CONSUMER

RELATIONS
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 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.

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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?

 Investigatecomplaints, 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 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.

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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 consumer’s health.

 Hint: He wasn’t outside, he was….

 Answer: The Insider

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Question—Can 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.

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