The Effect Of Honda’s Product Recall News Exposure And Brand Loyalty Towards Consumer Purchase Intention

Abstract

Product recalls are essential preventive measures in the automotive industry to address defective products; however, inadequate management can significantly impact a brand’s reputation and consumer trust. Extensive media coverage of recalls may intensify public concerns, making brand loyalty a critical determinant in sustaining consumer purchase intentions despite negative publicity. This study examines the impact of product recall news exposure and brand loyalty on consumer purchase intention using Classical Conditioning Theory, Cognitive Learning Theory, and Behavioral Learning Theory. The research tests three hypotheses: (H1) news exposure to product recalls affects purchase intention; (H2) brand loyalty influences purchase intention; and (H3) both factors jointly impact purchase intention. A quantitative approach was applied, surveying 100 Honda car owners aged 30 and above who were aware of the recall news. Results indicate that news exposure significantly reduces purchase intention (p = 0.005, T = 2.859), as negative information fosters doubt and caution. However, brand loyalty positively influences purchase intention (p = 0.000, T = 6.457), demonstrating that loyal customers maintain trust despite recall issues. Additionally, news exposure and brand loyalty together explain 45.5% of purchase intention variation (R² = 0.455), highlighting brand loyalty’s stronger role in sustaining consumer confidence. These findings underscore the need for brands to reinforce loyalty through transparent communication, proactive crisis management, and consistent customer engagement. Strengthening these aspects can help minimize the negative effects of recall news on consumer purchase decisions.