Discussing how to restore the corporate image after a food safety incident

Purpose Consumer decisions when purchasing food products are often influenced by corporate image. However, following legal sanctions, corporations often reintroduce compliant products with promotional campaigns or remedial measures to restore consumer confidence and purchase intentions. Thus, this study aims to investigate the impact of price promotion and service remedy on purchase intention while also exploring the potential mediating role of corporate image. Design/methodology/approach Data were collected through a questionnaire survey, with a total of 428 participants who reported consuming Bafang Yunji restaurant being eligible to complete the survey. Structural equation modeling (SEM) was then employed to validate the theoretical model. Findings Findings reveal that both price promotion and tangible remedy exhibit positive influences on purchase intention. In terms of mediating effects, corporate image fully mediates the relationships among price promotion, psychological remedy and purchase intention. Additionally, corporate image partially mediates the relationship between tangible remedy and purchase intention. Research limitations/implications Findings suggest that substantive and psychological remedies are more effective than price promotions in rebuilding corporate image and purchase intentions after food safety issues. Managers should adopt a comprehensive strategy combining compensation and empathetic communication to restore consumer confidence. Furthermore, applying systems thinking can enhance strategic decisions and policy development, ultimately improving food safety management and consumer purchase intentions. Originality/value The study investigated the purchase intentions of food in the context of food safety issues. The study is original in the sense that it uses variables such as price promotion and service remedy and is the first study in Taiwan to focus on the impact of the perception of food safety risk on purchase intentions of food.