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The effects of firm actions on customers’ responses to product recall crises: analyzing an automobile recall in China

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  • Jiuchang Wei
  • Ming Zhao
  • Fei Wang
  • Dingtao Zhao

Abstract

In times of product-harm crises, the involved firms always employ some countermeasures, such as releasing messages relevant to their response actions. To evaluate the influence of these messages on the perceptions and behavioral responses of corporate customers relative to the recalls, we conducted a case study of the Volkswagen automobile recall in China in 2013. Guided by the protective action decision model, we developed a conceptual model to first study customers’ responses to the recall crisis. Based on this model, we further examined the influence of two types of firm actions, namely technical and ceremonial, on the customer crisis-coping process. Results show that product experience, risk perception, and information seeking significantly influence customers’ behavioral intentions during the product recall crisis. Customers in the technical action group exhibit a higher level of risk perception based on their product experience and have a higher likelihood of seeking information. However, information seeking fails to influence their behavioral intentions. Ceremonial actions overcome the disadvantages of technical actions, but customers’ lack of solution information should be met. In this sense, crisis-involved firms are encouraged to employ a combination strategy including the implementation of the two types of firm actions and then promptly release the messages containing both actions.

Suggested Citation

  • Jiuchang Wei & Ming Zhao & Fei Wang & Dingtao Zhao, 2016. "The effects of firm actions on customers’ responses to product recall crises: analyzing an automobile recall in China," Journal of Risk Research, Taylor & Francis Journals, vol. 19(4), pages 425-443, April.
  • Handle: RePEc:taf:jriskr:v:19:y:2016:i:4:p:425-443
    DOI: 10.1080/13669877.2014.983946
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    Cited by:

    1. Li, Zhi & Xu, Jia & Tian, Jingjing & Wei, Jiuchang, 2023. "Consumers’ reaction to automobile recalls: The role of corporate non-market strategies and interstate relations," International Business Review, Elsevier, vol. 32(1).
    2. Chuanhui Liao & Yu Luo & Weiwei Zhu, 2020. "Food Safety Trust, Risk Perception, and Consumers’ Response to Company Trust Repair Actions in Food Recall Crises," IJERPH, MDPI, vol. 17(4), pages 1-16, February.
    3. Kolotylo-Kulkarni, Malgorzata & Marakas, George M. & Xia, Weidong, 2024. "Understanding protective behavior and vaccination adoption among US individuals during the COVID-19 pandemic: A four-wave longitudinal study," Journal of Business Research, Elsevier, vol. 179(C).
    4. David C. Hall & Tracy D. Johnson-Hall, 2021. "The value of downstream traceability in food safety management systems: an empirical examination of product recalls," Operations Management Research, Springer, vol. 14(1), pages 61-77, June.
    5. 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).

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