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The Japanese Way. Michelle Tan, Associate Professor of Law, Tezukayama University,Nara SOCAP AUSTRALIA 2004 INTERNATIONAL SYMPOSIUM 27-29 October 2004. What I will talk about. Extremely brief overview of consumer law in Japan Complaints (including enquiries) management by: - PowerPoint PPT Presentation
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The Japanese WayMichelle Tan,
Associate Professor of Law,Tezukayama University,Nara
SOCAP AUSTRALIA 2004 INTERNATIONAL SYMPOSIUM
27-29 October 2004
What I will talk about
1. Extremely brief overview of consumer law in Japan
2. Complaints (including enquiries) management by:
• Consumer centers administered by local governments
• A consumer group on behalf of a local government
• Large manufacturing companies (some recent trends/ data, information obtained thru recent interviews)
Consumer Law in Japan
Public Law (based on Fundamental Act on Consumer Protection 1968) (sector specific)
Self-regulation
Private Law
・ Specific Trade Practices Act・ Anti-Monopoly Act
・ Civil Code
・ Consumer Contracts Act
・ PL Act
・ Unfair Competition Act
Factors Affecting Complaints Handling
1. Increasing number of complaints
2. Increase in scams
3. Increase in scandals involving well-known companies ( since 2000)
Complaints handling by consumer centres
1. Administration comes under local government ( over 400 nationwide)
2. Handled over 1300000 enquiries/complaints last year (contract 82% , services 74%)
3. Managed by local government officers, front-line inquiries/ complaints handling done by consumer advisers employed by the centres
4. Initial contact with the consumer is usually by telephone
5. Role of the consumer advisers: information, mediation, policy-making
Outsourcing of enquiry/ complaint handling by local government
1. New role for consumer groups
2. Kansai Consumers Association is first example (since 2002)
3. How does it work (handled almost 10,000 complaints in 2003)
“Complaints handling” in companies
1. CS、 CD、 CSR
2. Social/ Economic Factors Driving CS Promotion
Scandals → greater awareness of need for CS (scandals→ distrustful customers→ makes customer contact more difficult)
Long recession Aging population
Trends in enquiry/ complaints handling (Surveys by the Cabinet Office in 1999 and 2004)
1. large increase in companies with CS Division (up from 1.1% to 14.6%)
2. advances in IT /OA
3. interaction with top level management
1. Kao Corporation’s Echo System
2. Suntory’s profit center
3. National/Panasonic and Toshiba’s Customer Care Centres
Some examples
Top manufacturers improving CS through enquiry/ complaint handling
1. High status within the company
2. Consumer-oriented Communication with customers is key Use of knowledge management systems Effective use of information --feedback into all areas of the
organization e.g. development, planning, design, manufacturing, sales, marketing
3. Complaint Handling ” Complaints” are treated as valuable free information Speedy, sincere Several levels of complaint management
Product, Advert, Info
Response to enquiries
Consumer Information Centre
“Accurate, Quick、 Kind”
Information Exchange
Search
Enquiry Support Function
•Product information
•Lifestyle information
•Enquiry input
•Send replacement product
•Write letters
•Follow-up ongoing enquiries
•E-Mail enquiries
Kao Echo System
Enquiry Analysis Function
•Free search
•Typical enquiry analysis
•Enquiry trends
•Daily enquiry bulletin
Enquiry input
search
information
Research
Marketing
Sales
Production
Consumer Opinion
Reflected in “Good Product Production”
Consumer
Two Way
Communication
Source: Translated from Japanese original with permission of Kao Consumer Information Center,
see “Outline of the Kao Consumer Information Centre."
Some examples
1. Kao Corporation’s Echo System
2. Suntory’s profit center
3. National/Panasonic and Toshiba’s Customer Care Centres
Central centre General contact point for customers and overall management 1.General contact
point for customers, overall management
2.Planning and promotion of new management systems for enquiries
3.Enquiry information available in-house, monitor for trends
4.Support staff training
Cu
sto
mer
Business domain companies
Incorp
ora
ting
con
su
mer o
pin
ion
Resp
on
din
g to
com
pla
ints
「Con
su
mer O
pin
ion
」fo
rward
Cu
sto
mer V
alu
e E
nh
an
cem
en
t
Planning
Publicity
Design
Refl
ecte
d in
Qu
ality
con
trol
Technical
SalesAdvertising
Company centreBusiness unit
Free-dial
Central custo m e r care centre/ Business domain company centers
Source: Translated from Japanese original by Michelle Tan, with permission of Panasonic's Customer Care Centre.
Customer Enquiry Information Retrieval System
PACS System
Data for all companies
Available in-house next day
Company LAN
Customer
advisor
Company centre
PACS= Panasonic Customer Support & Satisfaction
CTI system
PACS server
Data sent that night
Central centre
Server
Customer Enquiry Information Retrieval System
Source: Translated from Japanese original by Michelle Tan, with permission of Panasonic's Customer Care Centre.
Stages in evolution of the internal function of Customer care
① Complaint/Inquiry Management② Information collection/analysis③ Information to consumers④ Internal distribution of
information from consumers⑤ Utilization of information for
marketing⑥ Participation in/ Support for
management
Customer perspective is basis
Source: Presentation by Sumio Shibata of Yoku Moku Corporation, ACAP Kansai Chapter meeting, July 27 2004.
Changes in Total Number of Inquiries/ Complaints
217816 234022 274076351139
400511 415347467110
547145
655899
873649
1371316
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Number of Inquiries/Complaints
Source: National Consumer Affairs Center of Japan, The Annual Report on Consumer Affairs 2004
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