The Brand Insulation Effect

Vikas Mittal, Rajan Sambandam and Utpal M. Dholakia
Marketing Research
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During a product-harm crisis, firms can either rely on media reports or systematically measure customer perceptions. What they find may surprise them. According to a recent TRC survey, Toyota owners believe that Toyota handled the recall appropriately. The Toyota recall case shows that, despite negative media portrayals, Toyota owners are insulated from the crisis. Relative to owners of other brands, Toyota owners are highly satisfied and loyal to their brand.

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Vikas Mittal, Rajan Sambandam and Utpal M. Dholakia
<b><font size="2"> <p>Vikas Mittal </b></font><font size="2" face="Sabon,Sabon"><font size="2" face="Sabon,Sabon">is the J. Hugh Liedtke professor of marketing at Rice University. He may be reached at <a href="mailto:vmittal@rice.edu">vmittal@rice.edu</a>. <br /></font></font><b><font size="2">Rajan Sambandam </b></font><font size="2" face="Sabon,Sabon"><font size="2" face="Sabon,Sabon">is chief research officer at TRC, a marketing research firm near Philadelphia. He can be reached at <a href="mailto:rsambandam@trchome.com">rsambandam@trchome.com</a>. <br /></font></font><b><font size="2">Utpal M. Dholakia </b></font><font size="2" face="Sabon,Sabon"><font size="2" face="Sabon,Sabon">is the William S. Mackey, Jr. and Verne F. Simons associate professor of marketing at Rice University.</p></font></font>
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