Monday, August 22, 2011
A famous example of this is what took place in 1992 with Hoover offering free flights to those who purchased one of their cleaners or washing machines. Flights were initially offered to Europe, and then the United States. It soon became apparent that they could not sustain this, and customers began to complain that they were not receiving what was promised in the promotion. This mistake ended up costing them tens of millions in court fees and settlements, as well as many customers and positive brand equity that had existed before the disaster.