Marketing Letters

, Volume 25, Issue 2, pp 179–191 | Cite as

Product recalls and the moderating role of brand commitment

  • Frank Germann
  • Rajdeep Grewal
  • William T. RossJr.
  • Rajendra K. Srivastava
Article

Abstract

We assess attenuating and augmenting effects of brand commitment on consumer responses when product recalls occur. Consistent with our theorization, results from a laboratory experiment and an event study show that high levels of brand commitment attenuate negative consumer responses in low-severity product recalls but augment them in high-severity product recalls. Thus, while brand commitment seems to provide a reservoir of goodwill in the former case, it acts as a liability in the latter. These findings add to the extant brand and product recall literature by demonstrating that brand commitment has a complex effect on consumer responses when product recalls occur. Because product recalls are widespread, these findings also have managerial relevance.

Keywords

Brand commitment Product recall Corporate crises Experiment Event study 

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Frank Germann
    • 1
  • Rajdeep Grewal
    • 2
  • William T. RossJr.
    • 3
  • Rajendra K. Srivastava
    • 4
  1. 1.395 Mendoza College of BusinessUniversity of Notre DameNotre DameUSA
  2. 2.Smeal College of BusinessPennsylvania State UniversityUniversity ParkUSA
  3. 3.School of BusinessUniversity of ConnecticutStorrsUSA
  4. 4.Lee Kong Chian School of BusinessSingapore Management UniversitySingaporeSingapore

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