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1 – 10 of over 30000Rajan Chandran and Richard A. Lancioni
Product recalls are no longer in the realm of theoretical possibilities; it is a regular fact of business life among manufacturers of both industrial and consumer products…
Abstract
Product recalls are no longer in the realm of theoretical possibilities; it is a regular fact of business life among manufacturers of both industrial and consumer products. Machine tools, automobiles, television sets, appliances, cosmetics, clothes — no product is immune and the list is virtually endless. The actual number of product units recalled every year among the various classes of products is mind‐boggling, and the cost of recalling them runs into millions of dollars. And as for the future, the prognostication from the evidence so far is that the number and types of products as well as the companies involved will continue to grow. The principal reasons for this prognostication are:
Kirk Luther, Zak Keeping, Brent Snook, Hannah de Almeida, Weyam Fahmy, Alexia Smith and Tianshuang Han
The purpose of this study is to contribute to the literature on information elicitation. The authors investigated the impact of social influence strategies on eyewitness recall…
Abstract
Purpose
The purpose of this study is to contribute to the literature on information elicitation. The authors investigated the impact of social influence strategies on eyewitness recall performance. Specifically, the authors examined the effect of social influence techniques (Cialdini, 2007) on recall performance (Experiment 1) and conducted a follow-up experiment to examine the incremental effect of social proof on the report everything cognitive interview mnemonic (Experiment 2).
Design/methodology/approach
Participants watched a video depicting vandalism (Experiment 1: N = 174) or a verbal altercation (Experiment 2: N = 128) and were asked to recall the witnessed event. Experiment 1: Participants were assigned randomly to one of six conditions: control (open-ended prompt), engage and explain (interview ground rules), consistency (signing an agreement to work diligently), reciprocity (given water and food), authority (told of interviewer’s training) and social proof (shown transcript from an exemplar participant). Experiment 2: The authors used a 2 (social proof: present, absent) × 2 (report everything: present, absent) between-participants design.
Findings
Across both experiments, participants exposed to the social proof tactic (i.e. compared to a model exemplar) spoke longer and recalled more correct details than participants not exposed to the social proof tactic. In Experiment 2, participants interviewed with the report everything mnemonic also spoke longer, recalled more correct details, more incorrect details and provided slightly more confabulations than those not interviewed with the report everything mnemonic.
Originality/value
The findings have practical value for police investigators and other professionals who conduct interviews (e.g. military personnel, doctors obtaining information from patients). Interviewers can incorporate social proof in their interviewing practices to help increase the amount and accuracy of information obtained.
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David Cavazos, Mathew Rutherford and Ali Shahzad
This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.
Abstract
Purpose
This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.
Design/methodology/approach
Longitudinal analysis of 17,879 recalls from 15 automobile manufacturers operating in the United States between 1967 and 2016.
Findings
Applying the behavioral theory of the firm (BTF) and signaling theory, this study’s findings suggest that product safety reputation creates variability in the likelihood of both voluntary and government-ordered recalls.
Research limitations/implications
Performance expectations set by past product performance influence managerial decision-making such that products with a higher reputation for quality are more likely to be voluntarily recalled than are their less reputable counterparts. Similarly, regulators are more likely to order the recall of higher reputation products, suggesting that past product performance also influences enforcement behavior. Finally, the scope and severity of product defects are shown to interact with product reputation to influence the likelihood of government-ordered recall.
Practical implications
Firms and firm stakeholders make distinct decisions based on performance variations within firm product portfolios.
Social implications
Overall firm reputation is important, but there are distinct dynamics that result in product performance variability within firm product portfolios that have important implications on issues such as product safety recalls.
Originality/value
This study's findings reveal that as an internal signal, managers' expectations of product performance can change their behavior following product safety defects. Specifically, voluntary product recalls are more likely for higher-reputation products than those with lower reputations for product safety. This suggests that firm behavior regarding product safety recalls is not consistent within their own product lines. Externally, this study’s findings suggest that product reputation also influences relationships with key stakeholders. Product reputation for quality was shown to be associated with an increased likelihood of government sanctions. Regulators will also be more likely to initiate punitive sanctions against higher-reputation products as the severity and scope of safety defects increase. Under such circumstances, higher-reputation products are more likely to face government sanctions than lower-reputation products. Hence, government regulatory behavior is subject to influence from performance signals such as product reputation.
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António Miguel Martins and Cesaltina Pacheco Pires
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Abstract
Purpose
This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.
Design/methodology/approach
The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.
Findings
The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.
Practical implications
This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.
Originality/value
The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.
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Weiping Yu, Fasheng Cui, Xiaoyun Han and Mengjiao Lv
Food recalls are more potentially harmful than other product recalls. This research aimed to investigate the effect of the recall strategies of food corporations on their brand…
Abstract
Purpose
Food recalls are more potentially harmful than other product recalls. This research aimed to investigate the effect of the recall strategies of food corporations on their brand image and consumers’ purchase intention.
