The Effects of Media Coverage of the 2009 Cookie Dough Recall on the Demand for the Brand and the Close Substitutes

Not only does information about food recalls play a vital role in changing the demand for implicated food products, but it also impacts the demand for close substitutes. The study aims to identify the structural change in demand for cookie dough due to the 2009 cookie dough recall of Brand1, one of the most publicized single brand recalls in recent years. The study utilizes Barten’s synthetic differential demand system, and introduces a sentiment analysis technique to identify the tone of media publicity and its effect on demand. The results suggest a spillover effect in the cookie dough market and finds that media sentiment has an effect on consumption.