A North Carolina State University study recently showed that the recalls conducted by Toyota had little effect on the perception consumers have of the automaker.
The study examined consumer attitudes toward recalls since 2009, when the brand had vehicles recalled for sudden unintended acceleration. The recalls were found to not have a damaging effect on the car's reputation and consumers continued to visit new and used car dealers to apply for car financing to purchase the vehicle.
"These findings highlight the importance of establishing and maintaining a reputation for quality," says Dr. Robert Hammond, an assistant professor of economics at NC State and lead author of a paper describing the study. "Not only will it help you sell cars in the first place, but it will help you weather public scrutiny in the event of a recall."
Hammond found that despite media coverage of the Toyota recalls, which were high-profile, there was little or no effect on what consumers were willing to pay for one of the brand's vehicles.
According to a recent numbers, Toyota fell to No. 2 in vehicle sales behind General Motors, which sold more than 9 million vehicles in 2011.
