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

Author

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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," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-16, July.
  • Handle: RePEc:ags:jlofdr:186925
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    References listed on IDEAS

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    1. Capps, Oral & Schmitz, John D., 1991. "Effect of Generic Advertising on the Demand for Fluid Milk: The Case of the Texas Market Order," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(02), pages 131-140, December.
    2. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    3. Oral Capps Jr. & Sergio Colinā€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.
    4. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
    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 & 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, Cambridge University Press, vol. 46(04), pages 559-573, November.
    7. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
    8. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    9. Pritchett, James G. & Johnson, Kamina K. & Thilmany, Dawn D. & Hahn, William F., 2007. "Consumer Responses to Recent BSE Events," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(2), pages 1-12, July.
    10. Fahs, Faysal & Mittelhammer, Ronald C. & McCluskey, Jill J., 2009. "E. Coli Outbreaks Affect Demand for Salad Vegetables," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 24(2), pages 1-4.
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    Cited by:

    1. 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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