Date of Award

1-1-2013

Document Type

Open Access Dissertation

Department

Moore School of Business

First Advisor

Satish Jayachandran

Abstract

Every year, firms make numerous announcements to recall products that are deemed unsafe or defective. These recalls pose a significant threat to a firm's brand reputation. The strong, negative reactions of consumers and the media to the recalls initiated by Toyota in 2010 show how fragile brands are in the wake of a recall. Firms spend a great amount of resources on building strong brands and it is unclear how such brands influence the firm's decision to announce a recall and the consumer's decision to return the recalled product. The objective of this dissertation is to shed some light on these subjects through two essays. The first essay focuses on the role of brands on the firm's recall timing decision whereas the second essay focuses on the role of brands on the consumer's product return decision. The findings from both studies have important implications for managers and policy makers regarding the management of product recalls.

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