September 29th, 2023, Kineree Shah
Earlier this month, Buffalo Games recalled 50,000 water bead activity kits sold exclusively at Target after a 10-month child died from swallowing the beads. Adding to the strain, in June around 7.5 million Zuru's “Baby Shark” bath toys were pulled off shelves owing to reports of lacerations and puncture wounds in children. In light of these, we explore opinions on a vital question – how does a product recall influence consumer loyalty and trust in a brand?
In a new YouGov survey polling 1,178 American adults, it was found that nearly half (45%) were hesitant to purchase toys from a brand that had experienced a product recall, while just over a quarter (27%) remained open to giving the brand another chance.
When it comes to the root causes of hesitancy to repurchase from a brand following a product recall, seven in 10 consumers cited "concerns about safety or product quality" as the prime reason. Over half of Americans pinpointed a loss of trust in the brand as a strong deterrent (53%).
Around two-fifths of the surveyed Americans expressed dissatisfaction with brands’ handling of recalls, indicating a clear expectation for more transparent and proactive approaches during such crises (41%). An equal percentage cited a personal experience with a faulty product as a barrier to future purchases, emphasizing the enduring impact of negative first-hand experiences on brand loyalty (41%).
Furthermore, past interactions with the brand influenced about one-third of consumers (34%). Three in 10 were influenced by negative reviews or media coverage. Interestingly, word of mouth was noted by one in five Americans as a contributing factor, showcasing that interpersonal communications hold significant power in shaping a brand's image (21%).
This insightful peek into the minds of American consumers serves as a reminder and a guide for brands to foster and maintain trust, especially in turbulent times. Through understanding and addressing these concerns, companies have the opportunity to rebuild and perhaps strengthen the trust that forms the backbone of brand loyalty.
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Methodology: YouGov Surveys: Serviced provide 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 1,178 adults (aged 18+ years) in US, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education, region, and race, and to be representative of all adults in US (18 years or older) and reflect the latest population estimates. Learn more about YouGov Surveys: Serviced.