4/15/2005

Honda's recall

Honda is having some problems with their ATVs. The company recalled 200,000 ATVs because of problems with steering. The company is contacting consumers that purchased the vehicles to inform them of the problems, and offer free repair. Earlier this year I read an article about Honda and their drop in sales last year. Honda is known for quality, and I wonder how this may continue to affect their future sales. I have also thought on how much consumer demand for Honda is placed on brand loyalty.

7 comments:

Mack said...

I think that it actually helps companies show that they stand for quality when they are willing to recall a product they think is defective.

Rex said...

I think that Honda has a HUGE amount of brand loyalty. Honda has promoted itself as a value leader and as such they should take this step and pay for the repairs to keep their customers happy.

trudy said...

The mistake will surely hurt the image of Honda, but at the same time will gain a lot of respect. I bought my Honda bike because it was a Honda. They do have a great deal of brand loyalty and while the mistake may have hurt this loyalty some doing the recall was the best solution.

sandy said...
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Dr. Tufte said...

As we saw in the "lemons" experiment, this is how you build a reputation for quality. You either sell something that is high quality, or you set up a warranty process that makes sure the consumer ultimately is satisfied.

So, my guess is that this isn't just brand loyalty - that Honda has a high quality strategy that they are trying to make work even when there are problems.

carter said...

Dr Tufte said that you can either have quality or a warranty if you want to satisfy your costumers’ with quality reputation. The warranty is why I bought a Honda.

Dr. Tufte said...

It isn't quality or a warranty, it is quality and a warranty. Often, quality isn't worthwhile without the warranty or guarantee.