It is important for the customer service to have knowledge of the product and/or service. If the employees have good interpersonal skills and no knowledge of the product it would be wasted time. It is up to the employer to make sure that all its employees have knowledge of the products and/or services sold and available in your business. Also the employees need to understand the computer systems as to which the company has that help provide the right information to the customer and the equipment that is needed to make the sale. The customer wants facts and figures not educated guesses of them. This is due to that they need to know what they are selling in order to be able to sell it efficiently and to be able to give advice on the product or service. If there is insufficient knowledge of the product or service the item in which is recommended may be incorrect for the person purchasing it. If this is so then there will be issues with the customer because they may have been fed false information about the product and being recommended to it when it does not suite their desired needs and wants. This can be done through good communication within the internal and external customers. It is important that there is good communication within the business, this is so the staff dealing directly with the customers is able to provide the best service possible.
Starbucks has many internal customers, they include people such as suppliers, internal staff such as managers and people who work in the customer service. Internal customers must be kept satisfied by the business in order for the business to run efficiently.
The other type of customer is external customers, they are customers use the businesses products and services. They are what the business needs in order to gain any profits and to be able to expand. There are different types of external customers that businesses have. They are people who are generally interested in what the business has to offer and are willing to take part in purchasing the businesses products and services.
It is important for a business to keep its existing customers this is because it is more difficult to obtain new customers then it is to keep existing customers. Existing customers are customers which have been used the business and its services/products before. This type of customer is relatively cheap to maintain. They are customers which have already experienced the business and liked the services and/or products which they received.
New customers are people who have never used the business and its products and services before. This type of customer is hard to obtain and is expensive to draw into the business. In order to draw in new customers the business needs to set up advertisements in order for the business to be known. Once the customer has be drawn into the business the business then needs to prove itself to be better then other businesses and they need to establish a relationship between the business and the customer. Once this is done it is easy to keep the customer once the business has proved itself to be worthy of their business.
Diverse customers are people who are different to the businesses customer target market. This can include people with disabilities and different age groups and different tastes in different things such as coffees. These are needs to which all businesses must accommodate in order to be open to more customers.
I believe that the service will differ between the public and private sector. I think that in the public sector the businesses will not be as personal with their customers where as a private sector business is more likely to be because they need every customer which they can get. Where as a business which is in the public sector does not need every customer where their customers come for the products and not for the staff to be friendly and asking a lot of questions. The customers of Starbucks expect to have a quick and easy transaction. Where as a business such as Gettco, the customers expect to have a longer transaction therefore expecting a better and more helpful service. This is because the service is different and it is known that Gettco is a private business therefore it is smaller and people are expecting the service to be friendly and very helpful because they need their business. Where as if Gettco was a public sector the customers which they have when they are a private business they may not have when they are public. This is because their target market at the moment is people who are expecting a more personal service because they are a private business.
Stakeholders
Stakeholders include people within the business and people who are interested in the business externally. Internal stakeholders include people such as managers, staff, business owners, suppliers and customers and people who are willing to use the business. I believe the level of service differs between stakeholders. Such as between different customer groups.
The level of service differs between stakeholders because they aren’t necessarily purchasing the same service. Such as you would not expect the same service when you are purchasing your groceries as you would when you are purchasing a car. There are different expectations from businesses and product with different age groups. The following is an example of this:
Stakeholders are any one who has an interest in the business whether they are customers or share holders or someone who is interested in the business they are considered to be stakeholders. There are two types of stakeholders they are internal and external stake holders. An internal stakeholder includes a person such as employees, managers, and trade unions. Internal stakeholders are people who directly deal with the company and look after its welfare and keep it running. They can also be external stakeholders which are people such as customers, competition, the community, shareholders, government, the media, suppliers, and shareholders. They are all external because they do not have anything to do with the direct running costs of the business, but are people who benefit from the business such as gaining funds for their business to help it grow. An example of this is if Starbucks has increased sales of biscuits then Lenotre’s will gain more profit because Starbucks are selling more of their stock which they have given to Starbucks to sell for them. With Gettco the stakeholders who will benefit from increased holiday airfare sales are the airlines as to which the tickets are being supplied from.
