CONSUMER RELATIONS

CONSUMER RELATIONS Chapter Fourteen

Consumer Relations • The purpose of consumer relations is to satisfy, safeguard, enhance, monitor, and be responsive to consumers to remain profitable yet sensitive to the needs of consumers.

Preview of Coming Attractions… • Consumer Relations • Ombudsperson • Consumer Movement • Agencies • Activities

Consumer Relations Objectives • Building sales • Keeping old customers • Attracting new customers • Marketing new items or services • Expediting complaint handling • Reducing costs

Facts and….. Bugs….. • Only 4% of dissatisfied customers will ever complain. Of those that don’t complain, chances are they will not repurchase. • Historically, dissatisfied customers were handled with a “bedbug letter” named for the day when letters to the railroads complained about bedbugs in sleeper cars. These complaints were handled with a form letter, prewritten in response.

Ombudsperson • Why are they needed? • Help the consumer feel confident and influence the organization’s behavior to improve product and/or service • What do they do? • Investigate complaints, monitor difficulties with products or quality

Bedbug Letter

History --1872 first legislation to protect consumers against corporate abuses. Early l920’s-30’s consumers were protected from abuses in manufacturing. Consumer Bill of Rights established in the l960’s which said consumers have the right to safety, to be informed, to choose, and to be heard. Consumer Movement

Question • How have consumers recently fought back? This was the common response: ”It is so frustrating, they always call during dinner.” • Hint: FTC logged 1,000 computer hits per second and 100 calls per second • Answer: No Call list for Telemarketing

Federal Consumer Agencies • The government attempts to protect consumers against abuse, key agencies include: • Justice Dept. • Federal Trade Commission FTC • Food and Drug Administration FDA • Consumer Product Safety Commission • Office of Consumer Affairs

Consumer Activists • Primary role is to keep companies honest by informing the public and evaluating products. • Consumers’ Union formed in l936 publishes Consumer Reports • Consumer Federation of America formed in l967 to unify lobbying efforts for pro-consumer legislation. • The Internet has helped with a wealth of information to consumers

Exercise • Choose a category from the Internet site Yahoo! Boycott Board which lists actions being taken against organizations and report on it. Why was the action taken? • What improvements have they made to date?

How does Business Get the Message? • If they want cha-ching they need to— (You complete the list) 1. 2. 3.

Question…. • Who is considered the founding father of the consumer movement in the U.S.? • Hint: He had a good system going for voting in the last election, in addition to being the Guru of the consumer movement. • Ralph Nader

Question….How good are you at movie trivia? Name the film in which Russell Crowe played a whistle blower for the tobacco industry, leading to positive changes for consumer’s health. • Hint: He wasn’t outside, he was…. • Answer: The Insider

Question—Can You Top This? • What is your best dissatisfied customer story? • Can you win bragging rights in your class?

Question • What type of content material should be added to a web site that addresses consumer relations? Provide reasons why your ideas would work.

CONSUMER RELATIONS