Design/methodology/approach
This study adopts a between-subjects experiment of 2 (corporate recall strategy: voluntary recall, mandatory recall) *3 (food recall level (severity): high, medium, low), and recruits 224 consumers involved in cereal product recall in China. The authors inductively examine the effects of voluntary and mandatory recall on consumer perception and behavior intentions in the recall process.
Findings
Voluntary recall (vs. mandatory recall) will improve corporate brand responsibility image (vs. brand ability image) and consumers’ purchase intention to focal brand (vs. competitive brand and organic brand). Perceived corporate legitimacy and food safety play a mediating role. The former has a greater positive impact on brand image, and the latter has a more significant favorable influence on purchase intention. Furthermore, recall level has a moderating effect on the association between corporate recall strategy and perceived food safety, but is not significant in the effect of corporate recall strategy on perceived corporate legitimacy.
Originality/value
Previous inconsistent conclusions cannot effectively guide food corporations to manage recall strategies. This paper demonstrates the response mechanism of the recall strategy from the perspective of corporate social responsibility, which is beneficial to food safety crisis management and research.
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Some parameters and techniques in use for describing the results of tests on IR systems are analysed. Several considerations outside the scope of the usual 2 x 2 table are…
Abstract
Some parameters and techniques in use for describing the results of tests on IR systems are analysed. Several considerations outside the scope of the usual 2 x 2 table are relevant to the choice of parameters. In particular, a variable which produces a ‘performance curve’ of a system corresponds to an extension of the 2 x 2 table. Also, the statistical relationships between parameters are all‐important. It is considered that precision is not such a useful measure of performance (in conjunction with recall) as fallout. A more powerful alternative to Cleverdon's ‘inevitable inverse relationship between recall and precision’ is proposed and justified, namely that the recall‐fallout graph is convex.
The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness…
Abstract
Purpose
The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness.
Design/methodology/approach
By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the paper uses content analysis to compare and contrast toy recalls, product hazards and country of origin issues of 721 toy recalls in the US market between 1974 and 2008, covering 270 million recalled toys.
Findings
Findings of this work reveal that most of the recalled toys were manufactured in China, although a wide variety of toy brands were designed in the USA. Major hazards of toy recalls included choking, lead poisoning, aspiration, fire/burn and other injuries.
Research limitations/implications
The study relied on the CPSC's data that seemed representative of the toy industry in the US market, but missed other markets of Europe and Asia. Also, there was availability of detailed data in sub-categories of the toy industry.
Practical implications
The paper provides useful academic and managerial implications that can help us understand the issues of product recalls and product-harm crises.
Social implications
Toys are one of the most widely available products in the world; the industry is a $50 billion industry and has transformed itself from a small-scale business sector into a well-established industry.
Originality/value
This investigation is particularly important in the areas of firm-specific competitiveness, business ethics and regulatory and societal issues.
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Călin Gurău and Adriana Serban
Product recall messages represent an essential communication tool in crisis situations. Their function is twofold: to provide information of a practical nature regarding the…
Abstract
Product recall messages represent an essential communication tool in crisis situations. Their function is twofold: to provide information of a practical nature regarding the defective product, and the operational process of recalling it, and to defend the reputation of the affected firm. This paper attempts to analyse the structure and the function of product recall messages published in the UK national press, using as points of reference best practice guides published by professional or governmental organisations.
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Monica D Hernandez and Michael S Minor
The purpose of this paper is to attempt to answer whether there is a difference between retrieving memory by using recall or false recall of brands in an interactive and…
Abstract
Purpose
The purpose of this paper is to attempt to answer whether there is a difference between retrieving memory by using recall or false recall of brands in an interactive and imagery-rich environment such as advergaming, and there are differences in memory in the same context if the languages of proficiency are based on the same script (e.g. alphabetic/alphabetic such as Spanish/English) versus cross-script (e.g. logographic/alphabetic, such as Chinese/English).
Design/methodology/approach
A series of international experiments addressed memory of brand placements in advergames – via correct and false recall – across groups of bilinguals from China, Mexico and South Korea.
Findings
The most salient finding of this study revealed advergame interactivity increased false memory more pronouncedly in the proficient groups (“experts”), supporting the notion of increased false recall as a result of feelings of accountability that experts naturally experience.
Research limitations/implications
The procedures of the international experiments were susceptible to some limitations concerning sampling design and experimental stimuli. Despite its limitations, this study helps to uncover the effect of these elements in short-term brand memory, to guide marketers for an effective use of brand and product placements in advergames.
Originality/value
Analysis of both correct and false recall of bilinguals in imagery-rich environments is of utmost importance. In these environments, memory may originate from experience or from imagination. The study addressed brand memory among diverse Internet audiences by taking into account both correct memory scores as well as false memory scores within the advergaming context.
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Abstract
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