The production employees recognize that the design of the product, or the assembly process, results in deficiencies. Management reassures them that the design is fine. Clients try to determine if the problem is with their use of the product or the product itself. Customer support is contacted by the clients. Support personnel notice a trend, either with the product or its usability.
Clients complain to support staff, who in turn complain to the production employees.
Morale begins to decline. Customers write to trade publications, poor reviews are published, and sales level-off or begin to decline. Management implements promotions, special pricing for some clients, and other measures to protect sales figures. The public valuation of the company declines, reflecting analysts' opinions that the company is faltering. In the meantime, mid-level employees begin to exit.