Consumer Stakeholders:  Product and Service Issues Business and Society: Ethics and Stakeholder Management, 7e • Carroll &...
<ul><li>Describe and discuss the two major product issues: quality and safety. </li></ul><ul><li>Explain the role and func...
Chapter 14 Outline <ul><li>Two Central Issues: Quality and Safety </li></ul><ul><li>Consumer Product Safety Commission </l...
Introduction to Chapter 14 <ul><li>The chapter focuses on product quality and safety issues.  In connection with safety, p...
Two Central Issues:  Quality and Safety  The Issue of Quality Driven by an increase  in family income  and intense global ...
Critical Dimensions of Product Quality 0 Perceived Quality Aesthetics Serviceability Features Reliability Conformance Perf...
Ethical Dimensions of Quality 0 Contractual Theory Due Care Theory Social Costs View
The Issue of Safety Historical Perspective 0 1900s Caveat Vendor “ Let the seller take care” 1800s Caveat Emptor “ Let the...
<ul><li>Build safety into product design </li></ul><ul><li>Do product safety testing for all foreseeable hazards </li></ul...
<ul><li>Sports and recreational activities and equipment </li></ul><ul><li>Home structures and construction materials </li...
Product Liability 0 FIRST . . .  Product liability has become a major issue because of the  sheer number of cases  where p...
Product Liability <ul><li>Absolute liability </li></ul><ul><li>Market share liability </li></ul><ul><ul><li>Delayed manife...
Product Liability <ul><li>Product tampering  </li></ul><ul><li>Product extortion </li></ul><ul><li>Product liability refor...
Consumer Product Safety Commission <ul><li>Develops voluntary safety standards with industry </li></ul><ul><li>Issues and ...
Consumer Product Safety Commission Figure  14-3 0 Indoor Air Quality Hazards Children’s Product Hazards Fire / Electrical ...
Consumer Product Safety Commission <ul><li>Having adequate resources to do the job </li></ul><ul><li>Having sufficient sta...
Food and Drug Administration The Mission of the FDA The FDA is responsible for protecting the public health by assuring th...
Total Quality Management 0 TQM <ul><li>All business functions are blended  into an integrated philosophy built  around qua...
Business’s Response to Consumers 0 Convert customer  expectations to standards and specifications Define quality in terms ...
Total Quality Management Figure  14-6 0
Strengths & Weaknesses  of Quality Definitions Figure  14-7 0
Six Sigma Six Sigma <ul><li>Methodologies and techniques  for improving quality and  reducing costs.  </li></ul><ul><li>It...
Consumer-Stakeholder  Satisfaction Model Figure  14-8 0 Consumer Satisfaction Continued Purchases by Consumers Firm Profit...
<ul><li>Contractual theory </li></ul><ul><li>Due care theory </li></ul><ul><li>Social costs view </li></ul><ul><li>Strict ...
Upcoming SlideShare
Loading in...5
×

14. Consumer Stakeholders: Product and Service Issues.

2,608

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,608
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Chapter 14 Consumer Stakeholders: Product and Service Issues 2
  • Chapter 14 Consumer Stakeholders: Product and Service Issues Two Central Issues: Quality and Safety The Issue of Quality The Issue of Safety Consumer Product Safety Commission Food and Drug Administration Business’s Response to Consumer Stakeholders Consumer Affairs Offices Product Safety Offices Total Quality Management Programs Customer Satisfaction Measurement Summary
  • 14. Consumer Stakeholders: Product and Service Issues.

