Product-Harm Crisis Research Papers - Academia.edu (original) (raw)

Crisis of product defect causes recalls, which not only causes financial loss but also devastates brand reputation. This study explores customers' response to the twice recall of the Galaxy Note 7 in Korea. The authors examined the semantic networks of consumers comments from the Samsung official social media 'Samsung Newsroom (blog and Facebook)' in five time periods(i.e., release, first recall, recommendation to discontinue use, second recall, and compensation program). Customers in each period showed different emotional states which were positive in the first recall but negative in the second recall. Therefore, timely recall and factual communication is needed to the product-harm crisis management, but root cause investigation should be taken to avoid further recalls.

- by
- •
- Semantic Network Analysis, Recall, Product-Harm Crisis, Galaxy Note7

Product harm crisis hinders firms' reputation and financial viability. Recent research has shown that in a product harm crisis late response and compulsory product recall hinders businesses reputation (Jolly & Mowen, Mowen & Ellis, Siomkos Jolly 1999). It has been concluded that consumer tastes and preferences fades out and consumers are not motivated to buy the new product that is developed to replace the recalled one (Jolly 1999). Businesses are more prone to risk than ever before to product related issues and challenges causing supply chain disruptions. To find meaningful solution to this risky and vulnerable situation, businesses should find a lastly and sustainable solution to businesses reputation and financial viability. A result oriented and focused management team thrives in all seasons and act swiftly with appropriate tools and techniques to crisis management. In this review, the researcher harmonized secondary data showing product harm crisis management modalities and parameters. With reference to the review literature, concepts, contents, facts; the researcher differentiates parameters, models used and interprets findings. Advice businesses on managing product harm crisis effectively and efficiently with proper planning and mitigation strategies in place.

- by Suliaman Turay
- •
- Management, Development Economics, Communication, Leadership

The number of defective and unsafe products recalled from the market has increased dramatically in the last decade. While several studies have investigated consumer reaction to product recalls, the impact of such events on utilitarian versus hedonic attitudes toward the brand involved in the recall has not yet been assessed. Similarly, it is not clear whether brands with utilitarian positioning and brands with hedonic positioning are equally affected by recalls.
Through an experiment based on a real-world stimulus from the laptop product category, this study shows that hedonic brands are more resistant to the negative effects of voluntary product recalls than are utilitarian brands. Furthermore, data show that brand familiarity mitigates the effect of the recall on utilitarian attitudes for both utilitarian and hedonic brands. Brand familiarity also positively moderates the impact of the recall on hedonic attitudes, but only for hedonic brands.

- by Fabio Cassia
- •
- Business, Marketing, Business Ethics, Safety Engineering

According to Klein and Dawar (2004) a product related crisis is one where a product is found to be flawed or dangerous. In this situation, as Siomkos & Kurzbard (1994) indicate, there is potential harm not just in terms of company reputation, media influence and external agency reports but also in how these factors influence customer views, a perspective also noted by Dean (2004). This paper examines the factors that impact on how a product harm crisis develops with the aim of understanding how it can best be handled by an organization.

The number of defective and unsafe products recalled from the market has increased dramatically in the last decade. While several studies have investigated consumer reaction to product recalls, the impact of such events on utilitarian versus hedonic attitudes toward the brand involved in the recall has not yet been assessed. Similarly, it is not clear whether brands with utilitarian positioning and brands with hedonic positioning are equally affected by recalls. Through an experiment based on a real-world stimulus from the laptop product category, this study shows that hedonic brands are more resistant to the negative effects of voluntary product recalls than are utilitarian brands. Furthermore, data show that brand familiarity mitigates the effect of the recall on utilitarian attitudes for both utilitarian and hedonic brands. Brand familiarity also positively moderates the impact of the recall on hedonic attitudes, but only for hedonic brands.

- by Marta Ugolini
- •
- Business, Marketing, Business Ethics, Safety Engineering

The number of product recalls has been increasing in recent years worldwide. Several studies have tried to define the best ways for the companies to manage product recalls and to mitigate negative impacts on brand image. However these efforts mostly adopt a managerial perspective, thus largely ignoring the customers’ point of view. A quasi-experiment is conducted on a sample of 92 students in order to analyze customers’ reaction to the communication activated by the company. Findings underline the impact of responsible vs. opportunistic recall management and partly disconfirm previous results about the moderating role of brand reputation.

- by Fabio Cassia
- •
- Business, Management, Marketing, Business Ethics

The number of defective, unsafe or dangerous products recalled from the market has been increasing markedly in the last few years, very firm should develop a strategic plan to manage such crises. Nonetheless companies are still often unprepared to deal with such events and scientific knowledge on this issue is still scarce. The purpose of this paper is to contribute to enhance our knowledge on this issue, by investigating through a comprehensive model the effect of the following four-recall brand attitudes: the time taken to start the recall after the primary signals of potential injuries arose; responsible recall management; opportunistic recall management; the blame attributed to the company for the defective, unsafe or dangerous products. The model is tested through an experiment involving 217 subjects, showing that responsible recall management is positively related to post-recall brand attitude, while time, opportunistic recall management and blame have a negative relationship with post-recall brand attitude. Some useful strategic insights are derived from the results of the stu their sincere concern for their consumers , and avoiding every opportunistic behavior (such as trying to make consumers buy the. 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of 8 th International Strategic Management Conference

Negative spillovers due to firms' product-harm crises have attracted the attention of marketing researchers owing to the devastating and irrecoverable damage they can cause. Despite the extensive research undertaken on this topic, studies concerning spillovers across competing brands from different companies are relatively scant. Drawing upon self-construal theory, we propose that spillover effects across competing brands from different companies may vary depending on consumers' self-construal and on the perceived similarity between the brands. The results of two studies show that, when the brands' perceived similarity is high, the spillover effect of a product-harm crisis on a competing brand from a different company is greater for consumers with interdependent self-construal than for those with independent self-construal. Our findings extend the theoretical knowledge of spillover effects and provide meaningful managerial implications for global corporations.