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INTEL Knows Best? A Major Marketing Mistake Problem Statement When Thomas Nicely, a mathematician at Lynchburg College in Virginia, first went public with the fact that Intel's new Pentium chip was defective Intel admitted to the fact that it had sold millions of ....

Middle of Essay
.... of Pentium chips, stopped all shipments of computers containing the defective Pentium chips. Intel's stock dropped 5% following this bold move by IBM. IBM's main contention was that it puts its customers first, and Intel was failing to do this. Intel's handling of this defective chip situation gives rise to many questions. During the course of this paper I will address several of them. The first of which is how did a company with such a stellar reputation for consumer satisfaction fall into the trap that the customer does not know best? Secondly, what made this chip defect more of a public issue than other defective products manufa ....