THE ROLE OF PRINT ADVERTISING DURING PRODUCT RECALL CRISIS
Abstract
A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damage caused by use, although possibly less costly than consequential costs caused by damage to brand name and reduced trust in the manufacturer. Product recalls are pervasive economic phenomenon, which occur frequently and can have devastating consequences for the recalling firm. This paper documents the significance of product recalls, and of advertising as a means of recall communication. This paper presents taxonomy of the major modes of advertising encountered in product recall campaigns. Additionally, certain prescriptive admonitions are suggested for each of the three dominant print modes; direct mail, display ads, and point-of-sales messages. Finally, a series of basic generalizations about recall print advertising are advanced.Â
References
[ 1.] Baer, Lori G. and Elizabeth Bertschi (2000), Product Recalls: Lessons From the Firestone Recall: How to Avoid or Lessen the Impact,†Product Liability Law & Strategy, 19 (November), 1-7.
[ 2.] Bellas, Michael C., (1999), Facing Product Recall: Four Critically Important Moves,†Beverage World International, (July/August), 64-68.
[ 3.] Berman, Barry, (1999), Planning the Inevitable Product Recall,†Business Horizons, 42 (March/April), 69-85.
[ 4.] Billy, Thomas J. (2000), A Subject that Affects Everybody,†Vital Speeches, 66 (January 15), 202-206.
[ 5.] Brandweek (1999), Channel Management: A Framework for Revolution,†(November 15), 28-35.
[ 6.] Business Insurance (2000), For the Record,†(December 11), 31.
[ 7.] Business Week (2000), Lessons from the Tire Fiasco,†(September 18), 178.
[ 8.] Business Week (2001), Putting the Explorer Under the Microscope,†(February 12), 40.
[ 9.] Butler, Mary E. (2000), Harkin Seeks Mandatory Recall Authority for FDA,†Food Chemical News, 42 (September 25), 15.
[ 10.] Butler, Steven and Peter Hadfield (2000), Made in Japan, Shoddily,†U.S. News & World Report, (October 2), 36.
[ 11.] CCH Editorial Staff (1996), Managing for Product Liability Avoidance, Chicago: Commerce Clearing House, Inc.
[ 12.] Chappell, Lindsay (2001), After a Contentious Year, Ford Tries to Mend Fences,†Automotive News, 75 (February 12), 30.
[ 13.] Chandran, R., Lowenhar, J., and Stanton, J. (1979, Spring). Product safety: The role of advertising. Journal of Advertising. 8.
[ 14.] Chrysler Corporation. (1977, October 31). Untitled press release.
[ 15.] Cobb, Robin (1998), Duty Calls,†Marketing, (March 26), 40-42. Dawar, Niraj (1998), Product-Harm Crises and the Signaling Ability of Brands,†International Studies of Management & Organization, 28 (Fall), 109-118.
[ 16.] Consumer Product Safety Commission. (1998). CPSC works with industry to recall harmful products: Repair, replace and refind programs save lives. News Release.
[ 17.] Demetrakakes, Pan (1999), Backlash,†Food Processing, 60 (August), 16-21.
[ 18.] Donze, Patricia L. (2001), Legislating Comity: Can Congress Enforce Federalism
[ 19.] Gibson, D. C., and Thomsen, S. R. (In Press). Quantification and analysis of 1997 product recalls. Business Research Yearbook. Lanham, MD: University Press of America.
[ 20.] Gibson, D. C. (1998). Quantification and analysis of 1997 product recalls. In Jerry Biberman and Abbass Alkhafaji (Eds). Business Research Yearbook Lanham, MD: University Press of America.
[ 21.] Hilliard, C. (1996, November 9). E-Coli suspected in child's death. Albuquerque Journal. C-8.
[ 22.] Jolly, D. W., and Mowen, J. C. (1985). Product recall communications: The effects of source, media, and social responsibility information. In Hirschman, E. C., and Holbrook, M. B. (Eds.) Advances in Consumer Research 12.
[ 23.] Keith, T. (Undated). Personal letter.
[ 24.] Lawrence, B. (1993, May). Consumer alert. American Baby. 14.
[ 25.] Littlejohn, R. F. (1987, April). Managing the unthinkable. Security Management.
[ 26.] Office of Water, Environmental Protection Agency. (1998). Food safety from farm to table: A new strategy for the 21st century. Discussion draft and current thinking: A national food safety initiative.
[ 27.] Overheating problems lead to recall of Micro-Bake ovens. (1995, January 2). Atlanta Journal & Constitution. B-7.
[ 28.] Wagner, T. J. (1995, May 20). Important questions and answers about our recall. Atlanta Journal & Constitution. A-9.
[ 29.] Wocjik, Joanne (2001), Managing Product Recall Risks No Child’s Play for Toymakers,†Business Insurance, 35 (January), 3-5.
[ 30.] Yamada, Ken and Kelley Damore (1997), Possible Flaw Mars Chip Debut,†Computer Reseller News, (May 12), 2.
[ 31.] Yamaguchi, Yuzo (2001), Recall Costs Batter Earnings of Bridgestone/Firestone,†Automotive News, 75 (February 26), 48.
[ 32.] Zikmund, William G. and William J. Stanton (1971), Recycling Solid Wastes: A Channels-of-Distribution Problem,†Journal of Marketing, 35 (July), 34-39.