Study Finds Consumers More Likely to Forgive Well-Liked Companies

November 15, 2012

A recent study published in the Journal of Marketing Research found that consumers are more likely to forgive companies with good reputations for product recalls or defects than companies with worse reputations.

Results of the Consumer Forgiveness Study

In the summer of 2012, researchers published a study that found when a well-liked company issues a product recall or notifies the public of a product defect, consumers are more likely to forgive that company than its less well-liked competitors. This is true both in industries where recalls and product defects are rare and those where they are expected, like the automobile, toy and health care industries. The study also found that consumers are more likely to search for an explanation for a recall or defect announced by a well-liked company.

However, neither well-liked nor not well-liked companies are easily forgiven for repeated recalls and defects. Even well-liked companies suffer in consumer popularity if they issue multiple product recalls.

Recalls and Defects Often Have Dangerous Consequences for Consumers

Defective products are often recalled due to dangers they pose to consumers. Usually, these defects have caused injury or death due to poor design, manufacturing or inadequate safety labeling. According to the Consumer Product Safety Commission, a government agency that monitors consumer product safety, common product risks include fire hazards, electrical hazards, mechanical hazards and chemical hazards. These types of dangerous conditions may exist in all kinds of products, including toys, cribs, cigarette lighters, household chemicals and power tools.

Product Liability: How Companies May Be Held Accountable

Fortunately, it is possible for those injured or killed by a defective product to recover damages for their injuries. Product manufacturers and sellers can be held responsible for the defects found in the goods they produce and distribute.

Products are defective if they fail to meet the "ordinary expectations" of consumers. For example, consumers expect that their vehicles may be recalled at some point due to a minor defect, but do not anticipate a defect that causes serious safety concerns, like the Toyota sticky accelerator pedal recall that occurred in recent years.

Products may be defective in their design, manufacture or marketing, and each company responsible for these aspects of a good are responsible for the respective defects. For example, individuals may hold a design company responsible for a product that is defective in its design before being manufactured.

Likewise, a parts manufacturer may be held liable for injuries caused by its product. For example, the family of an infant who is injured by a bolt failure in a highchair could hold the bolt manufacturer responsible for the child's injuries.

Lastly, the company in charge of marketing the product can be held liable for injuries caused by insufficient safety warnings and signage or inadequate instructions. Failing to fully inform the public about safety hazards or misrepresenting the safety of a product may place liability on the marketing company for a consumer's injuries or death.

Though consumers are willing to forgive reputable companies for a product recall or defect, they are less understanding of recalls by less well-liked companies or repeated recalls or defects from any company. Fortunately, liability protections exist for consumers injured or killed by defective consumer products. To find out how to hold a company responsible for your injuries, contact an experienced personal injury attorney.

Article provided by Fishman McIntyre P.C.
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