4 ms·
But if crappy products sell and don't sell any worse than better (and more expensive) products, then it is a mistake to invest effort into making them better.
by sanj 17y ago
But if crappy products sell and don't sell any worse than better (and more expensive) products, then it is a mistake to invest effort into making them better.
customer experience != maximizing value to shareholders
I wish it were. I really do. But it isn't.
- dcurtis 17y agoCan you provide a real world example of where this is the case in a healthy market? I do not think this is true except in very poor market conditions like with monopolies or odd social situations.
- swombat 17y agoEnterprise sales. Though of course you'll argue it's not a healthy market.
- whatusername 17y agoUser Experience / Price / Design / Exclusivity / existing infrastructure / external pressure (see legal reqs, etc) A product / service can create value in all of those areas.. some are either mutually exclusive or at least practically so. To even use Apple as an example.. Great Operating system - unless you want a netbook. Or want to play games. Or create blu-ray disks. Put it this way - I'm sure you can make a better hamburger than mcdonalds. But I'm sure Ray Croc made a whole lot more money than most of the people on HN ever will.
- jnorthrop 17y agoMy brother was the brand manager for a dying food brand (well known national brand). The first thing he did when he was hired to improve the brand was to improve the quality of the food (better cuts of meat, fresher veggies, lower sodium, etc.). You know what happened? The customer complaint line was jammed with pissed people. He did a complete 180 and removed the higher quality items (the healthy stuff like vegetables), increased the quantity and sales started to climb. That is a clear case of people wanting crap... in fact demanding it instead of the better quality product. Note: Sorry for being vague about the brand but he is still there and might not want the full story public.
- michael_dorfman 17y agoThe key point of your story is that your brother's definition of "higher quality" didn't mesh with the customer's. That's a problem. If people were satisfied with the product, changing the ingredients is definitely going to add risk. I worked for a food manufacturer, once upon a time, and we did extensive triangle testing even when sourcing ingredients from a new vendor. People want quality. That doesn't mean their taste is the same as yours...
- joshu 17y agoTriangle testing?
- michael_dorfman 17y agoSorry, it's a common "term of art" in the food sciences. Basically, it is blindly tasting three samples, and trying to tell which one of the three is different. (The other two are the same.) So, if you are testing a new supplier, you can give the subjects two samples from the old supplier and one from the new supplier, and see if they can pick out the odd one with any kind of statistical significance. The key factor is that it is not attempting to measure "which tastes better", but rather, "which tastes noticeably different".
- joshu 17y agoNo need to apologize. Thank you for the explanation.
- jnorthrop 17y agoThe point I was trying to make is that the customer didn't want "better," they wanted the "same" even though it was crappy. The post I responded to seemed to want an example of that. On your points, I agree mostly but in this case people didn't want better quality. They liked the taste of the lower quality product.
- 17y ago
- chollida1 17y ago> Can you provide a real world example of where this is the case in a healthy market? McDonalds hamburgers. They have arguably the worst tasting hamburger of any restaurant chain and yet they sell more than anyone else.
- auston 17y agoWal-Mart: http://news.ycombinator.com/item?id=653051 http://news.ycombinator.com/item?id=653051
- randomtask 17y agoSupermarket own brand products are often of a much lower quality than branded versions, but sell well because they are cheaper. There is a quality/price trade off with a lot of products and a demand for those on both ends of the spectrum.
- ahoyhere 17y agoUm, everything I've read says that supermarket brand foods are often name brand excess sold under private label. Yes/no?
- anamax 17y agoYou're both correct/wrong. (Except that the premium store brands are not "excess" - they're planned that way.) Some store brand products are premium equivs while some aren't. (Some stores even have two brands so they can compete with the premium with the same quality at a slightly lower price and at lesser quality at a significantly lower price.) There was a big Harvard Biz Review article about store brand strategies several years ago.