Samsung Tries to Retain Korean Customers

Samsung Offers $75 Premium to Stick With Its Smartphones

It's no secret that the new Samsung Galaxy Note 7's have had some pretty explosive problems with their batteries, which seems just a tad ironic given that the phones are waterproof. Anyway, Samsung recently took a huge reputation hit for this and for the fact that they sent out replacements for the exploding phones...only for the replacement phones to start spontaneously combusting as well. This whole situation, understandably, meant that the prominent company lost a lot of credibility and popularity. The company also took a financial hit with the recall. The company's budget for the recall began at $900 million and skyrocketed to $1.4 billion. 

So, as part of an effort to retain customers and help rebuild their tarnished reputation (at least in Korea), Samsung decided to offer $100 carrier or retail outlet credit for customers who turn in their Galaxy Note 7 for another Samsung phone, while people who want a full refund or wish to switch to another brand will receive a $25 credit. 

This relates back to our marketing class in terms of brand loyalty and companies making sure to sell quality products to retain customers. Samsung has loyal customers, some of which will remain so and some of which are no longer so loyal because Samsung dropped the ball in terms of quality and let poor quality phones with very big problems reach the market. To me, this whole "$75 premium" idea seems like a desperate last- ditch effort to stop themselves from sinking. 

Original Article- Click Here