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

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- Business, Crisis Management, Crisis Communication, Negotiation
- by Sabrina Hegner
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- Business, Marketing, Corporate Social Responsibility, Crisis Management
- by Jos Lemmink
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- Business, Spillover Effect
- by Dr. Momen Nachar
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- Philosophy, Crisis Management, Marketing Strategy, Literature Review

When reports surfaced in 2016 of complications with Samsung’s latest product release, the Galaxy Note 7, Samsung faced a significant threat to its corporate image. This MRP explores Samsung’s traditional and social media crisis responses to the explosions of consumers’ Note 7 devices. Through an in-depth analysis of Samsung’s traditional media newspaper apology ads and press statements, coupled with audience comments about the brand on YouTube, this case study analyzes how the brand incorporated two prominent theories of crisis communication, Situational Crisis Communication Theory (SCCT) and Image Restoration Theory (IRT). Through a study of Samsung’s traditional crisis response, a newspaper apology advertisement and three website press statements, this case study uncovers which strategies of SCCT and IRT were practiced. Specifically, this research study highlights image restoration strategies such as corrective action, mortification, and minimization. Similarly, the corporation wr...

- by Bethlehem Dejene
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- by Muhammad Ishaq
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Consumer based brand equity (CBBE) is a complex, multi-faceted concept and the facets of CBBE capture consumers’ brand related beliefs. From a managerial perspective, it is imperative to know the most damaging facet of CBBE in order to launch appropriate management strategies to safeguard that particular facet. Therefore, the purpose of the present study is to examine the effect of product harm crisis on facets of CBBE, with special reference to Chinese and Sri Lankan young consumers. Results based on independent samples t test, correlations and a series of one sample t tests showed that product harm crisis has a detrimental impact on facets of CBBE and country significantly shape consumer perceptions in this regard. Further study showed that out of main facets considered in the study, i.e., brand attitude, brand trust, perceived quality of the brand, perceived quality of the products of the brand and brand desirability; brand attitude is more detrimentally affected by the crisis in...

- by ganganee samaraweera
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- Brand Trust, Product-Harm Crisis, brand attitude

Crosscultural comparisons with respect to consumers’ moral reputation toward the affected company during product harm crises are relatively scant in cries management literature. Study considers two Asian emerging markets; China, Sri Lanka and a company culpable product harm crisis situation. Altogether 303 young consumers’ view show that country shapes their moral reputation toward the affected company during crises with respect to the response to crisis response strategies; voluntary product recall and super effort. In the presence of voluntary product recall, Chinese consumers’ morally repute the firm while Sri Lankan do not. Sri Lankan consumer needs super effort response strategy in order to build moral reputation toward the affected firm where it is insignificant with respect to Chinese consumer. Moreover, study shows the perceived degree of danger of selecting an inappropriate response strategy in an inappropriate country. This study provides useful guidance for crises manager...

- by ganganee samaraweera
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- by alexandre salvador
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- Crisis Management, Information, Business Management, Brand Crisis

Purpose – To understand, from the management perspective, the use of information on branPurpose – To understand, from the management perspective, the use of information on brand crisis management in moments involving prevention, identification and management. Design/methodology/approach – This article is the result of an exploratory, qualitative study. Primary data was collected through interviews with marketing executives and crisis management specialists. Findings – We concluded that managers use information in very different ways, and, taking possession of information and decisionmaking attitudes into account, four groups of crisis managers were found. Originality/value – In order to contribute to the expansion of academic knowledge in the field of marketing administration and brand crisis management, this study presented the crossing of three different fields (information systems, brand crisis management and organizational development) to structure knowledge concerning brand cri...

- by alexandre salvador
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- Crisis Management, Information, Business Management, Brand Crisis

Resumo: Crises de marca, decorrentes de falhas no produto, têm se tornado mais frequentes em razão do aumento da complexidade dos produtos. As crises geradas por campanhas de recall são únicas, inesperadas e podem gerar deterioração da relação favorável estabelecida entre a marca e o consumidor, afetar a imagem de marca e reduzir o brand equity. Suas consequências envolvem prejuízos financeiros de curto e longo prazo para a marca, para a empresa e, eventualmente, para a categoria como um todo. Este artigo é fruto de uma pesquisa exploratória qualitativa realizada por meio de um estudo de caso único na indústria de alimentos. Seu objetivo é verificar empiricamente a aplicação das teorias sobre crise de marca e recall em um caso brasileiro recente. Os resultados encontrados estão alinhados com as suposições elaboradas com base no referencial teórico. Como contribuição adicional para o tema, o estudo apresenta o efeito de uma crise real ao longo do tempo.

