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01/11/1982 – New York, NY – National Retail Merchants Association
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01/11/1982 – New York, NY – National Retail Merchants Association
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Records of the White House Office of Consumer Affairs (Reagan Administration)
Virginia Knauer's Invitations Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Knauer, Virginia: Files
(Consumer Affairs)
Folder Title: 01/11/1982 - New York, NY - National Retail
Merchants Association
Box: 114
To see more digitized collections visit:
https://www.reaganlibrary.gov/archives/digitized-textual-material
To see all Ronald Reagan Presidential Library inventories visit:
https://www.reaganlibrary.gov/archives/white-house-inventories
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/archives/research
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National Archives Catalogue: https://catalog.archives.gov/
2
(as delivered) 1-11-82
REMARKS BY
VIRGINIA H. KNAUER
SPECIAL ASSISTANT TO THE PRESIDENT
AND
DIRECTOR, U.S. OFFICE OF CONSUMER AFFAIRS
BEFORE THE
NATIONAL RETAIL MERCHANTS' ASSOCIATION
AT THE
NEW YORK HILTON HOTEL
NEW YORK CITY
MONDAY, JANUARY 11, 1982
2:15 p.m. to 3:30 p.m.
NRMA
Good afternoon. It is a pleasure to be here today. I'd
like to thank your Consumer Affairs Chairman, Stanley
Winkelman, for giving me this opportunity to set the agenda
for the consumer affairs session. Also, my sincere
appreciation to Tracy Mullin, NRMA's Vice President and
Associate Director for Government Affairs, for the fine
program coordination.
The topic for discussion this afternoon is "The
Profitability of Consumer Affairs." I'd like to talk briefly
about my thoughts on this subject.
Last year I met with several hundred groups representing
millions of consumers, / the elderly and disabled individuals.
One question that was often asked was: "Is the consumer
movement dead?"
In the minds of the questioners, consumerism was not
getting the same media attention it once received.
One
reason was that the focus of consumers had shifted from
specific problems in the marketplace to the overriding
problem of inflation. Second as noted so eloquently in a
recent Harvard Business Review article by marketing
professors Paul N. Bloom and Stephen A. Greyser the consumer
movement has matured- something I've been saying for the last
five years. That means consumers no longer yell, scream and
picket the way they used to gain attention.
2
And the reason for that is they don't have to. If they
have a problem or a recommendation, we have the established
retail and manufacturing channels available to see that
consumer views are considered. Consumer opinions, on proposed
policies are sought before, not after, a corporate consumer
decision is made. So we are making progress every day even
though the media isn't always there to chronical the
N
improvements.
So let me assure you that the consumer movement is not
dead; it has merely become more sophisticated and mature.
A 1980 study sponsored by the Food Marketing Institute
found that slightly over half a random sample surveyed
considered themselves consumer activists or potential
consumer activists. This was a higher- not a lower
percentage than was found in four surveys done since 1974.
Today more people consider themselves consumer activists.
a
I also
These people are your customers.
Consumerism is alive and well in Mashington.
report. wont to
I
see other evidence that consumer affairs is an
integral, essential part of government agencies and major
Pres Reagan appointed me Chr of
corporations. For example, I I direct direct the Consumer Affairs
Council, a group of consumer advisors to top federal agency
officials. The Council has worked effectively to represent
consumer interests on a national level. We were all pleased
that President Reagan chose to continue this essential
3
coordinating group for federal consumer affairs programs.
In the business world, major corporations have hired
executives who belong to an organization called the Society
of Consumer Affairs Professionals in Business (or, SOCAP). In
fact, just two hours ago, I spoke to the New York SOCAP
group. I'm told that nationally SOCAP has over 2,000
members, most of whom represent consumers from inside the
corporate structure.
In the Reagan Administration, the notion of consumerism
believe
is broadly defined. We understand that consumers are also
workers, investors, retailers, farmers, producers and
taxpayers. We want to make certain that all consumers --
consumers of private and public goods -- get a fair shake.
