An Amazing Managerial Economics Video

You have probably seen this.

It is the comedian Louis K C on the old Conan O'Brian show discussing technological advances.

This is copyright protected, so whenever it shows up on the internet it gets taken down very quickly. I won't be updating this link.

The relevance of this is for the perception of people sometimes that they have been ripped off. The relevant bit is just after the 2:00 mark (referring to internet access on planes).

I posted this because of a response I left to Brett's comment on this post by iPoser about Apple, Amazon and MacMillan Publishing.

Many people recognize that the consumer may have lost something after the producer changes something about the business relationship. But this often obscures the fact that the consumer's situation often had to change as well. When both change, it isn't clear that the consumer's have lost anything at all.

This is the sense of this video. How much has anyone lost if a business provides something for you, and then has problems providing it? The answers is ... sometimes ... not much at all.


Grant said...

I agree that it isn't always the case that the consumer has lost something when he/she is provided something and then the company can't provide it. But managers should remember that the customer doesn't have to actually be ripped off, just feel ripped off, to decide to take their business elsewhere. It may not always be a large enough consumer group to make it the incorrect decision but it should be accounted for in the decision making process at the very least.

Dave said...

Good point.