Loyalty to devices, not just brands

christianRemy-01

 

Christian Remy is a researcher at the University of Zurich,   He researches attachment theory and considers how we can encourage loyalty to devices, not just brands.

 

Talking points

Christian: What kind of consumer electronics do people buy and how can we give them information on how to make better-informed purchasing decisions. We had some information back then, we thought we had some information on this later on, which turned out to be not the case, so that project changed, slightly changed gears in my PhD.

What I stuck with was studying people’s purchasing behavior, what kind of technology are they buying and why are they buying this? Then there was this entire research area around the replacement cycle; basically, so why do people buy a new mobile phone every year, when actually in theory there is no reason why it shouldn’t work for 5 years? If you look at it objectively, there’s lots of motivation to not buy a new phone, because you got accustomed to it, you have all of your data on it, it’s expensive, and all of this kind of stuff, but still people go on and buy a new iPhone every year, or a new AT&T phone, something, whatever, every year.

That got me into this obsolescence thing, obviously. You have this designed obsolescence discussion, which is the sort of paranoid, maybe true assumption that industry is building devices on purpose so that they break after 2 years. There’s this joke usually that a phone has a 2-year guarantee and exactly after 2 years and 1 day, the phone breaks.

Sam: The business model is entirely determined on selling more stuff.

Christian: Exactly.

Sam: They have to sell you that new phone?

Christian: Exactly.

Sam: Even if it doesn’t break, they heavily advertise the next one so you feel quite embarrassed that you’ve got an old one.

Christian: Yeah, and there is the social peer pressure, obviously, like, “Oh, my God, you still have the old phone like from last year. How dare you? That’s unacceptable, you need to have the new phone, 10SE, whatever.”

Sam: Now you have this sustainable viewpoint, is that the killer app? but is that the killer undoing of computing and sustainability that is so fundamental that we need to sell you a new computer, a new phone? Can we overcome that?

Christian: I would argue we can, because the industry itself actually, I see a silver lining within the industry itself, which is the move from selling devices, selling hardware, to selling services, which you see in all of this cloud computing that is coming up. Everything is moving into the cloud. You don’t buy a piece of software anymore, but you buy a subscription for a piece of software, and you have all of those different income strategies. Maybe those at some point can, for industry, make up for the effect of reduced revenue from selling new devices. I don’t know. Like I said, it’s a silver lining. It’s a little bit of wishful thinking, maybe, on my part, but maybe that’s the case.

I very recently, just before I came to this conference, read an article that actually there are signs for this rapid replacement cycle slowing down. I don’t remember the exact figures, but I think there were studies that in the U.S. people were replacing their phones every 14 months, on average, and I think that is slightly going down. It’s probably down to something like 17 months, and obviously at some point every market is saturated as well. I think in 2014 we were producing or selling 1 billion phones a year, and at some point everyone has a phone.

Sam: Have they perhaps reached a zenith of the stuff that they can pack into a phone that’s useful? There’s not many more things, perhaps, that they can put into it that’s going to make such a big difference to me?

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