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Deceptive Advertising

Dell Lawsuit. Deceptive Advertising. Created By: Sam Coelho, Mallory Rennie, Melissa Wickam. Dell..Company Overview. PC’s Limited, 1984 ($1,000) Operated from his dormitory Dropped-out to focus on his business Acquired additional funding of $300, 000 to expand

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Deceptive Advertising

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  1. Dell Lawsuit

    Deceptive Advertising

    Created By: Sam Coelho, Mallory Rennie, Melissa Wickam
  2. Dell..Company Overview PC’s Limited, 1984 ($1,000) Operated from his dormitory Dropped-out to focus on his business Acquired additional funding of $300, 000 to expand Produced his first computer of it’s own design (1985)
  3. Company Overview Since 1986 Dell has consistently grown 76, 000 employees Headquartered in Round Rock, Texas Dell Inc. engages in design, development, manufacturing, marketing, sales, and customer support. Considered a multinational company Offers numerous products
  4. Company Overview What’s unique about Dell? Sells its products and services directly through sales representatives, telephone-based sales, online, and through various indirect sales channels
  5. What Dell Offered…… Before this lawsuit they were #2 Consumers, if qualified, would receive 0% financing for their computer purchase Customers could purchase “in-home” service plan Gave the impression of “award winning service”
  6. ….What Consumers Got Very few shopper, even those with good credit history, didn’t qualify for 0% financing Lawsuit said those who thought they were getting 0%, actually paid more than 20% Lawsuit originally filed after states started receiving “epidemic-like waves of complaints” Class Action Lawsuit filed in New York Some "faced unacceptable obstacles to obtain warranty service on Dell computers and electronics and other consumers said they never received rebates as promised in the advertising“ (delllawsuit.com).
  7. The Outcome $4 million settlement 45 states also received settlement checks Required to change advertising, sales and finance practices Dell will become more up front with customers Talk about finance options Allow customers to cancel orders Mail-in rebate payments & fulfill warranty obligations within a reasonable time If they want to say they have “award winning service” they have to have won a service award with 18 months of the statement
  8. “In Apple, We Trust” Applehas become Dell’s largest competitor Have 30 years of experience and listened to the consumer According to Forrester's 2005 Technology Brand Scoreboard they believe 3 factors are important: Brand trust Brand potential Brand adoption Earned an A in Brand Trust
  9. Work Cited Evans, Meryl. "In Apple, We Trust." TechNewsWorld. N.p., 4 Apr. 2006. Web. 12 Oct. 2009. <http://www.technewsworld.com/story/49756.html?wlc=1255394552>. www.yahoofinance.com www.delllawsuit.com http://abcnews.go.com/GMA/Technology/Story?id=3179394&page=1 http://images.google.com/imgres?imgurl=http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/__Story_Inserts/graphics/__TECHNOLOGY/dell_hell.jpg&imgrefurl=http://www.cnbc.com/id/23389156&usg=__VsP3huSWkAkc5fqBEs_9gSDl0U0=&h=150&w=200&sz=6&hl=en&start=11&um=1&tbnid=fBZFDze_3B_TuM:&tbnh=78&tbnw=104&prev=/images%3Fq%3Ddell%2Bhell%26hl%3Den%26client%3Dsafari%26rls%3Den%26um%3D1
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