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The Japanese Way

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:

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The Japanese Way

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  1. The Japanese Way Michelle Tan, Associate Professor of Law, Tezukayama University,Nara SOCAP AUSTRALIA 2004 INTERNATIONAL SYMPOSIUM 27-29 October 2004

  2. What I will talk about • Extremely brief overview of consumer law in Japan • 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)

  3. Consumer Law in Japan ・Specific Trade Practices Act ・Anti-Monopoly Act Public Law (based on Fundamental Act on Consumer Protection 1968) (sector specific） Private Law ・Civil Code ・Consumer Contracts Act ・PL Act ・Unfair Competition Act Self-regulation

  4. Factors Affecting Complaints Handling • Increasing number of complaints • Increase in scams • Increase in scandals involving well-known companies ( since 2000)

  5. Complaints handling by consumer centres • Administration comes under local government ( over 400 nationwide) • Handled over 1300000 enquiries/complaints last year (contract 82% , services 74%) • Managed by local government officers, front-line inquiries/ complaints handling done by consumer advisers employed by the centres • Initial contact with the consumer is usually by telephone • Role of the consumer advisers: information, mediation, policy-making

  6. Outsourcing of enquiry/ complaint handling by local government • New role for consumer groups • Kansai Consumers Association is first example (since 2002) • How does it work (handled almost 10,000 complaints in 2003)

  7. “Complaints handling” in companies • CS、CD、CSR • 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

  8. Trends in enquiry/ complaints handling(Surveys by the Cabinet Office in 1999 and 2004) • large increase in companies with CS Division (up from 1.1% to 14.6%) • advances in ＩＴ/OA • interaction with top level management

  9. Some examples • Kao Corporation’s Echo System • Suntory’s profit center • National/Panasonic and Toshiba’s Customer Care Centres

  10. Top manufacturers improving CS through enquiry/ complaint handling • High status within the company • Consumer-oriented • Communication with customers is key • Use of knowledgemanagement 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

  11. Kao Echo System Research Marketing Production Sales Consumer Information Centre information Enquiry Support Function Response to enquiries • Product information • Lifestyle information • Enquiry input • Send replacement product • Write letters • Follow-up ongoing enquiries • E-Mail enquiries Two Way Communication “Accurate, Quick、Kind” search Consumer Enquiry input Information Exchange Enquiry Analysis Function Product, Advert, Info • Free search • Typical enquiry analysis • Enquiry trends • Daily enquiry bulletin Consumer Opinion Reflected in “Good Product Production” Search Source: Translated from Japanese original with permission of Kao Consumer Information Center, see “Outline of the Kao Consumer Information Centre."

  12. Some examples • Kao Corporation’s Echo System • Suntory’s profit center • National/Panasonic and Toshiba’s Customer Care Centres

  13. 「Consumer Opinion」 Ｃｅｎｔｒａｌ　ｃｕｓｔｏm e r care centre/ Business domain company centers Central centre Business domain companies General contact point for customers and overall management Company centre Business unit Planning Customer Value Enhancement Design Technical Incorporating consumer opinion Responding to complaints Reflected in Quality control 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 Customer forward Free-dial Sales Advertising Publicity Source: Translated from Japanese original by Michelle Tan, with permission of Panasonic's Customer Care Centre.

  14. Customer Enquiry Information Retrieval System Company centre ＰＡＣＳ System advisor ＣＴＩ system ＰＡＣＳ server Customer Data sent that night Customer Enquiry Information Retrieval System Available in-house next day Data for all companies Central centre Server Company ＬＡＮ ＰＡＣＳ= Panasonic Customer Support & Satisfaction Source: Translated from Japanese original by Michelle Tan, with permission of Panasonic's Customer Care Centre.

  15. Stages in evolution of the internal function of Customer care Customer perspective is basis • Complaint/Inquiry Management • Information collection/analysis • Information to consumers • Internal distribution of information from consumers • Utilization of information for marketing • Participation in/ Support for management Source: Presentation by Sumio Shibata of Yoku Moku Corporation, ACAP Kansai Chapter meeting, July 27 2004.

  16. Source: National Consumer Affairs Center of Japan, The Annual Report on Consumer Affairs 2004

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