Certified Production & Operations Manager (POM) Practice Exam

Who are the stakeholders affected by the marketing of poor quality products?

1. Only customers

2. Only employees

3. Only investors

4. Stockholders, employees, and customers

The correct answer is: Stockholders, employees, and customers

The marketing of poor quality products affects a broad range of stakeholders, including stockholders, employees, and customers. Each of these groups has a vested interest in the performance and reputation of the company. Stockholders are impacted because poor quality products can lead to decreased sales, a tarnished brand reputation, and ultimately, a decline in share value. They rely on the company's ability to provide quality offerings to maintain profitability and ensure a return on their investment. Employees are also stakeholders affected by the marketing of poor quality products. If a company is associated with subpar goods, it can lead to job insecurity, reduced morale, and a negative workplace environment. Employees may find that their roles become more difficult as they deal with customer complaints and a decline in customer trust. Customers are directly affected as they are the ones purchasing and using the products. Poor quality can lead to dissatisfaction, safety concerns, and a lack of repeat business. If customers feel misled or dissatisfied, it damages their relationship with the brand, which can have long-term consequences for the company. Thus, the correct choice encompasses all these important stakeholders that can be influenced by the implications of marketing poor quality products.