Shungo's Mythbuster #4: Price Advantage

Price advantage does not exist. A myth brought upon people who are, again, scared to face reality. I usually use the car analogy, but I'm going old school with classic cereals. I'm only here to present the truth.

First of all, I must say that price advantage only exist when two products are exactly the same. Example, Breyers' ice cream tastes the same as Eddy's ice cream, so the price advantage will decide which one to buy. However, most products differ from brand to brand especially in the electronic industry.

You want to have a hearty breakfast tomorrow and decided that cereals would be great. Now, you have to go shopping to buy some cereals of your choice. You narrow down the choices to Count Chocula, Franken Berry, and Boo Berry. You always was a Boo Berry lover, and know that this brand is the one you want. You also know that Boo Berry is the more expensive brand out of the three.

Now, will you buy Count Chocula or Franken Berry over your favorite Boo Berry? If you can not afford Boo Berry, then you are now force to buy your second choice; however, if you have the cash you joyfully buy the brand you wanted. It wasn't the price advantage that made you buy the second choice, but the fact that you could not afford your first choice. This is how we mostly choose the products we buy. It's not the price advantage that going to decide what are you going to buy, but the brand that you like most or offers. If that preferred brand is out your price range, than you are force to go with your second, third, forth choices.

People are not going in gaming stores, and buying the Wii just because it's $50-$300 cheaper. Either their buying the Wii because they can't afford the $400-600 dollar machines, or it's their preferred product. That is why PS2 and PS1 outsold brands that were cheaper than them. It was people's preferred product. No one is going to go "Well product A is $400, and product B is $500. I'll go with product A because it's cheaper" Unless product A and B is the exact same thing, no one makes a final decision on price advantage. In fact, price is not a factor at all when deciding(keyword) what product you like best.

So because products are not identical, there is no such thing as a price advantage? Please... I think what you were trying to say was "Personal preference can overcome price advantage." Costing $350 less is a price advantage, whatever kind of retarded sophistry you want to spin on it.AfterShafter

No...price "advantage" does not exist when deciding on a product. I should say it doesn't matter at all. 

[QUOTE="AfterShafter"]So because products are not identical, there is no such thing as a price advantage? Please... I think what you were trying to say was "Personal preference can overcome price advantage." Costing $350 less is a price advantage, whatever kind of retarded sophistry you want to spin on it.shungokustasu

No...price "advantage" does not exist when deciding on a product. I should say it doesn't matter at all. 

Utter crap.  If one product lets me leave the store with hundreds of dollars more, that is an advantage to me as a conumser.  A lesser price is advantageous, insofar as having more money is advantageous for me.  You're trying desperately to get everyone to confuse personal product value VS the advantage of having more money as opposed to less - I suppose because you're a PS3 supporter who feels threatened by the Wii's price point and success?  Get over yourself, your idiotic pontifications, and don't try and drag us along with your backwards delusions.

Price does matter for gaming.  If it didn't everyone would have gaming rigs bar none.

 When comparing the Xbox 360 and PS3 with most of the same multiplats, which console do you think most casual gamers would choose to play Madden or GTA on?  The cheaper one. 

Price does have a profound effect on the console, deal with it.

[QUOTE="shungokustasu"]

[QUOTE="AfterShafter"]So because products are not identical, there is no such thing as a price advantage? Please... I think what you were trying to say was "Personal preference can overcome price advantage." Costing $350 less is a price advantage, whatever kind of retarded sophistry you want to spin on it.AfterShafter

No...price "advantage" does not exist when deciding on a product. I should say it doesn't matter at all.

Utter crap. If one product lets me leave the store with hundreds of dollars more, that is an advantage to me as a conumser. A lesser price is advantageous, insofar as having more money is advantageous for me. You're trying desperately to get everyone to confuse personal product value VS the advantage of having more money as opposed to less - I suppose because you're a PS3 supporter who feels threatened by the Wii's price point and success? Get over yourself, your idiotic pontifications, and don't try and drag us along with your backwards delusions.

Wow..I have a Wii. Don't be upset. I say just work harder and maybe you can get what you want out of life. Let go of that lie you holding. The myth has been busted. It's like an exorcism when I reveal the truth. 

well, lets say someone only has a limited amount of money so he can only get the cheaper one. there's the price advantage. Even if i wanted a ps3, i would have still gotten the wii cause i could have had the wii with 5 games instead of a ps3 with none. a lower end ps3 at that.bionicle_lover

But your choice was the Wii with 5 games as oppose to a PS3. Your preferred choice. 

