IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v167y2023ics0148296323005325.html
   My bibliography  Save this article

Remedy management for product recalls in the automotive industry: How car dealers should time the repair and communicate its outcome

Author

Listed:
  • Gelbrich, Katja
  • Voigt, Sarah
  • Nazifi, Amin

Abstract

This paper examines how car dealers should manage the remedy for recalled vehicles, specifically the timing of the repair and the message on its outcome. Drawing on the Health Belief Model, we hypothesize that customers prefer an immediate repair if they perceive a high risk and the wait time until next inspection is long. Regarding the outcome message, we hypothesize that communicating a risk reduction message positively affects customers' satisfaction with the car dealer, mediated by perceived credibility. Two preliminary studies (archival data analyses and interviews with managers) unveil that current remedy processes are not well aligned with these propositions, with car dealers often delaying the repair service for a recalled vehicle until next inspection for convenience reasons and veiling its outcome as a value increase. Two experimental studies support our hypotheses, confirming the central role of customers' risk concerns for remedy management.

Suggested Citation

  • Gelbrich, Katja & Voigt, Sarah & Nazifi, Amin, 2023. "Remedy management for product recalls in the automotive industry: How car dealers should time the repair and communicate its outcome," Journal of Business Research, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:jbrese:v:167:y:2023:i:c:s0148296323005325
    DOI: 10.1016/j.jbusres.2023.114173
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323005325
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.114173?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bleier, Alexander & Eisenbeiss, Maik, 2015. "The Importance of Trust for Personalized Online Advertising," Journal of Retailing, Elsevier, vol. 91(3), pages 390-409.
    2. Blake E. Ashforth & Barrie W. Gibbs, 1990. "The Double-Edge of Organizational Legitimation," Organization Science, INFORMS, vol. 1(2), pages 177-194, May.
    3. Mansur Khamitov & Yany Grégoire & Anshu Suri, 2020. "A systematic review of brand transgression, service failure recovery and product-harm crisis: integration and guiding insights," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 519-542, May.
    4. Liu, Dong & Varki, Sajeev, 2021. "The spillover effect of product recalls on competitors’ market value: The role of corporate product reliability," Journal of Business Research, Elsevier, vol. 137(C), pages 452-463.
    5. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    6. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    7. Emrich, Oliver & Paul, Michael & Rudolph, Thomas, 2015. "Shopping Benefits of Multichannel Assortment Integration and the Moderating Role of Retailer Type," Journal of Retailing, Elsevier, vol. 91(2), pages 326-342.
    8. Tianjun Feng & L. Robin Keller & Liangyan Wang & Yitong Wang, 2010. "Product Quality Risk Perceptions and Decisions: Contaminated Pet Food and Lead‐Painted Toys," Risk Analysis, John Wiley & Sons, vol. 30(10), pages 1572-1589, October.
    9. Cleeren, K. & Dekimpe, M.G. & Helsen, K., 2008. "Weathering product-harm crises," Other publications TiSEM 283b51f8-dd35-4a10-930a-8, Tilburg University, School of Economics and Management.
    10. Balaji, M.S. & Jiang, Yangyang & Jha, Subhash, 2021. "Nanoinfluencer marketing: How message features affect credibility and behavioral intentions," Journal of Business Research, Elsevier, vol. 136(C), pages 293-304.
    11. Sascha Raithel & Stefan J. Hock, 2021. "The crisis‐response match: An empirical investigation," Strategic Management Journal, Wiley Blackwell, vol. 42(1), pages 170-184, January.
    12. Andrew M. Malec & Patricia K. Smith & Anson E. Smuts, 2021. "Recall and Vehicle Characteristics Associated with Vehicle Repair Rates," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(1), pages 37-55, August.
    13. Nazifi, Amin & Murdy, Samantha & Marder, Ben & Gäthke, Jana & Shabani, Bardia, 2021. "A Bit(coin) of happiness after a failure: An empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool," Journal of Business Research, Elsevier, vol. 124(C), pages 494-505.
    14. Tiffany White & Debra Zahay & Helge Thorbjørnsen & Sharon Shavitt, 2008. "Getting too personal: Reactance to highly personalized email solicitations," Marketing Letters, Springer, vol. 19(1), pages 39-50, March.
    15. Topaloglu, Omer & Gokalp, Omer N., 2018. "How brand concept affects consumer response to product recalls: A longitudinal study in the U.S. auto industry," Journal of Business Research, Elsevier, vol. 88(C), pages 245-254.
    16. Enis Yakut & Ayse Gul Bayraktaroglu, 2021. "Consumer reactions to product recalls: the effects of intentionality, reputation, and public apology on purchase intentions," Journal of Business Economics, Springer, vol. 91(4), pages 527-564, May.
    17. Kathleen Cleeren & Marnik G. Dekimpe & Harald J. Heerde, 2017. "Marketing research on product-harm crises: a review, managerial implications, and an agenda for future research," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 593-615, September.