The level of service at Starbucks does not differ between stakeholders, due to the fact that they believe everyone should be treated equally and be treated the same way as the next customer. This is known through what we have been told in our survey questions for Starbucks. They said that everyone is treated at the same level of respect. An example of this is if an internal customer comes to the management with an issue that has arisen, the issue would be treated as seriously and promptly as that of an issue brought to the attention of the management by and external customer.
Customer expectations affect the level of customer service. They change when they are purchasing expensive or inexpensive items. An example of this is when a customer is going out to an expensive restaurant they expect a higher level of customer service then if they were going to a McDonalds restaurant. This is because they are paying a higher price therefore they expect more from the service. Another example of this is between buying a computer from a computer specialty store or from a Carrefour. This is because the excess you are paying for the equipment you are paying for the better more specialist service.
When customers are purchasing a product or service that are simple or complex they expect different levels of service. When the customer is purchasing a more complex item they expect more general knowledge of the product that they are looking at purchasing. They would also expect them to be more helpful in explaining what the functions of the product are and how to use it, and in some cases they may expect them to install it for them if required. Where as with a more simple item they may only expect a small amount of information to be gained on the product and may not need details on which is the better product because the customer may be able to work out which one is better.
There is a difference of level of service expected between essential and luxury items. This is because with luxury items they may be a one off purchase therefore you may expect a higher level of service then what you would get for an essential item. Also luxury items are usually more expensive then essential items. This is because they tend to be more complex and have a better customer service that comes with it. An example of this is Ipods, they are a luxury item they are expensive and they have an after purchase service. Where as food products are inexpensive and do not have any service required and it isn’t offered. Ipods are also expected to come with a warranty in which they do it is for 2 or 4 years.
In Starbucks the customers expectations of the business are high. They expect to have a friendly helpful service provided for when they are purchasing their products. This service is provided. There are not many things that Starbucks has to ensure that the customer’s expectations are met. Such as that the coffee is of good quality, the shop is clean and that they are receiving a good service. If the expectations of the customer were just to purchase a coffee of good quality the staff would not have to go through such a long application process, they would not have to be friendly and the place would not necessarily have to be clean. This would save Starbucks time and money. Although this is true Starbucks would be required to lower their prices due to the fact that the customers don’t expect the same level of service.
There are certain expectations of the businesses customers before and after transaction of funds and goods. Such as the customer has expectations of the business such as to be greeted when they are about to order their goods. To be served when they need help with making a decision, such as when they are looking at purchasing D.I.Y equipment and finding out what tools are suited for the type of work they want to do. Where in Starbucks people ask advice on which is the best beverage is the best drink for them.
Before the sale is made the business must win the customer. This because there are a lot of businesses in the same field that are competing for the customers business. Customers are influenced by the way a business advertises itself in order to attract their business. In the pre-transaction of gaining the customers business they must put out the right signals to attract the customer.
Both new and existing customers may require information on the products in order to help them to decide on which one to buy. Customers will also need information on the location, opening hours, parking and what types of payments the business offers.
The business will usually need to have something that other competitors do not offer in order to gain the customers business. An example of this is it could be more efficient service, a cheaper price, more product features are longer lasting, disposable and durable.
During the sale:
The customer has chosen the product and business in which they wish to purchase it through, the service that the business is crucial in order for the customer to be satisfied with the service. The first impression that the customer gets of the business is one of the most important factors of the sale. If anything was to go wrong the bad impression will last a long time and therefore they may not purchase products from your store.
After the sale:
After sale service is also important. Such as if something was to go wrong the service of being able to either fix or replace the problem is very important. The appropriate level of after purchase service will depend on the product. Such as a customer would not expect the same after service sales when buying a second hand motorbike as what they would expect when buying a new motorbike. If you were to buy a cheap product you would probably expect very little after sales service. Where as if you were to buy an expensive product they would probably come with a guarantee and would be worth getting fixed if something was to go wrong.
In conclusion Starbucks and Gettco provide an excellent before and after sales service for the customer. This is important in ensuring that your product and/or service has met or exceeded the customer’s wants and expectations from the business. Gettco must follow up with their customers after the sale in order to make sure that their bookings are correct and that the customer knows all the details needed in order to make sure they get on their flight correctly, and have obtained the necessary paper work such as exit visas. Starbucks does not necessarily need to have extensive after sales help. This is because they only sell snack foods and beverages. Although some after sales service is needed.
