EFFECT OF A CLASS-ACTION SUIT ON CONSUMER REPURCHASE INTENTIONS

This study examines willingness to repurchase a Toyota among 335 Toyota owners, 246 who had participated in a class action suit against Toyota and 89 who had not participated. It also examines attitudes toward auto dealers and manufacturers and includes a psychographic measure of global consumer loyalty. Respondents were interviewed one to two years after participants had received a cash settlement to compensate for illegal overcharging. Multivariate analysis indicates that compared to nonparticipants, settlement participants, especially those satisfied with the settlement, were more willing to repurchase a Toyota and were less positive in their attitudes toward the Toyota manufacturer. Positive attitudes toward the Toyota manufacturer and dealers were associated with higher repurchase willingness, while positive attitudes toward other dealers and manufacturers were associated with lower repurchase willingness. Consumer loyalty was associated with higher repurchase willingness. These findings and their implications are discussed in terms of several theoretical frameworks.