Unit 6: Responsibility to the Customer
Most companies try to meet and exceed the needs of their customers, providing solid profitiability for the company. Customers choose businesses for many reasons including eithical practices, sustainability, and the trust which can develop via reliable products and the customer experience. This unit will examine the legal rights of the customer and the impact on a business which is socially responsible vs. unethical and what that means to the customer.
Completing this unit should take you approximately 3 hours.
Upon successful completion of this unit, you will be able to:
- describe how ethics can impact customer buying habits, and the value of ethics to a company;
- outline the legal rights of the customer;
- formulate the strategies a company can use to create brand loyalty; and
- demonstrate an understanding of the importance of trust in a company and how that relates to the customer.
6.1 Ethics and the Customer
This resource discusses strategies communities and consumers use to make buying decisions based on their ethical principles. Learn why ethical consumerism is important and also learn about the laws which protect consumers. It is not always about the product but how the product is made, the materials used, and the social responsibility of the company.
This study analyzes the importance of emotional branding within all industries, but specifically in the fashion marketplace. Learn how customers now seek an emotional relationship with a brand and how companies are strategizing to engage with these customers. Learn how emotionally invested customers lead to higher sales.
In this video, Diana Dosic recommends companies direct the same energy they expend to understanding and engaging their customers to their employees. What are the payoffs for having a better motivated, loyal, imaginative, and innovative workforce? Dosik turns the tables of customer research onto employees, to create smarter, better companies.
6.2 Legal Rights of the Customer
In many countries, the customer or consumer is guaranteed certain basic rights by law no matter where they live. Learn these basic rights to stay informed, vigilant, and proactive when purchasing products. Think about the products you have purchased which have since been recalled for safety issues or due to malfunctioning parts on an automobile. Customer protection and satisfaction is imperative for a business to deliver goods and services.
This post describes and defines the various terms and rights of the consumer based on the Consumer Product Safety Act of 1972. This act also established the U.S. Consumer Product Safety Commission which has jurisdiction over thousands of products and requires warning labels and recalls when necessary. Consumers are guaranteed rights to include accurate labeling, safe packaging, and truth in marketing.
This brief video from the Queensland government in Australia is a public service announcement that explains the rights of consumers. Customers have the right to ask questions about a product or service, receive a receipt, and to obtain a refund, complementary repair work, or a free replacement if an item they purchased is defective.
6.3 Developing and Keeping Customer Trust
This post describes detailed strategies for companies to adopt to maintain customer loyalty. From consistent notifications to uploading service guides to offering an online portal, companies today must compete effectively with these data-driven tips to sustain a customer base and deliver a quality product or service.
This article explores the value of customer trust and how a company can measure trust to bring long-term value. A large percentage of customers rate trust as a driving factor for overall customer loyalty. This can also have an impact on a company’s employee turnover. Companies retain the majority of their employees when the company is rated higher in trust among customers.
This brief video describes how a digital economy based on trust means more access, more participation, and more innovation.
Unit 6 Activities
After you have reviewed this unit, please post and respond to the following topics on the community Discourse forum.
- As a customer and consumer, you purchase products for many reasons. Why do you typically buy a product? Is it cost, quality, company reputation and social presence, or other factors?
- Are you loyal to particular brands? Why or why not?
- Are you swayed to purchase based on consumer reward programs? Name a customer reward program you participate in?
- Are there companies which you believe in and trust? Explain. Why is it important for companies to build trust?
- The internet has expanded the customer experience and exposure to products. Explain the challenges companies and customers face with internet purchases.
Note: We encourage you to post your work to the course discussion forum so your classmates can see your work. Also, take some time to comment on your classmates' posts.
You are not required to post your work to the forum, and this activity will not count toward your grade.
Prepare a 300–500 word document from the perspective of a customer purchasing a cell phone. The company you have been loyal to for many years is running a special sale which gives you a 2-for-1 deal. However, a news story has just broken which details this company and its employment practices using underage children in an underdeveloped country.
Are you still going to purchase phones from this company? Why or why not? If the company corrected the employment practices, would you return as a loyal customer? If not, what would it take for you to return to this company as a customer? Explain your experiences as an ethical consumer. Once you are done with the document, feel free to share it with other students in the discussion forum.
Note: We encourage you to post your work to the course discussion forum, so your classmates can see your work. Also, take some time to comment on your classmates' posts.
You are not required to post your work to the forum, and this activity will not count toward your grade.