If anyone thought the very messy recall scandal would blow over and Johnson & Johnson (JNJ) would emerge unscathed, they may want to think again. A new survey finds the health care giant’s reputation has declined 27 percent among mothers, 31 percent among pediatricians and 23 percent among general practitioners.
Looked at another way, all three groups rated its reputation as an 8 - on a scale of 1 to 10 with 1 as horrible and 10 as perfect - before the recalls. Now, all three groups rate J&J between 5 and 6. The survey of 139 mothers and 50 physicians was conducted by CLSA analyst David Maris, who says that, since some moms will moms and docs have permanently changed their view of J&J, “this is serious.”
Why? On a scale of 1 to 10, with 1 = not serious at all and 10 = extremely serious, moms were asked how serious they believed the recalls were. The average rating was 7.3. Meanwhile, 72 percent of the moms said the recalls have not permanently changed their view of J&J, and 56 percent will continue to trust the J&J brand. But 28 percent say the recalls have permanently changed their opinion. Of pediatricians, 60 percent will not change their prescribing habits for J&J products, but 28 percent of pediatricians and 36 percent of GPs say the recall is a serious quality issue.
Here’s another nugget: 53 percent of the moms trust J&J the most when compared to store-brand products offered by Wal-Mart (WMT) and CVS, but 29 percent thought J&J brands were no better or worse than those store brands. And 48 percent of the docs say they may prescribe or recommend more non-J&J products in the future given the recall. Such as generic versions of ibuprofen, acetaminophen, diphenhydramine, Merck (MRK)/SGP’s OTC Claritin, and Pfizer’s (PFE) Children’s Advil. A field day for J&J rivals, yes?
The findings are being released just as J&J ceo Bill Weldon is scheduled to testify tomorrow to Congress about the vast recall of tens of millions of bottles of pediatric over-the-counter meds thanks to quality-control blunders, which have also prompted federal and state probes. The health care giant is under a microscrope for allegedly trying to hide from the FDA and consumers that some products were tainted (back story here and here). And the hearing will be the first time that Weldon has appeared in public this year to address the problem. Small wonder moms and docs react the way do.
Here’s how one doc answered the survey: “Your products are still not available. You have made my job more difficult. Answering tons of calls regarding the lack of fever reducer for children - “what do we do now?” Use generics, they are just as good.” And another: “Not permanently damaged, but J&J will have to do major PR to earn back customer’s trust and confidence in their products. Have to remember target audience like moms who are scared to death to use J&J products on their beloved children.”
“We think negative changes in corporate reputations are serious and the ramifications may be slow to become apparent,” he writes in a report. “Doctors and consumers think that there are more things J&J can do to rebuild trust and confidence, with open and direct communication being most highly cited. Time will tell whether J&J successfully rebuilds this confidence and whether there are any longer-term consequences for the recalls.”
However, Maris writes that more GPs felt the recalls will have no impact on J&J among the medical community. Of the GPs, 14 percent felt this way while only 4 percent of pediatricians hold this belief, probably because pediatricians are more involved with counseling worried parents about what to
do in light of the recall. Overall, 88 percent of the docs said they would not prescribe more
drugs from other companies as a result of the recall.
Disclosure: None
