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.

Star(t loosing)Bucks

  As I sit here in Grissim Hall writing this blog, I sip on my Peppermint Mocha Starbucks coffee.  I have the option to get free coffee, even espresso, from my current residence.  Yet I, as a consumer, choose to spend four dollars and something cents for the same thing (with probably more filler).  So why do I and other consumers choose to spend more money when we know we can get something similar for cheaper.  Personally, during the holiday season I enjoy the winter coffees like peppermint mocha or gingerbread, and this is what motivated me tonight.  I believe a lot of other consumers enjoy the flavors of Starbucks coffee like I do and are also motivated to but coffee due to this one factor.  Deeper than the flavors you'll find the outrageous amount of caffeine.  Starbucks was found in a study to have had a significant amount more of caffeine than the other competition (http://www.slate.com/id/2107807/).  I would venture to say that this mass amount of caffeine not only helps feed consumers addiction, but also makes the addiction stronger.  I feel I must also say I have never seen a Starbucks empty, in fact I have trouble going to store that isn't packed on campus.  I even find myself thinking everyday, "well, I could make myself just a small cup of coffee before class).  Do I need it? No, but I also do not consider myself at the addiction point.  I can go a few days without any coffee or caffeine and be completely fine.  I have witnessed consumers wanting a large coffee like their life depends on it, everyday.  Their obsession started probably the same way that my minor enjoyment started, enjoying a cup every once in a while.  I have to give other industry competitors credit for keeping a close pace to Starbucks.  Dunkin' Doughnuts is known for a good cup of regular coffee, and if a business man is late on his way to work would not be disappointed to stop here for a decent cup.  Another surprising competitor is McDonald's.  They have always offered coffee for sale but it was just normal coffee and not the best.  They have renovated their coffee strategy and now offer flavored drinks among their many available options.  They not only offer drinks similar to Starbucks, but they offer them at a much lower price.  Personally, as a consumer of these products I believe that McDonalds' coffee has a lot less coffee (caffeine) and a lot more filler.  That probably is part of the reason Starbucks keeps consumers flocking to their product.  Whatever the reason consumers choose to be a loyal customer to Starbucks, the company has accomplished a successful way to run a business targeting their audience.

Sunday, November 28, 2010

Experience Consumers

  We analyze consumer behavior everyday in the real world, but I believe the hardest to measure is a customers experience.  Our best sign is looking at the number of repeat customers.  Customer surveys are pushed all the time but customers rarely want to participate, even when offered the chance to win a free gift card in return.  Being in the hospitality industry myself I should want to help companies out because I will one day be in their position, but I don't.  What is it that causes consumers to have such a negative image about these surveys that ultimately would help make their experience better?  Another measure that a lot of hospitality industries have been turning to lately are online website like www.travelocity.com.  This is supposed to be a website for consumers to talk about their experiences at places like hotels.  Websites like this are partly used for what they were intended for, but companies have also used it to advertise their own company and but down competitors.  Will they ever admit this?   No.  So how do customers make decisions on where they will go?  A lot I believe has to do with word-of-mouth and brand awareness.  If someone was to go out to dinner and wanted to try somewhere new, they would most likely say "Bob tried this new Italian restaurant and said it was great, we should go".  I believe that consumers like to have other people take the risk and try somewhere than be the first ones to try it.  Also, if consumers have a brand awareness and have had multiple good experiences with an experience related company then they tend to stay loyal.  With that loyalty they also expect a certain amount of consistencies in their experiences.  These types of customers in this type of industry are the best to have because they are easier to keep than to attract new ones.  In the end, treat every customer like they are your best customer.

