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Jericho Communications, Inc.
304 HUDSON STREET, SUITE 700, NEW YORK, NY 10013
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CONTACT: Greg Mowery, Jericho Communications, Inc., 212-645-6900
Ext. 114
AMERICAN CONSUMERS BELIEVE FIRESTONE KNOWINGLY PUT THEIR LIVES
AT RISK
--High Percentage Insist That If Guilty The CEO Should Go To
Jail--
New York, New York October 26, 2000
In a new survey of more than 1,000 consumers, more than half (51.3%)
believe Firestone knew their tires had design flaws that led to
traffic accidents and fatalities. The new survey, conducted by America's
Research Group (ARG), also reveals that 62.9% of buyers will not
be purchasing Firestone tires in the future. "This should be
devastating news for Firestone," says ARG Chairman, C. Britt
Beemer. "We do a lot of surveys about consumer concerns. This
story just wouldn't go away, and we wanted to know how serious the
fallout for Firestone might be. This survey clearly shows that Firestone
has lost one third of its business-which is a strong indicator the
company will probably be out of business in the not-too-distant
future."
America's Research Group is a full-service consumer behavior survey
research and strategic marketing firm which records consumer buying
patterns for a number of retail clients and manufacturers. The company
regularly contacts consumers about their purchasing habits through
their "Consumer Mind Reader" surveys.
This survey also shows that consumers have strong opinions on the
reasons behind Firestone's slow reaction to their defective tires,
and what steps the company should take if it is to survive:
- 64.9% said Firestone execs continued to make defective tires
knowing they would result in accidents
- 37.2% thought Firestone didn't fix the problem because it was
too expensive
- 34.7% thought Firestone simply didn't take the problem seriously
enough
- 48.6% strongly feel that more Firestone tires will be found
to be defective and will have to be recalled
- A whopping 92.6% say that Firestone should compensate those
who lost loved ones. Of that group,43.2% said they should receive
monetary settlements 31.5% thought they should receive replacement
tires, and 8.9% felt an apology from Firestone was the appropriate
gesture
- 39.3% think if criminal charges are brought against Firestone,
the CEO should go to jail
- 57.3% feel the Firestone story has lowered their trust in companies
they buy from
Britt Beemer continues: "Clearly consumers feel Firestone
betrayed their trust. While 59.7% of consumers polled felt that
Firestone is currently working hard to replace these defective tires,
72% say trust has become a more important component in their purchasing
decisions in the future. This survey revealed other issues of concern
to consumers in connection with the unfolding Firestone tire scandal:
- 54.7% felt the government acted too slowly in moving Firestone
to recall their defective tires
- While 55.1% have seen the TV ads featuring the Ford CEO, 47.8%
of those who recalled seeing the Ford TV ads felt he was hiding
knowledge about Firestone tires
- 63.7% said Ford's CEO was stiff in his presentation in the TV
ads
- 64.8% thought Ford's CEO came across as concerned about the
problem but only 49% thought his presentation was sincere
"Ford didn't entirely escape the wrath of consumers in our
survey," says Beemer. "Nearly 38% felt that Ford did know
about the defective tires, and 50% of them believed that Ford was
willing to let their customers die rather than announce a recall.
At a time when consumers say reputation and trust are important,
Firestone may have committed the unpardonable sin. We've seen executives
stumble time and time again over recall issues concerning public
safety. It may take the closing of a high profile brand such as
Firestone to convince big business that it's better to pay the piper
the moment the problem arises. Recalls are expensive. But think
how much more has been lost through their callous indifference."
C.Britt Beemer is Available for Interview
For more information Contact America's Research Group.
America's Research Group, Ltd. (ARG), is a full service consumer
behavior survey research company with more than 20 years experience.
ARG has interviewed more than 4 million consumers. Utilizing both
quantitative and qualitative research, the firm works with clients
to develop practical and successful marketing strategies for pace-setting
companies in the fields of home furnishings, appliance and electronics
retailing, banking and finance, automobile dealers, department stores,
specialty and mass merchants. Clients include Sealy Mattress, Barnes
& Noble, AT&T Wireless, Eckerd Drugs, Broyhill Furniture,
Thomasville Furniture, American Eagle Outfitters and many others.
ARG claims a plus or minus 3.8% accuracy.
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