Due to the speed of technological advances nowadays, it is increasing difficult for anyone to predict the marketing strategy for an electronic device. As for telephones today, they are becoming more and more sophisticated in both capabilities and application of these capabilities. A potential buyer is nevertheless confronted with decisions cordless or non-cordless, caller ID or no caller ID and so on. Well, by analyzing this market through an economist s point of view, the quality of product almost always grow directly according to price.
To analyze the 1999 phone market fully using the neoclassical approach, many factors would have to be discussed. As discussed in the Time article by Katie Hafner, Everything but a Dial: Phone Choices , telephone prices ranges are related to their capabilities. The amount of consumption of these various goods solely depends on the price and the utility that consumers receive from purchasing the product. When deciding to purchase a telephone, a consumer would most likely to separate telephone capabilities into different categories first and then choose from a selection of phones that best suit 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 order to effectively market a new line of telephones, the capabilities of a telephone and its price must be taken into consideration. First, a research must be done on consumer preference and what population it would be served. Empirical data must show a significant number of demand for a specific capability before the production is run (ex. whether if there 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 comparing the new line of product 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 theory 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. Therefore, I propose a new approach to the telephone marketing issue which will be more directly relevant to what is happening in the 1999 phone market. The Lancaster approach, which is also known as the Characteristic Theory, not only address the weaknesses of neoclassic theory but also introduces new concepts that will make marketing specific goods more practical. The characteristic theory has components that takes consumer s preference and consumer s view on the quality of the product. The marketing strategy, using the Lancaster approach, would consider the amounts of characteristics provided and a consumer s preference for that characteristic. This kind of pricing, or hedonic pricing, breaks down consumer demand by how much a consumer would be willing to pay for a unit of the characteristic (or capability). With all these new functions and abilities that telephones can come equipped with today, this kind of hedonic pricing is inevitable. Arm with this new approach, I believe, a better marketing tactics could be implemented.
Другие работы по теме:
Consumer Dept Essay Research Paper The reasons
Consumer Dept Essay, Research Paper The reasons we as Americans buy on credit varies, but without it most of us would probably never be able to purchase necessities such as a home or automobile. The nation’s
Consumer Compliant Essay Research Paper May 15
Consumer Compliant Essay, Research Paper May, 15 1999 Consumer Affairs Inc.P.O. Box 5555Atlanta, GA 5555-5555 Ladies and GentlemenI am now thoroughly upset with your treatment of me throughout the ordeal I havebeen put through.
Bruce Daw
– Consumerism Essay, Research Paper What does Bruce daw’s poetry say about consumerism and it’s influence on modern day society?Consumerism is a significant feature of modern society and the poet Bruce Dawe is highly critical of it’s negative influence.Throughout his work, Dawe sarcastically attacks the way in which people have been manipulated by the lore and appeal of consumerism.
Cellphones At School Essay Research Paper Cell
Cellphones? At School? Essay, Research Paper Cell phones should be banned from rural schools. There is no reason for them in rural schools, they are a distraction, and finally they could aid in violent
Advertisment Tactics Essay Research Paper When reviewing
Advertisment Tactics Essay, Research Paper When reviewing advertisements over a twenty-four hour period, one notices that there are a variety of weasel words and different tactics such as unfinished words and personification used to persuade the consumer to buy a certain product. Weasel words are words that appear to make a claim for a product, but in actuality, they don t.
Atandt Essay Research Paper The dominant economic
Atandt Essay, Research Paper The dominant economic traits of this industry start with having an enormous amount of capital required for staying competitive. One is also required to spend lots of money on research and development, as the telecommunications industry seems to be the vision of the future. More and more companies like AT&T are trying very hard to combine their network services of phone line, video and data transfer, high speed internet access, and television cable via one line in the consumers homes.
Illuminating The Path Of Progress In The
21St Century Essay, Research Paper Illuminating the Path of Progress in the 21st Century Technological breakthroughs are no longer a thing of the past. In the 21st century there are a few inventions which are common objects in our everyday lives. The internet, cell phones, and computer technology are a few examples of inventions that are paving the road of progress.