Real Life Gremlins

   Year after year Black Friday turns somewhat normal consumers into crazed monsters.  It almost reminds me how the Gremlins acted after the rules were broken.  The sole  motivation for consumers to partake in this crazy activity is a reduced price.  Whoever came up with Black Friday was absolutely genius.  They found a way to get normal people to start waiting in line outside of a store, (in some locations) in the freezing cold, about a full day before the event.  They were able to bring in mass amounts of "hungry" consumers all at the same time, and all wanting to spend money.  This glorious event has also led to very serious incidents.  One specific event I remember is when a worker was trampled over by other customers running into a Walmart at the same time.  These people push aside all moral values they have for material possessions.  It is very common for people to be pushed, shoved, elbowed, hit, etc. by other crazed consumers.  It's almost like this is the one day a year that it is socially acceptable to be cruel to people; which is funny considering a lot of people are holiday shopping for loved ones.  Not such a loving sport.  In a nutshell, Black Friday=crazy consumers.

One of many examples of crazy people. -->
http://www.youtube.com/watch?v=2zBWjlkKDpA

Wednesday, November 17, 2010

Online Security

          With the Christmas season rapidly approaching, clearly I have been working on my Christmas list in my spare time.  Sending the list over to my parents I quickly realize that even though I have included the URLs from which they could purchase the items, they will use more conventional methods to purchase the items.  My parents are Baby Boomers, and when I was younger I remember thinking that they would never come close to keeping up with technology.  I have been proven wrong throughout the years, in fact my father is now attached at the hip with his IPhone.  Although they have adapted (to a certain extent) to most technology, one thing will never change.  My parents absolutely refuse to purchase anything online unless there is no other choice (hotel room, etc.).  They will research all types of information concerning the ups and downs of the product and even compare prices.  At the end of the day when it comes time to actually purchase the item they will go straight to a store as apposed to using the convenient internet.  I believe that my parents have the same issue with internet purchasing as some do in their age group.  They are concerned about security.  No matter how much it is emphasized how secure a site may be they are convinced that somehow someone will get steal their information.  I also feel there are other things consumers feel badly about when purchasing online.  When talking to friends about online buying a lot of them had voiced how uncomfortable they feel purchasing clothing or something they have not physically seen before.  Even though companies state that they have valid return and exchange programs, I believe consumers feel as though its more of a hassle or just not possible.  Personally, as a consumer I like to actually be able to go to a store and try on, test out, hold, and visibly see the object before I buy it.  For whatever reason it just makes me feel more comfortable about my purchase.  I wonder if one day all consumers won't need physically see their items before they purchase or that everyone will have trust in security online.

Monday, November 15, 2010

Advertising to Consumers

The time we currently live in is just bursting with opportunities for e-business.  Companies know that they must keep up with consumers and technology in order to continue to hit their target market.  Companies have found ways to target  customers who visit certain sites or have certain interests just because that is their target market.  Facebook and Twitter are now the main focus of companies, not only for getting their product out, but for reaching potential employees.  Do these forms of advertising work for companies, or is it just another form of the  pop-up ad?  Another development is the collaboration Google has with companies to get their company name to show up on the first page of a search.  As a consumer I personally used to feel as though when I was "Googling" something that the results were truly how related a website was to my search, or that it was by complete chance what company got the top slot.  How wrong I was.  As a consumer I personally feel as though I am being cheated.  Although no one actually pays to use the search engine, I still feel as though this service is skewed.  Of course knowing this will not stop me from using search engines, because as we all know, our generation relies on finding any answer on Google.  As far as Facebook using our information to help companies target their market, I am actually okay with this method.  As a consumer I know that no matter what I will not escape the constant advertising that I see everyday, everywhere.  With this being said, if I am forced to constantly see ads, I would much rather them be something relevant to me and my interests.  I think that Facebook has not only revolutionized social media, but also online advertising.  Now not only will companies save money on being able to specifically target the audience they are looking for but also increase their odds of success.

Space Jam...Sponsor?