- by alexandre salvador
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- Gestão Da Produção

A decision to recall products by firms can lead to negative consequences such as erosion of shareholder wealth and loss of customer goodwill. Further, the way a recall is managed can lead to more negative consequences than the recall decision itself. Therefore the manner in which firms manage such decisions can help mitigate these negative consequences. This thesis examines two such decisions: recall restitution and time to recall. A firm’s decisions on restitution offered to affected customers and time to recall may evoke conflicting reactions from shareholders and customers, where serving the interests of one stakeholder affects the interests of the other. While higher restitutions and faster recalls improve customer goodwill, they lead to erosion of shareholder wealth. This finding is used to hypothesize the influence of organizational characteristics (position of the firm in the value chain, firm’s internal operations, and firm’s recall experience), and key crisis factors (ambig...

- by Etayankara Muralidharan
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- Psychology

Product recalls have become increasingly common across product categories and countries. Although recalls pose adverse consequences for businesses, regulatory agencies, and society, they also test these stakeholders’ resilience in the face of adversity. Perhaps because scholars from multiple disciplines have studied recalls for nearly four decades now, a large number of terms, most of which stay undefined, has been used to describe recalls and several closely related yet distinct phenomena. We also lack a framework that can help synthesize our knowledge and guide us toward questions that are both interesting and relevant. Finally, there has been no attention to the fundamental question of what firm actions drive the effectiveness of recalls. My thesis seeks to address these two areas of improvement. Specifically, Essay 1 defines product recall, and delineates it from related phenomena. It also offers a framework of the various strategies firms can undertake in the aftermath of defec...

- by Vivek Astvansh
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- Computer Science

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.

Product-recalls have become increasingly commonplace in American media reports. Everything from food products to toys and cars have been recalled with increasing frequency in recent years. Some researchers predict the numbers will continue to rise as regulatory agencies and consumers alike become more vigilant about health and safety (Gunther 2010; Berman 1999). A product-harm crisis, which often necessitates a product-recall, can have tremendous human and financial costs. For example, a 2010 case of salmonella-infected peanuts involved a massive recall effort involving 70 companies, 3,900 products, and approximately 1billioninfinanciallosses.Italsomadehundredsofpeoplesickandcaused9deaths(Gunther,2010).Noindustryorbrand—nomatterhowlargeorwellknown—isimmunetotheimpactofsuchacrisis,asprovenbyToyota’sover1 billion in financial losses. It also made hundreds of people sick and caused 9 deaths (Gunther, 2010). No industry or brand—no matter how large or well known—is immune to the impact of such a crisis, as proven by Toyota’s over 1billioninfinanciallosses.Italsomadehundredsofpeoplesickandcaused9deaths(Gunther,2010).Noindustryorbrand—nomatterhowlargeorwellknown—isimmunetotheimpactofsuchacrisis,asprovenbyToyota’sover2 billion loss stemming from a 2009 gas pedal recall (Isadore, 2010). Given recent trends and the high-stakes consequences, businesses are interested in knowing what to expect in case of a product-harm crisis in terms of consumer and stock market reaction. Researchers continue to study what factors influence those reactions and hope to use their findings to build a viable product-harm crisis response strategy.

- by Dr. Momen Nachar
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- Crisis Management, Business Management

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.

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
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- 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 towards 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.

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

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
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- Business, Marketing, Business Ethics, Safety Engineering
- by Kathleen Cleeren
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- Marketing, Tourism, Business and Management

The article is about how to fix and manage a product-harm crisis. It starts off with a definition of product-harm crisis followed by the factors that lead to a product-harm crisis. The article ends with recommendations that may draw on... more

- by Josephine Nsubuga-Mugoa
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- Risk and crisis management

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
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- Business, Management, Marketing, Business Ethics

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.