DO PRODUCT RECALLS HURT BRAND IMAGE? EVIDENCE FROM EVA PREMIUM BOTTLED WATER IN ILORIN METROPOLIS, NIGERIA
DO PRODUCT RECALLS HURT BRAND IMAGE? EVIDENCE FROM EVA PREMIUM BOTTLED WATER IN ILORIN METROPOLIS, NIGERIA
Sažetak
Product recalls represent a double-edged sword that can hurt the recalling firm’s market value and create a dent in its brand image, while serving as a strategic signal of corporate responsibility when firms prioritize consumer safety over profit considerations. This study examines the effect of product recall practices on brand image, focusing on Eva Premium Bottled Water in the Ilorin metropolis. Adopting a positivist philosophy supported by a quantitative methodology, the study collected primary data through a structured and close-ended questionnaire administered to consumers and analysed using regression-based inferential statistics. The findings indicate that product recall frequency has a significant effect on brand perception, recall volume significantly influences brand positioning, and recall timing significantly impacts brand reliability. Accordingly, product recall practices significantly shape consumers’ evaluation of brand image. The study concludes that, when effectively managed, product recalls can enhance brand image by reinforcing consumer trust and signalling a firm’s commitment to public health and safety despite short-term reputational risks. The study recommends that brand managers adopt transparent communication strategies of timely announcements, clear explanations of recall causes, and detailed information on corrective measures during recall episodes. Aside from strengthening consumer confidence, such practices can reinforce the perception that consumer well-being takes precedence over profit maximization. While the study contributes to branding and crisis management literature, it acknowledges limitations related to geographic scope and reliance on self-reported consumer perceptions, suggesting future research incorporate multiple regions, industries, and complementary data sources.
Reference
1. Ahyun, K. Sang-Gun, L. & Donghyuk S. (2020). An Analysis of the Impact of Product Recall on Stock Prices based on Google Trend Search Counts. Global Business & Finance Review, 25(4), 33-50.
2. Baumann, C., Hamin, H., & Chong, A. (2015). The role of brand exposure and experience on brand recall—Product durables vis-à-vis FMCG. Journal of Retailing and Consumer Services, 23, 21–31.
3. Bian, X., & Moutinho, L. (2011). The role of brand image, product involvement, and knowledge in explaining consumer purchase behaviour of counterfeits: Direct and indirect effects. European Journal of Marketing, 45(1/2), 191–216.
4. Brauer, K. (2014). Why a massive safety recall hurt toyota more than Forbes. Retrieved from K. (2014). Why a massive safety recall hurt toyota more than,Forbes, https://www.forbes.com/sites/kbrauer/2014/07/01/why-massive-safety-recall-hurt-toyota-more-than-gm/#.
5. Byun, K.-A., & Dass, M. (2015). An investigation of the effects of product recalls on brand commitment and purchase intention. Journal of Consumer Marketing, 32(1), 1–14.
6. Carroll, B. (2020). Carroll’s CSR Pyramid explained: Theory, Examples and Criticism. Retrieved from https://www.toolshero.com › Strategy Theories
7. Chang, S., & Chang, H. (2015). Corporate motivations of product recall strategy: Exploring the role of corporate social responsibility in stakeholder engagement. Corporate Social Responsibility and Environmental Management, 22(6), 393–407.
8. Chen, Y., Ganesan, S., & Liu, Y. (2009). Does a firm’s product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises. Journal of Marketing, 73(6), 214–226.
9. Dond Liu and Sajeev Varki. (2021). The spillover effect of product recalls on competitors’ market value: The role of corporate product reliability. Journal of Business Research, 137, 452-463. https://doi.org/10.1016/j.jbusres.2021.08.047
10. Emerson, R. W. (2015). Convenience Sampling, Random Sampling, and Snowball Sampling: How Does Sampling Affect the Validity of Research? Journal of Visual Impairment & Blindness, 109(2), 164–168. https://doi.org/10.1177/0145482X1510900215
11. Fidelis, E. S., Otitoju, M. A., Idisi, P. O., Anazo, U. E., & Achemu, D. O. (2024). The determinants of recall event timing of contaminated frozen poultry products in retail outlets in North-Central Nigeria. Turkish Journal of Agriculture-Food Science and Technology, 12(s2), 2222–2233.
