Question

NEED ON IRAC METHOD 3) In the late 1990s, bicycle helmets became subject to federal regulation for the first time Prior to the adoption of federal standards, manufacturers of bicycle helmets could get their helmets safety-certified by several private organizations. Manufacturers were not required to use any of these organizations, but most used at least one as part of their marketing.

Answer 1

Issue: Use of voluntary certification as marketing tool

Rule: Companies need to differentiate themselves in the market and certiifcation can be used as that differentiator. This might allow companies to gain a competitive advanatge.

Analysis: Even when it was not federally mandated, many helmet manufacturers went for voluntary certifications to differentiate their offerings and products in the market. This ensured that customers acknowledged the value that these manufacturers are bringing to the market and pay a premium for the same.

Conclusions: Effective marketing is all about creating a competitive advantage and self certification to assure customers about product quality serves this purpose. So companies opted for this route even before they were federally mandated to do so.