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Consumer stakeholders

Consumer stakeholders. Among stakeholder groups consumers rank at the top. Consumerism arose just as marketing began to matter to companies Consumer has rights 1 to safety, 2 to be informed, 3 to choose 4 to be heard.

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Consumer stakeholders

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  1. Consumer stakeholders • Among stakeholder groups consumers rank at the top. • Consumerism arose just as marketing began to matter to companies • Consumer has rights • 1 to safety, 2 to be informed, 3 to choose 4 to be heard.

  2. Consumerism is a social movement seeking to augment the rights and powers of buyers in relation to sellers • Importance of consumer champion Ralph Nader. • ‘The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man’

  3. Consumerism for this century • High level of grassroots activism in UK (tanker drivers dispute) • Global companies under the watchful eyes of consumers. • Division of analysis into product information and the product itself.

  4. Some consumer problems with business. • High prices / low quality of many products • Failure to live up to advertising claims • Hidden fees • Poor after sales service • Products breaking or going wrong when brought home • Misleading packaging or labelling • Uselessness of complaining • Your own examples of any of the above??

  5. Inadequate guarantees and warranties • Poor complaints handling procedures • Dangerous products • Absence of reliable information about various products and services • Not knowing what to do with a faulty product

  6. Product information issues • Misinformation about a company’s product • page 515 ‘ Business has a legal responsibility, and an ethical responsibility to provide fair and accurate information on its product or services.’ • Problem with advertising. Is advertising inherently unethical?

  7. Advertising issues • Wasteful and inefficient tool of business: our standard of living would be higher without it. • But companies argue that it is beneficial by raising standards of living and improved consumer satisfaction • Helps consumers know about changing products • It is an important process in capitalism

  8. Ambiguous advertising ‘weasel’ words to mislead consumer? Helps prevent, helps you look . Or legalese terminology. • Concealed facts : not telling the whole truth, but people don’t want to know everything. • Problem of fees or hidden charges

  9. Product plot placement -not needed in plot of film • Exaggerated claims or puffery: Budweiser king of beers • Psychological appeals to human emotion or patriotism to sell products Bush using images of 9/11 in political ads. Importance of business responsibility in this key area?

  10. Other issues • Comparative advertising My product against brand X but restrictions in law are lessening. • Sex in advertising. ‘I’m Cheryl fly me’ by National Airlines but people are put off by use of sex in advertising • Advertising to children American children watch 28 hours of television a week. Children cannot understand persuasion

  11. Advertising of alcoholic drinks • Cigarette advertising • Health and environmental claims… ‘Because health and environmental claims attract customers, marketers are tempted to tout claims that aren’t really valid.’ p 530 • Ad creep People see about 3000 ads a day!!!! Due to decline of TV audience

  12. Implied warranty: product can be used for its intended purpose and • express warranties, at time of sale • Extended warranties. Retailer makes $10 on $400 TV set but $50 on a $100 extended warranty • Self regulation in advertising?

  13. Ethical and stakeholder issues • What are the ethical and stakeholder issues around the following • Nike trainers • Green and Black’s chocolate • A life insurance policy • Fruit : organic , sprayed, genetically modified • Cheap T shirts

  14. Consumers of public sector services • How can anyone decide the value of local authority services? • Think of street lighting and road maintenance.. • Provision of high quality local education against help for frail elderly people? • Acceptance by you of the value of trading standards and environmental health?

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