The impact of product recall on advertising decisions and firm profit while envisioning crisis or being hazard myopic

•Level of advertising in pre-crisis and post-crisis period depends on the likelihood and impact of a product-recall.•For two foal firms, advertising decisions depend on the hazard rates of both firms.•Low risk high impact recall may increase firm profit.•Hazard myopic firms are more profitable when recall occurs later in the planning horizon.•Hazard myopia is disastrous for high impact recalls.