Task 2
I believe that Starbucks is a better choice to continue this assignment on. This is because they are a worldwide organisation. Where as Gettco only has one outlet and is based in Qatar. This assignment requires comparison of the business in different countries and how they comply with customer service laws and requirements. Also Starbucks is a larger organisation and has more competition therefore allowing there to be more information on the business because there is more involved in keeping the business running and making a profit. Where as Aamaal travel has a more limited competition because it is mainly corporate based, in this area of the travel market and especially the travel market in Doha there is less involved in maintaining the businesses success. Therefore because of the above reasons I have chosen Starbucks to continue this assignment on.All businesses require a S.W.O.T. analysis in order to be able so survive in the market.
Starbucks S.W.O.T analysis:
Strengths:
Strengths is what the business has over its competition in the market, what the business has that will make someone want to use their company instead of another. Starbucks has many strengths which other businesses don’t have. An example of this is the friendly and helpful service which it provides in Qatar. The staff who work for Starbucks are always happy and cheerful and willing to help with any queries which their customers have. I think that the staff training and the way the staff of the business are treated is a main cause of this. This means that the staff are being treated with respect and are enjoying working in the environment as to which Starbucks is providing. This means that they are bright and helpful towards the external customers who are purchasing Starbucks’ goods and services. The staff at Starbucks tend to have more energy and friendlier personality then staff at other coffee shops such as Costa Coffee and other coffee shops around Doha.
Another strengths which Starbucks has is the locations which it has obtained around Doha. Starbucks has 70% of the coffee market in Doha due to the amount of premises it has managed to obtain. Starbucks has at least one ore two shops in every shopping mall and hospital in Doha. This means they have obtained a large market share and that is it easy and convenient access to the stores for people to get the coffee products. This is also a strength for Starbucks because it does not leave much of an opening for other coffee shops to be able to get into the shopping centres and be successful. Also Starbucks was the first major coffee shop to set up in Qatar. This means that they are ahead of other coffee shops because they have had more time to establish in Doha.
Starbucks also has a good price range for the products and services given. The price is affordable for the people who live in Doha. The prices aren’t all that cheap but they are reasonable for what it provides. The products are priced according to their consumer market which is middle to upper class society in Qatar. This means that the service provided in the way of how the staff are is highly important they need to be friendly and helpful which they are, also the products need to be good, Starbucks has met these requirements. This means that they have a strong relationship with the customers which makes them want to return to Starbucks instead of another coffee shop.
Starbucks has set up a customer feedback system. This system is done through the customer feedback forms. This form has many questions on there in order for Starbucks to gain a full understanding of your experience of your visit. The feedback forms are given to the area manager so if there is any suggestions as to how the business can be improved then it can be done. It asks questions such as what store you visited, when you visited it, your contact details. Also it asks what your thoughts are of the business and how u were treated by the staff of the company. This is a strength because it helps Starbucks understand the customer and it offers suggestions as to how the business can be improved to suit the customers needs and wants from the business.
Starbucks is also updating their premises and making them more attractive and appealing for the customers of the business. This means that they may have a more attractive premises and/or convenient premises then its competitors. This will attract new customers and regain any old customers which they may have lost. This will help a lot in the growth of the company. Also there is new shops opening in the new shopping centres which are opening up in Doha. This means that there is more of the shops and easier access and more opportunities for Starbucks to gain a larger share of the market.
Weaknesses
The weakness of a business is what the business is lacking in and which its competitors have and/or what the business needs to improve on due to it is not up to its standards. Starbucks only has a few weaknesses which can cause them to lose a customers interest in the business. Such as Starbucks has not acquired a wireless facility to attract more business people to come and have their coffee on their break, and allow them to access their emails and the internet on their laptops or personal devices whilst they are enjoying their coffee. This would help Starbucks gain large percentage of customer growth. Where as some other coffee shops in Doha have already acquired.
In some of the Starbucks coffee shops are not very clean and tidy. This is due to a lack of enthusiasm and laziness of the staff who are on shift. Such as empty coffee cups and trays with rubbish on are left on the table where people want to sit. If there is more attention by the staff and they weren’t so lazy the coffee shop would be more appealing to customers and they would be more inclined to buy their product.
