This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/magazine/7791398.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| It's not all about price | It's not all about price |
| (about 4 hours later) | |
| THE BIG IDEA 60 seconds to change the world Can a simple idea help make the world a better place? Each week we ask a guest to outline an idea to improve all our lives. Here, statistician Jeffrey Rosenthal suggests looking at more than just the price tag when shopping. | THE BIG IDEA 60 seconds to change the world Can a simple idea help make the world a better place? Each week we ask a guest to outline an idea to improve all our lives. Here, statistician Jeffrey Rosenthal suggests looking at more than just the price tag when shopping. |
| When consumers are making purchases, they should consider more than just the price. | When consumers are making purchases, they should consider more than just the price. |
| There is a tendency in this information age to compare prices, and say whichever company will sell me this product at the cheapest price, must be the one that I should purchase. | There is a tendency in this information age to compare prices, and say whichever company will sell me this product at the cheapest price, must be the one that I should purchase. |
| But people carry this too far, to the point where the competition on price is so severe that there is no margin of error for companies to, for example, innovate with new products or new ways of doing things. | But people carry this too far, to the point where the competition on price is so severe that there is no margin of error for companies to, for example, innovate with new products or new ways of doing things. |
| Or more importantly, to put effort into customer service - answering their telephones, or helping to resolve a client's complaint. FROM BBC WORLD SERVICE More from The Forum | Or more importantly, to put effort into customer service - answering their telephones, or helping to resolve a client's complaint. FROM BBC WORLD SERVICE More from The Forum |
| Or ethical and environmental considerations, such as whether they treat their employees well, or do charitable works for their communities. | Or ethical and environmental considerations, such as whether they treat their employees well, or do charitable works for their communities. |
| I think there is a real sense that everything else has to get pushed out because we are just competing on the basis of price. | I think there is a real sense that everything else has to get pushed out because we are just competing on the basis of price. |
| Whereas if people consider these other factors - even just a little bit and say OK, maybe we should go for the company with good customer service - then the companies would have to do better. And it would help make the world a better place for all of us. | Whereas if people consider these other factors - even just a little bit and say OK, maybe we should go for the company with good customer service - then the companies would have to do better. And it would help make the world a better place for all of us. |
| Jeffrey Rosenthal is the Professor of Statistics at the University of Toronto. | Jeffrey Rosenthal is the Professor of Statistics at the University of Toronto. |
Add your comments on this idea, using the form below. | Add your comments on this idea, using the form below. |
| I do agree that, in some cases, people put the price above all else. However the very existence of John Lewis, Selfridges and Harrods point to the exact opposite being true. If I were to place a higher value on customer care if I were flying, I may choose to fly Virgin or Emerites over budget carriers. If I want a more pleasant shopping experience and customer service, I may well take my self to Waitrose rather than Aldi. Andy Simpson, London | |
| I try and buy products according to quality, anticipated longevity and ease of maintenance, as often this works out cheaper in the long-run than going for something with the lowest initial purchase price. However, there's a huge problem here in that in many areas these days, all of the companies capable of producing these superior products have been forced out of business by the cut-price "box shifters", meaning that choices come down to buying cheap junk or not buying new at all.Jules Richardson, Bemidji, MN, USA | |
| I recently bought a new television from a local retailer, they came and set the television up, installed a new satellite dish and were happy to answer post-installation questions. I am planning to buy a PVR after Christmas and have already asked the same local retailer to put one aside for me. Yes I might have got everything cheaper at an electrical superstore but not the same personal service and I would not have been helping my local economy.Sarah D, Oxford, England | |
| So much is in the media now about getting the most value out of things like insurance - but that value is almost always centred around cost. I may pay marginally more for my car insurance and mobile phone line rental, but this is countered by the fact that I am not having to take medication to deal with any high blood pressure I may incur if I had to deal with the sheer lack of customer services that some companies offer.Rebecca, Liverpool | |
| "Morals I can't afford them" - Eliza Doolittle's Father in My Fair Lady. It would be interesting if Jeffery Rosenthal still argued this point if he was on benefits with a loan shark on his back.Tim Fox, Beckenham | |
| You are ignoring the What HI-Fi? effect. The magazine tests and reviews products across a range of parameters and chooses one with best overall value for money. This happens all over the market for all sorts of goods and services; it may not be formalised as in the example above, but chatrooms, offices and other meeting places all perform the same function. Ian, Walsall | |
| In many areas of London we already see neighbourhoods where independent coffee shops, clothing stores and retailers rule the roost. However, there are invariably some corporate businesses that manage to creep in, and the struggle comes in trying to maintain the balance between the independent businesses, who people identify with, and the corporations who can deliver the low prices and reliability that people hanker after.Karl Chads, London, UK | |
| It depends on what I'm buying. If it's something where the customer service doesn't matter to me, for example a TV or other electrical item, then price is the determining factor. If it breaks down within its warranty period I find I'm very adept at pointing out the legal ramifications to companies that couldn't care less if they mess me about. For more personal or bespoke items - a fitted bathroom, clothes, furniture where "fault" may be a more subjective term - the quality of customer service is vital and frequently justifies some extra expenditure.Dr W B Chellam, Bradford | |
| I am a 71 years young pensioner, and when I choose to spend MY pension money on £1 items, it is because I do not have the disposable income of all the youngsters. Nobody cares about the pensioners, except the pensioners. Eat or heat? Where can I buy heat for £1? How much heat will £1 buy?BW Moore, Stockton on Tees, UK | |