President Reagan believes that the major problem
concerning consumers is too much government. While
regulation is necessary to protect vital areas such as food
and health safety, / too much regulation actually has an
adverse effect on the consumer by causing higher prices. And
along with more regulation comes more government spending --
spending which has contributed to the largest, most serious
consumer problem of inflation. We know that government
action is not always the solution to consumer problems; in
fact, it has been in large measure a part of the problem in
the past.
4
The focus of consumerism in the Reagan Administration is
on cooperation -- on the need for business and consumers to
sit down and work through differences together. Government
should be involved only as a minor party.
I don't think the relationship between consumers and
business need be adversarial. At times, in the past, the
term "pro-consumer" was synonymous with the term
"anti-business." Similarly, at least a few consumer
activists have considered a discussion of corporate profit
close to indecent. They seemed to think consumer affairs
should be a type of philanthropy. I don't agree buy -- and/orn't
-- that sort of mind set. The responsibility for
good consumer affairs belongs to business and will benefit
I
business.
We are at a turning point in the way we view consumer
affairs. So I put forth the topic, "The Profitability of
Consumer Affairs," because I believe consumer affairs can
have a maximum positive impact on the bottom line. If your
consumer affairs department doesn't have this impact, we'd
today
more
like to give you some ideas on how you can make it productive
Then
1
1
-- and measure the results.
1
Let's forever put behind us the notion that customer
service departments exist to placate the nuisances that must
be dealt with. Business owes itself much more than cosmetic
5
consumerism. An aggressive consumer affairs program will
serve the needs of both customers and business.
5
You'll be interested to know that the U.S. Department of
Commerce's Office of Consumer Affairs is holding holding
meetings around the country on improving customer relations
and profits. One such meeting will be held here in New York
on January 26. The workshop, on truth in advertising, is
co-sponsored by the New York Better Business Bureau and
American Express.
The nice thing about state and local meetings is that
the participants can focus on special subjects of interest
--
for example complaint handling, advertising, warranties, or
credit practices -- and local laws and resources. It's also
a way to create a cooperative environment between the local
business person and the local office of consumer affairs.
To promote better communications among business,
consumers and government my office is providing leadership
and coordinating efforts on behalf of National Consumers
Week, April 25 through May 1. The Week will focus attention
on the fact that consumers are the center of economic
activity, a fact you know well. What we're saying is that
the Administration's emphasis on increased productivity and
capital investment is not an end in itself. By creating more
employment, by producing more and better goods and services,
6
the consumers -- and that includes all of us benefit.
National Consumers Week will also focus attention on
consumer and economic education and information. we believe
that informed consumers are good business and good for
business. Consumers who use credit wisely, limiting its use
to what they can safely and surely pay back, who choose
products and services that meet their needs and values, are
the kinds of customers you want. We hope you will take part
in National Consumers Week by promoting it in your ads,
preparing consumer education materials and providing speakers
for school and community programs.
I'm eager to hear today's speakers. They are experts in
organizational consumer affairs. John Goodman is president
of a company named Technical Assistance Research Programs or,
as we call it, TARP / which consults with a long -list of
corporate executives and government agency officials / to
evaluate and improve customer service operations. / In fact,
my office funded a comprehensive five-year study by TARP on
government and business complaint handling. / John has
recently completed an impressive survey for the Coca-Cola
Company on word-of-mouth advertising. I won't preempt him by
telling you his findings.
David Schoenfeld is the Consumer Advocate for the J.C.
Penney Company. Penney's is well-known for its attention to
7
quality in products and services. David helped to build that
reputation. He will give us a concrete look at the
profitability of consumer affairs from the perspective of a
manager who must justify the importance of his office on a
day-to-day basis.
Let's begin first with John Goodman.
(John goes on for 40 minutes)
Thank you, John.
David
(David speaks for 20 minutes)
# # #