Among the consumers , there are leaders and there are followers. The leaders are the one who want to grab anything that is something new. They wan't to be the first to show off a new gadjet even before it is available in the open stores. For these consumers the price really does not matter. More the price , more reason to show off !
Then there are followers who are drawn by the charisma of the leaders and want to nuy a product because the leader has bought it.
Finally theer is class of consumers, always looking for cheap bargains. these are the consumers who are happy with end of life products or cheap used products.
It is essential for a product company to carry out market reasearch to find out the percentage of each of these category for their future products and plan their pricing and procurement plans accordingly.
Exactly jbond, I agree with you even your example gives the chance to share something more in addition. People are really attracted by special price (low price) from ads of flyers, but quite often if you go to store for acquiring a product at the time of a promotion, it is not available with the result reseller tries to sell another one more expensive...
This is an excellent article that brings up some very valid points. Lowering prices of older models as new ones come out is a common practice and one that many consumers pay close attention to. Take Apple for instance. Right now if you go to an AT&T store to purchase a phone with a contract, you have a few choices for Iphones. You can get the "old" 3Gs for about $49; get the "close to old" Iphone 4 for about $199. With the introduction of the Iphone 5 in the next couple of months, these older models will drop in price and be more attractive to others. This in turn will hurt the sales of the Iphone 5, though not drastically since we are talking about Apple.
I agree with you. Brand name has amazing influence on people. I do agree also with @Kayode that being first to market is also key. Apple wrote the book on a successful company with a respected name brand that is consistently innovative in its product offering. I think one without the other can be beat but the combination of the two has proven quite successful.
@Pocharle. I agree with you on that.On the other hand, being the first to enter has its advantages and disadvantages but as you rightly said- do things that make users to prefer you above others. Sometimes "others'' too don,t just fold their arms and go to sleep.
"Price is heavily driven by competition so the trick is to produce a product that everyone wants yet nobody except you can produce"
Umm I agree with you to a point. I think that it's not about you being the only one to produce it, but you must make the user ONLY want it from you, or prefer you over any other competition. At that point, price no longer matters, especially if it is considered a premium offering.
I imagine the more people looking at product lifecycle costs and planning to reduce them can only be a good thing. Price is heavily driven by competition so the trick is to produce a product that everyone wants yet nobody except you can produce. Apple pie and motherhood I suppose.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.