A negative or positive signal? The impact of food recalls on negative word-of-mouth (N-WOM). (June 2021)

• Record Type: Journal Article
• Authors: Seo, Soobin; Jang, SooCheong (Shawn)
• Is Part Of: Journal of hospitality and tourism management. Volume 47(2021)
• Page Start: 150
• Page End: 158
• Publication Date: 2021-06
• Subjects: Negative word-of-mouth (N-WOM) -- Food recall -- Product harm crisis -- Brand equity -- Branding strategy; Hospitality industry -- Management -- Periodicals; Tourism -- Management -- Periodicals; Hospitality industry -- Australia -- Management -- Periodicals; Tourism -- Australia -- Management -- Periodicals; Hospitality industry -- Management; Tourism -- Management; Australia; Electronic journals; Periodicals; 338.4791068
• DOI: 10.1016/j.jhtm.2021.03.008
• Languages: English
• ISSNs: 1447-6770

Abstract

Abstract: Considering the increasing number of food recall incidents in the restaurant industry, it is crucial to examine the impact of food recall on consumers' negative word-of-mouth (N-WOM) intentions. This study examined the effects of the food recall announcement on consumers' N-WOM intentions, focusing specifically on crisis level and two brand-related forms of leverage, brand equity and branding strategy. A 2 (crisis level: low/high) x 2 (brand equity: low/high) x 2 (branding strategy: corporate branding/house of brands) scenario-based research design was employed using a self-administered online survey. The food recall announcement was found to be effective in reducing N-WOM intentions only for loyal consumers when the crisis level was high. Further, the use of the corporate branding strategy was effective in reducing N-WOM intentions compared to the house-of- branding strategy. These findings provide useful guidelines to practitioners on how to effectively announce food recalls.