Some of the furniture which Starbucks has on their premises is looking old and worn, also there is graffiti on the tables and chairs, this makes the premises look untidy and unattractive. If the furniture is to be replaced it would make the premises look a lot better. Some of the cushioned chairs have rips and writing on them making them uncomfortable. Once the damaged furniture is replaced, fixed or cleaned the premises will be more attractive to Starbucks’ target market.
During sometimes during the day the amount of staff which Starbucks has on duty is insufficient. Such as at lunch times and night time the amount off staff is not enough. This makes the service too slow, this can cause customers to leave due to they don’t have the patience to wait 15 to 20 minutes to get served when it should only take a maximum of 2 minutes before they get served let alone the excess time it takes for their coffee to be ready.
In the shops which Starbucks has acquired there is not enough amount of seating to cope with the intake of customers which Starbucks has. All of the seats in Starbucks are always taken therefore this can deter customers because they are unable to sit down and relax while they enjoy their coffee.
Opportunities:
O stands for opportunities, this is to do with opportunities which the business may gain to do with the market or to do with the growth and improvements of the business. There are many opportunities for Starbucks in Qatar, such as new petrol stations and shopping malls are opening up in Doha. This leaves and opening for Starbucks to expand in Doha and broaden the amount of customers as to which they have. If they are to open up several coffee shops in these new buildings it will limit the amount of opportunities its competitors have.
Wireless internet for people to use on their laptops or portable devices is a big opportunity for Starbucks to gain more customers. If this was to be put in place in all of their store this would attract more new customers and may attract existing customers to go to their stores more often. This could eliminate Starbucks’ competition, because a lot of the customers which Starbucks does not have are business people who would rather have internet access then a better coffee. Such as Costa coffee is a new coffee shop in the market and has internet access. This can help Starbucks to gain some of their old customers back because they have this new facility.
Threats:
There is also an analysis on the threats as to which the business has, such as direct and indirect competitors, also threats such as direct competitors which have the same target market and are in the same price area. Starbucks only has a few direct competitors and threats such as Costa Coffee. It is a threat because they are offering the same products and services for the same price range as to what Starbucks is offering. Also there is indirect threats as to which Starbucks has such as what there is to do instead of sitting down or taking away a coffee from Starbucks, such as fast food places. This includes places such as Mcdonald’s, KFC and other take away places. Also home made coffee is a threat, because some people may have a coffee at home instead of at a coffee shop or from a coffee shop.
In conclusion to my S.W.O.T. analysis of Starbucks I believe that they still have some room to grow and some areas to improve on but overall I believe that Starbucks is a very good coffee shop and has a good products and services. From my findings form my interviews with the area manager for Qatar that Starbucks is working on improving their weaknesses. Starbucks has many strengths such as a well known good quality products and services. There are many strengths as to which Starbucks has. Some of the weaknesses of Starbucks include things such as not supplying wireless internet for their customers to use whilst they are enjoying their coffee products. Opportunities Starbucks has many opportunities here in Doha, such as new shopping centres opening up therefore providing space for Starbucks to open up more shops. This is good for the growth of the business and to be able to gain the monopoly in the market. Some threats which Starbucks obtains are other coffee shops in the country such as costa coffee. This is because they offer similar products and services and are targeting the same customer market area. It is important for new and existing businesses to produce a S.W.O.T. analysis of the business because it helps them work out how well the business is doing and how well it could do. If there are more weaknesses then strengths of the business can mean that the business isn’t being very successful and may not be working to its full potential if there is a lot of opportunities.
Task 3
The level of customer service that Starbucks provides is of a high quality and is a benchmarked company to many other businesses. This is because the staff are highly trained and are very good with the customer service. There are many systems in place which ensure that the customer service is of a good quality. These systems are used as guild lines as to how the customer should be treated and addressed by the staff. There are two main systems as to which Starbucks uses they are L.A.T.T.E and C.D.R. they are important in the day to day running of the businesses customer service. If they are not followed correctly it can cause problems with keeping existing customers and also in gaining new customer. both acronyms are very similar. They play a major part in Starbucks keeping their high standard if customer service.