One scenario where your theory doesn't work, is when there is an uninformed parent making the purchase. If the parent is getting a console for their kids, they will probably buy the Wii solely on the price difference.

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then? 

Price does matter for gaming. If it didn't everyone would have gaming rigs bar none.

When comparing the Xbox 360 and PS3 with most of the same multiplats, which console do you think most casual gamers would choose to play Madden or GTA on? The cheaper one.

Price does have a profound effect on the console, deal with it.

Donkey_Puncher

Now you saying the two product are alike. If the gamer only cares about multiplats and doesn't care for the features that each console has, than to that consumer the price advantage exist. However, that consumer is ignorant of the fact that both system has difference. I think most consumers are not that ignorant. 

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then?

MikeE21286

PS3 because its my preferred choice. 

[QUOTE="bionicle_lover"]well, lets say someone only has a limited amount of money so he can only get the cheaper one. there's the price advantage. Even if i wanted a ps3, i would have still gotten the wii cause i could have had the wii with 5 games instead of a ps3 with none. a lower end ps3 at that.shungokustasu

But your choice was the Wii with 5 games as oppose to a PS3. Your preferred choice.

fine, i agree with you then. people are just getting the wii cause they find it a better value for themselves and they believe it is more fun. now i understand 

Price advantage isn't quite as important as people make it out to be. However, that isn't to say that it doesn't have an impact.

If someone wants something enough, price is irrelevant. Price certainly won't cause someone to forsake a product that they really want, provided nothing else has changed. If they've made up their mind to buy it, they'll buy it.

However, if someone isn't completely sure of which thing they want, then price can be the tiebreaker. And a completely uninformed consumer who only knows that they want a videogame console might decide on price. On top of that, some people, who aren't quite as interested in videogaming as a major hobby, could well have a price ceiling for what they want to purchase. 

If something is good enough, price won't matter, but you can't completely discount it. 

[QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then?

shungokustasu

PS3 because its my preferred choice.

and i'd get the wii since the ps3 and 360 would hardly be that much better than their predessors then. 250, the graphics of the ps3 and the 360 would then look close to the wii. 

One scenario where your theory doesn't work, is when there is an uninformed parent making the purchase. If the parent is getting a console for their kids, they will probably buy the Wii solely on the price difference.

 

El_Fanboy

This was not meant for the child who can not pay for his own product. Children don't make there own choices

[QUOTE="shungokustasu"]

[QUOTE="bionicle_lover"]well, lets say someone only has a limited amount of money so he can only get the cheaper one. there's the price advantage. Even if i wanted a ps3, i would have still gotten the wii cause i could have had the wii with 5 games instead of a ps3 with none. a lower end ps3 at that.bionicle_lover

But your choice was the Wii with 5 games as oppose to a PS3. Your preferred choice.

fine, i agree with you then. people are just getting the wii cause they find it a better value for themselves and they believe it is more fun. now i understand

Agreed. 

Its a VALUE issue. If you can spend only U$250 and have lets say 50 hours of quality entertainment with your family you will take that over spending U$400 for 100 hours of entertainment.

People will always try to spend less for the "same" entertainment. 

[QUOTE="El_Fanboy"]

One scenario where your theory doesn't work, is when there is an uninformed parent making the purchase. If the parent is getting a console for their kids, they will probably buy the Wii solely on the price difference.

 

shungokustasu

This was not meant for the child who can not pay for his own product. Children don't make there own choices

but the price advantage, therefore, is still there, no matter how small the significane is. i just really feel sad if the parents walk home with a core 360. can't even save on that thing. 

Price advantage isn't quite as important as people make it out to be. However, that isn't to say that it doesn't have an impact.

If someone wants something enough, price is irrelevant. Price certainly won't cause someone to forsake a product that they really want, provided nothing else has changed. If they've made up their mind to buy it, they'll buy it.

However, if someone isn't completely sure of which thing they want, then price can be the tiebreaker. And a completely uninformed consumer who only knows that they want a videogame console might decide on price. On top of that, some people, who aren't quite as interested in videogaming as a major hobby, could well have a price ceiling for what they want to purchase.

If something is good enough, price won't matter, but you can't completely discount it.

sonicmj1

Nice way to say the uninformed are ignorant of the purchase they are buying. Those are the ones who usually end up buying both product anyways. 

[QUOTE="shungokustasu"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then?

bionicle_lover

PS3 because its my preferred choice.

and i'd get the wii since the ps3 and 360 would hardly be that much better than their predessors then. 250, the graphics of the ps3 and the 360 would then look close to the wii.

