Product recalls and product-harm crises

Author(s):  
Syed Tariq Anwar

Purpose – The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness. Design/methodology/approach – By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the paper uses content analysis to compare and contrast toy recalls, product hazards and country of origin issues of 721 toy recalls in the US market between 1974 and 2008, covering 270 million recalled toys. Findings – Findings of this work reveal that most of the recalled toys were manufactured in China, although a wide variety of toy brands were designed in the USA. Major hazards of toy recalls included choking, lead poisoning, aspiration, fire/burn and other injuries. Research limitations/implications – The study relied on the CPSC's data that seemed representative of the toy industry in the US market, but missed other markets of Europe and Asia. Also, there was availability of detailed data in sub-categories of the toy industry. Practical implications – The paper provides useful academic and managerial implications that can help us understand the issues of product recalls and product-harm crises. Social implications – Toys are one of the most widely available products in the world; the industry is a $50 billion industry and has transformed itself from a small-scale business sector into a well-established industry. Originality/value – This investigation is particularly important in the areas of firm-specific competitiveness, business ethics and regulatory and societal issues.

2019 ◽  
Vol 53 (5) ◽  
pp. 916-943 ◽  
Author(s):  
Etayankara Muralidharan ◽  
Hari Bapuji ◽  
Manpreet Hora

Purpose This study aims to investigate the effects of firm characteristics and crisis characteristics on remedies offered to consumers by firms in the event of a product recall crisis. Design/methodology/approach Published data on 868 product recalls in the US toy industry from 1988 to 2011 have been used to investigate the effects of firm experience in product recalls, type of firm (company versus intermediary) and product recall severity in predicting remedies offered to consumers in the event of a product recall. Findings The findings show that firm recall experience, firm type and recall severity are negatively associated with recall remedies offered. Specifically, firms offer lower remedies if they have higher recall experience, if they are upstream firms in the supply chain (farther from consumers) and if the recall is more severe. Research limitations/implications This study focuses on the toy industry and does not consider product complexity, firm reputation and the role of external regulatory agencies in the prediction of remedies offered by firms. Future research may extend this study to include the above factors. Practical implications Offering a high remedy to consumers of a recalled product may be a responsible decision by a firm, but it may also attract shareholder wrath. The study has implications for managing multiple goals in product recall crisis management. Originality/value Studies focused on issues of interest to consumers during a recall crisis, such as swift recalls and appropriate remedies, are limited. This study contributes to the understanding of the antecedents of recall remedies.


Author(s):  
Eric Lambert ◽  
Yuning Wu ◽  
Shanhe Jiang ◽  
Karuppannan Jaishankar ◽  
Sudershan Pasupuleti ◽  
...  

Purpose – While there is a growing body of studies on the people's views of community policing, there have been a very few cross-national studies. The purpose of this paper is to compare and contrast students’ views on community policing from India and the USA. Design/methodology/approach – The data were from a survey from a total of 434 Indian and 484 US college students. Findings – Punitive orientation had a significant effect on attitudes toward community policing, but was related to an increase in the support in India and reduction of support in the USA. Among the Indian respondents, concern for crime and support for aggressive policing had positive associations with support for community policing, and police involvement in the community had a negative association. Among the US respondents, age, educational level, and perceptions of police effectiveness had positive associations with support for community policing, and holding a punitive orientation had a negative association. Originality/value – This study represents the attempt to examine Indian perceptions of community policing empirically. Uncovering factors that affect public support for community policing can provide useful references for police administrators to develop policies and practices that encourage more active community involvement in crime control.


2019 ◽  
Vol 31 (3) ◽  
pp. 344-361 ◽  
Author(s):  
Yujie Wei ◽  
Blaise Bergiel ◽  
Lingfang Song

Purpose The purpose of this paper is to examine the possibility that individual differences in consumer choice of cognac are at least partially influenced by parental cultural capital. Also examined are ten value orientations factors (e.g. hedonism and self-direction) and attitudes toward France, cognac’s country-of-origin that may affect the degree of this intergenerational influence. Design/methodology/approach The survey research measures parents’ cultural capital, value orientations and attitude toward France and purchase intention using recognized scales. Data were collected from the faculty and students of a major university located in the southeast of the USA. The sample size was 234. Findings The results confirm that parental cultural capital, consumer value orientations and attitudes toward France have significant impacts on the consumer’s willingness to purchase cognac. Adult children of high cultural capital parents are more likely to buy cognac. Practical implications The findings of this paper provide meaningful insights into intergenerational influences on consumer purchase intention of cognac and socialization theory. The paper provides several managerial implications for segmentation, targeting and positioning of cognac in the US market. Originality/value As the first of its kind, this paper introduces the parents’ cultural capital into the consumer research regarding cognac. The longer-term effects that parents can have on grown children’s consumer behavior are confirmed, suggesting that parental influence persists well into adulthood and has impact on their brand preference.