The acronym C.D.R. stands for Connect, Discover and Respond. This is a major part to every businesses customer service. This is a system of addressing any problems and issues which the customer may have with the business. Connect is based on the business or staff member connecting with the customer such as introducing themselves to the customer and getting friendly and a few background details. This is important for the staff to be friendly with the customers even when the staff does not know if there is a problem or not. If this is done then the customer may be more inclined to return to the business because they felt welcomed and they felt respected and wanted by the business. Also hoping that with the connection with the staff members that they will receive good service from the business. Also to be expecting and/or knowing that the business will be happy to address any of the customers issues and or complaints if there is to be any.
Discover means for the staff to have talked to the customer and to have found out if they are having any problems or if they have any input as to which they would like to input into the business to make the products and services better for themselves. All the suggestions that the cutomer has to put forward to the business whether is a complain or just a suggestion. These are all positives for the business because it lets the business discover from a customers point of view what they feel needs to be improved.
Once the business has connected with the customer and discovered what they feel needs to be improved or what they think is good then they need to respond to the situation which has arisen. This requires the staff member involved and/or the business to address the situation by fixing it or improving the business in order to satisfy the customer and making their experience better and more enjoyable. This is important to be followed because it outlines the way a situation should be handled with a customer. If this is not followed correctly the customer may feel as though the business does not value them as a customer. This is important to make the customer feel as though they are wanted and needed by the business because it then makes them feel welcome and obliged to return to the store. This is how repeat business is made and new customers are acquired by the business.
Starbucks has a system in place which requires the staff to have greeted the customer within 30 seconds of entering the store. I believe that this is important because it lets the customer know that they have been seen by the staff and aren’t being ignored. This is important because if this is not done it can cause the customer to feel as though the staff are being rude and ignorant. I believe that the customer may feel this because Starbucks is trying to be the second home and the staff need to be friendly in order for people to feel as though it is their second home.
Once the customer has been greeted they must be served within 3 minutes of entering the store. this is important because if it takes longer then 3 minutes to be served the customer may get impatient and leave and take their business elsewhere. Sometimes Starbucks may not be able to do this because it is peak hour for the business. But this can be avoided by having more then 2 cashiers. Sometimes Starbucks is unable to serve the customers within this time frame because the limited provisions for peak our business. This can cause customers to be waiting for 3 minutes as a minimum. This can make cause the large loss of customers during these times. This can be avoided by having at least 4 cashiers open during these rush hour times slots.
Another technique which Starbucks uses is L.A.T.T.E. it was specifically designed by Starbucks to suite their way of dealing with customer service. It is highly important that Starbucks follows this because it has been the basis for Starbucks customer service. It is what is expected by customers of Starbucks. This is so important that starbucks follows this because the customers will not be satisfied with their service if it is not followed.
The first part of the acronym the letter L stands for listen. This is important stage of the 5 stages of the system. If this is not followed the rest of the acronym will be ineffective and useless. It states that the staff member who the customer comes to needs to listen to what the customer has to say. This is because without doing this the business will not know what the customers problem or issue is with the business. If the staff member does not listen it can cause the customer to get frustrated and made feel as though they are not wanted by the business and then leave and take their business elsewhere. Also if a customer is lost due to bad service it can cause the customer to tell friends and family about their experience and then cause the loss of other customers. Statistics show that if a person has a bad experience they tell 13 people and if they have a good experience they only tell 3. Therefore the staff member needs to be courteous and attentive.
Acknowledge is the second part of the acronym. It states that not only does the staff member need to listen but also acknowledge how the customer feels about the situation. This involves asking more in depth questions about the situation as to which the customer has incurred. Then the staff member needs thank the customer for bringing the issue to the businesses attention. And for letting the business know in order to make the customers experience more enjoyable. It is important to do this so that the customer knows that the business is grateful that the customer has brought the issue to the businesses attention. It is important that the business makes the customer feel good in the way of making them feel as though they are appreciated by the business, and that they are wanted by the business.
The fourth part of the acronym is to talk about what can be done to help with the situation at hand. This involves discussing what the customer wants done about it. Then the staff member needs to do what they can to meet the customers request of the business to resolve or improve the situation in order to make the customer to feel appreciated and that they have been listened to and that their input on the business is important. Then the staff member must find out what there is as to what they can do to resolve the issue. If this can not be done straight away the staff member should take the customer who brought up the issues contact details in order to let them know what has been done about the situation.
