There are few things more annoying than a cellphone (with a 1 year warranty) packing up 15 months into a two year contract. So when this happened to me I offered Samsung the opportunity to stand behind their brand reputation rather than the warranty, and for a minimal cost to them to fix the phone and in doing so turn me into a loyal brand advocate. Instead they chose to stand behind their warranty and based on their handling of the situation I shall on principle never buy another Samsung product again.

In making these decisions, brand managers of extended monobrands should consider the potential value of the customer over their life span. I happened to have owned about R25000 worth of other Samsung products prior to this experience, and considering that these will need replacing every 5 or so years, what is the opportunity cost of this decision?

Forum created by Adam McKeon

[25 Apr 2007 21:27]

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