3. Operations processes (Outputs)

Outputs

The final product or service that is made through the transformation process which has a value greater than the cost of the inputs

Customer service

Intangible output that requires human contact

How can good customer service assist the business?

Increases consumer satisfaction which can contribute to a competitive advantage

What does customer service maintain?

80/20 relationship:

- 80% of revenue comes from 20% of the customer base

Warranties

An assurance that a business stands by the quality claim of their product

What must retailers comply with?

Retailers must comply with warranty by repairing, replacing, or recalling the product

What 2 pieces of legislation outline how products should be?

- Fair Trading Act 1987

- Competition and Consumer Act 2010

What do the 2 legislations state about products? (4)

- Have a level of quality comparable to price and product description

- Suitable for the purpose they are used for

- Match the product description

- Free from defects or faults