Product – Page 2 – understand-culture

Familiarity breeds contempt

A New Broom Sweeps Clean – A fresh leader gets rid of the old and brings in new ideas and personnel. This term can be found in English as early as 1546 in John Heywood’s proverb collection.

Climb/jump on the Bandwagon – Join a growing movement in support of someone or something, often just as that movement appears to have become successful. This phrase developed after American politicians in the late 19^th century began using bandwagons when campaigning for office.

First known use: 1899 by President Theodore Roosevelt: “When I once became sure of one majority they tumbled over each other to get aboard the band wagon.”

Familiarity Breeds Contempt – The better you know someone, the more likely you are to find fault with them. First known use: 1386 in Chaucer’s “Tale of Melibee.”

The Grass is Always Greener on the Other Side – A different situation always seems better than your own. First known use: 1400s.

You Can’t Teach an Old Dog New Tricks – Old dogs (and people) learn less well than the young. Although this phrase primarily refers to people, not products, it nevertheless shows how Americans tend to view old things as outdated and unadaptable. First known use: John Fitzherbert’s 1534 “The Boke of Husbandry.”

Designed in U.S. Made in China

American businesses have a history of designing products in America, but then sending the designs to companies abroad, especially to third world countries, to be assembled. Why would a first world country, with the capacity for better materials and production processes, outsource the building of their products to lesser developed nations? The answer is simple: cost.

One of the most common countries for assembling American-designed products is China. In 2011, there was an article in Forbes titled “Buying from China is in Fact Buying American.” In this article, the author talks about his friend Johnny, a middle class American who owns a couple of small restaurants.

Most of the cooking utensils and furniture in Johnny’s restaurants were made in China. Like most middle-class Americans, he shopped at stores that sold primarily Chinese-made merchandise. Johnny’s reason for using these Chinese-assembled products: they were cheap and “good-enough.”

The article went on to talk about different American companies that sell products that are made in China (Apple, Dell, Gap, Hasbro, Nike, etc.) and how, according to a San Francisco Federal Reserve study, an average of 55% of the value of American imported goods from China goes to American companies and workers.

This is compared to 36% for American goods in general. Not only can companies that outsource to China sell their goods at a cheaper price, but they actually make a lot more money in the process.

Warranty

Warranty: A real covenant binding the grantor of an estate and the grantor’s heirs; a collateral undertaking that a fact regarding the subject of a contract is or will be as it is expressly or by implication declared or promised to be; something that authorizes, sanctions, supports, or justifies; a usually written guarantee of the integrity of a product and of the maker’s responsibility for the repair or replacement of defective parts. Middle English warantie, garantie, to warrant.

U.S. federal law establishes minimum legal standards for warranties on products. Some companies, however, offer warranties (for purchase or for free) that exceed the legal minimum by covering a broader array of problems the buyer might face.

For example, Apple’s standard iPhone warranty includes one year of hardware repairs and 90 days of telephone support. However, an extended warranty can be added that provides full hardware and phone support coverage for two years. Private companies also offer warranties on electronics and other high value goods.

Every Toyota vehicle is supported by a 36-month/36,000-mile limited warranty coverage. In addition, most individual Toyota parts have 12-month coverage, a fairly standard warranty for new vehicles.

Most manufacturer warranties for electronics, appliances, etc. cover only products that fail due to defects in construction or malfunctions of the item’s hardware. Some consumers want more protection, so retailers like Best Buy offer protection plans that go beyond the manufacturer’s warranty. Best Buy‘s Geek Squad Protection Plan, for example, covers normal wear and tear, no lemon policy, accidental, and damage from handling. Since these plans cover a much wider spectrum of potential problems, they tend to be quite expensive.

In order to remain competitive, American retailers offer generous return and exchange policies. Most companies print their policy directly on the receipt and use phrases like „easy returns and exchanges,“ „no hassle returns“ or „100% satisfaction guarantee.“ Some companies, like outdoor supplier REI, allow customers to return products for a full refund or exchange at any time for any reason.

Many retailers (WalMart, Target) do not require a receipt for returns or exchanges. If no receipt is available, stores generally refund the credit on gift cards that can only be used at the store.

These generous policies highlight the importance that American consumers assign to customer-centered policies that are clearly communicated and executed in a friendly manner. Retailers, on the other hand, encourage buyers to spend first and think later. They give consumers confidence that satisfaction with a particular product or brand is guaranteed.

Pimp My Ride

DIY or Do it Yourself projects are very common in the United States. Rather than buying reliable products, many Americans prefer to buy unreliable products and then, using DIY, turn them into reliable (or at least different) products. This can be anything from salvaging a broken toaster to buying old houses and refurbishing them.

According to a recent survey, 3 out of 4 Americans who make changes to their houses will include some form of DIY. Additionally, there has also been a recent surge of DIY websites explaining to Americans how to go about fixing and upgrading products on their own.

There have been several American television shows that showcase DIY, including Pimp my Ride, which restored rundown vehicles, This Old House, which restored old houses, and even Home Improvement, a sitcom which centered around the antics of a DIY presenter, Tim Allen, as he routinely made mistakes showing people how to fix appliances and redesign their houses.

It turns out that Pimp my Ride was a bit deceptive. Oops!

