TEMU MUKA 12

EXTERNAL STAKEHOLDER
ISSUES
2-1
 INTRO
customer relationship management (CRM) has become an
important mantra of marketing. Customer relationship
management is “the ability of an organization to effectively identify,
acquire, foster, and retain loyal profitable customers.
Customer engagement is all about the emotional connection
companies are able to establish between their customers and the
company. Gallup uses a scale that focuses on three assessments
that customers make: whether the company always delivers what it
promises, the pride the customer feels by being a company’s
customer, and the judgment made that the company is a good
match for the customer

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 The Consumer Movement
President John F. Kennedy in his “Special Message on
Protecting the Consumer Interest.”

Right
Right to
to Safety
Safety Right
Right to
to Be
Be Informed
Informed

Right
Right to
to Choose
Choose Right
Right to
to Be
Be Heard
Heard

2-3
 The Consumer Movement

A social movement seeking to

Consumerism augment the rights and powers of
buyers in relation to sellers
 Consumer Problems with Business
 High prices of products
 Poor quality of products
 Failure to live up to advertising claims
 Hidden fees
 Poor quality of after-sales service
 Product breakage
 Misleading packaging or labeling
 Feeling that consumer complaints are a waste of time
 Inadequate guarantees and warranties
 Failure of company complaint handling
 Dangerous products
 Absence of reliable product / service information
 Not knowing what to do if something is wrong with product

5
 Product Information Issues
Arguments For Arguments Against
Advertising Advertising

 Increases standard of living  Lowers standard of living

 Increases consumer satisfaction  Decreases consumer satisfaction
 Efficient means of  Inefficient means of
distributing information distributing information
 Effective  Ineffective
 Low cost  High cost
 Advertising Benefits
The lifeblood of the free-enterprise system
Stimulates competition
Provides information for comparison buying
Provides competitive information to competition
Sales response provides a mechanism for immediate feedback
Provides social and economic benefits
 The Need for Information

Clear
Clear
Consumers
Consumers
need
need information
information Accurate
Accurate
that
that is…
is…
Adequate
Adequate
 Advertising Abuses

Ambiguity
Ambiguity Exaggeration
Exaggeration

Employment
Employment ofof
Concealment
Concealment Psychological
Psychological
of
of Facts
Facts Appeals
Appeals
 Controversial Advertising Issues
Comparative Advertising
Use of Sex in Advertising
Advertising to children
Marketing to the poor
Advertising of alcoholic beverages
Cigarette advertising
Health and environmental claims
Ad Creep

10
 Three Moral Management Models
Immoral
Immoral Customers
Customersare
areviewed
viewedasasopportunities
opportunities
Management to
tobe
beexploited
exploited
Management

Amoral
Amoral Management
Managementdoes
doesnot
notthink
thinkthrough
throughthe
the
Management ethical
ethicalconsequences
consequencesof
ofdecisions
decisions
Management

Moral
Moral Customers
Customersare
areviewed
viewedas
asequal
equalpartners
partners
Management
Management in
intransactions
transactions

Figure 13-5
 Two Central Issues:
Quality and Safety

The Issue of Quality

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

Performance
Performance
Perceived
Perceived Features
Features
Quality
Quality

Dimensions
Aesthetics
Aesthetics of Reliability
Reliability
Quality

Serviceability
Serviceability Conformance
Conformance

Durability
Durability
Ethical Dimensions of Quality

Contractual
ContractualTheory
Theory

Due
DueCare
CareTheory
Theory

Social
SocialCosts
CostsView
View
 The Issue of Safety

Historical Perspective
1800s
1800s
Caveat
Caveat Emptor
Emptor

“Let
“Let the
the buyer
buyer beware”
beware”
1900s
1900s
Caveat
Caveat Vendor
Vendor

