Spill-over

the effects of product recall on private labels versus national brands

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

This paper examines the impact of a product recall crisis on brand equity and brand choices by using a designed three stage experiment. In particular, it examines the spill-over impact of a product recall crisis for a given brand on other brands in the same product category and for the same brand in other product categories. The other categories examined included a closely related category and a less related category. Additionally, we examine whether the impact of a given product recall crisis depends on the strength of the brand, the seriousness of the problem or company response. The findings suggest that there are no spill-over effects to other brands within the product category but there are spill-over brand equity effects for the affected brand in other product categories. The results are ambiguous on whether brand strength influences the impact of the product recall. The spill-over brand equity effect is greater for the related category than the less related category. The spill-over impacts are also related to the level of company response to the product crisis. Managerially, it suggests the impact of a product recall crisis may need to be assessed over all product categories and response to a product recall incident carefully considered.
Original languageEnglish
Title of host publicationANZMAC 2010
Subtitle of host publicationproceedings : doing more with less
EditorsPaul Ballantine, Jörg Finsterwalder
Place of PublicationChristchurch, New Zealand
PublisherUniversity of Canterbury
Number of pages8
ISBN (Print)9780473178208
Publication statusPublished - 2010
EventAustralian and New Zealand Marketing Academy Conference (2010) - Christchurch, New Zealand
Duration: 29 Nov 20101 Dec 2010

Conference

ConferenceAustralian and New Zealand Marketing Academy Conference (2010)
CityChristchurch, New Zealand
Period29/11/101/12/10

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Keywords

  • product recall
  • brand equity
  • choice
  • spill-over

Cite this

Korkofingas, C., & Ang, L. (2010). Spill-over: the effects of product recall on private labels versus national brands. In P. Ballantine, & J. Finsterwalder (Eds.), ANZMAC 2010: proceedings : doing more with less Christchurch, New Zealand: University of Canterbury.