Consumer Stakeholders: Product and Service Issues

Two Central Issues: Quality and Safety

The Issue of Quality : Driven by an increase in family income and intense global competition
The Issue of Safety : Driven by the public’s increasing concern with safety and risk-free
products—and business’s responsibility to address this concern.

Critical Dimensions of Product Quality : Perceived Quality, Aesthetics, Serviceability, Features,

Reliability, Conformance, Performance, Durability and Dimensions of Quality

Ethical Dimensions of Quality : Contractual Theory, Due Care Theory and Social Costs View.

Advertising Issues :
Specific Controversial Advertising Issues :

Warranties and Guarantees :

Implied Warranty : Unwritten promise that there is nothing wrong with the product
and its intended use.
Express Warranty : Promise or affirmation of fact that the seller makes at the time of
the sale and Guarantee (a promise regarding product quality, less likely to be
written.)
Packaging and Labeling :

Other Product Information Issues :

The Federal Trade Commission :

The Mission of the FDA :
The FDA is responsible for protecting the public health by ensuring the safety, efficacy, and
security of human and veterinary drugs, biological products, medical devices, our nation’s food
supply, cosmetics, and products that emit radiation. The FDA is also responsible for advancing
the public health by helping to speed innovations that make medicines and foods more effective,
safer, and more affordable; and helping the public get the accurate, science-based information
they need to use medicines and food to improve their health.

Total Quality Management / TQM :

All business functions are blended into an integrated philosophy built around quality, teamwork,
productivity, and customer understanding and satisfaction.
The customer is the final judge of quality.
Business’s Response to Consumers :
- Convert customer expectations to standards and specifications
- Define quality in terms of customer expectations
- Realign organization to ensure quality is achieved