  After talking in class about the power of using a well-known celebrity to advertise a product, I noticed more the number of times this method is used. I don't think that the effect is necessarily something that we notice happening, more of a subconscious effect.  For instance, no one really says "Wow, Oprah drinks ____ juice, I want to be just like her".  When the consumer goes to the store after seeing the commercial, they may then happen to walk down the juice isle and see the product.  They then remember the product because someone famous was drinking it and because of this brand recognition they buy the product.  I have experienced something similar, we as consumers for some crazy reason feel as though just because we have heard the name of the product (not in a negative light) that we trust the brand.  Even when we see other brands that may be great, we haven't heard the name so we automatically do not trust it.  Ironically after our class discussion on the number of things Michael Jordan represents and why, I watched a movie that brought this discussion back into my brain.  Space Jam, what a great movie (from my childhood).  I never noticed this line before, but after watching this movie over ten years after my first time seeing it, the line jumped out at me.  Stanley comes into Michaels hotel room to give him some encouragement and says "C'mon, Michael, it's game time. Slip on your Hanes, lace up your Nikes, take your Wheaties and your Gatorade, and we'll grab a Big Mac on the way to the ballpark".  Every single one of these items Michael was currently sponsoring, or had in the past.  What a line! In the middle of a movie, and they had just once again advertised all of Michaels items in one sentence. I shouldn't have been surprised but once again I believe it was the mere fact that I failed to realize this when I first came out, my subconscious had.

Wednesday, September 29, 2010

Convienence or Stupidity?

     Currently I am doing a service learning project for a Feasibility class and an E-Commerce class.  The venue I am working with is called The Muse and happens to be located across the bridge here in Lafayette.  I have been studying this business and the challenges it has with bringing its target market (college students) to its venue.  It has made me a lot more aware of the consumer behavior of Purdue students.  The 21+ age group is really kinda funny.  As students, we will buy "drink specials" (that are usually watered down versions of the actual drink), ignore the cleanliness of the building and deal with poor service.  Why do we do this?  Location and popularity are definitely helpful.  For some reason or another we as students have it ingrained in our minds that anything on the other side of the bridge is just "too far".  Some of the venues on the other side have way better deals, better drinks, better cleanliness, and excellent service.  Because of this, I have personally come to the conclusion that as college students operate off of convenience.  They will continuously take their business to the same place, with bad deals, and poor cleanliness because its close or convenient. 

Sunday, September 26, 2010

Triple Tradition

  This past weekend I stopped at a very well-known food establishment on campus, Triple XXX.  Just some background information, this restaurant was featured on some kind of food t.v. show for its uniqueness.  I sat there while waiting for my food and thought about the whole idea of the restaurant.  As a business owner, I believe this owner has it made.  People pay to (most of the time) seat themselves, sit next to about fifty other people, get average food and average service.  Did I mention that it has a pretty great location and that people pay for logo t-shirts (can you say free advertising)?  This place is truly a tradition.  Whether you're a freshman or a visitor you shouldn't be surprised if someone asks you if you've been to Triple XXX yet.  The funny thing is, no one asks if you've had their burgers or breakfast, because it isn't about the service or the food but more about the tradition.

Monday, September 20, 2010

Air Advertisement

  This past Saturday I was able to have the opportunity to enjoy Purdue's football festivities with my parents.  While out on the fields my mother pointed out the plane flying by with a Geico Car Insurance advertisement attached.  Quickly looking around I noticed how many other people at tailgates had noticed as well.  I believe if one was to do a study of the brand recognition of Geico among consumers that the numbers would be great.  I also believe that a main reason why so many people know Geico has to do with the many commercials the have and the association with the famous lizard.  The fact that they already have such brand recognition among consumers is great, having a plane flying across a Purdue football tailgate is just another way to keep Geico in the minds of these consumers.  Although I think it would have been more effective if the sign said something witty and memorable, it was enough to make everyone look up to read what it said.  By doing this, refreshing the company name in the consumers brain so that when they make a decision on car insurance, this will be the first place they think.