The Effects of Firm Actions on Customers’ Responses to Product Recall Crises in the Automobile Industry

Articles in Press

Document Type : Research Paper

Authors

1 Graduate School of Global Studies, Sophia University

2 Graduate Program in International Business and Development Studies, Sophia University

Abstract

Product recalls in various industries are common. In managing quality-related crises, the behavior of enterprises significantly impacts their brand image. In recent years, there has been an increase in global production, product complexity, and customer demand for product quality and safety, leading to frequent product hazards worldwide. Companies often use product recalls to address defective, harmful, or dangerous products. This study examines the impact of different companies' behaviors on consumers and identifies which firm actions positively influence brand image during product recalls. It focuses on the influence of manufacturers' varied responses on consumers in the automobile industry and identifies corporate actions that bolster brand image amidst product recall crises. Data were collected via a survey to test hypotheses regarding these impacts. We determined which company actions during recall events affect consumer evaluations of the company’s products and brand image. Based on these findings, we offer suggestions for companies' recall strategies.

Keywords

References

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Journal of Optimization and Supply Chain Management

Articles in Press, Accepted Manuscript
Available Online from 12 April 2025

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