Essay on The Volkswagen 's Emissions Scandal
The Volkswagen (VW) is a German automaker with its vehicles being used all over the world up to a tune of millions of consumers. VW automakers were ranked Third best after the Toyota and BMW. The manufacturing processes are regulated such that the manufacturer meets the environmental protection Agency (EPA) standards on carbon emission. VW automakers happened to have tricked the emission inspectors by rigging their diesel cars with defeat devices so as to cheat on the smog test for carbon Di-oxide production thus providing false information about their adherence to set EPA regulations. VW vehicles which are diesel powered are said to produce up to over 600,000 of harmful carbon emissions in the U.S, leading to a fall in their prices and ultimate brand recall. This paper aims at examining the impacts of the VW’s emission scandal to the company, the consumers and brand management issues as well as the Business Ethics.
The VW Brand equity
Brand equity, is a term in marketing, which is used to describe the fact that, a product whose brand name is better known by the people, derives more Economic value from the market than the product whose brand name is not very well known. Customers are more loyal to brands that they know, they trust them the most and as such, due to demand and quality assurance attitude, the product is valued at a higher price in the market.
The VW emission scandal…