How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures

Journal of International Marketing, Forthcoming

47 Pages Posted: 23 Sep 2022 Last revised: 5 Oct 2022

See all articles by Vivek Astvansh

Vivek Astvansh

Kelley School of Business, Indiana University; Luddy School of Informatics, Computing, and Engineering

Barbara Duffek

affiliation not provided to SSRN

Andreas B. Eisingerich

Imperial College London

Date Written: September 9, 2022

Abstract

A company often faces incidents in which its offerings cause bodily (e.g., product safety defects) or psychological (e.g., data breach) harm to its consumers. Such incidents may invoke product liability lawsuits against the company. The company may seek to recover from the liability-invoking failure by notifying the affected consumers, offering a remedy, and persuading them to comply with the company message. The authors theorize and experimentally demonstrate that, on average, a prevention-focused message receives greater compliance than a promotion-focused message. Further, a prevention-focused message is more effective with consumers from high uncertainty avoidance cultures, whereas a promotion-focused message is more effective in low uncertainty avoidance cultures. Perceived compatibility of prevention or promotion goals with low or high values of uncertainty avoidance mediates the interaction effect on compliance. The findings help companies overcome consumer apathy to product recall or data breach notices and offer managers ways to promote consumer safety and protection.

Keywords: product recall notice, data breach notice, regulatory focus, national culture, uncertainty avoidance

Suggested Citation

Astvansh, Vivek and Duffek, Barbara and Eisingerich, Andreas B., How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures (September 9, 2022). Journal of International Marketing, Forthcoming , Available at SSRN: https://ssrn.com/abstract=4214803

Vivek Astvansh (Contact Author)

Kelley School of Business, Indiana University ( email )

Kelley School of Business
Bloomington, IN 47405
United States

HOME PAGE: http://kelleyschool.iu.edu/astvansh

Luddy School of Informatics, Computing, and Engineering ( email )

700 N. Woodlawn Avenue
Bloomington, IN 47408
United States

HOME PAGE: http://https://luddy.indiana.edu/contact/profile/index.html?Vivek_Astvansh

Barbara Duffek

affiliation not provided to SSRN

Andreas B. Eisingerich

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom
44(0)20-7594-9763 (Phone)
44(0)20-7823-7685 (Fax)

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