COLLEGE OF BUSINESS MANAGEMENT & ACCOUNTING MARKETING AND ENTREPRENEUR DEPARTMENT CAMPUS SULTAN HAJI AHMAD SHAH MUADZAM SHAH PAHANG
ISSUE OF MARKETING IN MALAYSIA
SEMESTER 1, SESSION 2013/2014
ISSUES IN CUSTOMER RELATIONSHIP MANAGEMENT
MUHAMMAD FAKRUL RAFIE BIN SAZALI
Settlement of Toys "R" Us Class Action Which Alleged That Full Refunds Were Not Provided
This is the issue at hand in a class action lawsuit against Toys “R” Us for allegedly failing to provide customers with full refunds on items purchased with promotional gift cards or discounts. Allegedly, Toys “R” Us customers who purchased items from the store that offered free gift cards, buy-one-get-one-50-percent-off discounts or other benefits received less money than the full purchase price when they went to return the items. Laura Maybaum, the lead plaintiff in the case, purchased $75 worth of Toys “R” Us products and received a $10 gift card. When she later returned one of the toys, the toy company allegedly refused to pay the full purchase price. Under California law, retailers must give no less than full cash or credit refunds unless a more restrictive policy has been announced. A California judge has recently approved a $1.1 million settlement in the case. Under the settlement, Class Members will receive a voucher for $10 off a purchase of $50 or more. The toy company has also agreed to provide more disclosure of its return policy for merchandise bought as part of a promotion. One of the ways they intend to do this is by putting the disclosure on point-of-sale displays. Class Members include all California consumers who purchased toys from Toys “R” Us since January 1, 2008 that qualified for a promotion and then returned one or more items.
Yum China CEO apologizes for KFC chicken issues
The CEO of the fast-food giant KFC's parent company Yum Brands Inc. apologized to Chinese customers on Thursday over a series of recent "disturbing" issues regarding the chicken supplies on its biggest market. "I, on behalf of Yum China, sincerely apologize to you, " Su Jingshi, chairman and chief executive of Yum China, wrote in a statement, "We regret the shortcomings in our enterprise's self-checking process, our lack of internal communication, the slow adjustment of suppliers, our failure to notify the government about the test results as well as the inappropriate comments from several employees and the relatively slow and non-transparent external communication."
Su added they draw lessons from this controversy and make their customers 4 promises: "First, maintain the self-checking campaign we've had since 2005. Besides government supervision, we will keep on demanding suppliers be tested and improving the sample-reexamination approach, in order to avoid any problematic production going into Yum's logistics system," Su wrote. "Second, strengthen the communication with the authorities and report problems in time when we discover them during the self-checking process," he continued, "Third, raise the standard for suppliers who should receive tighter control and supervision of food safety, and strictly apply their qualifications. Finally, we will help chicken suppliers adopt advanced breeding measures and administration models." Su Jingshi said Yum China still considers food safety its top priority. He asked Yum's staff to continue their hard work, listen to the voices coming in from all directions, and try their best to earn back the customer's trust. The scandal broke out when China Central Television (CCTV) reported in late December that several poultry farmers in Shandong Province had given their chickens excessive amounts of antibiotics, including amantadine and ribavirin, in order to help them accelerate growth and survive the overcrowded chicken houses. The report triggered nationwide concern about food safety. Some of the chickens were supplied to KFC and McDonald's. The Shanghai Food and Drug Administration said that...
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