TY  - JOUR
AB  - Purpose This study aims to investigate the effects of firm characteristics and crisis characteristics on remedies offered to consumers by firms in the event of a product recall crisis.Design/methodology/approach Published data on 868 product recalls in the US toy industry from 1988 to 2011 have been used to investigate the effects of firm experience in product recalls, type of firm (company versus intermediary) and product recall severity in predicting remedies offered to consumers in the event of a product recall.Findings The findings show that firm recall experience, firm type and recall severity are negatively associated with recall remedies offered. Specifically, firms offer lower remedies if they have higher recall experience, if they are upstream firms in the supply chain (farther from consumers) and if the recall is more severe.Research limitations/implications This study focuses on the toy industry and does not consider product complexity, firm reputation and the role of external regulatory agencies in the prediction of remedies offered by firms. Future research may extend this study to include the above factors.Practical implications Offering a high remedy to consumers of a recalled product may be a responsible decision by a firm, but it may also attract shareholder wrath. The study has implications for managing multiple goals in product recall crisis management.Originality/value Studies focused on issues of interest to consumers during a recall crisis, such as swift recalls and appropriate remedies, are limited. This study contributes to the understanding of the antecedents of recall remedies.
VL  - 53
IS  - 5
SN  - 0309-0566
DO  - 10.1108/EJM-12-2017-0964
UR  - https://doi.org/10.1108/EJM-12-2017-0964
AU  - Muralidharan Etayankara
AU  - Bapuji Hari
AU  - Hora Manpreet
PY  - 2019
Y1  - 2019/01/01
TI  - The more I err, the less I pay: Effect of firm recall experience, firm type and recall severity on remedy to consumers
T2  - European Journal of Marketing
PB  - Emerald Publishing Limited
SP  - 916
EP  - 943
Y2  - 2024/04/25
ER  -