Question:
(External failure cost; research; writing) Many companies' products have had flaws; some of these companies have been more forthcoming than others in publicly acknowledging such flaws.
a. Do you think admitting that a product is defective hurts or helps a company's reputation? Explain the rationale for your answer.
b. Discuss the costs and benefits of halting sales when product flaws are discovered.
c. Use the Internet to find an example of a company that has continued to sell its product in spite of complaints and other negative feedback about quality. What have been the results?