The Impact of Product Recall Communication on Brand Image, Brand Attitude and Perceived Product Quality

33 Pages Posted: 17 May 2012

See all articles by Raoul V. Kübler

Raoul V. Kübler

Christian-Albrechts-Universitaet at Kiel

Sönke Albers

University of Kiel

Date Written: May 16, 2012

Abstract

The number of product recalls has considerably increased during the last decade resulting in escalating costs for the public and companies likewise. Companies are confronted not only with severe consequences of their short-term performance (e.g. sales) but also of long-term marketing metrics such as consumer’s brand image, brand attitude and perceived quality. Therefore, companies need to know how they should design their recall communication to minimize negative impact. Using data of 450 consumers’ reactions to 16 different and major German product recalls, the authors investigate the impact of recall communication characteristics like transparency and social responsibility on customers’ brand evaluation. They further measure how the particular degree of hazard and its probability of a product failure moderate the impact of the chosen communication strategy. The findings provide companies with recommendations how to design their recall messages depending on the context of the recall necessity.

Keywords: brand evaluation, effectiveness of communication instruments, product recall, seemingly unrelated regression

JEL Classification: M30, M31, C31

Suggested Citation

Kübler, Raoul V. and Albers, Sönke, The Impact of Product Recall Communication on Brand Image, Brand Attitude and Perceived Product Quality (May 16, 2012). Available at SSRN: https://ssrn.com/abstract=2060858 or http://dx.doi.org/10.2139/ssrn.2060858

Raoul V. Kübler (Contact Author)

Christian-Albrechts-Universitaet at Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Sönke Albers

University of Kiel ( email )

Germany

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