Product Recalls: Reaction Every Now and Then,

Product Recalls: Reaction

Every now and then, I will turn on the morning news and hear that there has been a product recall for something I consider vaguely absurd, such as a product that can possibly cause harm if it is misused in some extraordinary fashion. However, I have also heard about product recalls in which there are serious questions about the safety of the product. An excellent example of this occurred several years ago, when some Mattel toys were found to contain harmful substances like lead that could injure a small child if swallowed, which is a common occurrence when children play with toys. Given the bad publicity which can ensue if a company's product results in an injury or the death of a user, being aggressive about instituting product recalls, versus taking a 'wait and see' approach, seems to be the superior strategy.

The Dell and Pinto instances are case studies in what to do and what not to do when confronted with a product problem. Even though the 'smoking laptop' scenario was not widespread, Dell was faced with a highly competitive computer market, and had a reputation as a company that placed customer needs first, above all else. Instating the recall showed that the company really did care and its actions were supported by the reaction of one of the product's users. "I don't worry because they're trying to take care of it," said one loyal Dell customer (Koenig, n.d).

In contrast, Ford decided to take a 'calculated risk' by keeping the price of the Pinto as low as possible, and not instituting an inexpensive safety mechanism that could save lives. This attitude resulted in tainting Ford's name, and created the (correct) impression that it was a company that valued profits over people. Its cynical calculation that it was cheaper to pay damages in lawsuits than preserve the lives of fellow human beings seemed to play into the worst stereotypes of corporate greed and negligence.

Ford's actions do point to a paradox in consumer behavior, however. The reason Ford was so unwilling to add the safety features was because consumers were loathe to pay more for a budget car that was often purchased as a 'starter' car by young people or the very poor. Consumers say that they want safe products, but they also want cheap products, and the two desires are not always compatible. For example, it often costs extra money to keep healthy food fresh and produce is thus expensive. But sugary junk food can be preserved indefinitely with preservatives and is cheaper. Consumers say they want good health, but their buying patterns reflect a desire to save money. Even though they did not know the full extent of the danger posed by the Pinto, most consumers did recognize that it was a substandard, flimsy car and bought it anyway. Regarding computers, Apple Macs are often considered superior and less prone to viruses, but despite their style and respected brand name, PCs still dominate the computer market because they tend to be cheaper than Macs of comparable size and capabilities.