Measuring the short-term spillover impact of a product recall on a brand ecosystem

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Authors: Mackalski, Robert and Belisle, Jean-Francois

Publications: Journal of Brand Management

Abstract:
This research examines the short-term impact of a product recall on a brand ecosystem by investigating the following questions: How do product recall spillover effects spread to (i) the recalled brand’s related product categories, (ii) competing brands, and (iii) private label brands? Studying the 2003 Land O‘Lakes butter recall case using a difference-in-differences model, our research shows that negative spillovers occur within the same brand family, carry over to private label brands and then quickly dissipate, but do not carry over to competitor brands. Managerial implications and directions for future research are provided.

Read full article: Journal of Brand Management, July 10, 2015