Amiram Hayardeny's My China Experience

Competition - Response to Comment

I usually don't respond to comments, but this one certainly deserved a response.  UX-admin raised an age old question, and an excellent one too: what if there are no options?  What if there is no competition?  No choices?  Obviously, the observation is correct.  You cannot be an educated consumer if no options exist.  In fact, the very concepts of open markets and free trade are based on the fact that the markets are just that: open and free.  What UX-admin is talking about is monopoly.  In many cases, a monopoly is government owned, but not always.  Sometimes, a monopoly was successful in wiping out all smaller competitors, to be left alone and squeeze the choice-less consumers.

Indeed, the "regulator" has a critical role in the elimination of monopolies.  In many countries, a monopoly, once declared, is required to take significant steps in its own elimination - AT&T and to a certain extent Microsoft are recent examples.  Monopoly is a consumer nightmare.  The reason is simple: once there is no competition, the product or service can be sold at the highest possible price.  Competition is the best price moderation in existence.
So my not so great answer to UX-admin is that free markets are built from the bottom up.  Surely, in some aspects choices DO exist.  You can eat in a restaurant that is cheaper and serves its customers better.  You can do what I do: tell the places which you frequent that you come to them because they are either cheaper, better, higher quality.  You can tell your family and friends to go or to not go to certain places.  At the age of the Internet - you can do what I do: blog.

Of course, if you are on your own - you won't get very far.  But if there are many - it's an entirely different ballgame.  And the government, once it is open for election (absolute competition) wants the citizens to be happy.  The government regulates monopoly, and enforces competition.  It is good for everyone: the consumer and (believe it or not) the competitors.  Competition encourages innovation, quality, price.  Competition is the best form of trade.  It takes time, but since it is the only concept which supports equilibrium - it works.

So be optimistic, and patient.  It will happen, in due time.

Posted at 06:51PM Mar 25, 2007 by Amiram Hayardeny in Personal  |  Comments[4]

Quarterly Visit to the USA - Impressions

My first trip to the United States was at the age of 16, in 1979.  This was also my first trip out of the Israel, where I was born and raised.  My first impression was at the airport.  For the first time in my life, someone addressed me as "Sir" and added "Mister" to my last name.  But throughout the eight week trip, I remember clearly that I was most impressed with the level of service I received.  Customer service that is.  Thirty years ago, customer service did not yet arrive in Israel.  There was no such thing as "refund" or "exchange".  If you stayed at a store over a few minutes without giving any indication of purchasing anything, it was quite likely that you would be asked to leave.  When I went to the US, I realized that there's another world out there.  A world which respected people, or rather customers, consumers, potential customers.  I was introduced to the phrase "The Customer is Always Right"...

Needless to say, I liked it.  Not only I liked it, I learned to demand it.  If I was going to pay someone, I made sure I was getting my money's worth.  Like me, hundreds of thousands of Israelis went to Europe and to the US, and overtime, they influenced the level of service in Israel by simply giving the business to competitors in case of disappointment.  Nowadays, when you enter a store, you are addressed with "Sir".  You are given the respect you deserve.  The respect you pay for.  You can return merchandise, you can exchange it.  It's a pleasure.

And guess what.  When I go to the US now, I realize that the service level is deteriorating, significantly, and consistently.  Many times I encounter service persons who are uneducated, unprofessional, sometimes simply rude.
There are exceptions, of course.  I read BusinessWeek's rating of the top twenty five customer service champions.  (Read: BusinessWeek's Customer Service Champions)  Some companies really appreciate their customers, others don't.  You will find in this article, the exceptional service given by some companies to their customers.  Needless to say, good service is associated with very successful companies.

My latest example is United Airlines.  Last week I flew back and forth from Beijing to San Francisco.  I chose United Airlines (not too many options).  I was surprised to discover that the service given by United staff was much better at the Beijing airport.  At the San Francisco airport, the service was substandard.  The flight was overbooked, and there was no way to check in on line.  I have a personal problem - I cannot sit in the middle seat, I am simply too heavy.  Therefore, I reported to the check-in counter four (4!!!) hours before departure so I can get either a window or an aisle seat.  To my great surprise and disappointment, I was told that seat assignment will be done at the gate (unless of course I was willing to pay $599.00 for an upgrade to business - to which I said: thanks but no thanks).  Now, I have been flying much longer than the check-in counter attendant has lived, and never was I told that seat assignment will be done at the gate because the flight was full.  But my protests lead me to nothing.  At the gate, I met dozens of people waiting in line to get a seat assignment.  They were all upset.  The flight was packed and crowded, not a great experience.    I encountered a similar experience at the Hertz counter.

To be fair, there was one incredible exception.  For the first time in my life, I showed up at a hotel - the Sierra Suites of Santa Clara, and there was no reservations for me.  The attendant, a young woman named Sandra, was amazingly kind, trying all she could to get me settled.  When she realized she couldn't get me a room at the Sierra Suites, she made a few phone calls and got me a room at the Holiday Inn, and even printed the directions for me.  Thanks Sandra!  The Sierra Suites will definitely get my future business.

Lastly, please bear with me, the issue of the gifts.  I have two young kids who hate it when I travel for work.  But they understand it is necessary, and gifts do help them to be more reasonable about it.  Lately, my wife and I noticed, that every time I go to the US, I come back with a load of gifts, ALL made in China.  So we agreed, that when I go away on business, she goes to the local stores, buys the gifts, and leaves them in the trunk of the car for me.  When I get back I present it to the kids, who are as happy, and for a fraction of the price.  Still, I wanted to buy them something in the US.  So what could I buy?  Clothes, shoes, games, model cars? They are all made here in China.  So what do I get?  I respect intellectual property, ownership, rights, royalties.  Therefore, I thought I'd buy original computer games proudly made in the US of A rather than buy the cheap copies sold here in Beijing.  I bought a couple of Dr. Seuss games, and a couple of Disney games for my four year old son.  I am sure they will have a good time playing with it.

Bottom line, we are paying hefty prices, we deserve, and we should demand that what we buy is of good quality, that it works, and that the people who serve us do it politely and professionally.  Good customer service is not, or at least should not be an option - it is mandatory.  If you don't get it, take your business elsewhere.

Posted at 09:13AM Mar 25, 2007 by Amiram Hayardeny in Personal  |  Comments[1]