Captive-Audience “Customer Service” vs. Real Service

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(I wrote most of this post last June but never completed it. Today’s announcement that JetBlue will offer, at no additional charge to all passengers, XM satellite radio — in addition to satellite TV which they already offer — reminded me that my original post was still topical.)

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A while ago I bought a cheap wallet from a retailer of modestly priced leather goods. Ten bucks on sale at one of the company’s airport shops. When the wallet’s money clip broke, I went to the company’s website, found a 24/7 phone number, called and was directed to a local store. I dropped by and they cheerfully replaced the clip and refused payment. That’s great service: not only is it pleasant to shop in their stores, but I can do so without risk because they stand behind their products.

Contrast the leather store’s attitude with that of the typical airport concessionaire. He has you by the short hairs, especially if he sells food and you are hungry. You get charged $3 for a stale pretzel or a multiple of that for a crummy sandwich. And why not? Repeat business isn’t a factor, there’s little or no competition at the airport and you can’t go elsewhere. You pay up.

National chains that don’t operate exclusively in airports, like Starbucks and the aforementioned leather shop, tend not to follow this pattern. Perhaps they realize that charging what the market will bear can in some circumstances alienate customers, and isn’t always worth it in the long run. Or maybe these firms see opportunity in providing reasonably-priced service to customers who are accustomed to being overcharged at places like airports.

One of the problems with the major airlines — and I think it’s one of the reasons they are doing poorly — is that their attitude toward customers tends to resemble that of airport pretzel venders. They are willing to compete for business, up to a point, but want to treat customers as captives after tickets are purchased.

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The Palestinian Authority’s Abuse of Christians

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Lex alerted me to this column about the Palestinian Authority’s formal imposition of Islamic law in Judea and Samaria. He wrote:

This is huge. It is the end of secular nationalism in the PA. This could be a major way to undermine support for the PA here in the USA. In effect, the PA, in the usual bone-headed fashion, has decided to become Islamic fundamentalists at the very moment when Islamic fundamentalists are getting the snot kicked out of them. All we need is to see the open persecution of Christians in Palestine and Bush’s core supporters will be screaming for open war against the PA.

I’m skeptical that Christians as a group are going to change their behavior as a result of this information. Arafat and his PLO raped southern Lebanon and abused Lebanese Christians for years, without generating any organized reaction from Christians elsewhere. Nor has there been much public concern in the Christian onhealthy world about the large-scale emigration of Arab Christians from the areas now controlled by the PA. (The article notes that Christians now comprise less than 5% of the population in Bethlehem, which had a Christian majority in 1967. Apparently the New York Times considers this statistic less noteworthy than the percentage of female competitors in golf matches.)

However, Lex may be on to something with his assertion about the potential U.S. political fallout of the PA’s abuses. While the mainstream press is likely to ignore the issue, it might be publicized via the Internet and talk radio. In that case there is a chance for a ground swell of anti-PA outrage on the part of American Christian conservatives who are among the core supporters of Bush whom Lex mentions. We can only hope.

Whatever its domestic political effects, I hope that the PA’s mistreatment of Christians receives more attention than it has so far.

Why Nobody Pays For My Predictions

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Maybe it’s because a lot of them are wrong. (1 Euro was worth about 1.22 US dollars when I made this prediction and is worth about 1.27 dollars now.)

It’s a truism that market trends often continue beyond our expectations. This is especially true in currency and interest-rate markets, because these are dominated by governments that have the resources to make markets go where they want them to — at least for a while. The Euro is backed by nothing more than political expectations about the behavior of the European Central Bank; the Euro’s current historically high valuation vs. the dollar is largely a function of the Bush administration’s economic ineptitude and politically-driven dollar bashing. These factors are subject to change and sooner or later the Euro will lose value against the dollar. I don’t know when this will happen or how high it will go first.

UPDATE: Paul Johnson makes a strong case for the Euro’s coming downfall, and argues that the U.S. should cultivate relationships with European countries that share its interests:

I’ve always maintained that the moment France finds theEU to be no longer of use, it will break it up. A German revolt against the payments system could provide that moment. Hostility to the EU is rising in France anyway, to the point where no referendum on the proposed EU constitution can be held there for fear it would be voted down heavily.

U.S. policymakers’ aims should be to forge close links with in-dividual countries that have strong common interests with America in wide areas of policy. Such nations include Britain, obviously (though not Ireland, which is sure to do the opposite of anything Britain does), Spain and Italy. The latter two are deeply resentful of French-German behavior and are anxious to have a powerful friend outside the EU to redress the internal balance of power.

Johnson’s argument isn’t new, but it appears that events may at last be catching up to it.

Amazing!

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I watched the preliminary reports of the Mars Rover landing with my 6 month-old and his bottle. My first thought was, considering achievements such as this, where would we be as a species if we did not feel it necessary to devote so many assets to our own intra-species self defense. On the brighter side, I wonder what awesome accomplishments my kids will see unfold while giving their children midnight feedings.