Lecture Business and society - Chapter 14: Consumer Stakeholders: Product and Service Issues

Contents: Two Central Issues: Quality and Safety; Consumer Product Safety Commission; Food and Drug Administration; Business’s Response to Consumer Stakeholders; Customer Service Programs; Total Quality Management Programs; Six Sigma Strategy and Process. | © 2015 Cengage Learning Chapter 14 Consumer Stakeholders: Product and Service Issues © 2015 Cengage Learning Learning Outcomes Describe and discuss the two major product issues: quality and safety. Explain the role and functions of the Consumer Product Safety Commission and the Food and Drug Administration. Enumerate and discuss the reasons for concern about product liability, and differentiate strict liability, absolute liability, and market share liability. Outline business’s responses to consumer stakeholders, including customer service, Total Quality Management (TQM programs), and Six Sigma. © 2015 Cengage Learning Chapter Outline Two Central Issues: Quality and Safety Consumer Product Safety Commission Food and Drug Administration Business’s Response to Consumer Stakeholders Customer Service Programs Total Quality Management Programs Six Sigma Strategy and Process Summary Key Terms © 2015 Cengage Learning Consumer Stakeholders: Product and Service Issues Sam . | © 2015 Cengage Learning Chapter 14 Consumer Stakeholders: Product and Service Issues © 2015 Cengage Learning Learning Outcomes Describe and discuss the two major product issues: quality and safety. Explain the role and functions of the Consumer Product Safety Commission and the Food and Drug Administration. Enumerate and discuss the reasons for concern about product liability, and differentiate strict liability, absolute liability, and market share liability. Outline business’s responses to consumer stakeholders, including customer service, Total Quality Management (TQM programs), and Six Sigma. © 2015 Cengage Learning Chapter Outline Two Central Issues: Quality and Safety Consumer Product Safety Commission Food and Drug Administration Business’s Response to Consumer Stakeholders Customer Service Programs Total Quality Management Programs Six Sigma Strategy and Process Summary Key Terms © 2015 Cengage Learning Consumer Stakeholders: Product and Service Issues Sam Walton, founder of Walmart – “There is only one boss. The customer. And he can fire everybody in the company , simply by spending his money somewhere else.” Toyota, which enjoyed a sterling reputation for quality, saw it evaporate with its gas pedal acceleration case: First, there was the problem itself; people died. And 8 million of its cars would have to be recalled. Second, there was Toyota’s slow response. Despite knowing about the problem in Europe since 2008, and installing new pedals there, nothing was done in the . Then in 2010, the company faced a . recall of million cars. The company had dragged its feet. © 2015 Cengage Learning Two Central Issues - The Issue of Quality - Product quality means different things to different people. Service quality usually means that the service was performed as expected and on time. Interest is driven by an increase in family income and intense global competition. The Issue of Safety - Nearly all consumer products or services entail

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