Global Supply Chain Quality Management

250 ◾ John Z. Ni, F. Robert Jacobs, and Barbara B. Flynn

appealing option for customers, whose condence in the quality of the product has

already been diminished, compared with receiving a refund of the purchase price.

e negative psychological impact of a product recall is persistent, lingering in the

minds of customers into the future (Van Heerde et al. 2007), who may be uncertain

about whether the root cause of the product failure was fully addressed, even after a

product was repaired or replaced. On the other hand, a refund allows customers to

overcome their apprehension about a future product failure, since it is no longer in

their hands. erefore, a refund is the most eective remedy strategy for motivating

customers to return a reca ...