2016 ◽  
Vol 19 (1) ◽  
pp. 4-20 ◽  
Author(s):  
Peter Leasure

Purpose – Asset recovery proceedings increasingly target corrupt foreign officials who acquire lavish assets as a result of capital gained through criminal acts. One extremely difficult issue arising in asset recovery proceedings is whether the capital used to acquire the assets can be traced to a criminal act. The purpose of this paper is to critique US tracing procedure through comparative analysis. Design/methodology/approach – A prominent series of cases brought by the USA and France against assets owned by Teodoro “Teodorín” Nguema Obiang, second Vice President of the Republic of Equatorial Guinea, produced mixed results on the tracing element. This paper utilizes a qualitative comparative case analysis to examine the US and French cases. Findings – The US results reflect serious weaknesses in the US law as compared to more effective French asset recovery procedure. Originality/value – Though this paper is certainly a comparative case study analysis, nearly identical facts and two different jurisdictions reaching separate conclusions bring us in the legal community as close as we can realistically come to quasi-experimental research. Comparative research in this area is severely lacking and sorely needed. The mechanisms identified in the French system clearly show flaws that are present in the US system.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahid Irshad Younas ◽  
Mahvesh Khan ◽  
Mamdouh Abdulaziz Saleh Al-Faryan

Purpose The purpose of the study is to explore the misconception that in developed countries, macroeconomic performance lead to sustainable firms or improves stakeholder well-being. The results may be the opposite or even worse. Design/methodology/approach This study examined this misconception using balanced panel data from 1,122 firms from different sectors of the US economy and data on macroeconomic performance from the World Bank. Findings The results of the one-step generalised method of moments indicate that most macroeconomic performance indicators had significant and negative impacts on firm sustainability and stakeholder well-being. Practical implications From a societal perspective, the results illustrate that the fruits of macroeconomic performance of the US economy do not reach stakeholders through firms’ sustainability. Thus, linking the economy’s macroeconomic performance with firm sustainability is vital for sustainably uplifting society and for stakeholder well-being. Originality/value From a policy perspective, this study reveals that the greater focus on macroeconomic performance in the USA over the past decades has resulted in lower firm sustainability because of the malfunctioning of social, economic, environmental and governance factors. This has negatively influenced stakeholder well-being in the country.


2014 ◽  
Vol 20 (4) ◽  
pp. 434-458 ◽  
Author(s):  
Lynn A. Walter ◽  
Linda F. Edelman ◽  
Keneth J. Hatten

Purpose – This paper aims to investigate how dynamic capabilities enabled survival in a select group of brewers, during one of the lengthiest and most severe industry consolidations in history. In doing so, we advance Abell’s (1978) theory of strategic windows through integration with the resource-based view of the firm. Design/methodology/approach – Using a mixed method approach, we first apply case study methods to develop hypotheses around the timing and level of operational capability required for survival. In the second phase, we test these hypothesized estimations on the USA Brewing population. Findings – Indicate that brewers which had advanced distribution and manufacturing operational capabilities before the strategic window of opportunity closed had higher survival rates. Practical implications – This study reinforces the importance of making timely strategic investments in capabilities. Originality/value – The integration of strategic window and capability theories advances our understanding of the roles that capabilities and time play in determining firm survival.


