13 - Consumer Stakeholders: Info Issues And P+S Issues

Question 1

Advertising issues

Answer 1

Ambiguous advertising, concealed fax, product placement, exaggerated claims (puffery - breakfast of champions), Psychological abuse, comparative advertising, use of sex appeal, advertising to children, marketing to poor, health/environment claims

Question 2

Dimensions of quality

Answer 2

Performance, features, reliability, conformance, durability, serviceability, ascetics, perception

Question 3

Ethical underpinnings

Answer 3

Contractual theory – focuses on contractual agreement between firm and customer

Due care ferry – focuses on relative phone ability of customer, who has less info and expertise than firm

Social costs view - If a product causes harm, but then should pay the costs of any injury

Question 4

Total quality management

Answer 4

All business functions are blended into a holistic, integrated philosophy built around concepts of teamwork, productivity, consumer understanding, and satisfaction. Focuses on product quality and safety issues. Customer is final judge of quality.

Question 5

Six sigma theory

Answer 5

Development within TQM. six sigma level of operation is 3.4 defects per million.

Most companies operate around 4 sigma level: 6000 defects per million.