TY - JOUR
T1 - The preservation of loyalty halo effects: An investigation of the post-product-recall behavior of loyal customers
T2 - An investigation of the post-product-recall behavior of loyal customers
AU - Byun, Kyug-Ah
AU - Duhan, Dale
AU - Dass, Mayukh
AU - Byun, Kyung Ah (Kay)
N1 - Funding Information:
The authors express their sincere appreciation to an anonymous retail company for their cooperation and support of this research. The authors also wish to thank the editor, Professor Anders Gustafsson, the associate editor, Professor Lauren Beitelspacher and five anonymous reviewers for their guidance and support throughout the review process. The third author acknowledges the financial support provided by the J.B. Hoskins Professorship at the Texas Tech University.
Publisher Copyright:
© 2020 Elsevier Inc.
PY - 2020/8
Y1 - 2020/8
N2 - This study examines the post-product-recall behaviors of previously loyal customers. Specifically, the study examines whether they stay with a product or leave it, and if they do stay, then how long they delay resumption of their regular purchase cycle. The investigation examines three types of influences on post-recall behavior: first, the behavioral characteristics of customers, including their levels of product loyalty and their strength of shopping habits; second, the use of post-recall promotions and loyal customers’ promotion sensitivity; and third, the recall characteristics, including its seriousness and its public announcement. Using 20,342 point-of-sale grocery scanner transactions by 1919 rewards card members, we found that loyal customers tended to stay with affected products while delaying repurchases of these products. Customers with strong shopping habits may leave the product but do not delay repurchases if they stay. The findings also suggest the differential effects of price promotions and non-price promotions on repurchase behaviors.
AB - This study examines the post-product-recall behaviors of previously loyal customers. Specifically, the study examines whether they stay with a product or leave it, and if they do stay, then how long they delay resumption of their regular purchase cycle. The investigation examines three types of influences on post-recall behavior: first, the behavioral characteristics of customers, including their levels of product loyalty and their strength of shopping habits; second, the use of post-recall promotions and loyal customers’ promotion sensitivity; and third, the recall characteristics, including its seriousness and its public announcement. Using 20,342 point-of-sale grocery scanner transactions by 1919 rewards card members, we found that loyal customers tended to stay with affected products while delaying repurchases of these products. Customers with strong shopping habits may leave the product but do not delay repurchases if they stay. The findings also suggest the differential effects of price promotions and non-price promotions on repurchase behaviors.
KW - Brand loyalty
KW - Loyalty halo effects
KW - Product recalls
KW - Purchase delay
KW - Retail promotion
KW - Shopping habits
UR - http://www.scopus.com/inward/record.url?scp=85085178362&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2020.05.010
DO - 10.1016/j.jbusres.2020.05.010
M3 - Article
VL - 116
SP - 163
EP - 175
JO - Journal of Business Research
JF - Journal of Business Research
ER -