision, that is, recalls involving vehicle safety issues account for more than 60%. Of the 22 recall announcements issued by domestic manufacturers, only 4 involved vehicle safety issues. They are: the recall of FAW Car mazda 6, Shanghai GM Buick Regal 2.0, FAW-Volkswagen Bora Diesel Edition and Guangzhou Honda Fit Series. Therefore, it is very important for domestic automobile enterprises to correctly understand the value of defective automobile product recall, which is not only related to the personal safety of consumers, but also to the public safety of the whole country. 2.2 International comparison of the research on the market value scheme of defective automobile product recall. Scholars, such as Mateja and Pete, put forward that defective product recall is a crisis that is particularly harmful to enterprises, and enterprises should incorporate product recall into enterprise risk management model. Many scholars study recall management from the perspective of maximizing shareholders' interests based on value theory. Jarrell and Pelcman put forward that product recall will affect the stock price and market value of enterprises, and will obviously affect the market value of competitors. Brad H. Barber, Masacon. Darrough and Gene Koretz proved that the product recall was detrimental to the market value of the enterprise and had no obvious influence on the market value of competitors. Greg Higgins, ShellieLanda, Esters and Stephame D believe that enterprises should study how to manage the financial risks brought by recalls. According to the marketing theory. Tim and others study the product recall management model from the perspective of how to improve customer loyalty. The research of Triplett and Tim shows that effective product recall improves the customer loyalty of enterprises. Toy, S.Driscoll, L's research shows that the lack of perfect product recall management may lead to the failure of re-listing of enterprise products and endanger the survival and development of enterprises. Bruce Kelly's research shows that unreasonable product recall management activities will seriously affect customers' satisfaction and loyalty to enterprises. Daniel, E.Becnel Jr and others study the management mode of defective product recall from the perspective of legal affairs. It is pointed out that product defects will lead to a large number of lawsuits, which will seriously affect the image and reputation of enterprises and undermine the public relations of enterprises. Therefore, manufacturers are encouraged to fully test products before they go on the market, face possible defects responsibly, and establish a perfect legal service system to deal with recall lawsuits. Dirk C.Gibson and others put forward that product recall is extremely harmful to the public relations between enterprises and consumers, so the recall event is potentially disastrous to the public relations of enterprises, and it is necessary for enterprises to establish a perfect recall public relations management system. Although the factors affecting the recall effect are complicated, enterprises can adopt 12 communication skills to improve the recall effect and corporate image. G.rider, S.milkovic and others are committed to studying the risk assessment method of enterprise product recall. In view of the losses caused by defective products to consumers, a QRA method for quantitatively evaluating the potential risks of defective products is proposed. This method is helpful for enterprises to evaluate the recall risk of defective products. Moore, MichaelGarth[36] proposed that judging whether a product has defects can not be simply judged by the ratio of the number of products to the number of personal injuries caused by products. If this ratio is simply adopted, it will seriously affect the management of enterprise recall risk. Because the recall system has been implemented for a short time, the research on the recall market value of defective automobile products in China is basically in the preparatory stage of theory and method. Three. Definition of market value of defective automobile product recall The market value of defective automobile product recall refers to the incremental value brought to enterprises, consumers and society after the recall of defective automobile products, which mainly includes three parts: enterprise value, customer value and social value. As shown in Figure 2 below, 3. 1 The enterprise value of defective automobile product recall refers to the incremental value obtained by automobile enterprises after the recall of defective automobile products. That is to say, through the recall of defective automobile products, the reputation, brand satisfaction, loyalty, brand image, stock price, channel competitiveness, market share, technical improvement, quality management norms and levels of enterprises can be improved, and the personal safety injury loss caused by product defects avoided by the recall is the incremental value after deducting the recall cost. These incremental values include the following contents: market share, brand image, brand satisfaction, loyalty, channel competitiveness, technical improvement, quality management norms and levels, stock value, personal safety injury losses to consumers caused by product defects avoided by recall, etc. From the perspective of value chain, recall cost belongs to after-sales service cost in form. But in essence, the recall cost is caused by mistakes in R&D, design and manufacturing stages, which is basically R&D cost, design cost or manufacturing cost. According to the legal background of recall system and the analysis of the causes of actual recall events, the defects of recalled products are mainly caused by mistakes in design stage or manufacturing stage. Therefore, according to the value chain analysis method, the cost of recalled products should be accrued and collected in the design stage or production stage, not in the sales stage. Therefore, in cost management, enterprises should reconsider the costs of design and production functions, and reasonably estimate and allocate the recall costs of these two functions. A concept closely related to the value chain cost is the expected product life cycle cost, that is, all the expected costs from the initial product development to the cancellation of customer service in the market, and the recall cost is naturally one of them. When approving the estimated cost of product life cycle, the possibility of recall and its predicted cost must be considered. 