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Dynamics of Consumer Response to Food Contamination: The 2007 Peanut Butter Recall

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  • Bakhtavoryan, Rafael
  • Capps, Oral Jr.
  • Salin, Victoria

Abstract

We investigate the foodborne illness outbreak affecting a national brand of peanut butter to determine how demand for the product category was affected. The illness outbreak coincided with growth in the quantity demanded for the peanut butter category. The negative impact on the category associated with the initiation of the product recall was significant and dissipated over time. The recovery of the product category after the recall indicates that the information was correctly targeted and actions of the companies in the market overcame the initial food scare.

Suggested Citation

  • Bakhtavoryan, Rafael & Capps, Oral Jr. & Salin, Victoria, 2014. "Dynamics of Consumer Response to Food Contamination: The 2007 Peanut Butter Recall," Reports 285204, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    • Handle: RePEc:ags:tamagr:285204
    DOI: 10.22004/ag.econ.285204
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    1. Oral Capps Jr. & Sergio Colin‐Castillo & Manuel A. Hernandez, 2013. "Do Marketing Margins Change with Food Scares? Examining the Effects of Food Recalls and Disease Outbreaks in the U.S. Red Meat Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 29(4), pages 426-454, September.
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    5. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2012. "Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-13, December.
    6. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2014. "The Impact of Food Safety Incidents Across Brands: The Case of the Peter Pan Peanut Butter Recall," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-14, November.
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    Cited by:

    1. Zhou, Pei & Liu, Yizao, 2023. "Recall information heterogeneity and perceived health risk: The impact of food recall on fresh meat market in the U.S," Food Policy, Elsevier, vol. 114(C).
    2. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2016. "Times Series Analysis of the Peanut Butter Demand in Light of the Food Safety Issue," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235621, Agricultural and Applied Economics Association.

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