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 language | English |
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Title of host publication | ANZMAC 2010 |
Subtitle of host publication | proceedings : doing more with less |
Editors | Paul Ballantine, Jörg Finsterwalder |
Place of Publication | Christchurch, New Zealand |
Publisher | University of Canterbury |
Number of pages | 8 |
ISBN (Print) | 9780473178208 |
Publication status | Published - 2010 |
Event | Australian and New Zealand Marketing Academy Conference (2010) - Christchurch, New Zealand Duration: 29 Nov 2010 → 1 Dec 2010 |
Conference
Conference | Australian and New Zealand Marketing Academy Conference (2010) |
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City | Christchurch, New Zealand |
Period | 29/11/10 → 1/12/10 |
Keywords
- product recall
- brand equity
- choice
- spill-over