A deteriorating company/brand image & Firm’s product perceived as being relatively substandard
Acer. Its one of the cheapest computer brands you’ll ever find. The only reason to buy this product, if you do not know the companies history would be its price. With low price also comes the perception of low standards. When it comes to an important purchase such as a computer standards or quality is critical. Acer used to make computer chips for companies like IBM and HP. However, as I would later find out their computers are no up to par with the IBM (Laptop division is now Lenovo) or HP brand names. I bought an Acer laptop a couple of months back. I asked my self, what does price really say? If Acer made chips of IBM and HP why couldn’t they make computers just as good? With in a month the computer stopped working due to hardware problems. When I took a look at the brands of products Acer used inside their laptops, I was surprised at their low standards. I returned the Acer for an HP.
If Acer could replace low quality hardware, with high quality and heightened their prices a little I would have still bought the Acer. And also still be an Acer user. This also deteriorated the brand image of Acer in my mind. Acer has continued in the path of a deterioration brand image. After all if an Acer breaks why would you go for another Acer? As a marketing student I know that a low price doesn’t always mean low quality, but in this case it did. This company’s strategic choice to used low quality parts for low prices has made me never want to look at an Acer again.
Acer’s strategy to be to be the new kid on the block with the cheapest price has failed. It is not a means for continued growth. Computers are not bought only on price, quality is a big factor. It is important to satisfy a consumer’s heart and mind, not just their budget. A deteriorating company/brand image & Firm’s product perceived as being relatively substandard are Acer's problems.
4 comments:
Yes, brand image for an electronics company is especially important. I also believe that you always get what you pay for. Since they have these really low prices, I wouldn't expect them to be as good as other brands and I wouldn't trust them as much. But I have to say that I've bought Acer laptop to my brother almost three years ago and he didn't have any problems until this day... And I constantly have problems with my Dell. Also, I don't think it is right to judge company based on the personal experience.
Hey Waruna, very interesting post and choice of company to analyze. I'm curious though about you said you returned the Acer when it broke? Did the company take it back? because that sounds like very good customer service if they took it back from when it broke? I agree with Egle that maybe it was only that one time that it broke. Also, isn't there something to say to getting what you pay for? obviosuly the qaulity is going to be substandard if the price is very low. Even thought they supply chips to other more prominent companies it would probably be undermining the other companies to put the same chips in their computers and to sell them for a lower price!
I love my Acer! LoL, Sorry you had such a bad experience with yours, but mine has treated me well for over a year and a half. I think its interesting though because alot of people share your view point. People are skeptic to buy an Acer because of the product image and name. People tend to associate it with low quality. However, in recent years the company has improved and began to offer better products. Do you think if they started using better hardware they would be able to make a comeback? Or so you think it is already too late and their image has been ruined?
Some people think that if the prices are low then the product must be substandard or something. The company might be selling the product inexpensive on purpose to attract more customers. High priced product also break down and it depends on how many people come forward to say that they haven't goten their money's worth. Dell was inexpensive in the beginning. some people might think its dirt pc but take a look at your library or any organization in ny they all use dell which means that having low prices doesnt always mean that the product is substandard.
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