12. Freundt, V. L. M. A., & Foschiera, L. V. B. (2024). The impact of voluntary recall on the trust of loyal and first-time consumers in a high awareness brand after a functional transgression. Corporate Reputation Review, 27(3), 172–184.
13. Germann, F., Grewal, R., Ross Jr, W. T., & Srivastava, R. K. (2014). Product recalls and the moderating role of brand commitment. Marketing Letters, 25(2), 179–191.
14. Hamaker, E. L. (2024). The Curious Case of the Cross-Sectional Correlation. Multivariate Behavioral Research, 59(6), 1111–1122. https://doi.org/10.1080/00273171.2022.2155930
15. Hennink, M., & Kaiser, B. N. (2022). Sample sizes for saturation in qualitative research: A systematic review of empirical tests. Social Science & Medicine, 292, 114523.
16. Henriksen, M. G., Englander, M., & Nordgaard, J. (2022). Methods of data collection in psychopathology: the role of semi-structured, phenomenological interviews. Phenomenology and the Cognitive Sciences, 21(1), 9–30.
17. Jones, T. M., Harrison, J. S. & Felps, W. (2018). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 43(3), 371–391. https://doi.org/10.5465/amr.2016.0111
18. Jovanovic, B. (2021). Product recalls and firm reputation. American Economic Journal: Microeconomics, 13(3), 404–442.
19. Kato, T. (2021). Brand loyalty explained by concept recall: recognizing the significance of the brand concept compared to features. Journal of Marketing Analytics, 9(3), 185.
20. Kim, H. G., Chun, W., & Wang, Z. (2021). Multiple-dimensions of corporate social responsibility and global brand value: a stakeholder theory perspective. Journal of Marketing Theory and Practice, 29(4), 409–422.
21. Kini, O., Shenoy, J., & Subramaniam, V. (2017). Impact of financial leverage on the incidence and severity of product failures: Evidence from product recalls. The Review of Financial Studies, 30(5), 1790–1829.
22. Lee, L. F., Hutton, A. P., & Shu, S. (2015). The role of social media in the capital market: Evidence from consumer product recalls. Journal of Accounting Research, 53(2), 367–404.
23. Leitch, C. M., Hill, F. M., & Harrison, R. T. (2010). The philosophy and practice of interpretivist research in entrepreneurship: Quality, validation, and trust. Organizational Research Methods, 13(1), 67–84.
24. Liu, A. X., & Zhao, K. P. (2015). What Drives a Firm's Choice of Product Recall Remedy? The Impact of Remedy Cost, Product Hazard, and the CEO. Journal of Marketing, 80(3), 79-95. DOI:10.1509/jm.14.0382
25. Lo, F.-Y., Rey-Martí, A., & Botella-Carrubi, D. (2020). Research methods in business: Quantitative and qualitative comparative analysis. Journal of Business Research, 115, 221–224. https://doi.org/10.1016/j.jbusres.2020.05.003
26. Luiza, V. B. & Valeria, F. (2017). Effects of Voluntary Product Recall on Consumer’s Trust. Brazilian Business Review, 14(2). https://doi.org/10.15728/bbr.2017.14.2.4
27. Mafael, A., Raithel, S., & Hock, S. J. (2022). Managing customer satisfaction after a product recall: the joint role of remedy, brand equity, and severity. Journal of the Academy of Marketing Science, 50(1), 174–194.
28. Maier, C., Thatcher, J. B., Grover, V., & Dwivedi, Y. K. (2023). Cross-sectional research: A critical perspective, use cases, and recommendations for IS research. International Journal of Information Management, 70, 102625. https://doi.org/10.1016/j.ijinfomgt.2023.102625
29. Mak, S. L, Fanny, W. F, Geddy, T. W and Tang, C. H. (2020). The Influence and Good Practice of Product Recall on Brand Image and Customer Perceived Product Quality. International Journal of Business, Humanities and Technology, 10(2), 1-6. https://doi.org/10.30845/ijbht.v10n2p2
30. Mak, S. L., Tang, F. W. F., Li, C. H., & Lee, G. (2020). The Influence and Good Practice of Product Recall on Brand Image and Customer Perceived Product Quality. International Journal of Business, Humanities and Technology, 10(2).
31. Martins, A. M., & Pires, C. P. (2023). Do CEO characteristics matter in product recalls? International Journal of the Economics of Business, 30(3), 207–232.