Once the above steps have been performed the staff members must encourage the customer to return to the business. This can be done through giving special offers or discounts to the customer. This is extremely important in order to maintain the reputation which Starbucks has gained. If they don’t do this they can loose not only a few customers but they will also loose their reputation. The staff member must make sure the customer still feels wanted and needed and knows that the issue that has arisen will not occur again.
The level of customer service is kept up through the thorough and extensive training in order to make sure that the staff knows how to deal with the customers. The training which Starbucks provides and the mentality which Starbucks has given it staff. It is not only the training of how to deal with the customers but also the training as to how the staff members’ personality should be. This is found out when Starbucks recruits the staff and the staff are chosen based on their experience in hospitality and personality.
Starbucks has a high staff turnover in Qatar of 18% plus the new staff which need to be employed for the new coffee shops which are opening in Qatar. The turnover rate is very high and the level of customer service needs to be the same. This is kept through keeping the training the same and improving it in order to cope with the changing expectations of Starbucks. If the standards of training were to drop then this would cause Starbucks’ reputation to deteriorate and loose the good reputation and standards which it has managed to achieve worldwide. The standards that are expected may differ to the rest of the world because of the market which Starbucks is aiming for. I believe that the expectations are higher in Qatar then In other parts of the world. This is because the expats and local Qatari’s have a high standard of service which they expect to get from coffee houses and other places of leisure.
I think that Starbucks manages its staff well because they treat all the staff as equals and they receive a lot of praise and good pay. This is a big incentive for people to work hard and it makes them happy. If the staff are happy then they provide a better service for the customers of Starbucks. This is what cause Starbucks to have such a good reputation and also makes the customer feel good when the staff are friendly and helpful. It makes the customer appreciate the business.
Another way that Starbucks encourages its staff to give incentives such as employee of the month. This is a big incentive for staff to work extra hard. This is because with being the employee of the month it sometimes offers cash bonuses, pay rises or even a promotion. This makes the staff at Starbucks want to work hard for these promotions and to get noticed by the customer hoping it will be mentioned that they are a good employee.
Customer Service Legislation
There are many different laws as to which Starbucks must follow in the UK and also laws which are set by the European Union. They state what Starbucks has to do, and if they don’t abide by these laws, then there can be sufficient penalties handed out. These laws relating to customer service and the quality of the food and drinks as to which Starbucks serves which are handed out by the UK and the EU don’t apply in countries such as Qatar. The laws which Qatar and the middle east have are not as regularly enforced. Although they are very strict with the health and safety in the food and drinks industry especially. Not only is the governments expectations high but a lot of the customer service and quality is of a high quality because of the customers expectations not only by law they have to have standards as high as what they are but also if the business wants to grow and expand it’s the customers who are very specific as to how the quality and service should be.
There are four main legislations which the UK and EU have specified as to what businesses such as Starbucks must abide by. It includes:
- Contracts of sale
- Consumer Protection
- Trade Descriptions
- Consumer Credit
The above legislations are all related to the safety and public health legislations which apply in the UK, EU and other countries and consumer and employee rights protection organisations. It is highly important that the above laws are complied by Starbucks and other food and beverage businesses. If they are not followed as stated then there can be hefty penalties which can be incurred by the business.
Contracts of sales applies if a business sells products or services to a customer. This means that the business has entered a legal contract with the customer, examples of this include:
- if the business has promised money back if the goods or services are faulty or are not of the quality promised to them by the business. Such as if Starbucks sells a coffee machine to a customer and it doesn’t make the coffee which the labelling on the box states or if the coffee maker is different to the one that is demonstrated on the exterior of the box. The customer has the right to return the goods for either a exchange, refund or in store credit depending on what the businesses refund policy is. They have to be clearly stated so that customers are able to read it and are fully aware of the circumstances which will be incurred if an issue such as the one mentioned is to arise.
Sometimes the terms of the sale are only implied and not specified as to what will exactly happen. This is because with different situations and different customers the issues need to be dealt with differently. Such as if you are to buy a blender as a customer purchasing that product you expect it to work when you buy it. There does not need to be a written contract between you the customer and the retailer because the law protects your right to expect that product to work.