    18. Yuan, Denghua & Lin, Zhibin & Filieri, Raffaele & Liu, Ran & Zheng, Mengqin, 2020. "Managing the product-harm crisis in the digital era: The role of consumer online brand community engagement," Journal of Business Research, Elsevier, vol. 115(C), pages 38-47.
    19. Michael K. Lindell & Ronald W. Perry, 2012. "The Protective Action Decision Model: Theoretical Modifications and Additional Evidence," Risk Analysis, John Wiley & Sons, vol. 32(4), pages 616-632, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander Mafael & Sascha Raithel & Stefan J. Hock, 2022. "Managing customer satisfaction after a product recall: the joint role of remedy, brand equity, and severity," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 174-194, January.
    2. Li, Huashan & Bapuji, Hari & Talluri, Srinivas & Singh, Prakash J., 2022. "A Cross-disciplinary review of product recall research: A stakeholder-stage framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Jafarzadeh Ghazi, Amirhossein & Karray, Salma & Azad, Nader, 2023. "Price and quality competition while envisioning a quality-related product recall," European Journal of Operational Research, Elsevier, vol. 311(2), pages 486-501.
    4. Liu, Yang & Ouyang, Zhe & He, Mujia, 2022. "Why and when firms respond accommodatively to the product-harm crisis: An institutional perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    5. Vaid, Shashank & Donthu, Naveen, 2023. "When injured product users may also stay satisfied: A macro-level analysis," Journal of Business Research, Elsevier, vol. 162(C).
    6. Astvansh, Vivek & Eshghi, Kamran, 2023. "The effects of regulatory investigation, supplier defect, and product age on stock investors’ reaction to an automobile recall," Journal of Business Research, Elsevier, vol. 167(C).
    7. Marie Louise Radanielina Hita & Yany Grégoire & Bruno Lussier & Simon Boissonneault & Christian Vandenberghe & Sylvain Sénécal, 2023. "An extended health belief model for COVID-19: understanding the media-based processes leading to social distancing and panic buying," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 132-152, January.
    8. Zhihui Sun & Dejun Wu & Min Zhang, 2021. "Better late than never? Corporate social responsibility engagement after product-harm crises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1209-1259, December.
    9. 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.
    10. Byun, Kyung-Ah (Kay) & Duhan, Dale F. & Dass, Mayukh, 2020. "The preservation of loyalty halo effects: An investigation of the post-product-recall behavior of loyal customers," Journal of Business Research, Elsevier, vol. 116(C), pages 163-175.
    11. Yu, Heyao & Legendre, Tiffany S. & Ma, Jing, 2021. "We stand by our brand: Consumers’ post-food safety crisis purchase intention and moral reasoning," Journal of Business Research, Elsevier, vol. 132(C), pages 79-87.
    12. Li, Yi-Na & Li, Yan & Chen, Haipeng (Allan) & Wei, Jiuchang, 2023. "How verbal and non-verbal cues in a CEO apology for a corporate crisis affect a firm’s social disapproval," Journal of Business Research, Elsevier, vol. 167(C).
    13. Zhao, Taiyang & Ran, Yaxuan & Wu, Banggang & Lynette Wang, Valerie & Zhou, Liying & Lu Wang, Cheng, 2024. "Virtual versus human: Unraveling consumer reactions to service failures through influencer types," Journal of Business Research, Elsevier, vol. 178(C).
    14. Pomering, Alan & Johnson, Lester W., 2009. "Constructing a corporate social responsibility reputation using corporate image advertising," Australasian marketing journal, Elsevier, vol. 17(2), pages 106-114.
    15. Mukherjee, Arka & Carvalho, Margarida & Zaccour, Georges, 2023. "Managing quality and pricing during a product recall: An analysis of pre-crisis, crisis and post-crisis regimes," European Journal of Operational Research, Elsevier, vol. 307(1), pages 406-420.
    16. Khalifa, Dina & Shukla, Paurav, 2021. "When luxury brand rejection causes brand dilution," Journal of Business Research, Elsevier, vol. 129(C), pages 110-121.
    17. Mridula S. Mishra & Ruppal W. Sharma, 2019. "Brand Crisis-Sentiment Analysis of User-Generated Comments About @Maggi on Facebook," Corporate Reputation Review, Palgrave Macmillan, vol. 22(2), pages 48-60, May.
    18. Alfred Z. Liu & Angela Xia Liu & Sangkil Moon & Donald Siegel, 2024. "Does Corporate Social Responsibility Always Result in More Ethical Decision-Making? Evidence from Product Recall Remediation," Journal of Business Ethics, Springer, vol. 191(3), pages 443-463, May.
    19. Cockrell, Seth & Friske, Wesley & Voorhees, Clay M. & Calantone, Roger J., 2024. "The effects of innovation on product recall likelihood," Journal of Business Research, Elsevier, vol. 173(C).
    20. Swetalina Das & Pranati Mishra, 2020. "Role Of Corporate Social Responsibility In Advertising," Information Management and Computer Science (IMCS), Zibeline International Publishing, vol. 3(1), pages 20-21, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:167:y:2023:i:c:s0148296323005325. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.