Settlers And Pioneer Essay Research Paper Settlers
Settlers And Pioneer Essay, Research Paper Settlers and pioneers led very different lives. The code of conduct practiced by both groups was the same. While both groups were dependant on consumer goods, the particular goods demanded by each group were different. Rebecca Burland was born in England and immigrated to Pike County Illinois in 1831 with her family.
Societal Marketing Concept Essay Research Paper The
Societal Marketing Concept Essay, Research Paper The societal marketing concept holds that the organisation should concentrate on the needs and wants of their customers, and then deliver the desired satisfactions more effectively and efficiently than competitors, in a way that maintains or improves the consumer’s and the society’s well-being.
Prairie Essay Research Paper PRAIRIE An ecoysystem
Prairie Essay, Research Paper PRAIRIE An ecoysystem is all the biotic and abiotic components of an environment. The prairie is located in North America. The tempaturevaries greatly and the environment doesn’t get enough rainfall to support trees.
Being A Smart Consumers Essay Research Paper
Being a Smart Consumers Ryan Romme When deciding to buy a computer it is a very important decision. First decide that range of money you are willing to spend. Then research the many different companies and the product they have to offer. Then after deciding the company to purchase the computer the next step is to price watch.
E911 Essay Research Paper The FCC E911
E911 Essay, Research Paper The FCC E911 Regulation is Essential for Consumers and Telecommunications Industry In June of 1996, the FCC proposed a mandate for E-911 services. The wireless E911 order provides value-added service for all cellular phone users and consumers.
Ethics 2 Essay Research Paper The business
Ethics 2 Essay, Research Paper The business world is all about selling a product or service and earning money. To sell the products, especially with all the other competition in the marketplace, marketing the product through advertising, packaging, and labeling is important. With all the pressure to sell “your” product, over someone else’s product, many use deceptive and/or manipulative marketing practices.
Marketing Consumer Behavior Essay Research Paper 1
Marketing Consumer Behavior Essay, Research Paper 1. (a) The types of market segments currently existing for the Hummer in the consumer market are generally men with household incomes varying between 200 and 300 thousand dollars per year. Most of these men already own two or three cars. More doctors will purchase Hummers than lawyers.
Cell Phones Why Teenageres Should Own One
Essay, Research Paper English Essay Honors English Pd. D October 12, 2000 When cellular phones and pagers first hit the market in the early ’80s, customers were mainly businesses. Now, families are the fastest-growing segment of wireless customers, according to Cellular One?s homepage. Springing from this trend is the booming teenage market.
A Difficult Decision Essay Research Paper Steve
A Difficult Decision Essay, Research Paper Steve Bayne 1/31/00 English IV Mr. Larson Persuasive Essay A Difficult Decision Throughout each of our lives, we go through many trials. Life seems like a big smack in the face at times. Anyone can relate to this, because no one has had a perfect life, a life without blemish.
Sir Thomas More Essay Research Paper Man
Sir Thomas More Essay, Research Paper Man For All Seasons Essay In the play, A Man For All Seasons, Sir Thomas More is faced with a number of difficult choices, namely whether to support the King’s decision to divorce Catherine of Aragon and marry Anne Boleyn and the consequences of that decision. More makes his decision to oppose the marriage early on, but even though it is something he does not waver from, he still has trouble with it, especially when he see the pain it causes to his wife and family.
Mobile PhonesInternet Essay Research Paper MobileCell PhonesMobile
Mobile Phones/Internet Essay, Research Paper Mobile/Cell Phones Mobile phones have changed the way the world communicates. With the invention of the cellular phone service in 1983, personal telephones no longer depended on wires. In the 90’s it was now possible to connect to the Internet from virtually anywhere in the world from your cellular phone using satellite services.
