Note: This case is based on a true incident and has been developed by the instructor for the purpose of stimulating classroom discussion and learning.

Mrs. Jones[1], who had never owned a smart phone previously, purchased a Samsung Mobile phone (model: Galaxy S4) on-line using her credit card through an authorized source for approximately AED 2,000. On the second day after the purchase (she had not even begun using the product by then), the phone accidently fell from her handbag which cracked the front screen. On reporting the matter to Samsungs service center in the UAE, Mrs. Jones was informed by the person in-charge that the phone cannot be repaired or replaced using the warranty as it was purchased on-line and that the warranty was issued by the local office in Germany; therefore, it is not valid in the Middle East.

Note that as per Samsungs product warrantee, the Galaxy S4 model should not break or crack under free fall. In Mrs. Jones case, the mobile phone was placed in a Ziploc bag; therefore was protected to some extent. Even without the protection, the fall would have been classified as free fall going by Samsungs definition. The service center in the UAE somehow doubted Mrs. Jones in that they did not accept her statement that the phone was placed in a Ziploc bag at the time of the mishap and that it fell freely. The two agents involved (including the supervisor) were quite direct in stating that the Samsung Galaxy S4 would withstand a free fall and that Mrs. Jones might not be accurate in her description.

Note that Samsungs German intermediary was involved in the on-line purchase transaction. Furthermore, the service center in the Middle East confirmed that Mrs. Jones would have to directly communicate with the headquarters in Seoul to resolve matters and this was beyond the jurisdiction of the local office in the UAE. To make matters worse for Mrs. Jones, the authorized local service centers in Sharjah stated that the cost of repair would be approximately 90% of the purchase price.

As a result, Mrs. Jones made an attempt to get the phone repaired outside the UAE during her summer vacation. She made several attempts to get the phone repaired during her stint overseas but was not successful. On returning to Sharjah after a three-month vacation, she personally visited the local authorized dealer. To her pleasant surprise, the quote for repairing the phone was AED 700, which was not the same as that of the quote she received earlier when she communicated over the phone (see above). Things got better when Mrs. Jones neighbor informed her that she should get in touch with the credit card company as it would cover the cost of repair (part of the insurance coverage for credit card transactions over a certain limit). After a four-month lapse, Mrs. Jones finally was able to use her phone. Although her personal experience in terms of product use has been excellent, her experience with Samsung was not a pleasant one to start with. Using the information from the case above, complete the following requirements:

1. Explain how is this case relevant from a Global Marketing perspective.
2. What type of research should Samsung undertake to address the problem? Why so?

[1] A fictitious name for maintaining anonymity