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Investigates the conventional wisdom concerning consumer responses associated with product defect during a product‐harm crisis. Reports on an experiment relying primarily on three generally recognized factors: company′s reputation, external effects from regulatory agencies and the press, and organizational responses. Shows that over‐reliance on these areas may mask hidden variables which can prove counterproductive to crisis abatement.
Siomkos et al. (Tue,) studied this question.
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