32. Mehreen, K., Faisal, Q. & Muhammad, S. (2018). The Role of brand recall, recognition and Price Consciousness in Understanding Actual Purchase. Journal of Research in Social Sciences, 6(2). Retrieved from https://hdl.handle.net/10419/200085
33. Mkansi, M., & Acheampong, E. A. (2012). Research philosophy debates and classifications: students’ dilemma. Electronic Journal of Business Research Methods, 10(2), pp132-140.
34. Monday, T. U. (2020). Impacts of interview as research instrument of data collection in social sciences. Journal of Digital Art & Humanities, 1(1), 15–24.
35. Olewu, J., & Iboko, C. (2023). Revaluating the Regime of Celebrity Endorsement, Product Liability and Consumer Protection in Nigeria. Product Liability and Consumer Protection in Nigeria (July 16, 2023).
36. Ortis, J. R., &Strudler, A. (2012). nstitutional investors and corporate social responsibility. Journal of Corporate Finance, 58(3), 700-725. https://doi.org/10.1016/j.jcorpfin.2019.07.012
37. Pilcher, N., & Cortazzi, M. (2024). “Qualitative” and “quantitative” methods and approaches across subject fields: Implications for research values, assumptions, and practices. Quality & Quantity, 58(3), 2357–2387. https://doi.org/10.1007/s11135-023-01734-4
38. Pouliot, S., & Wang, H. H. (2018). Information, incentives, and government intervention for food safety. Annual Review of Resource Economics, 10(1), 83–103.
39. Raithel, S., Mafael, A., & Hock, S. J. (2021). The effects of brand equity and failure severity on remedy choice after a product recall. Journal of Product & Brand Management, 30(8), 1247–1261.
40. Shah, R., Ball, G. P., & Netessine, S. (2017). Plant operations and product recalls in the automotive industry: An empirical investigation. Management Science, 63(8), 2439–2459.
41. Souiden, N., & Pons, F. (2009). Product recall crisis management: the impact on manufacturer’s image, consumer loyalty and purchase intention. Journal of Product & Brand Management, 18(2), 106–114.
42. Spector, P. E. (2019). Do Not Cross Me: Optimizing the Use of Cross-Sectional Designs. Journal of Business and Psychology, 34(2), 125–137. https://doi.org/10.1007/s10869-018-09613-8
43. Suchet, J. (2019). The impact of the type of content marketing on brand image: An empirical study on four experimental cases. Louvain School of Management, Université catholique de Louvain,. Retrieved from http://hdl.handle.net/2078.1/thesis:21025
44. The Punch. (2023). NAFDAC Orders Recall of Contaminated Sprite Batch. Abuja: Punch.
45. Topaloglu, O., & Gokalp, O. N. (2018). How brand concept affects consumer response to product recalls: A longitudinal study in the US auto industry. Journal of Business Research, 88, 245–254.
46. Yu, W., Cui, F., Han, X., & Lv, M. (2023). Does a corporation’s food recall strategy affect its brand image and consumers’ intention to purchase? A study in the context of cereal recall in China. British Food Journal, 125(4), 1437–1452.
2. Baumann, C., Hamin, H., & Chong, A. (2015). The role of brand exposure and experience on brand recall—Product durables vis-à-vis FMCG. Journal of Retailing and Consumer Services, 23, 21–31.
3. Bian, X., & Moutinho, L. (2011). The role of brand image, product involvement, and knowledge in explaining consumer purchase behaviour of counterfeits: Direct and indirect effects. European Journal of Marketing, 45(1/2), 191–216.
4. Brauer, K. (2014). Why a massive safety recall hurt toyota more than Forbes. Retrieved from K. (2014). Why a massive safety recall hurt toyota more than,Forbes, https://www.forbes.com/sites/kbrauer/2014/07/01/why-massive-safety-recall-hurt-toyota-more-than-gm/#.
5. Byun, K.-A., & Dass, M. (2015). An investigation of the effects of product recalls on brand commitment and purchase intention. Journal of Consumer Marketing, 32(1), 1–14.
6. Carroll, B. (2020). Carroll’s CSR Pyramid explained: Theory, Examples and Criticism. Retrieved from https://www.toolshero.com › Strategy Theories
7. Chang, S., & Chang, H. (2015). Corporate motivations of product recall strategy: Exploring the role of corporate social responsibility in stakeholder engagement. Corporate Social Responsibility and Environmental Management, 22(6), 393–407.
