The Consumer in Product-Crisis Management The Impact of Different Dimensions of Product Recall Strategies on Consumer Brand Loyalty and the Moderating Role of Risk Aversion

Abstract

The purpose of this study was to provide an answer to the question how different dimensions of product recall strategies influence consumer brand loyalty and how this relationship is moderated by the level of risk aversion of the individual consumer. First a theoretical framework distinguishing three dimensions of product recall strategies has been developed based on an extensive literature review. The three distinguished dimensions were the speed of response, the willingness to take responsibility and the proactiveness of response. 164 Respondents were confronted with fictitious product recalls followed by a recall statement in which the three dimensions were manipulated. The results were analyzed with variance-based structural equation modeling in ADANCO 2.0.1. Although not all hypotheses were supported, some interesting findings emerged. The perceived speed of response has a positive influence on brand trust and the perceived willingness to take responsibility has a positive effect on brand trust. Furthermore, brand trust was in the original models an important determinant of both attitudinal and purchase loyalty. Although the newly developed framework should be elaborated on and adapted in the future, it provides an important first step in the clarification of how different product recall strategies play out in reality.