Product – Page 6 – understand-culture

Unpuncturable

Unpuncturable – it can’t be punctured. No flat tire.

The Marathon Plus is the only bicycle tire in the world which is allowed to describe itself as unpuncturable. It is made by the German company Schwalbe with its patent on a Pannenschutzgürtel – literally flat tire protective belt. The belt is five millimeters thick and is made of highly elastic rubber. Neither thumbtacks nor glass can cut through it.

The Marathon Plus tire is not only unpuncturable, it has a so-called anti-aging exterior. Schwalbe’s goal was to create a truly durable product, a deep-seated German desire to make things which have Beständigkeit – resistance, stability, permanence, constancy.

Schwalbe was founded in 1992 by the Bohle family. It has remained a family-owned and -run company. It is the leading bicycle tire company in Europe, operates worldwide. They describe themselves as tire fanatics.

Prussian Reforms

Much of what is Germany has its roots in the Prussian reforms of the early 19th Century. Napoleon‘s rapid defeat of Prussia in 1806/07 led to a deep-dive analysis of what went wrong, of what required reform. The Germans radically changed their agricultural system, their business laws, their military training, and most importantly their system of education.

Public eduction for all was introduced. The universities adopted the Humboldt education philosophy, which stressed free and independent inquiry and teaching. Knowledge quickly became the foundation of a modern Prussian economy and state, in many ways for contemporary Germany.

The Prussian Reforms also addressed state institutions. A system of professional civil servants and a bureaucracy was instituted. Bureaucracy then stood for efficiency and professionalism. The tax laws were simplified and made transparent. The state should function more efficiently and become a motor for positive change.

Germany today remains a rather bureaucratic country, with its scores of civil servants, rules and laws. It is a country where one simply cannot do as one pleases. From the perspective of other societies this is a limitation on freedom. Germans, though, view it as a sign of security and stability. Doing things the right way, punctuality, reliability, predictability, following the rules, bureaucracy. Germany has a 200 year history of these. They are who the Germans are as a people.

TÜV

TÜV Technischer Überwachungsverein. The Institute for Technical Testing has locations across Germany (and in many countries), applies vigorous testing procedures to products of all kinds. A TÜV certificate is a sign of the highest quality.

Stiftung Warentest. The Foundation for Product Testing, similar to Consumer Reports in the U.S., is an independent, neutral organization which tests critically over 200 products each year. Its standards are among the highest internationally, including all requirements defined by law. The media covers many of the test results.

The quality of a product is its most important characteristic. The testing results produced by TÜV and Stiftung Warentest are considered by Germans to be 100% reliable. Each have been taken to court many times for the critical scores they have given products. Neither organization has lost a court case.

Crisis and insecurity

The experiences during, between and after the two world wars continue to exert great influence on German thinking. During both wars the economy was geared fully towards producing armaments. There was little material, money and manpower to supply everyday consumer goods.

The years between the wars were filled with civil war type unrest, weak governments, and several phases of inflation including a dramatic hyper-inflation. The years after the Second World War were marked by hunger, lack of housing, severe winters, high unemployment and a fear of what the future would bring.

The entire West German economy had to be rebuilt. This was achieved surprisingly fast due to the generous and far-sighted help of the Western allies and on the production of high-quality technical products. After nearly thirty years of instability, unpredictability and hardship, there was a strong demand among the German people for reliable, durable, high quality products. The Germans wanted security and predictability.

The German product philosophy has not changed, even though there are few alive who experienced the war years. The experiences were so dramatic that they have been passed on to the younger generations. German products which carry the name Bosch, Siemens or Volkswagen speak to the experiences of both earlier and current generations.

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.

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!

New car shoppers

In 2013 J.D. Power and Associates conducted a study to determine what factors influence Americans when purchasing vehicles. According to the report, the primary reason why shoppers avoid hybrids and electric vehicles is cost/price. Furthermore, gas mileage is the most influential factor in the decision process, and has been since a rise in gas prices in 2008.

One of the less important factors that Americans consider is reliability, with only 17% of new vehicle shoppers avoiding models with poor reputations for reliability. In fact, Americans put more importance on things like design and appearance than on reliability, with 33% of new vehicle shoppers avoiding models based on their exterior design.

Adverse conditions

Reliable: To be dependent; to have confidence based on experience; dependable, giving the same result on successive trials.

Convenient: Suited to personal comfort or to easy performance; suited to a particular situation; affording accommodation or advantage; being near at hand. From Latin convenire to assemble, come together, be suitable.

Some products are designed for use in adverse conditions. These include batteries, automobiles, tires, outdoor work clothing, footwear. These products enable people to accomplish tasks like living in extreme climates, driving to work in adverse weather, and staying comfortable while working outside. American made products in these categories are designed to be reliable, as this prevents surprises and gives the user a sense of security about using the product.

General Motors often uses the tagline “Longest–lasting, most dependable truck on the road” to describe its Chevy truck line. Other major truck companies like Ford or Dodge also use words like reliable and dependable to describe their trucks. Another famous series of commercials from battery maker Energizer involved a battery-powered rabbit playing the drums as if in a marching band. This rabbit was known as The Energizer Bunny, and his characteristic was that he „kept going and going and going.“

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.

Serviceability is reliability

Reliability in the U.S. also means serviceability. No product is perfect. Service can make up for it. And service is based on a product’s serviceability. After sales comes service. Should be fast, easy and profitable.

From Ford’s Model T which came with a tool box, all the way to today’s call centers responding 24/7 via 1-800 numbers, to the service trucks on the road, Americans tolerate suboptimal reliability if their concerns are listened to and acted upon.

But wait. Earning profits on a product’s imperfection? The German engineer winces at this. Products should work as developed. The German consumer winces at this. Products should work as promised.