Well the vast majority of people would pick ps3 or perhaps 360. 

Its a VALUE issue. If you can spend only U$250 and have lets say 50 hours of quality entertainment with your family you will take that over spending U$400 for 100 hours of entertainment.

People will always try to spend less for the "same" entertainment.

BlueBarad

Again, value comes down to personal preference. As I mention in the OP, if the consumer feels it's the "same" then price advantage become the final decision. It was the little ice cream analogy I did that showed this point. 

But I think what is overlooked is, often times what influnces some peoples preferences of product A over product B IS THE PRICE. Lets assume for a second that Consumer Joe Avg isn't one of those brand particulars and is now in the market for the product without any pre-decided preferences. He's going in with a blank slate of what's out there and will browse the market. He's going to do some research about which he'll want. He'll look into the features, the games, and the price. And when he sees that product B is more expensive, that could very well swing the balance of how he determines his preference level for it. On the other hand Product A is mostly similar and a better price. So while Joe Avg didn't have any preconceived notions going in of what he'd want, looking up the 3 factors, and chief among them the cost, formed his preferences.

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/] 

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

What we're basically dealing with here is, cost advantage VS product preference. Your point is true that sometimes we don't get the product we want because it's out of our financial reach. At the same time, sometimes the product we already want is the better priced one, so it works out well that way.

But I think what is overlooked is, often times what influnces some peoples preferences of product A over product B IS THE PRICE. Lets assume for a second that Consumer Joe Avg isn't one of those brand particulars and is now in the market for the product without any pre-decided preferences. He's going in with a blank slate of what's out there and will browse the market. He's going to do some research about which he'll want. He'll look into the features, the games, and the price. And when he sees that product B is more expensive, that could very well swing the balance of how he determines his preference level for it. On the other hand Product A is mostly similar and a better price. So while Joe Avg didn't have any preconceived notions going in of what he'd want, looking up the 3 factors, and chief among them the cost, formed his preferences.

AdobeArtist

similar was the keyword. If he feels that product A and product B are too similar, than price advantage is the final decision. 

[QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

goblaa

That's not the argument TC is posing though.  He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales).  Well this is not entirely true.  If you set the prices equal you would see that ps3/360 would sell more.  So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.   

[QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

MikeE21286

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

i'm sure that he knows that he TC is talking about that. but im guessing that they probably won't sell that much better cause then the ps3 has nothing to brag about. Blue ray? internal hardrive that is big? all gone. 360 couldn't be too much more powerful than an X box as well, and the wii may be still weaker but this time for real not that big of a difference on ANY kind of tv, and it still has what makes it appealing, the motion tech and stuff. 

[QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

MikeE21286

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

In your fantasy world, if the PS3 and 360 was $250, it would sell because they now can afford it, hence my first choice is in my price range. You have to understand the difference on deciding on a product, and buying a product.

[QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

MikeE21286

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

He's saying that if two products are priced the same, the better one has the advantage. Problem is, comparing the PS3/360/Wii as all $250 with no changes is simply an impossible hypothetical. So how is the comparison of any use?

[QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

goblaa

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

He's saying that if two products are priced the same, the better one has the advantage. Problem is, comparing the PS3/360/Wii as all $250 with no changes is simply an impossible hypothetical. So how is the comparison of any use?

Because by taking price out of the equation (hence selling them for the same price of $250....hell, "sell" them for free and ask a consumer which one they would want out of the 3) you are able to truly measure the preferrence.

i would like to know where all these parents are that are buying their kids wii's. someone always brings up the point that its parents buying there kids wii's and this is why it is selling so much, as if parents are just gonna go out and randomly buy a console without the kid giving them any info on what they are buying, and even if this were true wouldnt they go for the ps2 because price is all they are looking at.

i dunno it just bothers me when others think that the main people buying wii's are uninformed parents, they obviously know what they are purchasing and why they are buying it. people dont randomly spend $250 on something they know nothing about.

[QUOTE="goblaa"][QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

MikeE21286

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

He's saying that if two products are priced the same, the better one has the advantage. Problem is, comparing the PS3/360/Wii as all $250 with no changes is simply an impossible hypothetical. So how is the comparison of any use?

