PRODUCT RECALLS CONCEPTUALIZED AS SOCIAL DILEMMAS By SKYLER MASAJI KING A dissertation submitted in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY WASHINGTON STATE UNIVERSITY Carson College of Business MAY 2016 © Copyright by SKYLER MASAJI KING, 2016 All Rights Reserved © Copyright by SKYLER MASAJI KING, 2016 All Rights Reserved To the Faculty of Washington State University: The members of the Committee appointed to examine the dissertation of SKYLER MASAJI KING find it satisfactory and recommend that it be accepted. ___________________________________ Jeff Joireman, Ph.D., Chair ___________________________________ Andrew Perkins, Ph.D. ___________________________________ Joyce Ehrlinger, Ph.D. ii ACKNOWLEDGEMENT Throughout my time here at Washington State University, I have had the opportunity to meet exceptional scholars. First and foremost I would like to thank Dr. Jeff Joireman for his mentorship and guidance from day one. I could not have asked for a better mentor and friend throughout my time here. He has offered caring support throughout the program, allowing me to make and learn from my mistakes and never letting me take the easy way out through any process or project. Dr. Joireman, you have been a dedicated mentor and I sincerely hope to not only grow into a successful scholar like you are, but also grow into the type of person you are. I would also like to thank Drs. Andrew Perkins and Joyce Ehrlinger for the great resource they have been throughout the dissertation process. I feel very fortunate to have learned from them. Their academic pedigree is truly amazing. Additionally, their enthusiasm for research and helping students is second to none and I hope to emulate their knowledge and work ethic throughout my career in academia. Thank you. Throughout the program, I have also had the benefit to work with Drs. Darrel Muehling and Ioannis Kareklas. They have been an integral part of my research and experience as a PhD student. They have also shown an incredible amount of patience and wisdom as I have learned the research process from them. Truly, their experiences and insights will benefit me throughout my career. I would also like to thank my fellow student colleagues at Washington State University. All of them have been supportive, encouraging, and helpful throughout my time here. There are too many names to list, though a heartfelt thank you for believing in me and for being good friends. iii Before I came to Washington State University, I had the privilege of studying at Weber State University. My first class I took there was a Principles of Marketing course taught by Dr. Tony Allred. I had never taken a marketing course before, but the way Dr. Allred taught the course, I became more interested in the topic. To me the class was difficult and I had a limited marketing background so I had little confidence that I would succeed. I remember going to his office one day to get further clarification on an assignment and he told me that I was working hard and I’ll succeed in the class. He let me know that I had a mind for marketing and while I did not feel that, hearing that from him gave me the confidence I needed to succeed. As time went on, I thought about pursuing a Ph.D. and I wanted to make sure that I would like academic research. Dr. Allred as well as Dr. Erhard Valentin were kind enough to include me in their research and I enjoyed learning about the research process from them. Both professors have been supportive of me throughout this process and have continued to work with me on different projects. I feel honored to go back to Weber State University to continue collaboration with them. I must also thank my two uncles, Michael King and Ron Vogel. I had the privilege to take collegiate courses from them in two subjects that I did not care much about; biology and accounting respectively. Although I did not enjoy the subject, I noticed how they cared for each of their students including me. They have been an example to me and I hope to be as effective as they are at reaching students. They have also let me know, even when I did not feel like it, that I was a good student and that I will be successful in my choice of studies. Finally, I’d like to acknowledge all the love and support provided by my immediate family members during this period of my life. To my father, Brad King, from a young age I have iv always looked up to you and have learned daily from your example. You are the one person that I try to model my life after. Because of you, I have had the confidence that I can make a difference in the lives of those I have the opportunity to serve through teaching, research, and any other opportunities that come my way. To my dear mother, Tami King, watching you pursue your education while simultaneously raising a family of three children and always putting your children first is a memory that continues to drive me personally and professionally. As successful as you were pursuing your degrees, I see your biggest success as having raised a family (with the help of dad) of good, kind, successful