The Impact of Food Safety Incidents Across Brands: The Case of the Peter Pan Peanut Butter Recall. (November 2014)

• Record Type: Journal Article
• Authors: Bakhtavoryan, Rafael; Capps, Oral; Salin, Victoria
• Is Part Of: Journal of agricultural and applied economics. Volume 46:Number 4(2014)
• Page Start: 559
• Page End: 573
• Publication Date: 2014-11
• Subjects: consumer demand, -- food safety, -- product recall, -- spillover effects, -- the Barten model; D12; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/S1074070800029102
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract : The effect of negative publicity on consumer demand for brands is examined in the context of recall of a peanut butter brand as a result of pathogen contamination. The recall was associated with negative impacts for the implicated brand and positive effects on the leading competitor brand. Consumers responded to the foodborne illness outbreak within three weeks. The case demonstrates that consumer response is an incentive for companies to prevent safety lapses and that the problems of one brand do not necessarily harm rivals within the category.