2018 ◽  
Vol 11 (4) ◽  
pp. 632-647 ◽  
Author(s):  
William C. Baer

Purpose This paper aims to relate early history of housing conceptualizations and market analysis in the Anglosphere (Britain, the USA, Canada, Australia and New Zealand). Historians are ignorant of them but clear market analyses had early beginnings in every urban society for developing and accommodating growing populations. Design/methodology/approach Historiography. Findings Aspects of market analysis, especially appraisal and rudimentary approaches to the housing market in the Anglosphere, can be traced back to ancient Rome, housing market conceptualizations to Dr Nicholas Barbon and seventeenth-century London’s first population and housing boom and market analysis techniques in the USA at its founding, when Charles-Maurice de Talleyrand Perigor was the first to refine them and write them up in 1794-1796. The US next made major advances in the 1930s. The overall trend has been from inferred analyses to fundamental (derived) analyses, emphasizing “quantifiable data.” Practical implications This paper elicits researcher’s professional awareness that each nation has an implicit history of its early development practices and techniques. Originality/value The time frame of most housing market analysts is the recent past, the present and the future. But how enduring are their concerns? Do operational values in a housing market reflect historical epochs, or are there some universalities? Furthermore, most urban historians are ignorant of urban market dynamics. It does not occur to them that some of the dynamics that analysts attempt to capture today might always have been inherent in the urban built environment, regardless of era or urbanized part of the globe under consideration.


2018 ◽  
Vol 10 (1) ◽  
pp. 60-85 ◽  
Author(s):  
Ross D. Petty

Purpose The purpose of this paper is to examine the debate about brand marketing that occurred as part of the 1930s consumer movement and continued after the Second World War in academic and regulatory circles. Design/methodology/approach This paper presents an historical account of the anti-brand marketing movement using a qualitative approach. It examines both primary and secondary historical sources as well as legal statutes, regulatory agency actions, judicial cases and newspaper and trade journal stories. Findings In response to the rise of brand marketing in the latter 1800s and early 1900s, the USA experienced an anti-brand marketing movement that lasted half a century. The first stage was public as part of the consumer movement but was overshadowed by the product safety and truth-in-advertising concerns. The consumer movement stalled when the USA entered the Second World War, but brand marketing continued to raise questions during the war as the US government attempted to regulate the provisions of goods during the war. After the war, the public accepted brand marketing. Continuing anti-brand marketing criticism was largely confined to academic writings and regulatory activities. Ultimately, many of the stage-two challenges to brand marketing went nowhere, but a few led to regulations that continue today. Originality/value This paper is the first to recognize a two-stage anti-brand marketing movement in the USA from 1929 to 1980 that has left a small but significant modern-day regulatory legacy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nan Hua ◽  
Tingting Zhang ◽  
Melissa F. Jahromi ◽  
Agnes DeFranco

Purpose This study aims to investigate the impact of the speed of change (trend) in information technology (IT) expenditures on performance risk indicated by revenue volatility in the US hotel industry. Design/methodology/approach To systematically investigate the impacts of IT expenditures on hotel performance risks, this study collects the same store proprietary data of 1,471 hotel properties from CBRE, a leading hotel consulting firm in the USA, from 2011 to 2017, with a total of 10,297 observations. Findings Econometric analyses are performed and results indicate a significant and positive impact of the speed of change of IT systems expenditures on the performance risk after comprehensively controlling for confounding factors following prior research. Originality/value With the increased importance of IT in day-to-day activities, hospitality business owners have started to quickly adjust their investment in IT infrastructure and superstructure to enhance their business performance. However, their fast-changing expenditures may introduce more risks to their businesses based on the speed–accuracy tradeoff, systems theory and the Schumpeterian Growth Model. This study is one of the pioneer projects that ever assessed the impact of IT expenditure and speed of change on performance risks of hotels.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rohan Clarke

Purpose This paper aims to illuminate the diverging approaches to marijuana-related drug enforcement at the federal and state levels in the USA, which have facilitated a boom in the US medical cannabis industry (i.e. the “Green Rush”). It further sheds light on how the USA’ aggressive extraterritorial approach to anti-money laundering (AML) enforcement might simultaneously suppress the banking of cannabis-related businesses in Jamaica due to the lingering fear of de-risking. Design/methodology/approach An international and comparative legal and policy analysis was conducted of the nexus among shifting drug enforcement policies, AML laws and the banking of cannabis-related businesses. Findings This study found that the constitutional relationship between the US federal government and states has created a de facto comparative advantage for the US medical cannabis-related businesses that benefit from limited access to financial services. This was found to pose far-reaching implications for the banking and development of the Jamaican cannabis sector due to the dependence of the country’s financial institutions on correspondent banking relationships with the US banks that are regulated by federal AML statutes. Originality/value To the best of the author’s knowledge, this paper is the first of its kind to examine the extraterritorial regulatory risks to the banking of cannabis-related businesses in Jamaica.


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