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Ishemunyoro Chingwere Business Reporter
Businesses should continue to dialogue with Government and avoid the tendency of passing the cost burden to consumers as Government seeks solutions to the country’s economic problems, according to Chartered Institute of Customer Relationship Management (CICRM) director Dr Mthokozisi Nkosi.
Many businesses have been hard hit by the scarcity of foreign currency on the market and some of them have responded by tinkering with product quality in a bid to cut the cost of production and maximise on profit. Others have just increased the price of their products pursuing the value of foreign currency on the unofficial market.
In an interview yesterday, Dr Nkosi, who indicated some brands have changed packaging as a cost cutting measure, said corporates should avoid passing their challenges to the consumer as this could affect product loyalty.
Dr Nkosi said the challenge for local businesses is to remain relevant to the consumer as this is bound to yield positive results when the economy improves as is widely expected — thanks to Government interventions that are geared towards attaining middle income status by 2030.
“You see, the temptation is always alive to the corporate to cut a corner or two in pursuit of profit particularly in times of difficulty,” said Dr Nkosi. “We appreciate the challenges that the economy is going through and even Government has noted the same, but surely this is no justification for manufacturers to compromise on product quality.
“There is a reason why customers are loyal to certain brands and there is an expectation from the customer that the quality thereof is maintained.
“Now if the manufacturer falls for the temptation to compromise on quality, be it packaging or the product itself, chances are that when things then normalise as is expected, the customer will remember this and chances are that the customer will lose trust in the said brand.
“My advice is that manufacturers, for the sake of their future business prosperity and customer loyalty should not compromise but rather try other means like engaging Government and negotiate say for incentives that then keeps them in business and in good steady with their loyal consumer,” he added.
Online Reporter