    1. 1. Consumer Stakeholders: Product and Service Issues Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning.  All rights reserved Prepared by Deborah Baker Texas Christian University Chapter 14 0
    2. 2. <ul><li>Describe and discuss the two major product issues: quality and safety. </li></ul><ul><li>Explain the role and functions of the Consumer Product Safety Commission and the Food and Drug Administration. </li></ul><ul><li>Enumerate and discuss the reasons for concern about product liability and differentiate strict liability, absolute liability, and market share liability. </li></ul><ul><li>Outline business’s responses to consumer stakeholders, including TQM programs and Six Sigma. </li></ul>Chapter 14 Learning Outcomes 0
    3. 3. Chapter 14 Outline <ul><li>Two Central Issues: Quality and Safety </li></ul><ul><li>Consumer Product Safety Commission </li></ul><ul><li>Food and Drug Administration </li></ul><ul><li>Business’s Response to Consumer Stakeholders </li></ul><ul><li>Total Quality Management Programs </li></ul><ul><li>Six Sigma </li></ul><ul><li>Summary </li></ul><ul><li>Key Terms </li></ul><ul><li>Discussion Questions </li></ul>0
    4. 4. Introduction to Chapter 14 <ul><li>The chapter focuses on product quality and safety issues. In connection with safety, product liability and tort reform are discussed. </li></ul>0
    5. 5. 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 0
    6. 6. Critical Dimensions of Product Quality 0 Perceived Quality Aesthetics Serviceability Features Reliability Conformance Performance Durability Dimensions of Quality
    7. 7. Ethical Dimensions of Quality 0 Contractual Theory Due Care Theory Social Costs View
    8. 8. The Issue of Safety Historical Perspective 0 1900s Caveat Vendor “ Let the seller take care” 1800s Caveat Emptor “ Let the buyer beware”
    9. 9. <ul><li>Build safety into product design </li></ul><ul><li>Do product safety testing for all foreseeable hazards </li></ul><ul><li>Keep informed about and implement latest developments in product safety </li></ul><ul><li>Educate consumers about product safety </li></ul><ul><li>Track and address products’ safety performance </li></ul><ul><li>Fully investigate product safety incidents </li></ul><ul><li>Report product safety defects promptly </li></ul><ul><li>If a defect occurs, promptly offer a comprehensive recall plan </li></ul><ul><li>Work with the CPSC to make sure your recall is effective </li></ul><ul><li>Learn from mistakes—yours and others’ </li></ul>Top 10 List of Safety Principles Figure 14-1 0
    10. 10. <ul><li>Sports and recreational activities and equipment </li></ul><ul><li>Home structures and construction materials </li></ul><ul><li>Home furnishings and fixtures </li></ul><ul><li>Housewares </li></ul><ul><li>Personal use items </li></ul><ul><li>Home workshop apparatus, tools, and attachments </li></ul><ul><li>Packaging and containers for household products </li></ul><ul><li>Home and family maintenance products </li></ul><ul><li>Toys </li></ul><ul><li>Space heating, cooling, and ventilation equipment </li></ul>Consumer Product Injuries 0
    11. 11. Product Liability 0 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. Reasons for the Concern
    12. 12. Product Liability <ul><li>Absolute liability </li></ul><ul><li>Market share liability </li></ul><ul><ul><li>Delayed manifestation cases </li></ul></ul>Extensions of the Strict-Liability Rule 0
    13. 13. Product Liability <ul><li>Product tampering </li></ul><ul><li>Product extortion </li></ul><ul><li>Product liability reform (tort reform) </li></ul>Other Issues 0 http://www.cgood.org @ http://www.atlanet.org @
    14. 14. Consumer Product Safety Commission <ul><li>Develops voluntary safety standards with industry </li></ul><ul><li>Issues and enforces mandatory standards </li></ul><ul><li>Bans consumer products if no feasible standard would protect the public </li></ul><ul><li>Obtains the recall of products or arranges repair </li></ul><ul><li>Conducts research on potential product hazards </li></ul><ul><li>Informs and educates consumers through media, government and private organizations, and by responding to consumer inquiries </li></ul>0
    15. 15. Consumer Product Safety Commission Figure 14-3 0 Indoor Air Quality Hazards Children’s Product Hazards Fire / Electrical Hazards Other Hazards Carbon monoxide detectors Formaldehyde in wood Bunk beds Drawstrings on children’s clothing National Electrical Code Handheld hair dryers Automatic garage door openers Swimming pools VOLUNTARY SAFETY STANDARDS
    16. 16. Consumer Product Safety Commission <ul><li>Having adequate resources to do the job </li></ul><ul><li>Having sufficient staff to address current needs </li></ul><ul><li>Being forced to shift priorities </li></ul><ul><li>New challenges from a changing world </li></ul>Problems Confronting the CPSC Figure 14-4 0
    17. 17. 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 0
    18. 18. Total Quality Management 0 TQM <ul><li>All business functions are blended into an integrated philosophy built around quality, teamwork, productivity, and customer understanding and satisfaction. </li></ul><ul><li>The customer is the final judge of quality. </li></ul>
    19. 19. Business’s Response to Consumers 0 Convert customer expectations to standards and specifications Define quality in terms of customer expectations Realign organization to ensure quality is achieved http://www.asq.org @
    20. 20. Total Quality Management Figure 14-6 0
    21. 21. Strengths & Weaknesses of Quality Definitions Figure 14-7 0
    22. 22. Six Sigma Six Sigma <ul><li>Methodologies and techniques for improving quality and reducing costs. </li></ul><ul><li>It stresses the importance of customers. </li></ul><ul><li>Six Sigma level of operation is 3.4 defects per million. </li></ul>0
    23. 23. Consumer-Stakeholder Satisfaction Model Figure 14-8 0 Consumer Satisfaction Continued Purchases by Consumers Firm Profitability Firm Reputation Product Quality and Safety Service Quality and Safety
    24. 24. <ul><li>Contractual theory </li></ul><ul><li>Due care theory </li></ul><ul><li>Social costs view </li></ul><ul><li>Strict liability </li></ul><ul><li>Absolute liability </li></ul><ul><li>Market share liability </li></ul><ul><li>Delayed manifestation cases </li></ul><ul><li>Product liability reform </li></ul><ul><li>Tort reform </li></ul><ul><li>Consumer Product Safety Commission </li></ul><ul><li>Food and Drug Administration </li></ul><ul><li>Total Quality Management </li></ul><ul><li>Six Sigma </li></ul>Key Terms 0
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×