Consumer Decision On Phones :: essays research papers

Due to the speed of technological advances nowadays, it is increase difficult for anyone to predict the marketing strategy for an electronic device. As for telephone sets today, they ar becoming more and more sophisticated in both capabilities and application program of these capabilities. A potential buyer is nevertheless confronted with decisions cordless or non-cordless, companionship ID or no caller ID and so on. Well, by analyzing this market through and through an economists point of view, the quality of product almost constantly grow directly according to price. To analyze the 1999 phone market in full using the neoclassical approach, many factors would have to be discussed. As discussed in the Time article by Katie Hafner, Everything but a Dial scream Choices, telephone prices ranges are related to their capabilities. The amount of consumption of these various goods only when appears on the price and the utility that consumers receive from purchasing the product. When deciding to procure a telephone, a consumer would most likely to separate telephone capabilities into distinguishable categories first and then choose from a selection of phones that best cause their needs (their utility). The amount of goods sold by a company would depend on the price of the phone and how it competes with other companies in the market. Therefore, in vow to effectively market a brisk line of telephones, the capabilities of a telephone and its price moldiness be taken into consideration. First, a research must be done on consumer preference and what population it would be served. experiential data must show a significant number of involve for a specific capability before the production is run (ex. whether if at that place are enough couch potatos in United States that desire a telephone which is integrated into a remote control for the television). Second, the price of the new product must be competitive in the market. By analyse the new line of produc t to its competitors, the price should be set at a level that is weighted according to its unique functions. Henceforth, it is with these above factors in consideration that a company will be able to do business more successfully.Since this is not a perfect world, consumers do not have perfect information about the products they have purchased. In addition, there are important issues that the neoclassic supposition of consumer demand failed to address above. The neoclassic theory of consumer demand cannot predict the demand for new products and explain the theory of want creation through advertising and effective marketing.