Public engagement in product recall announcements: an empirical study on the Chinese automobile industry.

This study tests the key factors influencing public engagement in product recall announcements in China. Product recall events can affect firm's brand equity, and corporate reputation. However, public engagement is a prerequisite step for others. We developed and verified our conceptual arguments on public engagement by analyzing 432 product recalls in the Chinese automobile industry during a five-year period (2010-2014). Empirical results showed that public engagement in product recall announcements was affected by: the number of defective products, recall history, response measures, defective product price, and country of origin. Our results also reveal the difference between domestic and imported products in public engagement in China. Thus, the findings provide cues that could trigger public engagement and potential ways of reducing public engagement in product recalls of firms. [ABSTRACT FROM AUTHOR]