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...

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…