From Concept to Consumer by Phil Baker

Is AOL ripping you off?

It seems that AOL has been charging many of their not-so-tech-savvy customers $10 to $15 per month for an AOL account, even though they went to a free service. They just chose not to remind their paying customers that they don't need to pay and continue to charge them. Read more about its here.

Mac computers and the cost of PC ownership

There's been a big debate about the cost of PCs versus Macs, sparked by recent Microsoft commercials. But one of the biggest differences is the cost in time and money to have your computer serviced. Computers are very complex devices, and portables are even more prone to problems, because they're exposed to rough handling, drops, and jostling, and they are have more parts packed into small enclosures that run at high temperatures. 

So expect to have problems, whether they're Macs or PCs. Industry reports indicate 10% or more will experience hardware problems in the first year. Then what? If 

Another misuse of technology

Check out this report from The Consumerist about ProFlowers.com adding a recurring charge of $14.95 to those that don't opt out of a special offer after ordering their flowers. Special, all right! 

Customer experience rankings from Forrester Reasearch

Forrester's 2008 Customer Experience Index ranks 114 firms across 12 industries:Airlines, Banks, Credit Card Providers, Health Plans, Hotels, Insurance Firms, Internet Service Providers, Investment Firms, PC Manufacturers, Retailers, TV Service Providers, and Wireless Phone Carriers. Each are based on consumer evaluations during October 2008 across three areas: 1) usefulness; 2) ease of use; and 3) enjoyability. Topping the list at number 1 is Barnes & Noble. Among the computer companies, Apple is tops and Dell is worst. Among airlines Southwest is best and US Air is worst. The complete list is here.

Dell's poor service continues

Dell breaks a customer's new computer and then won't fix it. I hear of many similar stories of service runarounds like this from many of the PC companies. That's one reason I'd buy a Macintosh, especially if there's an Apple store nearby. You can meet face-to-face with competent personal to get your problems resolved.  Check this out.

Is Office Depot following the path of Circuit City?

Circuit City was know for pushing extended warrantees to such an extent it caused customers to avoid the store altogether.  You couldn't buy a power strip without being harassed by a sales person. Now Office Depot's requirement that sales people and cashiers alike push extended warrantees has been exposed. If employees are not successful at selling them they are threatened and, in some cases, lose their jobs.  It's all detailed here in this account from Harry McCracken. Don't we want to shop in those stores that provide a modicum of respect for us and show appreciation for shopping there? Or has retail become simply a game of the stores preying on their customers?  If so it will just hasten the demise of retail and strengthen on-line buying.

How hungry are the auto dealers?

You would think with the slump in auto sales dealers would be responsive to sales inquiries. I've been researching the purchase of a Toyota Highlander Hybrid among a half dozen dealers in Southern California. I've contacted dealers via the Web through Toyota's Website as well as using cars.com to send out a request for three competing bids. 

Praise for Verizon

Last week the music organization RIAA announced it would no longer sue those that downloaded music from unauthorized Websites. What they proposed instead is a plan to ask the Internet service providers (ISPs) to send threat of termination letters to their customers. Suing, of course has been a disaster, creating a PR nightmare with most of the RIAA lawsuits being dismissed. More times than not they sued the wrong people and asked for huge fines that bore no relation to the damages. 

Another example of customer disservice - Covad

A reader sent me this story. 

I called Covad today to cancel the account. I was then informed that there would be a $250 termination fee for doing so. I asked to speak to a supervisor who informed me that when I last renewed the service in May I had agreed to extend the contract for a year. (By doing so we received one free month of service.) I said I certainly expected that they might ask for a month’s service to be repaid but I thought $250 was certainly excessive and no one told me about this when I renewed the service. 

Personal computer customer satisfaction results

ACSI's second quarter report, released today from the University of Michigan’s National Quality Research Center, shows little improvement from the computer companies with the exception of Apple.

The personal computer industry suffers a second consecutive drop in satisfaction, falling 1% to 74 and losing all gains made since 2005.  Apple defies the industry by moving in the opposite direction and posting its largest gain ever to 85, a new all-time high for the industry.  The 8% leap puts 10 points between Apple and its nearest rival, one of the largest gaps between first and second in any industry measured by ACSI.  As Apple’s satisfaction improves, so too have its sales, market share, net income, and stock price.

The industry aggregate decline is largely for Windows-based machines –Hewlett-Packard (73), Gateway (72), and Compaq (70) each sink 4%.  The exception is Dell – up 1% to 75.