Marketing Nutrition: Soy, Functional Foods, Biotechnology, and Obesity

10. Managing Consumer Reactions to Food Crises

ten Managing฀Consumer฀Reactions฀฀ to฀Food฀Crises Marketing nutrition is a process of encouraging people to make healthful choices that improve their well-being. What happens when contamination , terrorism, or disease is thought to threaten a part of the food supply? Some crises have influenced the recall, redesign, and communication efforts of individual companies (such as Tylenol, Perrier, Ford, Goodyear, and Shell). Others—such as the threat of bovine spongiform encephalopathy (BSE, or mad cow disease) in beef—can compromise an entire industry. One of the dangers of food safety crises is that they can be triggered by concurrent events. The terrorist attacks of September 11, 2001, in the United States triggered concerns about anthrax attacks. Yet the behavior of consumers in a crisis is not always consistent with the true level of risk they face. This chapter examines how seemingly inconsistent behaviors of consumers can be explained by risk perceptions and risk attitudes. The drivers of consumer behavior provide insights into whether the solution to a crisis lies in more effective communication efforts or in more drastic measures (such as recalls or product eliminations). Foodsafety crisesdramatically illustrate marketers’ needto understand why and how consumers react. Table 10.1 describes six crises that have recently occurred. Although each is slightly different, they all involved a state of panic that could have been prevented if appropriate marketingrelated efforts had been made. One reason why many of these food scares 10.121-136_Wans.indd฀฀฀121 3/30/05฀฀฀2:55:47฀PM Table 10.1. What Is the Potential Impact of a Food Crisis? Description Consumers’ Reaction What Was done Aftermath Edwina Currie fiasco (1988, G.B.); junior health minister resigned after admitting most of U.K.’s eggs contaminated with salmonella Mad Cow Disease (BSE) in beef byproducts for cattle feed (1996, G.B. and E.U.); linked to Creutzfeldt-Jakob disease (CJD) in 1996 E. coli poisoning (1996, Scotland); 21 people died, 500 ill Salmonella in dog treats (Canada, October 1999); people may risk bacterial infection by handling the treats directly or by contact with pets who have used the treats ConAgra Beef (June 2002, U.S.); E. coli in beef products Listeria in Chicken (2002, U.S.); listeria in Pilgrim’s Pride products, 23 deaths, 120 ill Demand for eggs failed; lingering downturn of egg consumption Consumption of beef products decreased ; consumers buy more white meat, other meat, organic meat It came from a local butcher shop (who had recently won the award for Best Scottish Beef Butcher of the Year) Consumers have to wash their hands and avoid being in contact with the treats 25 victims total; ConAgra agreed to pay the medical and lost-wage costs of 13 victims in Colorado ($1 million ) Many people affected in Pennsylvania, New York, New Jersey, Delaware, Maryland, Connecticut , Ohio, and Michigan renewed push to reform the laws that govern meat inspection 4 million hens slaughtered; 400 million surplus eggs destroyed Beef exports from U.K. to Europe banned; labeling and origin on all meat products The butcher was asked to stop selling cooked meat products the next morning after the outbreak was discovered. Canadian Food Inspection Agency (CFIA) is warning consumers not to purchase certain dog treats manufactured by Farm Meats Canada Ltd. ConAgra recalls 354,000 pounds of beef products; media communicate products’ IDs and warn about E. coli Meat recalled by the company (27 million pounds); was called by media the “U.S. largest meat recall,” but discovered afterward that it was exaggerated (2 other events caused larger recalls) Salmonella poisoning is permanent problem; 30,000 cases in England & Wales every year EU ban lifted in 1999; traceability becomes a must Scotland’s most serious food poisoning event since 1964; permanent problem everywhere, several cases every year, affecting thousands of people worldwide Health Canada planned further studies of natural pet products to ascertain the scope of the problem; several members of the industry took pro-active steps to ensure the safety of their pet treats. Victims accepted ConAgra’s payment of medical expenses, also agreed not to file lawsuits against the company 2,500 cases of listeriosis occur annually in the U.S. Source: Adapted from Pennings, Wansink, and Meulenberg (2002). 10.121-136_Wans.indd฀฀฀122 3/30/05฀฀฀2:55:47฀PM Managing฀Consumer฀Reactions฀to฀Food฀Crises • 123 have been so severe is that little thought was given to planning for crises beforehand; another...