Increasing the Organizational Influence of Corporate Consumer Affairs Departments

Abstract

Empirical research suggests that most corporate consumer affairs departments are not a part of the decision‐making structure of their respective firms. The typical consumer affairs department appears to have little influence in management decisions that affect consumer satisfaction and welfare. As a result, it is of limited value for the consumer. A reason for the isolation of consumer affairs from corporate decision making may be that the department's contribution to the firm's welfare is not well understood. By showing a significant contribution to company sales, the consumer affairs department would be in a position to gain influence in the profit‐seeking organization. The article identifies the relationship between sales and complaint management within a marketing framework and develops objectives for complaint management that maximize the consumer affairs department's contribution to sales thereby enhancing the power base of the department within the business organization.

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