FindLaw KnowledgeBasePublished: 2012-11-19
California residents who have experienced issues with a recently purchased product may not always blame the company who made it, according to a recent study. The study was conducted by authors from universities in Australia, Canada, and Turkey.
It appeared in the June issue of the American Marketing Association’s Journal of Marketing Research. The study reveals that there are a variety of factors that determine whether or not consumers blame companies for defective or dangerous products.
Defective Products and Recalls
A key factor is whether the company is well-liked. The product’s industry is also an important consideration. If defective products are common in the industry, it is less likely the product purchaser will blame the company, especially if it is the first time a product is found to be defective.
Toys, automobiles, and healthcare are three industries where recalls are common due to defective products. Consumers will not normally blame a specific company if the issues are common across the industry.
However, companies with bad reputations still may not benefit from this consideration. Consumers are not likely to forgive a company with a bad reputation, even if the defects are common across the industry.
Consumers are more likely to give well liked companies the benefit of the doubt when it comes to product recalls. They will commonly see the event as a rare occurrence and attempt to find another reason for the defective or dangerous product rather than directly blaming the company.
Authors of the study note that blaming the company is easiest, and it is often more difficult to find another cause for the defect. However, they also warn that consumers will not tolerate repeat incidents even from well liked companies.
This information is critical in an age where a product recall can potentially destroy a company.
Negligence and Product Liability
Companies who strive to keep a positive reputation and suffer a rare issue with a product may be able to save themselves. However, those who let their reputations suffer may face irreversible consequences. One product recall could potentially result in thousands of lawsuits, effectively destroying the company.
A consumer who purchases a dangerous or defective product caused by a company’s negligence may be entitled to compensation. An experienced personal injury attorney can provide knowledge and guidance as well as assist with obtaining any available compensation.