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Effects of Voluntary Product Recall on Consumer’s Trust

Author

Listed:
  • Luiza Venzke Bortoli

    (Instituto Federal de Educação, Ciência e Tecnologia do Rio Grande do Sul (IFRS))

  • Valeria Freundt

    (Insper)

Abstract

This study analyzed the impact of voluntary product recall due to product failure on consumer’s trust. Since trust is composed by integrity, competence and benevolence, this study verified the mediator effect of these constructs on the relation between recall and trust. Once trust is essential for the establishment of a relationship between companies and consumers, this research also evaluated the effects of relational and transactional purchase situations on consumer’s trust and its constructs. We conducted an experimental study with a 2 (recall: control; voluntary recall) x 2 (purchase situation: relational; transactional) between subjects design. The results indicated that voluntary recall has a positive effect on the variables analyzed. Integrity and competence fully mediate the relation between voluntary recall and trust. Purchase situation moderates the effect of voluntary recall on competence.

Suggested Citation

  • Luiza Venzke Bortoli & Valeria Freundt, 2017. "Effects of Voluntary Product Recall on Consumer’s Trust," Brazilian Business Review, Fucape Business School, vol. 14(2), pages 204-224, March.
    • Handle: RePEc:bbz:fcpbbr:v:14:y:2017:i:2:p204-224
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    References listed on IDEAS

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    Cited by:

    1. Valeria L M A Freundt & Luiza Venzke Bortoli Foschiera, 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, Palgrave Macmillan, vol. 27(3), pages 172-184, August.
    2. Mukherjee, Arka & Chauhan, Satyaveer S., 2021. "The impact of product recall on advertising decisions and firm profit while envisioning crisis or being hazard myopic," European Journal of Operational Research, Elsevier, vol. 288(3), pages 953-970.

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