A product recall is an observable external quality failure and a source of significant potential loss to firms as well as a threat to public safety. While such failures can be a motivation for organizational learning, little is known about the extent to which recalls can be a source of learning...

In this paper, based on well-established behavioral theories, we propose a new model for dynamic formation of customer’ quality expectations. The model is described by a one-dimensional non-linear discrete dynamical system which depends on several parameters with links to behavioral theories....