Sunday, December 5, 2010

HP Has Problems

   As I write this blog, you the reader, are blissfully unaware of the problems crawling over the computer I am currently typing on.  Although I have only been around a young twenty-one years, I have never had more problems with any product or company in my life than I have with my HP computer.  Before I begin in to my tragic story, let me preface with the fact that I use my computer for only the purposes intended.  What I mean by this is that I do not illegally download music or DVD's (which basically invite viruses to ones computer), I also constantly am renewing my anti-virus security system.  My problems started the first year of having my laptop and every following year the number of problems increased.  Somehow or another, an update had "failed" and I lost my sound drive (this happened many times and still happens), luckily the solution for this problem was the easiest of them all.  The following year my internet no longer worked on the computer, being a college student I needed the internet inorder to complete online assignments, etc.  I had attempted to contact customer service and they had explained to me how my warranty was up and that the only way they could speak with me was through the internet.  Convienent, since I have no internet.  I was forced to purchase a product that I could plug in to solve this problem.  My motherboard failed and I had to send my computer in to be fixed.  Closely following the end of that warranty my harddrive crashed.  Because my immediate need for a computer, I paid HP to fix my computers harddrive, with this came a three month warranty.  I was almost at the end of my three months when my computer started acting up.  I again called customer service and they were refusing to talk to me because my original warranty was up and my current one was just for the harddrive.  I finally convinced the agent to help me with my computer and after he assesed my laptop he stated that the harddrive would again fail any day now.  Great.  Completely disappointed, I thought maybe it was something I had done and asked the agent what I did or how I could have prevented it.  He responded that I couldn't have.  They reluctantly agreed to fix my computer as a part of the warranty.  For a corporate company, I would have expected much higher standards of quality and customer service.  I was completely outraged everytime a customer service agent told me that I would have to renew my warranty (which would cost atleast $75) in order to talk to an agent.  As a consumer why would I renew my warranty on something that is broken and even if I was to attempt to talk to the agent online, my computer is again, broken.    Has this economy become so savage that the simple fact of talking to a representative is going to cost me?  Customer service is so important and being in the hospitality industry it is something that has almost been ingrained in me.  I wrote a very calm (hand written because I didn't have a computer) three page letter to the company explaining my situation, frustration in their product, customer service, and standards.  They sent me a generic letter saying "Thank-you for your concern, to speak with a customer service representative please call our 24 hour 1-800 number".  I would have been happy with a letter expressing their concern for my situation, an apology for their fail in product and standards, and how they would fix this problem in future situations.  This letter made me more upset and their lack of properly pacifying situation encouraged me to call this rediculous 1-800 number.  When I called I continued to remain calm, but yet again expressed my saddness of the whole situation and how they handled everything.  The operator added a few, "oh"'s and "I'm very sorry"'s in a very monotone and clearly unaffected voice.  She ended with "is there anything else" and I responded "no, because my next computer will be an Apple".  I swear I am normally a nice and understanding customer, you have to be when you're already in the hospitality industry because you understand their situation.  This was absolutely unacceptable and I honestly believe if they continue to serve their consumers with faulty products and terrible customer service, that they will continue to see a decline in sales.  After this situation, I realized the terrible the effects of bad customer service on a company.  Not only was I the only one outraged by this company but if one was to search "HP sucks" on google, the amount of complaints about the products and service are rediculously large.  Consumers have made websites, videos on Youtube, and Facebook pages dedicated to expressing consumers disappointment with the company and its products. 
Here are a few intresting videos of complaints, the first one from someone active in the military:
http://www.youtube.com/watch?v=pD75bwFG528
http://www.youtube.com/watch?v=w_UVx3mhHdo

Tradition Equals Success

       Visiting a local establishment on campus, I had the chance to step back and observe the scene.  I was the designated driver for a few friends as we were visiting a campus favorite, Harry's Chocolate Shop.  Located on a college campus this bar has it made.  Unlike a big city, consumers do not have to worry about driving home or (in most cases) finding public transportation to get home (like a cab or train).  By eliminating this extra worry consumers feel that they could have those few extra drinks that they normally would have to responsibly turn down.  These same consumers are surrounded by others in a similar age group, and if they are not, they all have the same mind set which is to drink and have fun.  The atmosphere not only screams fun but also encompasses the Purdue University tradition.  The bar has been around almost longer than my grandparents, opening in 1919.  To my knowledge, this is the only bar that can successfully and continuously draw in crowds ranging so drastically in age.  On any given night you could find consumers of the age 21 or 51 drinking together harmoniously.  Any other bar I've been to would almost visably shun (or look at in disgust) an older person coming into a bar for young adults.  Besides alcohol, the thing that ties a majority of consumers together in this establishment is their love for Purdue and its traditions.  If all this wasn't enough they throw in the popcorn.  I don't know what it is about this popcorn, but for some reason everytime I have it, I get this constant thought that there is no other popcorn in the world that could taste this great.  Nonetheless, the popcorn is something that all Purdue students relate to Harry's.  To prove how great their customer loyalty is, they don't have drink specials. Ever.  All patrons are aware of this fact, and yet they still have a steady flow of customers who are perfectly fine with this.  Every other bar must offer specials in order to stay competitive, but Harry's maintains this, almost, star status.  Whatever it is, this is place has figured it out and are successful at it.