Cost-benefit relationship

Langlebig. Long lasting, to work over many years; effective over a long period of time; functional, usable over an extended period of time.

Germans prefer products which last a long time, rarely need repair or replacement, and pay for themselves several times over. The unstable economic times of the 20th century have taught the Germans to calculate precisely and carefully the relation between investment and use.

Residential homes and automobiles in Germany, for example, are much more expensive than in other countries. On the other hand they are often of higher quality, meet higher standards. The Germans will pay more, however, for many other kinds of products, such as furniture, household appliances, tools, and clothing.

Many well-known, but expensive brands continue to command customer loyalty. They are of high quality and solid durability. They offer a sense of security to the German consumer.

Although Germans in general like the newest in technology, they are bothered by the fact that many electronics – computers, television sets, mobile phones – are improved upon in ever shorter product development cycles. In those cases it is rarely worth it to invest in expensive models.

Durability, reliability, and quality are product attributes not easily distinguishable. Durability is a question of how long a product lasts. Reliability is about how well it performs. And quality is a general term encompassing many product attributes, but focused primarly on craftsmanship.

Pareto

The Pareto principle: Also known as the 80-20 rule, stating that in many situations approximately 80% of the effects come from 20% of the causes.

Vilfredo Pareto, an Italian economist, documented in the early 1900s that 80% of the land in Italy was owned by 20% of the population. Pareto went on to observe that 20% of the pea pods in his garden contained 80% of the peas. It has become a common rule of thumb in business that 80% of sales come from 20% of clients.

The 80-20 rule could be a metaphor about the American approach to many things, or at least about an element or aspect of the Americans approach. Americans tend not to be perfectionists. Not because they do not recognize and honor striving for the best. But because in many cases attaining, reaching, accomplishing that extra 5% is in many cases “simply not worth it”.

Worth. Value. Does the customer want that extra degree of engineering excellence? Is it necessary to calculate that many digits behind the decimal point? Is that depth of analysis necessary in order to make a decision?

80% is often enough. For Americans, depending on the situation, 60% is enough. Depending on the risk-benefit relationship, even less is enough.

Smart

Smart power: In international relations, the term smart power refers to the combination of hard and soft power strategies. It is defined by the Center for Strategic and International Studies as “an approach that underscores the necessity of a strong military, but also invests heavily in alliances, partnerships, and institutions of all levels to expand American influence and establish legitimacy of American action.

It is smart because it achieves the desired outcome with the minimum amount of effort and utilizes every available resource. It focuses on the desired political effect.

Intelligent products: Products increasingly rely on technology that thinks for the user. Some examples are social networking (Facebook, Twitter, etc.), smart phones, software, weapons systems, and home automation systems.

Social networking now includes functions that match peoples’ networks and interests and suggest friends or connections. This decreases the amount of time that a user needs to search for users similar to themselves. Smart phones include voice recognition software and question-answer functions like the popular Siri function of the iPhone 4S. Software often reminds users to complete tasks like upgrading software or checks to ensure a user intended to take a certain action.

Weapons systems enable troops to save time by identifying friendly and hostile forces and automatically alerting allied troops of nearby threats. In the home automation sector, technologies such as the Nest thermostat learns the patterns of its users and automatically adjusts the temperature of the home in accordance with previous trends.

Clever

Intelligent. Latin intelligens, to recognize, understand, discern; smart, talented, capable; think abstractly, use reason, then act.

Clever. From English clever. Intelligent, tactical; flexible, adaptable; to recognize all available options.

Smartphone. An English term quickly adopted by the German people because it so succinctly describes the product. There is no German equivalent.

Mitdenken. Literally think with. To think independently, to anticipate; thoughtful, reflective.

Business Majors

Business has long been a cornerstone of American culture. The American Dream is typically associated with the ability to start with almost nothing, and through the virtues of business, to rise to great wealth and social stature.

Although the U.S. is no longer the country with the largest rate of social mobility in the world Americans still hold business savvy and an ability to rise in social stature in high prestige.

The most popular major for American university students is business, with approximately 22% of graduates. Science and engineering are the least popular majors, with approximately 5% of American students choosing engineering, and only 1.4% choosing physical sciences.

As a result of this business prestige, in every American engineer you’ll find a businessperson – someone who’s always looking to get the best for less, and will never consider quality without also considering the cost necessary to achieve it.

“The same product forever?”

Americans rarely want to own a product for an extended period of time. Most are updated, changed, modified on a regular basis, giving them a kind of newness. These include: computers, electronicc, automobiles, and clothing styles.

Even houses are torn down so that new ones can be built in their place. To the extent that a person views themself as a product, some even alter their own physical appearance via cosmetic surgery: lift, tuck, tighten, remove, add.

Americans simply don‘t want to own, use or be seen with the same product for all too long. They want what is new, better, the „next best thing“, whether it is truly better or not.

Think of mobility in the U.S. Large percentages of Americans in a given year move from one place to another. Job mobility has always been a part of the American economy, now more than ever involuntarily.

Americans own cars for shorter amount of years than in most Western cultures. Fashion cycles are short, the trends are frequent. America is the land of fads, crazes, rages. It‘s a very large and diverse market, culture. It is a consume and consumer oriented economy.

Durable is important to Americans, but for a shorter period of time.