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1 – 10 of over 8000Products liability is having a substantial impact upon manufacturing industry. Marketing management is not immune and it is likely that products liability will lead to a major…
Abstract
Products liability is having a substantial impact upon manufacturing industry. Marketing management is not immune and it is likely that products liability will lead to a major revision in product strategies.Starting from first principles, the monograph leads the reader through liability developments and liability issues as they pertain to death and personal injury. The major part of the monograph is devoted to central propositions that will assist the general manager and the marketing manager to review their present thinking and to provide new insights into this challenging, complex and strategic problem.
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Fire Prevention Week takes place during the week of 9 October, the date of the great Chicago fire. Fire prevention in the narrow sense refers to precautionary measures taken to…
Abstract
Fire Prevention Week takes place during the week of 9 October, the date of the great Chicago fire. Fire prevention in the narrow sense refers to precautionary measures taken to prevent the outbreak of fires. In books, articles, and other materials on the subject, however, fire prevention often encompasses the broader terms of fire science, fire protection, and fire safety.
James Langenfeld and Brad Noffsker
In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to…
Abstract
In a number of recent multi-billion dollar cases brought against cigarette manufacturers, plaintiffs have in part alleged that the cigarette manufacturers (1) conspired not to compete on the basis of health claims or the introduction of potentially safer cigarettes since the 1950s, and (2) engaged in fraudulent advertising by making implied health claims in advertisements selling ‘low tar’/‘light’ cigarettes. In this type of litigation, defendants’ actions could be due to alleged illegal behaviour as asserted by plaintiffs, or be the result of market forces that may have nothing to do with allegedly inappropriate acts. We examine the economic evidence relating to these allegations, taking into account some of the major influences on cigarette company behaviour. In particular, our analyses show that much of the cigarette manufactures’ behaviour can be explained by Federal Trade Commission and related government actions, rather than conspiracy or fraudulent acts. We find the economic evidence is inconsistent with an effective conspiracy to suppress information on either smoking and health or the development and marketing of potentially safer cigarettes. Regarding ‘lower tar’ and ‘light’ cigarettes, the economic evidence indicates that the cigarette manufacturers responded to government and public health initiatives, and that disclosing more information on smoking compensation earlier than the cigarette companies did would not have had any significant impact on smoking behaviour.
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Richard Gruss, David Goldberg, Nohel Zaman and Alan Abrahams
The widespread adoption of online purchasing has prompted increasing concerns about product safety, and regulators are beginning to hold e-commerce sites accountable for dangerous…
Abstract
Purpose
The widespread adoption of online purchasing has prompted increasing concerns about product safety, and regulators are beginning to hold e-commerce sites accountable for dangerous product defects. For online consumers, understanding the many inherent safety risks among the extensive array of products they browse is a formidable task. The authors attempt to address this problem via a client-side software artifact that warns shoppers about potential product safety hazards at the point of sale.
Design/methodology/approach
In this study, the authors built four candidate designs and assessed their effectiveness by means of a large randomized controlled experiment (n = 466). The authors define effectiveness as significant changes in dependent variables associated with health behaviors and technology adoption.
Findings
The authors find that all of the designs score high on adoption likelihood, that designs incorporating highlighting and scoring are better at increasing safety knowledge and that simpler designs are better at enhancing safety awareness.
Originality/value
These findings will inform the design of safety information dissemination systems and open new areas of safety awareness enhancement research. More generally, the authors introduce a novel method of testing text visualization variations and their impact on behavioral decisions.
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This article adopts the Juran concept of fitness for use which is defined and difficulties in achieving the ideal design are briefly mentioned. The author contends that…
Abstract
This article adopts the Juran concept of fitness for use which is defined and difficulties in achieving the ideal design are briefly mentioned. The author contends that insufficient attention to one aspect of design, product safety, has led to considerable consumer dissatisfaction and to the introduction of strict product liability in the USA and in Europe. Selective quotations from the EEC's Product Liability Directive are used to emphasise how product safety must be an essential component of the designer's brief. The paper concludes by noting that the design function is an important part of a comprehensive product liability prevention programme.
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Cynthia Rodriguez Cano, Doreen Sams and Joe Schwartz
The purpose of this paper is to seek to answer the question as to why socially responsible behavior is good business behavior.
Abstract
Purpose
The purpose of this paper is to seek to answer the question as to why socially responsible behavior is good business behavior.
Design/methodology/approach
A two (presence/absence of warning label) by two (potentially hazardous/not hazardous product) experimental design tested four hypothesized relationships.
Findings
It was found that the more favorable attitudes formed when warning labels are present support the notion that consumers recognize and value the stewardship principle. The findings are consistent with the emerging trend toward the triple bottom line philosophy. The difference between 2002 and 2006 for condition 4 (i.e. potentially hazardous with warning label) suggest that market activities (i.e. increase awareness of hazardous products) results in a dilution effect in which weaker inferences are formed from non‐diagnostic information. Research limitations/implications – Clearly, the use of only USA samples provides a limitation in that we cannot address how these issues might vary across nations. Furthermore, moderating variables that might explain some of the counterintuitive findings were not considered in this study. As with all scientific research, bias (e.g. replying with an inaccurate but socially acceptable answer) should be considered when interpreting the findings of this study.
