O U T F R O N T

Nothing Comes Between Me and My SUV "I've climbed r -• and gorswimming with shai ks, but I won't ¡

PSYCHOLOGY I People panic about nuclear power, then ride bungee jumping, and I've never like

a bicycle without a helmet. They blame a tire, but forgive the roller coasters because those things]

vehicle that rolls over. There's a reason.

BY MELANIE WELLS

AND ROBYN MEREDITH

DEADLY COMBINATION: A TIRE

from Eirestone and a sport utüityvehicle from Eord. The first of

these two brands will emerge from therollover scandal badly, perhaps fatally,damaged in the U.S. market. The otherwill survive. Indeed, sales of the EordExplorer suffered only a small dip inAugust.

Is this response by consumers theresult of a careful weighing of thedriving risks? Not at all. It reflects afundamental principle of risk percep-tion: that people are far more fearfulof things they don't control thanthings they do. Statistics—for exam-ple, the fact that SUVs have a higherpropensity to roU over than do stationwagons—don't matter.

Which is more dangerous, a bicycleor a nuclear power plant? The statis-tics say that bicycles are the killers—

Risky business: If we can control it, we don't fear it.

773 deaths in 1998. Nukes didn't killanyone. But people's hunches run theother way. They worry more abouttornadoes (130 deaths a year) thancrossing the street (2,708 deaths),more about commercial jets (0.03deaths per 100 million passengermiles) than about driving at night(16,480 between 8 p.m. and 4 a.m.).

It's that control issue. If the Shore-ham nuclear plant moves in next door,you are a passive recipient of the risk.But nobody makes you ride a bicycle.

aren't in my control," says JohnRoss, author oí Living Dangeously: Navigating the Risks iEveryday Life.

People buy SUVs becausthey "play to our need to feepowerful," says Richard Caleprofessor of psychologyWest Virginia Wesleyan Colfllege. "Driving these big carsmakes us feel superior, inde-structible and in complete con-trol." Tires, by contrast, don't j

do much for our self-esteem—nor dowe have any control over them.

So if sport utilities come with risk,people are able to rationalize it by per-suading themselves they have controlover the situation. This perceptioncombines with another common psy-chological failing—overconfidence.We feel we are better at whatever wedo—driving, day-trading, swimmingwith sharks—than other people are atthe same endeavors. "Most people willtell you that they are above-average

Back From the DeadBridgestone's expensively acquired brand name Firestone is endangered. Is it doomed? Maybe not. Some well-established

brands have rebounded from similar crises. The classic example: Johnson & Johnson's Tylenol, which bounced back after

seven people died from swallowing cyanide-laced capsules. Here are others. —Melanie Wells

GERBER

CRISiS: Nearly 400 reports of sliv-ers of glass in jars of Gerber babyfood in 1986. No serious injuries, butcompany's market share skidded.

REACTION: Accused media ofexaggeration. Refused a recall, evensued Maryland for banning sales.But boosted ad spending.

WHERE IT !S TOOÂY: Sales recov-

ered by 1988. Company dominates

baby-food business.

LESSON: Sometimes groveling

isn't better.

JACK IN THE BOXCRISIS: E. coli bacteria in bamburgerblamed for deatbs of threechildren in 1993.

Scrapped 200,000pounds of patties. Settled withvictims, stockholders, suppliersand franchisees for an estimated$100 million.

WHERE IT IS TODAY: Companysales bave increased steadily. Insti-tuted strong food-safety programs.

Í. i ;SO:M If all else fails,

pay people off.

PERRIERCRISIS: In 1990,13 bottles ofPerrier, then the dominantbottled-water brand, were foundto have traces of benzene.

REACTION: Then-owner SourcePerrier quickly recalled 160 millionbottles, even though healthrisk was minuscule.

WHtRE IT IS TODAY: Perrier, nowa division of Nestlé, is the largestbottled-water company in the U.S.,with a third of tbe business.

LESSON: Strong brand nametrumps all.

AiRTRAN

CRISIS: On May II, 1996 a

VaiuJet DC-9 plunged into

the Everglades ii ar Miami, killing

all 110 people aboard.

REACTION: In 1997 the company

merged with little-known AirTran

Airways and took its name.

WHERE IT I . TODAY: After flyingin the red for ;n - :.profit in the fi. -;

LESSON: Ch;

turned a

199.

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so YOU WANT

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