Featured Research

from universities, journals, and other organizations

Toy recall of 2007 hurt innocent companies

Date:
December 2, 2009
Source:
University of Toronto, Rotman School of Management
Summary:
The well-publicized toy recalls of 2007 took potentially harmful toys off the shelves and affected the companies that made them. But a new study also shows that even companies not targeted by the recalls got hurt in the resulting consumer backlash, sometimes worse than the offenders. Meanwhile offending companies did not generally see other product categories affected.

The well-publicized toy recalls of 2007 took potentially harmful toys off the shelves and affected the companies that made them.

Related Articles


But a new study also shows that even companies not targeted by the recalls got hurt in the resulting consumer backlash, sometimes worse than the offenders. Meanwhile offending companies did not generally see other product categories affected.

In 2007, the U.S. Consumer Product Safety Commission recalled 276 toys and other children's products -- more than an 80% increase over the previous year. Almost all of the recalls involved toys made in China and many involved paint with elevated levels of lead.

The study looked at the effects that the recalls had on sales of Infant and Preschool toys during the subsequent Christmas season. The authors found that Christmas sales for similar products by manufacturers named in the recalls were down by about 30% compared to other products that these manufacturers sold. But, these manufacturers' sales of toys that were sufficiently dissimilar to those named in the recalls did not seem to be affected. In other words, consumers did not "punish" offending manufacturer more generally.

"This may be because, in this industry, consumers do not recognize manufacturers as well as they recognize brands and trademarks. For example, consumers may identify brands such as Barbie and Hot Wheels without recognizing that both of these are, in fact, made by Mattel," says Mara Lederman a professor at the University of Toronto's Rotman School of Management and one of three study co-authors

Perhaps most interestingly, the study finds that companies who did not have any recalls got hit too -- their 2007 Christmas season sales were down about 25% compared to 2005. This suggests that these recalls influenced consumers' expectations of toy safety, in general.

"In this industry, one firm's offence seems to penalize other players," says Lederman. "This may be happening because the recalls involved a common practice (manufacturing in China) or because brands and trademarks are commonly shared across different manufacturers and toys. One implication of this is that companies may have an interest in enforcing stricter industry-wide standards."

The paper received financial support from the AIC Institute for Corporate Citizenship at the Rotman School of Management.


Story Source:

The above story is based on materials provided by University of Toronto, Rotman School of Management. Note: Materials may be edited for content and length.


Cite This Page:

University of Toronto, Rotman School of Management. "Toy recall of 2007 hurt innocent companies." ScienceDaily. ScienceDaily, 2 December 2009. <www.sciencedaily.com/releases/2009/12/091202101753.htm>.
University of Toronto, Rotman School of Management. (2009, December 2). Toy recall of 2007 hurt innocent companies. ScienceDaily. Retrieved December 20, 2014 from www.sciencedaily.com/releases/2009/12/091202101753.htm
University of Toronto, Rotman School of Management. "Toy recall of 2007 hurt innocent companies." ScienceDaily. www.sciencedaily.com/releases/2009/12/091202101753.htm (accessed December 20, 2014).

Share This


More From ScienceDaily



More Science & Society News

Saturday, December 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

After Sony Hack, What's Next?

After Sony Hack, What's Next?

Reuters - US Online Video (Dec. 19, 2014) The hacking attack on Sony Pictures has U.S. government officials weighing their response to the cyber-attack. Linda So reports. Video provided by Reuters
Powered by NewsLook.com
Sierra Leone Bikers Spread the Message to Fight Ebola

Sierra Leone Bikers Spread the Message to Fight Ebola

AFP (Dec. 19, 2014) More than 100 motorcyclists hit the road to spread awareness messages about Ebola. Nearly 7,000 people have now died from the virus, almost all of them in west Africa, according to the World Health Organization. Video provided by AFP
Powered by NewsLook.com
Spokesman: 'NORAD Ready to Track Santa'

Spokesman: 'NORAD Ready to Track Santa'

AP (Dec. 19, 2014) Pentagon spokesman Rear Adm. John Kirby said that NORAD is ready to track Santa Claus as he delivers gifts next week. Speaking tongue-in-cheek, he said if Santa drops anything off his sleigh, "we've got destroyers out there to pick them up." (Dec. 19) Video provided by AP
Powered by NewsLook.com
Navy Unveils Robot Fish

Navy Unveils Robot Fish

Reuters - Light News Video Online (Dec. 18, 2014) The U.S. Navy unveils an underwater device that mimics the movement of a fish. Tara Cleary reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins