Knowledge Center
How should a firm respond to a product recall?
A response should fit the responsibility stakeholders attribute to the firm. More is not always better.
The response-match idea
Crisis-response strategies can underconform, conform, or overconform relative to stakeholder expectations. Empirical research finds that conforming strategies can outperform both forms of mismatch.
Why underconforming can fail
If stakeholders believe the firm bears substantial responsibility, a defensive response can violate expectations of fairness, sincerity, and accountability.
Why overconforming can also fail
Accepting substantially more responsibility than stakeholders expect may create new questions: Is the hazard worse than initially understood? Is the firm hiding something? Why is it taking such an extreme position?
Practical implication
The response should be proportionate, clearly reasoned, and consistent with credible evidence about responsibility, hazard, and consumer impact.