Because by taking price out of the equation (hence selling them for the same price of $250....hell, "sell" them for free and ask a consumer which one they would want out of the 3) you are able to truly measure the preferrence.

too unrealistic so there really is not point to this hypothetical situation. if this were so, why not just make the wii equally as powerful as the 360 or ps3 since they're all going to be the same price? 

i would like to know where all these parents are that are buying their kids wii's. someone always brings up the point that its parents buying there kids wii's and this is why it is selling so much, as if parents are just gonna go out and randomly buy a console without the kid giving them any info on what they are buying, and even if this were true wouldnt they go for the ps2 because price is all they are looking at.

i dunno it just bothers me when others think that the main people buying wii's are uninformed parents, they obviously know what they are purchasing and why they are buying it. people dont randomly spend $250 on something they know nothing about.

Ewok432

I agree that most parents actually do research before buying, but I have seen and know a couple who bought their kids products 100-1000 dollars blindly. 

[QUOTE="AdobeArtist"]What we're basically dealing with here is, cost advantage VS product preference. Your point is true that sometimes we don't get the product we want because it's out of our financial reach. At the same time, sometimes the product we already want is the better priced one, so it works out well that way.

But I think what is overlooked is, often times what influnces some peoples preferences of product A over product B IS THE PRICE. Lets assume for a second that Consumer Joe Avg isn't one of those brand particulars and is now in the market for the product without any pre-decided preferences. He's going in with a blank slate of what's out there and will browse the market. He's going to do some research about which he'll want. He'll look into the features, the games, and the price. And when he sees that product B is more expensive, that could very well swing the balance of how he determines his preference level for it. On the other hand Product A is mostly similar and a better price. So while Joe Avg didn't have any preconceived notions going in of what he'd want, looking up the 3 factors, and chief among them the cost, formed his preferences.

shungokustasu

similar was the keyword. If he feels that product A and product B are too similar, than price advantage is the final decision.

Quite true. But similar is not exactly the same, so I'm still saying there are differences to look at. In which case it's a matter of whether or not the difference is worth the higher cost. In many cases, the cost may overshadow the perceived value in those differences. In other words Consumer Joe might say "Yeah console Y has these things Console X doesn't have, but hell if I'll pay that much for them".

I would say the only time the price advantage is non-existant is when the consumer places high priority on brand and even then, only if his finances can support that preference. For limited budgets and clean slate shoppers, price will win them over.

[QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

bionicle_lover

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

He's saying that if two products are priced the same, the better one has the advantage. Problem is, comparing the PS3/360/Wii as all $250 with no changes is simply an impossible hypothetical. So how is the comparison of any use?

Because by taking price out of the equation (hence selling them for the same price of $250....hell, "sell" them for free and ask a consumer which one they would want out of the 3) you are able to truly measure the preferrence.

too unrealistic so there really is not point to this hypothetical situation. if this were so, why not just make the wii equally as powerful as the 360 or ps3 since they're all going to be the same price? 

Why would we do that.  We are trying to measure the preferrence of PS3 , 360 and Wii in their current state.....

i understand what you were trying to say

but people are gonna take you down cuz it comes out the wrong way

but i understand where u wanted to go with this

R-Dot-Yung

Actually, I got where I was going, lol. No one is going to take me down. I wanted to bust the myth that price advantage is a deciding factor in buying a product. Only 2 reason it plays a factor, products are similar in feature or taste, or the buying has no control of the purchase (children). 

Price advantage does not exist. A myth brought upon people who are, again, scared to face reality. I usually use the car analogy, but I'm going old school with classic cereals. I'm only here to present the truth.

First of all, I must say that price advantage only exist when two products are exactly the same. Example, Breyers' ice cream tastes the same as Eddy's ice cream, so the price advantage will decide which one to buy. However, most products differ from brand to brand especially in the electronic industry.

You want to have a hearty breakfast tomorrow and decided that cereals would be great. Now, you have to go shopping to buy some cereals of your choice. You narrow down the choices to Count Chocula, Franken Berry, and Boo Berry. You always was a Boo Berry lover, and know that this brand is the one you want. You also know that Boo Berry is the more expensive brand out of the three.

Now, will you buy Count Chocula or Franken Berry over your favorite Boo Berry? If you can not afford Boo Berry, then you are now force to buy your second choice; however, if you have the cash you joyfully buy the brand you wanted. It wasn't the price advantage that made you buy the second choice, but the fact that you could not afford your first choice. This is how we mostly choose the products we buy. It's not the price advantage that going to decide what are you going to buy, but the brand that you like most or offers. If that preferred brand is out your price range, than you are force to go with your second, third, forth choices.

