CONSUMER RELATIONS

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CONSUMER RELATIONS

• Chapter Fourteen

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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.

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Preview of Coming Attractions

• Consumer Relations
• Ombudsperson
• Consumer Movement
• Agencies
• Activities

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Consumer Relations Objectives

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

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Facts and.. Bugs..

• Only 4 of dissatisfied customers will ever
  complain. Of those that dont 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.

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Ombudsperson

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

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Bedbug Letter
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Consumer Movement

• History --1872 first legislation to protect
  consumers against corporate abuses. Early
  l920s-30s consumers were protected from abuses
  in manufacturing.
• Consumer Bill of Rights established in the l960s
  which said consumers have the right to safety, to
  be informed, to choose, and to be heard.

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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

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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

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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

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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?

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How does Business Get the Message?

• If they want cha-ching they need to
• (You complete the list)
• 1.
• 2.
• 3.

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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

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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 consumers health.
• Hint He wasnt outside, he was.
• Answer The Insider

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QuestionCan You Top This?

• What is your best dissatisfied customer story?
• Can you win bragging rights in your class?

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Question

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