August 30th, 2023, Janice Fernandes
Recently there has been a surge in global instances of product recalls, spanning a wide spectrum from food to electronics. And this issue of product recalls extends to the automobile industry too.
This article delves into how consumer behaviour is impacted by these recalls, focusing on a study conducted in Britain to examine how likely consumers are to buy from a company again after a recall incident.
The study reveals that despite safety concerns or mislabelled packaging, a significant portion of British consumers (41%) still exhibit brand loyalty when it comes to packaged goods and beverages. A similar sentiment is observed among 39% of consumers regarding mobile phone brands.
When it comes to cars, nearly a third of consumers (30%) express willingness to purchase from the same car manufacturer even if their previous purchase was subject to a recall.
However, this loyalty isn't universal. A notable proportion of consumers (32%) express reluctance to purchase from the same carmaker after experiencing a recall. The hesitation is most prominent when it comes to medicine and medical products (49%) and meat and seafood (45%).
What factors specifically are driving people away from a brand after a recall?
For those unlikely to repurchase from a brand that has undergone a recall, safety and product quality concerns (46%) dominate their reasoning. Loss of trust in the brand (25%) also plays a significant role.
Around one in nine consumers (11%) would be less likely to purchase a car from the same manufacturer because of personal experience with a faulty product.
Brand’s handling of the recall (6%) and past experiences with the brand (5%) are the other reasons why consumers would be less likely to purchase from the company.
Negative reviews or media coverage have a relatively minimal impact with only around one in 25 picking it as a main reason to influence their purchasing habits (4%).
It's worth noting, however, that not all feedback is negative. Despite the reservations many hold about buying from a brand post-recall, nearly one in five of those who are unlikely to repurchase from the same carmaker still believe brands generally handle product recalls responsibly and transparently (38%). This suggests a general level of confidence in how auto companies manage recalls.
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Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on August 24-25, 2023, with a nationally representative sample of 2,115 adults in Great Britain (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education and region to be representative of all adults. Learn more about YouGov Surveys: Serviced.
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