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When Packages Left on Doorsteps Disappear
Tweet Share on Facebook December 12, 2007 Comment (22)Dear Alpha Consumer,
I recently ordered a $1,300, 42-inch LCD television from Costco.com. To my surprise, FedEx dropped it off outside my door, where anyone could have taken it. Is this a normal practice, and would either company have reimbursed me if it had been stolen?
The only way to really know if a company would reimburse you for merchandise stolen off your front porch would be to have that happen, because most retailers shy away from making public promises about what they would do. It's understandable; if consumers were guaranteed a new product when the first one was stolen, that could easily lead to fraudulent reports of thefts. (I don't think I'm being overly pessimistic about shoppers' ethics. The National Retail Federation found that almost 9 percent of holiday returns are fraudulent, costing retailers about $3.7 billion over the holiday season.)
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What Kind of Customer Are You?
Tweet Share on Facebook December 11, 2007 Comment (1)When you sprint to an airport gate to make a connection after a delayed flight, only to find that the plane hasn't waited for you, do you want a) the gate agent to offer a sincere apology, b) the airline to admit it made a mistake and provide you alternative ways to reach your destination, or c) a $200 travel voucher for your trouble?
Customers typically fall into these three general categories (dubbed relational, oppositional, and utilitarian). And companies may want to start thinking of them that way, according to a new paper published in the Journal of Marketing. Customers tend to have different reactions to negative experiences, the researchers say, so that treating them as homogenous is probably not the way to win them over.
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Save More Money—Unless You're Retired
Tweet Share on Facebook December 10, 2007 Comment (5)This morning, the Consumer Federation of America and Wachovia released a joint survey on saving. They report that just over half of Americans say they are not saving enough. That's no big surprise—Americans are known for our spend-happy ways.
The good news, though, is that over half of respondents said they could cover unexpected expenses like car repairs or emergency dental work. Among those who said they were not saving enough, over one third said impulse buys and credit cards were at least partly to blame. And young people between the ages of 18 and 24 were most likely to say they should be saving more.
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Financial Tips for Young Professionals
Tweet Share on Facebook December 7, 2007 CommentI recently discovered the website Feed the Pig, which is sponsored by the American Institute of Certified Public Accountants and the Advertising Council. It's dedicated to helping Americans between the ages of 25 to 34 take control of their finances. Since I fit into that age group, I decided to see what it could do for me.
Calculators on the website helped me figure out that if I bring lunch to work every day instead of eating out, then I'll save around $5,500 after three years. (That's assuming lunch costs around $10 and bringing it from home costs around $3.)
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Facebook Chief Apologizes for Online Sales Tracking
Tweet Share on Facebook December 6, 2007 Comment (1)On Wednesday, Facebook Chief Executive Mark Zuckerberg apologized for the social networking site's program, known as Beacon, that alerts users to one another's recent purchases.
"We simply did a bad job with this release, and I apologize for it," he wrote.
Complaints about Beacon started soon after it began: People felt as though their privacy was being invaded, and because the program launch coincided with the holiday shopping season, many said their surprise presents were ruined. Some users swore off Facebook altogether.
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Credit Card Debate over Consumers' IQ
Tweet Share on Facebook December 5, 2007 Comment (29)Over the past week, I've attended two heated discussions on the future of the credit card industry. The first, last Friday, was hosted by the Consumer Federation of America, and the second, Tuesday, was a Senate hearing on credit card interest rates.
The arguments are basically over whether credit card companies treat their customers fairly. Consumer rights groups and certain members of Congress, such as Sens. Carl Levin and Claire McCaskill, Democrats from Michigan and Missouri respectively, think credit card companies are unfair in the aggressive way they solicit customers and then raise interest rates when customers start to struggle with their debt.
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When Dementia Leads to Debt
Tweet Share on Facebook December 4, 2007 Comment (11)Dear Alpha Consumer,
My husband, who is retired, has dementia. He responds to credit card offers in the mail and charges things to them, even though he shouldn't, because he is on limited Social Security disability income. He knows better, but his mind is weak. He always says he won't use the cards, but he still does. Even if I cut the cards in half, more come in the mail. We are now in $15,000 of debt, and it continues to rise. How can I get him to stop making charges? Will I be responsible for the debt, even if he passes away before I do?
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Alpha Consumer
Kimberly Palmer, senior editor for U.S. News & World Report, writes about making smarter financial decisions. She’s the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.
Generation Earn
Senior editor Kimberly Palmer’s book, Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back, is now available.
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