Undergraduate Business

The management of product recalls presents significant challenges for executives and regulatory authorities. A particular risk arises from malfunctioning products (e.g., exploding batteries in the Samsung Galaxy Note) that, despite a recall by the manufacturer, are not returned but instead continue to be used by consumers. In cases of product malfunction, there is not only a risk to consumer health but also the potential for severe reputational damage and lawsuits against companies. In the worst-case scenario, this can even lead to corporate bankruptcy (e.g., Takata). Despite these risks, the percentage of items actually returned by consumers is often low. For example, in the United States, recall rates in many product categories are well below 10% (CPSC 2018). 

In this research seminar, you will examine this issue from a marketing perspective and address the question: How should product recall communications be designed to ensure that as many affected consumers as possible participate in the recall? Within a group, you will explore different aspects of this question. In addition to a theoretical engagement with the topic, each group will also conduct empirical research and perform an experimental investigation.

Participation in the seminar requires a successful application.