Posted: September 13th, 2017

PRODUCT RECALLS CAN THREATEN A COMPANY OF ALL OF ITS BUSINESS AS THEY CAN NOTABLY HARM ITS REPUTATION, PROFITABILITY, AND BRAND INTEGRITY.

All I need from you is to concentrate on the companies and their recalls. The primary focus is to find a direct relationship with the EFFECT that is assigned to the company (look below). Please read the sentences carefully. Remember to focus on how the consumers feelings and reactions and the techniques the company’s used to regain their consumers. Make sure to pick one product recall for each. If you plan on using a portion of the journal into the discussion please remember to make a proper citation/ reference of all sources of information.
Please make sure to use A.P.A Style, 12 font size and double-space sentences. Include References.
Recalls and Their Effects on Consumer Behaviour
THESIS: PRODUCT RECALLS CAN THREATEN A COMPANY OF ALL OF ITS BUSINESS AS THEY CAN NOTABLY HARM ITS REPUTATION, PROFITABILITY, AND BRAND INTEGRITY.

Body Paragraphs:
Effect Number 1: Companies Reputation is At Stake
 Honda
How much damage did this specific recall do to the company’s reputation? Did the consumers expectations of the company’s overall business become lower? Has the company’s image overall image downgraded? What did the company do to rebuild their reputation and how did their custmors/public react to this comeback?

Effect Number 2: Profitability Decreases
 Mattel
Please find the sales/profits of each company in this effect (before recall, during recall, and after/current). Was there a substantial decrease in profits when the recall came into effect? How long did this decrease in profits last (i.e. a few months or a year)? What techniques did the company do to increase their profits? Did consumers see this profit decrease as a negative effect in their future purchases?

Effect Number 3: Brand Integrity
 Maple Leaf
What were the overall thoughts of the consumers who trusted this company when the recall came about? Did they feel betrayed? What was going through their minds? What did the companies do to try and regain the trust of their consumers?

• Honda recall’s Nearly Half A Million Cars Due To Leaky Brakes http://alttransport.com/2010/10/honda-recalls-nearly-half-a-million-cars-due-to-leaky-brakes/
• Mattel issues new massive China toy recall About 9 million items recalled; danger from magnets and lead paint http://www.msnbc.msn.com/id/20254745/
• Maple Leaf http://www.mapleleaf.com/en/pdf/Bartor_Road_Sliced_Meats_Recall_Background.pdf

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