“Let
“Let the
the seller
seller take
take care”
care”
 Top 10 List of Safety Principles
1. Build safety into product design
2. Do product safety testing for all foreseeable hazards
3. Keep informed about and implement latest developments in product safety
4. Educate consumers about product safety
5. Track and address products’ safety performance
6. Fully investigate product safety incidents
7. Report product safety defects promptly
8. If a defect occurs, promptly offer a comprehensive recall plan
9. Work with the CPSC to make sure your recall is effective
10. Learn from mistakes—yours and others’

Figure 14-1
 Consumer Product Injuries
1. Sports and recreational activities and equipment
2. Home structures and construction materials
3. Home furnishings and fixtures
4. Housewares
5. Personal use items
6. Home workshop apparatus, tools, and attachments
7. Packaging and containers for household products
8. Home and family maintenance products
9. Toys
10. Space heating, cooling, and ventilation equipment
 Product Liability
Reasons
Reasons for
for the
the Concern
Concern

FIRST . . . Product liability has become a major issue

because of the sheer number of cases where
products resulted in injury, illness, or death and the
amount of the financial award.

SECOND . . . We have become an

increasingly litigious society.

THIRD… Rise in the doctrine of strict

liability.
 Consumer Product Safety Commission

1. Develops voluntary safety standards with industry

2. Issues and enforces mandatory standards
3. Bans consumer products if no feasible standard would protect the public
4. Obtains the recall of products or arranges repair
5. Conducts research on potential product hazards
6. Informs and educates consumers through media, government and private
organizations, and by responding to consumer inquiries
 Consumer Product Safety Commission

VOLUNTARY
VOLUNTARY SAFETY
SAFETY STANDARDS
STANDARDS

Carbon
Carbonmonoxide
monoxidedetectors
detectors
Indoor
Indoor Air
Air Quality
Quality Hazards
Hazards Formaldehyde
Formaldehydein
inwood
wood
Bunk
Bunkbeds
beds
Children’s
Children’s Product
Product Hazards
Hazards Drawstrings
Drawstringson
onchildren’s
children’sclothing
clothing
National
NationalElectrical
ElectricalCode
Code
Fire
Fire // Electrical
Electrical Hazards
Hazards Handheld
Handheldhair
hairdryers
dryers
Automatic
Automaticgarage
garagedoor
dooropeners
openers
Other
Other Hazards
Hazards Swimming
Swimmingpools
pools
Figure 14-3
 Food and Drug Administration
The Mission of the FDA

The FDA is responsible for protecting the public health by

assuring 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.
Figure 14-5 21
 Total Quality Management
All business functions are blended
into an integrated philosophy built
around quality, teamwork,
productivity, and customer
TQM understanding and satisfaction.

The customer is the final judge

of quality.
 Business’s Response to Consumers
Define quality
in terms of
customer expectations

Convert customer
expectations to standards
and specifications

Realign organization to
ensure quality is achieved

@http://www.asq.org
 Total Quality Management

Figure 14-6
 Strengths & Weaknesses
of Quality Definitions

Figure 14-7
 Six Sigma
Methodologies and techniques
for improving quality and
reducing costs.

Six Sigma It stresses the importance of

customers.

Six Sigma level of operation is

3.4 defects per million.
 Consumer-Stakeholder
Satisfaction Model
Continued
Continued
Product
ProductQuality
Quality Purchases
Purchasesbyby
and
andSafety
Safety Consumers
Consumers
Consumer
Consumer
Satisfaction
Satisfaction
Firm
Firm
Profitability
Profitability
Service
ServiceQuality
Quality
and
andSafety
Safety
Firm
Firm
Reputation
Reputation

Figure 14-8
 LATIHAN 12

Berkaca dari kasus PAM Jaya (cari di internet),

cari complain konsumen (pilih satu saja) dan
bagaimana cara mengatasinya dengan TQM.
Berikan contoh iklan dibawah ini PAM Jaya,
apakah sudah sesuai dengan 4 hak dasar
konsumen (JF Kennedy), Jelaskan

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Contoh Iklan PAM Jaya

2-29