Contract law can get very complex, and can be very difficult to understand. If a company is found to not be complying with the contract they run the risk of loosing business and also being fined by the UK or EU depending on what laws they are breaking and what organisation enforces them.
There are several acts which make up the set up of Contracts of Sale law. The sale of goods act of 1979 and 1995 states the following:
- Goods must be as they are described, this means that the product must perform the specific functions as to which the business has told them and what the packaging of the product has implied.
- Goods must be satisfactory quality in relation to the price that has been paid and the description and the age of the goods. This means that the product must work or for an example of Starbucks, it must be of good quality and be hygienic for the customers.
- Goods must be suitable for the use which they have been intended for. This means that the product must be capable of performing the intended uses in a satisfactory manner.
The supply of goods services act 1982 is based on the expectations of services such as repair and maintenance. This act protects consumers of services against poor quality workmanship, the unreliability of a service and overcharging of services. The act states that the work which has been required needs to be performed for a reasonable charge and within a reasonable time frame. This is important for a business to make sure that this act if followed in order for the customer to want to reuse your service and recommend you to other people. Also it need to be done of a quality care and skill which is necessary to perform the service which is promised to be provided to the consumer. Also they must use satisfactory materials that are suitable for the task which is going to be performed. I believe Starbucks has done this by providing a good quality service that is efficient and of a good standard, also it provides a safe and quality premises for the customers to use while they enjoy their products which they have purchased.
Another main part as to which business such as Starbucks is the consumer protection act. This provides protection for consumers against goods and services that can be dangerous and unsafe. The act also states that businesses must be truthful about the price of the goods and services, and not over charge. There is an organisation which monitors business to make sure that they comply with this act, the organisation is called Trading Standards institute.
The consumer protection act prohibits the supply of unsafe and harmful goods. If the goods have small parts or items in them which are unsafe they have an age warning on them, an example of this is such as toys they have a warning on them saying they aren’t suitable for children under the age of for example 3, or it says this toy is suitable for children over the age of 12.
This act also provides powers for seizing and forfeiture and has the power to suspend the sale of suspected unsafe goods. This act is what has caused businesses such as Starbucks to put warnings on their hot beverages, stating that the drinks are hot. This is so that the customer cannot complain if they burn themselves on the product it is then their own fault because they were warned and then they still drank or took possession of the product.
The act also prohibits businesses from misleading price indications. An example of this is advertising a price for a certain product such as stating that there is a sale on, and then not enforcing the discount. Often there are product recalls by manufacturers because they have discovered that their products which they have been supplying to customers. This is done after they have had some complaints about the products with the same problem. Such as if a car manufacturer sells a car and then discovers a problem with the motor that is persistent in a lot of the cars of the same model then they will recall all the cars from that manufacturing year and model back and fix the problems.
Trade descriptions act protects consumers against false descriptions of products and services. An example of this is if you go into Starbucks and you buy a coffee and ask to have skim milk put in it instead of normal milk you expect to have skim milk in the coffee. If you are to go to Starbucks and purchase a medium size drink it is expected to be a medium size drink and not a small or large.
There are many goods and the customer purchasing the goods may not realise that the goods which had been described to them is not accurate as to what it is they are purchasing. The office of Fair Trading looks into what may be misleading product descriptions.
The Consumer Credit Act 1974 protects the rights of customers using a business for its goods or services who have purchased their items using credit. The consumer credit act was updated in 2005 and increases the protection for the consumer against excessive interest rates and unreasonable credit terms. The updated legislations sets laws for any business who has credit card facilities, loan deals and hire purchasing agreements. This means that it will affect majority of retail businesses that offer credit facilities. An example of this is Starbucks. this is because they accept credit cards and other cards, this means that Starbucks need to ensure that they do not charge a high interest rate for paying with a credit card instead of cash in the store.
If any of the above laws are not complied by businesses such as Starbucks, they run the risk of being fined by the government. They also run the risk of being drawn into a court case, and this is not good for a businesses image in the eye of the public. Therefore it is highly important that businesses follow the laws and regulations which have been set for them to follow. Issues which arise for businesses to do with these laws can cause a lot of problems for the business.
These laws and regulations have been put in place because businesses have not been truthful and faithful to their customers.
