Consumer Decision on Phones

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 …

…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.