Measuring the short-term spillover impact of a product recall on a brand ecosystem

摘要: This research examines the short-term impact of a product recall on brand ecosystem by investigating following questions: How do spillover effects spread to (i) recalled brand’s related categories, (ii) competing brands, and (iii) private label brands? Studying 2003 Land O‘Lakes butter case using difference-in-differences model, our shows that negative spillovers occur within same family, carry over brands then quickly dissipate, but not competitor brands. Managerial implications directions for future are provided.