
274 ◾ Haiju Hu, Xiande Zhao, and Barbara B. Flynn
aect satisfaction only when qualifying factors meet or exceed customer expecta-
tions (Johnston 1995). Financial outcomes are usually considered as a qualifying
factor. is logic can also be applied to product recalls. It suggests that recall pro-
activeness is important to customers only if the level of compensation meets or
exceeds their expectations. us, we hypothesize that compensation following a
product recall operates as a qualifying factor. erefore, according to the two-factor
theory, we predict the following:
H
3a
: Recall proactiveness will not inuence perceived legitimacy when compensa ...