8. Chen, Y., Ganesan, S., & Liu, Y. (2009). Does a firm’s product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises. Journal of Marketing, 73(6), 214–226.
9. Dond Liu and Sajeev Varki. (2021). The spillover effect of product recalls on competitors’ market value: The role of corporate product reliability. Journal of Business Research, 137, 452-463. https://doi.org/10.1016/j.jbusres.2021.08.047
10. Emerson, R. W. (2015). Convenience Sampling, Random Sampling, and Snowball Sampling: How Does Sampling Affect the Validity of Research? Journal of Visual Impairment & Blindness, 109(2), 164–168. https://doi.org/10.1177/0145482X1510900215
11. Fidelis, E. S., Otitoju, M. A., Idisi, P. O., Anazo, U. E., & Achemu, D. O. (2024). The determinants of recall event timing of contaminated frozen poultry products in retail outlets in North-Central Nigeria. Turkish Journal of Agriculture-Food Science and Technology, 12(s2), 2222–2233.
12. Freundt, V. L. M. A., & Foschiera, L. V. B. (2024). The impact of voluntary recall on the trust of loyal and first-time consumers in a high awareness brand after a functional transgression. Corporate Reputation Review, 27(3), 172–184.
13. Germann, F., Grewal, R., Ross Jr, W. T., & Srivastava, R. K. (2014). Product recalls and the moderating role of brand commitment. Marketing Letters, 25(2), 179–191.
14. Hamaker, E. L. (2024). The Curious Case of the Cross-Sectional Correlation. Multivariate Behavioral Research, 59(6), 1111–1122. https://doi.org/10.1080/00273171.2022.2155930
15. Hennink, M., & Kaiser, B. N. (2022). Sample sizes for saturation in qualitative research: A systematic review of empirical tests. Social Science & Medicine, 292, 114523.
16. Henriksen, M. G., Englander, M., & Nordgaard, J. (2022). Methods of data collection in psychopathology: the role of semi-structured, phenomenological interviews. Phenomenology and the Cognitive Sciences, 21(1), 9–30.
17. Jones, T. M., Harrison, J. S. & Felps, W. (2018). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 43(3), 371–391. https://doi.org/10.5465/amr.2016.0111
18. Jovanovic, B. (2021). Product recalls and firm reputation. American Economic Journal: Microeconomics, 13(3), 404–442.
19. Kato, T. (2021). Brand loyalty explained by concept recall: recognizing the significance of the brand concept compared to features. Journal of Marketing Analytics, 9(3), 185.
20. Kim, H. G., Chun, W., & Wang, Z. (2021). Multiple-dimensions of corporate social responsibility and global brand value: a stakeholder theory perspective. Journal of Marketing Theory and Practice, 29(4), 409–422.
21. Kini, O., Shenoy, J., & Subramaniam, V. (2017). Impact of financial leverage on the incidence and severity of product failures: Evidence from product recalls. The Review of Financial Studies, 30(5), 1790–1829.
22. Lee, L. F., Hutton, A. P., & Shu, S. (2015). The role of social media in the capital market: Evidence from consumer product recalls. Journal of Accounting Research, 53(2), 367–404.
23. Leitch, C. M., Hill, F. M., & Harrison, R. T. (2010). The philosophy and practice of interpretivist research in entrepreneurship: Quality, validation, and trust. Organizational Research Methods, 13(1), 67–84.
24. Liu, A. X., & Zhao, K. P. (2015). What Drives a Firm's Choice of Product Recall Remedy? The Impact of Remedy Cost, Product Hazard, and the CEO. Journal of Marketing, 80(3), 79-95. DOI:10.1509/jm.14.0382
25. Lo, F.-Y., Rey-Martí, A., & Botella-Carrubi, D. (2020). Research methods in business: Quantitative and qualitative comparative analysis. Journal of Business Research, 115, 221–224. https://doi.org/10.1016/j.jbusres.2020.05.003
26. Luiza, V. B. & Valeria, F. (2017). Effects of Voluntary Product Recall on Consumer’s Trust. Brazilian Business Review, 14(2). https://doi.org/10.15728/bbr.2017.14.2.4
27. Mafael, A., Raithel, S., & Hock, S. J. (2022). Managing customer satisfaction after a product recall: the joint role of remedy, brand equity, and severity. Journal of the Academy of Marketing Science, 50(1), 174–194.