Practical implications
The current research makes two major managerial contributions: it supports the triple bottom line framework which suggests that the value of an organization should integrate economic, environmental, and social activities; and confirms the importance of voluntary labeling as a tool for capturing a competitive advantage.
Originality/value
This study addresses the gap in the literature as to the relationship between voluntary labeling, attitudes, and intentions and provides empirical evidence of the causal relationship.
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Amrou Awaysheh, Robert D. Klassen, Asad Shafiq and P. Fraser Johnson
Globalization and increased outsourcing have contributed to increased supply chain complexity, exposing firms to greater vulnerability in the areas of product safety and supply…
Abstract
Purpose
Globalization and increased outsourcing have contributed to increased supply chain complexity, exposing firms to greater vulnerability in the areas of product safety and supply chain security. Meanwhile, stakeholders pressure firms to ensure that their products are safe, and their supply chains are secure. Drawing from stakeholder theory, this paper aims to explore how the supply chain characteristics of distance and power affect the adoption of consumer protection (CP) practices, which ensure product safety and supply chain security.
Design/methodology/approach
Using primary survey data from a sample of Canadian manufacturing firms, this research examines the relationships among supply chain characteristics, adoption of CP practices and firm performance.
Findings
Analysis supported the use of two practices related to product safety (consumer education and product design) and three practices for supply chain security (packaging, tracking and authenticity). Greater cultural distance between the focal firm and its suppliers was positively associated with investments in safer design practices, while increased geographical distance between the focal firm and the customer was significantly related to increased consumer education. Moreover, as power of a focal firm relative to its suppliers increased, so too did investments in supply chain security. Finally, CP practices were related to improved operational performance along multiple dimensions.
Originality/value
This research focuses on the critical role of two key stakeholder groups in improving product safety and supply chain security: suppliers and customers. The authors add to the theoretical discussion of product safety and supply chain security by identifying critical differences between suppliers and customers for the focal firm. Second, the research informs the managerial community of the potential benefits of investments in CP practices.
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The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness…
Abstract
Purpose
The aim of this study is to investigate and analyze product recalls and product-harm crises in the US toy industry, which is a major area in marketing and firms' competitiveness.
Design/methodology/approach
By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the paper uses content analysis to compare and contrast toy recalls, product hazards and country of origin issues of 721 toy recalls in the US market between 1974 and 2008, covering 270 million recalled toys.
Findings
Findings of this work reveal that most of the recalled toys were manufactured in China, although a wide variety of toy brands were designed in the USA. Major hazards of toy recalls included choking, lead poisoning, aspiration, fire/burn and other injuries.
Research limitations/implications
The study relied on the CPSC's data that seemed representative of the toy industry in the US market, but missed other markets of Europe and Asia. Also, there was availability of detailed data in sub-categories of the toy industry.
Practical implications
The paper provides useful academic and managerial implications that can help us understand the issues of product recalls and product-harm crises.
Social implications
Toys are one of the most widely available products in the world; the industry is a $50 billion industry and has transformed itself from a small-scale business sector into a well-established industry.
Originality/value
This investigation is particularly important in the areas of firm-specific competitiveness, business ethics and regulatory and societal issues.
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Marilyn M. Helms and Betty A. Hutchins
Suggests that declining product quality and manufacturers′ socialresponsibility is of increasing concern to consumers and tomanufacturers, who must bear the cost of such faulty…
Abstract
Suggests that declining product quality and manufacturers′ social responsibility is of increasing concern to consumers and to manufacturers, who must bear the cost of such faulty practice. Reviews documented cases of poor quality products and matches them with the ethical theories of utilitarianism, universalism, rights, justice and Natural Law. Obligations to stakeholders are examined, and future research suggested.
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Peiyi Liang, Feng Yang and Feifei Shan
This paper aims to examine the optimal sourcing strategies and pricing decisions of competing toy manufacturers and to discuss how manufacturers’ decisions are impacted by…
Abstract
Purpose
This paper aims to examine the optimal sourcing strategies and pricing decisions of competing toy manufacturers and to discuss how manufacturers’ decisions are impacted by competition.
Design/methodology/approach
The authors consider a single-period model to characterise the competition between two competing toy manufacturers. Both of them are free to choose between virgin material and recycled material. The authors consider two types of consumers: sensitive consumers who are concerned about product safety and prefer the toy made of virgin material and insensitive consumers who do not care what material is used in the toy. The competing manufacturers play a Cournot competition.
Findings
The results reveal a special case of a win-win situation for both the manufacturer and the consumer. In addition, an increasing number of sensitive consumers does not always raise the price of virgin-material toys.
Practical implications
The authors derive the manufacturer’s equilibrium sourcing strategies, corresponding market-clearing prices and profits obtained.
Originality/value
The paper investigates how toy manufacturers’ optimal sourcing strategies are impacted by competition, considering market segments.
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