Us Economy Essay Research Paper US Economy
Us Economy Essay, Research Paper U.S. Economy Shrinks During the third quarter, a falling GDP has the economists worried that the U. S. economy is heading towards a recession. The GDP (Gross National Product) fell at a rate
Lincoln Application Essay Essay Research Paper Now
Lincoln Application Essay Essay, Research Paper Now is a time to make decision in life that will help me succeed in the future. The decision is to choose the right high school that will help me meet my goals and prepare me for college. A school that can train and give me all the tools I need to be an international business.
Cell Phones Essay Research Paper As part
Cell Phones Essay, Research Paper As part of school policy, cell phones are not permitted on school grounds. This rule must be abolished. Students who are in after school activities need cell phones to contact parents.
Effects On Cell Phones Essay Research Paper
The terrifying effects on cell phones It s hard to stay safe in the world today. It s not even safe to drive or walk down the street. Cell phones have caused a number of wrecks and have killed many people. They also have a tendency to cause bad credit and are expensive. The most important effect that cell phones have is technical difficulty.
Decision Making Essay Research Paper Any decisionaffecting
Decision Making Essay, Research Paper Any decision-affecting people has ethical ramifications and virtually all-important decisions reflect the decision-maker s mindfulness and resolution to ethical behavior. This is why it is important to know for yourself how you go about making ethical decisions, or making decisions of any kind.
Cell Phone Safety Essay Research Paper The
Cell Phone Safety Essay, Research Paper The use of cellular phones has spread like wild fire in the last ten years. It has become a part of everyday life for many American citizens, and a good number of people depend on them to carry out daily operations. Unfortunately, many of these daily operations occur while the individual is driving.
Touch Tone Phone Essay Research Paper touch
Touch Tone Phone Essay, Research Paper touch tone phone During the 1960?s the invention of the touch-tone telephone influences the way we in the 1990?s think about accomplishments. Before the touch ? tone telephone there were rotary dial phones. With Kappel as boss of AT&T new customer equipment came about.
How Safe Are Mobile Phones Essay Research
Paper Millions of people own a mobile phone these days, and ever since they have been around scientists question the fact of they are safe or not. Do they cause tumors, earaches, mercury poisoning? All these health risks are mentioned in every article I found. But nowhere could I find anything that was sure if mobiles did cause all of the above.
Tv Advertising Essay Research Paper TV Advertising
Tv Advertising Essay, Research Paper TV Advertising Of the three major types of advertising television, print and direct mail TV is by far the most costly and effective method. Research shows that TV advertisers spent a total of $29.5 billion in 1992. With these vast sums being spent, advertisers must carefully evaluate advertising costs, consumer exposure opportunities, and consumer buying strategies.
Cellular Phone Tracking Essay Research Paper On
Cellular Phone Tracking Essay, Research Paper On April 9th of last year, Ellen Kirk from San Jose, California had a tragic car accident, slamming her into tree. Bleeding profusely, she reached into here purse, grabbed her cell phone, and called 911 and tried to give her location as best as possible. She waited, and waited, and waited.
What Is Our World Like Essay Research
Paper What is our world like. The question of what our world is like is a very broad indepth question to answer. You can write a reaction paper from many different aspects of this question. The world from my eyes is probably completely different from other peoples opinion of our world. Probably no two opinions are the same.
CELLULAR PHONES Essay Research Paper CELLULAR PHONESEach
CELLULAR PHONES Essay, Research Paper CELLULAR PHONES Each day something like 30,000 people in the United States sign up for and start using a cellular phone. With a cell phone you can talk to anyone on the planet from just about anywhere (80% of the U.S. has coverage). A cell phone is really an extremely sophisticated radio.
Cellular Phones Essay Research Paper While the
Cellular Phones Essay, Research Paper While the benefits to society are significant, cellular phones and other forms of wireless communication also create distractions that increase a driver’s risk on the road. The rising popularity of cellular phones and the development of on-board navigation systems heighten the concern about driver distraction; and radiation produced from cellular antennas and the effect it has on human health has been brought to our attention.