One bad apple spoils the bunch? An exploration of broad consumption changes in response to food recalls

While it is widely known that food recalls can have large, negative financial and reputational impacts, we know relatively little related to what factors increase consumers’ propensity towards broad consumption changes during food recalls. Consequently, we designed a survey instrument to better understand consumer reaction to food recalls, and in particular, uncover the driving influences behind these broad consumption changes. Results were analyzed using hierarchical regression analysis. We find that recall concern, propensity to reduce consumption beyond the recall parameters in the situation of both specific branded and unbranded products, and media reliance hold strong, direct effects on broad consumption changes. Further, recall awareness exhibited a minimal role as a moderating influence, but held a strong, direct relationship with the broad consumption changes dependent measure. In addition, using chi-square tests of differences, we find two distinct points of divergence between Millennials and Non-Millennials. First, Millennials have much lower recall awareness. Secondly, Millennials are more likely to react in ways unwarranted by the recall than older generations for the peanut butter recall scenario. These findings are extremely important as policymakers, commodity processors, food manufacturers, and food retailers develop strategies for minimizing the negative impacts from food recalls.