3.2 Customer value of defective automobile product recall The customer value of defective automobile product recall refers to the incremental value brought to consumers by the implementation of defective automobile product recall under the joint promotion of the government and enterprises. The so-called incremental value brought to consumers means that after enterprises recall defective automobile products that will pose a threat to consumers' personal safety, on the one hand, consumers' personal safety and rights and interests are protected by law, effectively avoiding accidents that may threaten consumers' safety, and at the same time effectively solving the "three difficulties" of consumers finding quality problems before buying, proving quality problems after buying and solving disputes after quality problems occur. Thus effectively protecting the legitimate rights and interests of consumers and the personal and property safety; On the other hand, it enhances consumers' trust and loyalty to automobile enterprise brands, and also improves consumers' happy life index. 3.3 Social value of defective automobile product recall The social value of defective automobile product recall refers to the incremental value brought by the implementation of defective automobile product recall system to improve the integrity level of the whole society and enhance national public safety. The so-called incremental value of the whole society refers to the implementation of defective automobile product recall. On the one hand, it reflects the promotion of government supervision and the responsibility to enterprises and consumers. At the same time, it also provides enterprises with the * * * principle that should be followed in the recall of defective automobile products, and clarifies the responsibilities and obligations of manufacturers and users. It is the embodiment of the enterprise's responsibility to the society and users, and it has a promoting effect and value to improve the integrity level of the whole society. Therefore, the so-called recall of defective automobile products is the recall of public safety, the recall of consumers' legitimate rights and interests, the recall of corporate credit, the recall of laws and regulations, and the recall of national competitiveness. Four. Evaluation framework of market value of defective automobile product recall 4. 1 Classification standard of market value of defective automobile product recall According to the definition of market value of defective automobile product recall, we classify the market value of defective automobile product recall and establish a basic formula. The incremental value of enterprises recalling defective products includes market share, brand image, brand satisfaction, loyalty, channel competitiveness, technical improvement, quality management norms and levels, inventory value, loss compensation for personal safety injuries caused by product defects avoided by recall and the difference between the recall cost of defective products. We can express it by the following formula: enterprise value = [market share value+brand value of the image+brand satisfaction value+brand loyalty value+channel competitiveness value+technology improvement value+quality management standard and level value+inventory value+loss compensation for personal safety injury caused by product defects avoided by recall]-[recall cost] The incremental value of defective products recalled to customers includes potential personal safety loss caused by defective automobile products, avoided mental loss and happiness of consumers' lives. We can use the following formula to express it: customer value = [added value of consumer's happiness+consumer's personal and property safety guarantee+mental and psychological safety guarantee] The social incremental value of defective product recall includes the improvement of the integrity of the whole society, the improvement of government supervision level, the improvement of the influence of "Made in China" and the improvement of national competitiveness after the implementation of defective automobile product recall. We can use the following formula to express it: social value = [the improvement of the integrity level of the whole society+the improvement of government supervision level+the improvement of China's manufacturing influence+the improvement of national competitiveness] 4.2 Market value evaluation index system of defective automobile product recall According to the above analysis, we can establish a market value evaluation framework of defective automobile product recall according to the analytic hierarchy process. As shown in the following table, we divide the market value of defective automobile product recall into three levels according to the target level, the criterion level and the scheme level, with the criterion level as three major value indicators and the scheme level as 17 refinement indicators. We can determine the weight of each index according to Delphi method, multi-scale method and factor analysis method, and then get the market value evaluation formula of defective automobile product recall. To sum up, according to the definition of market value of defective automobile product recall, an evaluation framework of market value of defective automobile product recall can be established, which can provide reference for national automobile recall management and enterprise evaluation of automobile recall market performance. V. Conclusion The recall management system of defective automobile products in China has just started, especially the evaluation of its market value has just entered the stage of preparation and design. It is of great theoretical and practical significance to establish a systematic, scientific, objective and fair market value evaluation model for defective automobile product recall, which will enhance the awareness and responsiveness of enterprises and consumers to the defective product recall system. It is hoped that the market value evaluation model framework of defective automobile product recall based on the three value systems constructed in this paper can play a role in attracting jade. Design of Market Value Evaluation Model for Defective Automobile Product Recall Zheng Xin Ye Minghai