children. To my sister, Kitani Anderson, you have been a great example to me in my life. Your hard work in school when you were younger and continued dedication to your family has and will continue to serve as a constant guide in my life. To my brother, Hunter King, you too have been a great help to me in my life. Your confidence in me throughout my life has helped me more than you will ever know. I too see you as a good example to me in your work and your dedication to your family. To my nephew, Cort Anderson, who is currently only 4 years old, thank you for your care and support. It was a long process studying for my comprehensive exams and it was you who offered a prayer at that time that I “wouldn’t be scared and wouldn’t be eaten by dinosaurs.” I am happy to say that I wasn’t scared and I was not eaten by dinosaurs. Without intention to boast or brag but to give sincere thanks, I have been blessed to have had the best help to reach this point in my life. To my family, friends, and faculty members heartfelt thanks to all of you. v PRODUCT RECALLS CONCEPTUALIZED AS SOCIAL DILEMMAS Abstract by Skyler Masaji King, Ph.D. Washington State University May 2016 Chair: Jeff Joireman This dissertation explores the product recall decision. I first posit that the product recall decision can be viewed as a social dilemma where short-term individual interests and long-term collective interests are at odds. Consistent with this reasoning, Study 1 finds that the product recall decision can be viewed as a social dilemma. Building on these findings, Studies 2-4 explore how factors found to influence cooperation in social dilemmas impact the product recall decision. Study 2 explores how decision makers’ time-horizons, CFC, and perception of the decision affect their willingness to recall a product. Results show that decision makers’ time- horizon does not affect one’s willingness to recall a product. However, CFC effects recall intentions through ethical perceptions of the decision. When decision makers’ CFC is high and when the decision is perceived as being an ethical decision, willingness to recall a product increases. Study 3 explores how group size affects willingness to recall a product and study 4 explores how anonymity and product defect severity affect willingness to recall. Study 3 and 4 replicates the effects of CFC and ethical perceptions of the decision on willingness to recall, however, group size, anonymity, and product defect severity did not affect willingness to recall. vi TABLE OF CONTENTS ACKNOWLEDGEMENT…………………………………………………………….…………iii ABSTRACT………………………………………………………………………………….…..vi LIST OF FIGURES……………………………………………………………………….……...ix DEDICATION……………………………………………………………………………………x CHAPTER 1………………………………………………………………………………………1 CHAPTER 2………………………………………………………………………………………4 CHAPTER 3……………………………………………………………………………………..11 CHAPTER 4……………………………………………………………………………………..22 Study 1…………………………………………………………………………………...22 Study 2…………………………………………………………………………………...31 Study 3…………………………………………………………………………………...39 Study 4…………………………………………………………………………………...47 General Discussion………………………………………………………………………53 REFERENCES…………………………………………………………………………………..58 APPENDIX A……………………………………………………………………………………66 APPENDIX B……………………………………………………………………………………67 APPENDIX C……………………………………………………………………………………68 vii APPENDIX D…………………………………………………………………………………....69 APPENDIX E……………………………………………………………………………………70 APPENDIX F……………………………………………………………………………………71 viii LIST OF FIGURES 1. FIGURE 1………………………………………………………………………………..26 2. FIGURE 2………………………………………………………………………………..29 3. FIGURE 3………………………………………………………………………………..37 4. FIGURE 4………………………………………………………………………………..37 5. FIGURE 5………………………………………………………………………………..37 6. FIGURE 6………………………………………………………………………………..44 7. FIGURE 7………………………………………………………………………………..44 8. FIGURE 8………………………………………………………………………………..45 ix DEDICATION For their unconditional love and support throughout my life, I dedicate this work to my grandparents; LaVell and Mayzell King, Masaji and Tsuruko Imai x CHAPTER 1 INTRODUCTION One ought never to turn one’s back on a threatened danger and try to run away from it. If you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half. Never run away from anything. Never! -Winston Churchill- The relevance of ethical decision making organizational contexts has led scholars in a variety of disciplines to investigate drivers of ethical behavior (see Treviño, den Nieuwenboer, and Kish-Gephart, 2014 for a review). Stakeholders, including governments, have and will continue to place pressure on organizations to minimize employees’ unethical conduct. One ethical decision that has gained much recent media attention, and that organizations must often face, is whether to issue a product recall. Product recalls occur frequently in today’s marketplace, and most of the time they are very costly. One of the most well-known product recalls occurred in 1982 when Johnson & Johnson recalled its pain reliever Tylenol after seven people died when an unidentified person or persons had replaced some Extra-Strength Tylenol capsules with cyanide capsules.