Product Withdrawal Pandemonium: Marketing Communication Implications from the Pan Pharmaceuticals Product Withdrawals

Massey University Commerce Working Paper No. 04.10

28 Pages Posted: 19 May 2005

See all articles by Lynne Eagle

Lynne Eagle

Independent Author

Jacinta Hawkins

Massey University - Department of Commerce

Lawrence C. Rose

Massey University

Philip J. Kitchen

Hull University Business School (HUBS)

Date Written: May 2004

Abstract

Medicines, in their various forms, are an important part of daily life and health for many consumers across diverse cultures. However, beliefs and trust inherent in treatment are - at best - poorly understood. Major dislocation of trust occurs when the media report medical scandals, or when there are major health scares such as product contamination and mandatory product recalls. Notably, this area has not been extensively researched, with the exception being the 1982 Tylenol poisoning crisis in America (see, for example, Pearson and Clair, 1998). The mid-2003 government-ordered withdrawal of almost 2,000 complementary and alternative medicines, across multiple brand names in the Australian and New Zealand markets provides an opportunity to examine the impact on both the wide complementary and alternative medicines category and on brand sales and brand equity issues for both affected and unaffected brands. We focus on the impact of these events within the New Zealand market, and link the events surrounding the recall with the somewhat scant crisis management literature, and report on consumer perceptions of the sector six months after the recall event. We then offer conclusions and recommendations for the management of such events across national boundaries in the future.

Keywords: Medicine, alternative medicine, brand equity, product withdrawal, corporate reputation, crisis management

Suggested Citation

Eagle, Lynne and Hawkins, Jacinta and Rose, Lawrence (Larry) Craig and Kitchen, Philip J., Product Withdrawal Pandemonium: Marketing Communication Implications from the Pan Pharmaceuticals Product Withdrawals (May 2004). Massey University Commerce Working Paper No. 04.10, Available at SSRN: https://ssrn.com/abstract=555905 or http://dx.doi.org/10.2139/ssrn.555905

Lynne Eagle

Independent Author

Jacinta Hawkins

Massey University - Department of Commerce ( email )

Private Bag 102-904
North Shore Mail Centre
Auckland
New Zealand

Lawrence (Larry) Craig Rose (Contact Author)

Massey University ( email )

Private Bag 102-904
North Shore Mail Centre
Auckland, 0745
New Zealand
+64 9 4140800, ex 9558 (Phone)
+64 9 441 8150 (Fax)

Philip J. Kitchen

Hull University Business School (HUBS) ( email )

Hull, HU6 7RX
United Kingdom

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