Product recall, brand equity and choice - an exploratory study

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Abstract

There have been a number of well known major product recall incidents involving established brands over the last few years. These incidents have cost companies involved many millions of dollars in direct costs however the indirect costs to brand equity and subsequent loss of market share are harder to evaluate. Although many case studies and some limited theoretical research have examined the impact of product recall on some of the above measures, there does not appear to be a framework that can be useful for generalisation. This paper applies a simulated multistage choice based experiment to assess the impact of hypothetical product recall experiences on brand equity measures. Contrary to existing evidence we find that product recall experience has greater negative impacts for established strong brands than weaker non-established brands. Additionally, attributes of product recall such as the seriousness of the problem, personalized communication during the product recall incident and blame attribution can impact on measures brand equity pre and post product recall experience.
Original languageEnglish
Title of host publicationAM2008 conference proceedings
Subtitle of host publicationAcademy of Marketing Annual Conference : reflective marketing in a material world
Place of PublicationAberdeen, Scotland
PublisherAcademy of Marketing
Pages1-9
Number of pages9
Publication statusPublished - 2008
EventAcademy of Marketing Conference (2008) - Aberdeen, Scotland
Duration: 7 Jul 200810 Jul 2008

Conference

ConferenceAcademy of Marketing Conference (2008)
CityAberdeen, Scotland
Period7/07/0810/07/08

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Keywords

  • product recall
  • brand equity
  • attributions
  • designed experiment

Cite this

Korkofingas, C., & Ang, L. (2008). Product recall, brand equity and choice - an exploratory study. In AM2008 conference proceedings: Academy of Marketing Annual Conference : reflective marketing in a material world (pp. 1-9). Aberdeen, Scotland: Academy of Marketing.