Dell Credibility Crisis

I got a quote in a Business Week article, "Mad as Hell in China's Blogosphere." The article touches on increasingly vocal and active consumers on Chinese BBS and blogs taking on companies. I previously touched on this online consumer activism, what I call "Crisis 2.0," here.

The BW article cites a recent Dell incident as a case study where a consumer complaint on a BBS about a processor eventually led to a class action suit.

Here is the timeline for Dell's "processor gate."

June 23: First consumer complaint on IT168 BBS notebook forum

June 24: IT168 forum administrator invites others to complain about Dell

June 24: IT168 sets up special "Dell Hell" section to track issue

June 28: Dell responds to the incident, says "sorry"

June 29: Lawyer Ma Jianrong invites forum participants to join a class action lawsuit

June 30: Story moves to mainstream media, dubbed "Processor Gate"

July 4: CCTV reports the class action suit

July 5: Dell offers refund; consumers not mollified


Troubles in social media are unfortunately not new for Dell. See related articles on "Dell Hell" in US last year:

Buzzmachine: Dear Mr. Dell (original Dell Hell post)
BusinessWeek: Dell in the Blog House (analysis of Dell Hell in US)
Onalytica: Measuring Blog Influence on Brands (Dell as case study for CGM influence on Brands)

Dell recently set up a blog in the US to deal with its "credibility" crisis.

More recently, Dell is having problems with notebook batteries catching fire and being caught on consumer digital cameras here, here and here. These stores are also getting picked up in the Chinese blogosphere. Dell Hell is now a global phenomenon.

See also Pacific Epoch: Customers To Sue Over Dell Chip Controversy