Hock, Stefan J.

Mafael, Alexander

Raithel, Sascha

English

Institutional Repository of the Freie Universität Berlin

Alexander  Mafae l Sascha  Ra i the l S te fan  J .  HockFre ie  Un i ve rs i t ä t  Be r l i n F re i e  Un i ve rs i t ä t  Be r l i n Un i ve rs i t y  o f  Connec t i cu tSchool of Business & EconomicsMarketing-DepartmentCustomer Satisfaction Management After a Product RecallMotivation• Product recalls occur frequently and disrupt consumer-brand relationships• Firms struggle with effective recall management• Different firms offer different types of remedy (i.e., compensation) to consumers• Current research offers no empirical guidance on the impact of the remedy choice on customer satisfactionEmpirical StudiesStudy 1: Estimating the Impact of Pre-recall Brand Equity on Firm‘s Remedy OfferStudy 2: The Impact of Remedy Offer on Fairness and SatisfactionStudy 3: The Longer-term Dynamics of Remedy Offer on Customer SatisfactionDataSelected ResultsConclusionsMain Findings: Remedy Choice• Firms‘ remedy choice is influenced by their level of pre-recall brand equity• High and low brand equity firms are significantly more likely to opt for partial remedyMain Findings: Consumer Response• High equity firms suffer because of perceptions of unfairness• Low equity firms diminish their potential for increases satisfactionMain Findings: Long-term Effects of Remedy Choice• High equity brands: deeper drop in satisfaction, longer recovery time• Low equity brands: forfeit potential to increase satisfaction levelsThree types of data1) Product recall data on 71 product recalls from 39 brands from 2008-2015 collected from official recall announcements (CPSC)2) Brand equity and satisfaction data based on daily brand evaluations, collected from YouGov‘s BrandIndex3) Behavioral ExperimentFigure 4. Post-recall change in customer satisfaction by type of remedy (Study 3)    -.03-.02-.01.00.01.020 10 20 30 40 50 60Change in customer satisfactionDay after recall announcementPartial FullFigure 6. The Brand Equity Gap between Actual and Ideal Remedy    Pre-recall Brand EquityActual Remedy ChoiceProbability of Firm’s Choice of Full (vs. Partial) RemedyIdeal Remedy ChoicePost-recall Customer Satisfaction after Full (vs. Partial) RemedyHigh Medium Low Gap betweenactual and ideal remedy choice

Customer Satisfaction Management After a Product Recall

https://refubium.fu-berlin.de/bitstream/handle/fub188/25243/Poster2018_4.pdf?sequence=1&isAllowed=y

Customer Satisfaction Management After a Product Recall

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