Impact of a product recall

Viktoriya Torlyuk

Bachelor's thesis

Abstract:

During the past decade, the number of product recalls have significantly increased, resulting in an increase in expenses for both the consumer and companies. Companies are faced not only with negative implications of their short term performance (e.g. sales) but also with long-term marketing measures such as brand image, brand perception and attitude. As a result, companies should know how to plan their recall communication to reduce negative impact. The purpose of this thesis regarding product recall is to investigate impact on consumer perception of the affected brands. More specifically, this thesis is drawn up to contribute to enhancing the understanding on this topic by researching, through a comprehensive model on the basis of a previous research, the impact of the following four variables on customer post-recall brand attitudes and purchase intentions: The time required to issue the recall after the primary signs of possible damage occurred; the responsible recall management; the opportunistic recall management; the responsibility assigned to the company for faulty or dangerous goods.

Keywords

Product recall, Crisis, Crisis management, Corporate reputation, Brand, Consumer perception

Language used: English

Date on which the thesis was submitted / produced: 1. 12. 2021

Thesis defence

• Supervisor: Ing. Richard Selby, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / field:
Economics Policy and Administration / Business Administration