This was attributed to the fact that the proactive product recall strategies signal greater financial losses by the company as opposed to indicating corporate social responsibility. Several researchers have dedicated their work on the effects of product recalls on consumer safety (Ashenfelter & Greenstone 226)
It is clear that recall can either be initiated by the affected company or under the directions of a federal agency.Recalls always presents major challenges to manufacturing companies including; serious damage to the brand integrity, reputation of the manufacturing company and hence reduced sales volume (Cheah 428)
Conversely, some studies on the effects of vehicle recalls established that vehicle recalls are having a considerable negative effect on the outstanding values of the recall-prone vehicle models (Hartman 368). A considerable number of literatures that is connected with vehicle recalls looked at topics like the impacts of vehicle recall on the demand of the consumers for the motor vehicles (Crafton, Hoffer, and Reilly 700) and the resale prices and the wealth of many manufacturers (Jarrell and Peltzman, 513)
Conversely, some studies on the effects of vehicle recalls established that vehicle recalls are having a considerable negative effect on the outstanding values of the recall-prone vehicle models (Hartman 368). A considerable number of literatures that is connected with vehicle recalls looked at topics like the impacts of vehicle recall on the demand of the consumers for the motor vehicles (Crafton, Hoffer, and Reilly 700) and the resale prices and the wealth of many manufacturers (Jarrell and Peltzman, 513)
On the other hand, it can portray a positive image of the company depending why the recall was undertaken. Recalls can be categorized into three depending on the percentage of the product involved in the recall process thus; Major recall where more than 20% of the products are recalled; Medium recall occurs when the manufacturing company recalls products ranging from 10% to 20%; and finally minor recall happens when the manufacturing company recalls products less than 10% (Hartman 368)
Conversely, some studies on the effects of vehicle recalls established that vehicle recalls are having a considerable negative effect on the outstanding values of the recall-prone vehicle models (Hartman 368). A considerable number of literatures that is connected with vehicle recalls looked at topics like the impacts of vehicle recall on the demand of the consumers for the motor vehicles (Crafton, Hoffer, and Reilly 700) and the resale prices and the wealth of many manufacturers (Jarrell and Peltzman, 513)
Product recalls are made by companies at their own volition or with the demand from the government. Both forms of product recall have been indicated to be carried out as a result of the potential risk as that they pose serious safety risk to the consumers as pointed out by (Mowen et al
Product recall Product recall can be described as a request or process of returning either a batch or entire product to the producer due to discovery of defections and safety issues. Recall happens in cases where a product has been detected to have significant substandard quality and is found out to be violating on consumer product safety regulation standard hence dangerous for consumption (Pruitt and Peterson 122)
The way in which the manufacturing company shall handle the perceptions of the customers matters a lot and can be justified in different ways including; the attitude of the customers toward a company after the crisis depends on how the same customers perceived the company to have dealt with the recall crisis, if the customers feels that the company responded responsible to the crisis, then the customers will have positive perception towards the company the reverse is also true; In some cases, the customers may see that the company is managing the product recall in an opportunistic way, this is likely to create a negative perception of the customers towards the company. In the marketing world, it is very clear that reputation which is accorded to a particular brand of a company's product distinguishes the company with her competitors hence providing the company with benefits over others including; enabling the company to have easy access of finance, the brand also offers protection to the company against introduction of others in the market; provides the company with an opportunity to request for prices increases (Podolny 1993) Contradictory role of company's reputation in relation to the effects of a product recall campaign has been highlighted by the previous literature
This type of recall in one way or the other changes the perception of the consumers change from looking into the dangers he was exposed before to the quality of service promised. This voluntary recall has also been used by several companies to build their image; companies have been increasing their Brand capital through what is called "super effort" (Shrivastava and Siomkos 27) or improvement campaigns which is not proposed by the government agencies
These literatures have a focus on the managerial techniques of implementing product recalls Smith et al. (1996) as well as on risk assessment and management regarding product recall (Siomkos and Kurzbard, 283)
These literatures have a focus on the managerial techniques of implementing product recalls Smith et al. (1996) as well as on risk assessment and management regarding product recall (Siomkos and Kurzbard, 283)
The print media was also perceived as being trustworthy and more objective. Most of the existing literature on the recall of products puts a lot of emphasis on the part of management issues (Souiden and Pons, 106)
Numerous studies have been conducted regarding the various effects of vehicle recalls on the consumers. A number of the studies have been based on the kinds of regulation on vehicle recalls (Tobin 532)
Colombia is a country that has reshaped its image through a campaign of promoting corporate travel, of using social media to highlight that the security situation there has changed, and by focusing on the multiple positive attributes that it has to offer. This is part of message framing, which is a key marketing function (Rothman & Salovey, 1997)
A consumer might prefer to carry with them the premium image of an Apple computer rather than a comparable product from another manufacturer. Studies have noted that people will change their travel spending plans in response to a shift in perception of a certain place, for example if a country becomes viewed as being unsafe (Sonmez & Graefe, 1998)