5 y ago
Did you know that the lifetime of light bulbs once used to last for more than 2500 hours and was reduced on purpose to just 1000 hours? Did you know that nylon stockings once used to be that stable that you could even use them as tow rope for cars and its quality was reduced just to make sure that you will soon need a new one? Did you know that you might have a tiny little chip inside your printer that was just placed there so that your device will break after a predefined number of printed pages thereby assuring that you buy a new one? Did you know that Apple originally did not intend to offer any battery exchange service for their iPods/iPhones/iPads just to enable you to continuously contribute to the growth of this corporation?
5 y ago
Our enormously productive economy demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfactions, our ego satisfactions, in consumption. The measure of social status, of social acceptance, of prestige, is now to be found in our consumptive patterns. The very meaning and significance of our lives today expressed in consumptive terms. The greater the pressures upon the individual to conform to safe and accepted social standards, the more does he tend to express his aspirations and his individuality in terms of what he wears, drives, eats- his home, his car, his pattern of food serving, his hobbies.
These commodities and services must be offered to the consumer with a special urgency. We require not only “forced draft” consumption, but “expensive” consumption as well. We need things consumed, burned up, worn out, replaced, and discarded at an ever increasing pace. We need to have people eat, drink, dress, ride, live, with ever more complicated and, therefore, constantly more expensive consumption."The Real Meaning of Consumer Demand", Journal of Retailing, 1955
6 y ago
Lock-in creates dominant players -- witness Google, Facebook, Microsoft. And in this monopoly-driven environment, customers get exploited. Microsoft forces them to upgrade to expensive, overly complex, and bug-ridden software.
Apple controls our virtual landscape, bounded by iTunes to the north, the iPhone to the south, the iPad to the east, and the iPod to the west, giving it increasing power to deprive customers of choice. It exercises that power aggressively. Google appears to have a culture that condones shamelessly violating consumer privacy. How else can you explain a company that bypasses Apple's iPhone privacy settings in a reported attempt to strengthen advertising revenues?
It is hard to believe that Dave Packard or Andy Grove would ever tell a group of entrepreneurs that he did "every horrible thing in the book to just get revenues right away," or brag to trade publications that his company used behavioral psychologists to design "compulsion loops" into products to keep customers engaged. But Mark Pincus, the founder of Internet gaming giant Zynga, has done just that.
When corporate leaders pursue wealth in the winner-take-all Internet environment, companies dance on the edge of acceptable behavior. If they don't take it to the limit, a competitor will. That competitor will become the dominant supplier -- one monopoly will replace another. And when you engage in these activities you get a different set of Valley values: the values of customer exploitation.