Location, Location, Location

   Growing up in northern Indiana, the lifestlye I've grown accustomed to has been one very similar to the Chicago lifestyle.  I have also never lived anywhere different until I went away to school; being only an hour and a half away one wouldn't think that life as a consumer would be much different.  Being more immeresed into Indiana and its lifestyle I have noticed the differences in stores and even consumer products.  Living in this college town leaves a heavy influence on those around the area.  There are many professors, students, and employees of the university that live in the surrounding area.  In stores like Walmart it is normal for there to be a section devoted entirely to Purdue clothing and items; during football season tailgating items are heavily  pushed on consumers.  This past summer I lived in Kentucky and found a similar situation in Walmarts and other stores around the University of Kentucky.  There was also a very visable difference in the types of stores in the area, like the strong presence of Krogers in the area (there are none in northern Indiana).  When it came to shopping for clothing I had high hopes of coming home with clothing not found in my area.  Not only did I find unique clothing, but as a consumer I also discovered the difference between stores in Indiana and Kentucky.  There was a large number of boutique stores and a small number of department stores.  I was excited until I walked into the first boutique and discovered how rediculously expenseve it was.  When I saw people in my age group around town they were all dressed very nicely; and they even explained how they actually dress up (dresses, shirts and ties) for football games!  I came to the conclusion that as you continue down from Indiana to the South that it is common for consumers to want to spend more money for (I am hoping) higher quality items.  This was in the middle of a college town, where normally students are reluctant to spend more than $5 on a meal let alone $50 for a shirt.  I suppose that consumer behavior also varies depending on the location and the upbringing one had.  I had also found that a lot of the people I had met that were currently attending the University of Kentucky also lived in the surrounding area.  I believe that many are probably saving money by attending a University so close to home and that also leads to similar consumer behavior contributing to higher spending on clothing.  After this summer I am more confident that the differences in consumer behavior are also very different in places all across the United States.  I also know that I am slow in my realization considering stores and companies have already figured this out.  Actually being immersed in a different type of "culture"  makes one more aware of how different it actually can be and is one that every consumer should experience.

Protection from Produce

    Ever walk into a grocery store and have become exceedingly irate because they did not have the apples from a certain apple supplier?  I am believe that it is safe to say that not many consumers have ever felt this way about fruit or vegetables in a grocery store.  Nowadays consumers are noticeably aware of brands and labels of all types of material items such as clothing, sunglasses, shoes, computers, and phones.   So why is it that where our food comes from makes absolutely no difference to us as consumers?  I believe that like me, most consumers lay our trust in the government and grocery stores.  The FDA has regulations on steps that must be taken to ensure consumer safety.  Adding "Best-If-Used-By-" labels is an example of something that must be done.  Grocers also want to protect the name of their company by being sure that they purchase produce from a trust-worthy supplier.  If a grocery store was regularly known to supply consumers with faulty or unsafe produce then consumers would not want to buy from there and I would have to assume that the government would step in at some point.  When produce is first delivered to the grocery store, the person who is responsible for deliveries must also inspect all goods to be sure that the produce is up to the grocers standards.  In the event that the produce does not meet the standards then it must be rejected (this process is also used in restaurants as well).  Knowing these things helps the consumer feel safer about produce; along with being able to physically inspect the produce themselves.  There are consumers who prefer "organic" produce.  The government has also established standards that the producer must meet before they can be recognized and used in grocery stores.  Another step that has been taken is recalling produce that has been a known problem in certain areas.  The government will use media like local news stations and newspapers to get the word out that certain produce has been recalled in specific locations for a certain duration of time.  Grocers actively help do their part by stopping the sales and taking off the shelves the items in question to keep consumers safe.  In conclusion, our government takes consumer safety very seriously and something that may seem questionable like produce from random suppliers is really safer than we may think. 
*Here is a link to FDA important information for those involved in the sales of produce:  
http://www.fda.gov/food/guidancecomplianceregulatoryinformation/guidancedocuments/produceandplanproducts/ucm064458.htm

