Sales Responses to Recalls for Listeria monocytogenes: Evidence from Branded Ready-to-Eat Meats
AbstractThe extent to which brand names insulate firms from the spillover effects of food safety events is a potentially important difference between branded products and the undifferentiated commodity products examined in earlier studies. This paper uses empirical models to measure sales losses experienced by frankfurter brands following a recall for a foodborne pathogen. Results indicate sales of recalled brands declined roughly 22% after a recall. Brand recovery, on average, began two to three months after a recall and sales approached prerecall levels within four to five months. There is no evidence that nonrecalled brands experienced sales losses. Copyright 2006, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 28 (2006)
Issue (Month): 4 ()
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