28. Maier, C., Thatcher, J. B., Grover, V., & Dwivedi, Y. K. (2023). Cross-sectional research: A critical perspective, use cases, and recommendations for IS research. International Journal of Information Management, 70, 102625. https://doi.org/10.1016/j.ijinfomgt.2023.102625
29. Mak, S. L, Fanny, W. F, Geddy, T. W and Tang, C. H. (2020). The Influence and Good Practice of Product Recall on Brand Image and Customer Perceived Product Quality. International Journal of Business, Humanities and Technology, 10(2), 1-6. https://doi.org/10.30845/ijbht.v10n2p2
30. Mak, S. L., Tang, F. W. F., Li, C. H., & Lee, G. (2020). The Influence and Good Practice of Product Recall on Brand Image and Customer Perceived Product Quality. International Journal of Business, Humanities and Technology, 10(2).
31. Martins, A. M., & Pires, C. P. (2023). Do CEO characteristics matter in product recalls? International Journal of the Economics of Business, 30(3), 207–232.
32. Mehreen, K., Faisal, Q. & Muhammad, S. (2018). The Role of brand recall, recognition and Price Consciousness in Understanding Actual Purchase. Journal of Research in Social Sciences, 6(2). Retrieved from https://hdl.handle.net/10419/200085
33. Mkansi, M., & Acheampong, E. A. (2012). Research philosophy debates and classifications: students’ dilemma. Electronic Journal of Business Research Methods, 10(2), pp132-140.
34. Monday, T. U. (2020). Impacts of interview as research instrument of data collection in social sciences. Journal of Digital Art & Humanities, 1(1), 15–24.
35. Olewu, J., & Iboko, C. (2023). Revaluating the Regime of Celebrity Endorsement, Product Liability and Consumer Protection in Nigeria. Product Liability and Consumer Protection in Nigeria (July 16, 2023).
36. Ortis, J. R., &Strudler, A. (2012). nstitutional investors and corporate social responsibility. Journal of Corporate Finance, 58(3), 700-725. https://doi.org/10.1016/j.jcorpfin.2019.07.012
37. Pilcher, N., & Cortazzi, M. (2024). “Qualitative” and “quantitative” methods and approaches across subject fields: Implications for research values, assumptions, and practices. Quality & Quantity, 58(3), 2357–2387. https://doi.org/10.1007/s11135-023-01734-4
38. Pouliot, S., & Wang, H. H. (2018). Information, incentives, and government intervention for food safety. Annual Review of Resource Economics, 10(1), 83–103.
39. Raithel, S., Mafael, A., & Hock, S. J. (2021). The effects of brand equity and failure severity on remedy choice after a product recall. Journal of Product & Brand Management, 30(8), 1247–1261.
40. Shah, R., Ball, G. P., & Netessine, S. (2017). Plant operations and product recalls in the automotive industry: An empirical investigation. Management Science, 63(8), 2439–2459.
41. Souiden, N., & Pons, F. (2009). Product recall crisis management: the impact on manufacturer’s image, consumer loyalty and purchase intention. Journal of Product & Brand Management, 18(2), 106–114.
42. Spector, P. E. (2019). Do Not Cross Me: Optimizing the Use of Cross-Sectional Designs. Journal of Business and Psychology, 34(2), 125–137. https://doi.org/10.1007/s10869-018-09613-8
43. Suchet, J. (2019). The impact of the type of content marketing on brand image: An empirical study on four experimental cases. Louvain School of Management, Université catholique de Louvain,. Retrieved from http://hdl.handle.net/2078.1/thesis:21025
44. The Punch. (2023). NAFDAC Orders Recall of Contaminated Sprite Batch. Abuja: Punch.
45. Topaloglu, O., & Gokalp, O. N. (2018). How brand concept affects consumer response to product recalls: A longitudinal study in the US auto industry. Journal of Business Research, 88, 245–254.
46. Yu, W., Cui, F., Han, X., & Lv, M. (2023). Does a corporation’s food recall strategy affect its brand image and consumers’ intention to purchase? A study in the context of cereal recall in China. British Food Journal, 125(4), 1437–1452.
Objavljeno
2026/07/07
Broj časopisa
Rubrika
Članci