Saturday, December 4, 2010

Holiday Hype

  The first big snow of the season, Holiday music playing in every store, Christmas lights, candy canes, and holiday movies, all these things tell us as consumers it is holiday time.  Not only do we feel a little jollier and more loving towards those we care about most, but this season also means we are not only buying things for ourselves.  Is it all these components (the music, movies, candy, etc.) that are motivating our purchases, or the looming fact that the holiday is rapidly approaching and you need to get some gifts under the tree?  It has also been said that consumers and companies alike area more likely to want to give to charities.  Although this could also have to do with the fact that they are adding to that tax refund they will get back before the end of the year.  Stores in large cities promote the holiday spirit by having creative storefronts.  Macy's is a great example of a store that is known to do this.  Consumers have almost make a sport out of walking around downtown just to see the lights and decorations.  Convenient for the stores that these same consumers might just decide to pass through the store to get a little warm and possibly purchasing something they would not have originally.  The city normally contributes to this winter wonderland by adding a touch of their own.  Ice skating rinks, lights, displays, and decorated trees of their own are all examples that cities have done to add to the holiday spirit.  All the lights, love, Christmas cards, and cookies create a lot of hype for consumers.  I believe all this especially encourages consumers that its okay to spend a few extra dollars on something because its for a loved one and of course, its the holidays!  Some stores like Toys 'R Us make it even easier for children to ask for all their favorite toys by including stickers or a wish list for the kids to show their parents all the toys they want.  In the end, what motivates all consumers during the holidays is the smile and happiness their loved ones have when they open the present they were hoping for all along.

(An example of a decorated store front: http://chronicle.northcoastnow.com/2009/11/27/lorain-will-light-up-in-grand-fashion-saturday-night/)

Modern Pirates

      A majority of Americans are guilty of doing this at least once in their lives.  It is illegal but does not physically harm anyone.  If you are still wondering what I could be talking about, I'm referring to music piracy. Consumers have been pirating music since at least when CD's first came out.  Burning a disc for your friend or, later on, letting your friend burn the CD to their computer are examples of pirating music.  Now with new technology it has become even simpler to steal music.  Connecting Ipods, sending songs over the internet, and even downloading them straight from the internet are all modern day examples.  Along with this new technology companies have been trying to keep up with all the hype by coming up with new ideas.  In conjunction with Ipods has been the creation of the Itunes Store.  Through this store consumers can legally purchase music to transfer to an Ipod, CD, or just to have on their computer.  With online technology so prominent, "old fashioned" things such as the CD have been losing numbers in sales while Apple sees an increase.  I believe that with this increase in technology companies thought they would see a decrease in piracy and an increase in legally purchasing music online.  In my opinion I think it opened pandoras box for online pirating websites.  It may be that consumers see $1.29 as expensive compared to stores, when in reality it probably about equals out when purchasing a normal CD in the stores.  Another possibility could be the ease of using the internet and the number of things available to consumers.  If a consumer has the option to get just one song or just one CD for free online, then why the heck would they want to pay $1.29 for just one song?  The government has been trying to find creative ways to make consumers take responsibility for their actions.  For those consumers caught, they have been having to pay a lot of money for their mistakes.  Only time will tell if these actions by the government will be enough to scare consumers into buying music legally.

*I have included a chart that I found from http://newsosaur.blogspot.com/2009_02_01_archive.html .  Although it is from 2005 it still shows how large of a problem this is among the music industry.

Tuesday, November 30, 2010

The Power of Media

  This topic has been analyized many times, typical I know, but I feel like this would not be a consumer behavior blog if I didn't discuss the effects of media on consumers.  Starting out as children we do not nesesarily understand the idea of purchasing certain items, we just see something we like and ask our parents for it.  We grow older and see things that our peers have and want them.  The idea of something being special like an expensieve brand that someone famous also has makes the item more desired by consumers.  The funny thing about media and consumers is that the famous person who also has the item may not even be someone we admire.  For instance, if we see Britney Spears with Tiffany jewlery, we as consumers may see it and want it.  I am not at all saying that it does not matter who the celebrity is that advertises because I do believe that someone highly admired would have a better effect on the target market than a celebrity that is not.  I do think that the association of someone rich and famous does increase the social status of the item to a consumer intrested in that certain type of market.  Just the other day we talked about the Kardashians credit card, another example of three people who are not particularly admire or in the spotlight for something good.  Having these three young, attractive, and famous women on the front of a credit card will attract the young and impressionable audience that the company is hoping to target.  Although this is not always true, I do believe that as we grow older we do grow wiser in our purchases.  When we do buy something that costs more we tend to buy for quality.  There are people that still buy because of image but they are realistic about it and choose to partake in this.  In the end it is the consumers decision to physically go to a store and purchase something (whether it was in the media or not), but media does play a role in the determining process of a consumer.