7/15/2009

0715 What a Good Deal, Dell in Taiwan.

There was a business news of Dell reported in Taiwan. The news described that the Dell's online store had made wrong prices twice in the past one month.

The first mistake happened on June 25, and the LCD monitors whose cost were 250 dollars was priced 34 dollars on the Dell online store. After ten days, Dell's also incorrectly priced the two-thousand-dollar laptops at six hundred dollars. While the consumers who bought those products wanted Dell to make the deals, Dell cancelled the deals by the reasons which error of the online store system occurred. Therefore, those consumers appealed to Fair Trade Commission, because they wanted their purchased products back. The consumers said that Dell cannot cancel the deal just because of the reason of the computer system error.

When this serious event which deeply impacted the image of Dell was reported on the news, the Dell Company did not react immediately and make a stop-loss point to protect its brand image. The general manager of Dell Company in Taiwan held the press conference after two days of the news reported. On the day of the press conference the general manager did not state how to reimburse those customers, so some critics said Dell has no ability of the crisis management.

Finally, the Dell Company confessed the mistake, so the Dell Company will give every customer who bought the wrong-price products 7oo-dollar value coupons in order to show the sincerity. However, the some customers said that the Dell Company tried the use the event to make its brand more visible, and some customers also indicated the coupons are fake reimbursements. Those coupons can be used only for specific products and only on Dell online store. The current prices of the specific products sold on the Dell online store are higher 700 dollars than the prices of the products sold in other stores. Even though those customers get the high value coupons, they won’t truly receive the compensation.

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