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Abstract
The effect of negative publicity on consumer demand for brands is examined in the context of
recall of a peanut butter brand as a result of pathogen contamination. The recall was asso-
ciated with negative impacts for the implicated brand and positive effects on the leading
competitor brand. Consumers responded to the foodborne illness outbreak within three
weeks. The case demonstrates that consumer response is an incentive for companies to
prevent safety lapses and that the problems of one brand do not necessarily harm rivals within
the category.