People are not going in gaming stores, and buying the Wii just because it's $50-$300 cheaper. Either their buying the Wii because they can't afford the $400-600 dollar machines, or it's their preferred product. That is why PS2 and PS1 outsold brands that were cheaper than them. It was people's preferred product. No one is going to go "Well product A is $400, and product B is $500. I'll go with product A because it's cheaper" Unless product A and B is the exact same thing, no one makes a final decision on price advantage. In fact, price is not a factor at all when deciding(keyword) what product you like best.

shungokustasu

the four p's of marketing...PRICE product, place promotion. I guess if price a non factor marketing students wouldn't spend years studying how to identify and price for audiences. 

Price advantage does not exist. A myth brought upon people who are, again, scared to face reality. I usually use the car analogy, but I'm going old school with classic cereals. I'm only here to present the truth.

First of all, I must say that price advantage only exist when two products are exactly the same. Example, Breyers' ice cream tastes the same as Eddy's ice cream, so the price advantage will decide which one to buy. However, most products differ from brand to brand especially in the electronic industry.

You want to have a hearty breakfast tomorrow and decided that cereals would be great. Now, you have to go shopping to buy some cereals of your choice. You narrow down the choices to Count Chocula, Franken Berry, and Boo Berry. You always was a Boo Berry lover, and know that this brand is the one you want. You also know that Boo Berry is the more expensive brand out of the three.

Now, will you buy Count Chocula or Franken Berry over your favorite Boo Berry? If you can not afford Boo Berry, then you are now force to buy your second choice; however, if you have the cash you joyfully buy the brand you wanted. It wasn't the price advantage that made you buy the second choice, but the fact that you could not afford your first choice. This is how we mostly choose the products we buy. It's not the price advantage that going to decide what are you going to buy, but the brand that you like most or offers. If that preferred brand is out your price range, than you are force to go with your second, third, forth choices.

People are not going in gaming stores, and buying the Wii just because it's $50-$300 cheaper. Either their buying the Wii because they can't afford the $400-600 dollar machines, or it's their preferred product. That is why PS2 and PS1 outsold brands that were cheaper than them. It was people's preferred product. No one is going to go "Well product A is $400, and product B is $500. I'll go with product A because it's cheaper" Unless product A and B is the exact same thing, no one makes a final decision on price advantage. In fact, price is not a factor at all when deciding(keyword) what product you like best.

shungokustasu

[QUOTE="shungokustasu"]

Price advantage does not exist. A myth brought upon people who are, again, scared to face reality. I usually use the car analogy, but I'm going old school with classic cereals. I'm only here to present the truth.

First of all, I must say that price advantage only exist when two products are exactly the same. Example, Breyers' ice cream tastes the same as Eddy's ice cream, so the price advantage will decide which one to buy. However, most products differ from brand to brand especially in the electronic industry.

You want to have a hearty breakfast tomorrow and decided that cereals would be great. Now, you have to go shopping to buy some cereals of your choice. You narrow down the choices to Count Chocula, Franken Berry, and Boo Berry. You always was a Boo Berry lover, and know that this brand is the one you want. You also know that Boo Berry is the more expensive brand out of the three.

Now, will you buy Count Chocula or Franken Berry over your favorite Boo Berry? If you can not afford Boo Berry, then you are now force to buy your second choice; however, if you have the cash you joyfully buy the brand you wanted. It wasn't the price advantage that made you buy the second choice, but the fact that you could not afford your first choice. This is how we mostly choose the products we buy. It's not the price advantage that going to decide what are you going to buy, but the brand that you like most or offers. If that preferred brand is out your price range, than you are force to go with your second, third, forth choices.

People are not going in gaming stores, and buying the Wii just because it's $50-$300 cheaper. Either their buying the Wii because they can't afford the $400-600 dollar machines, or it's their preferred product. That is why PS2 and PS1 outsold brands that were cheaper than them. It was people's preferred product. No one is going to go "Well product A is $400, and product B is $500. I'll go with product A because it's cheaper" Unless product A and B is the exact same thing, no one makes a final decision on price advantage. In fact, price is not a factor at all when deciding(keyword) what product you like best.

rocktimusprime

the four p's of marketing...PRICE product, place promotion. I guess if price a non factor marketing students wouldn't spend years studying how to identify and price for audiences.

PRICE in term of marketing(keyword) comes from PRICING the product for its proper value. Nice try on the spin factor there. 

In fact, price is not a factor at all when deciding(keyword) what product you like best.

shungokustasu

Eghwat? I speak not for every man, but price has a pretty profound effect on plenty of my purchasing decisions.  I'm not a millionaire...yet...*snickers sinisterly*

[QUOTE="shungokustasu"]

In fact, price is not a factor at all when deciding(keyword) what product you like best.

D0013ER

Eghwat? I speak not for every man, but price has a pretty profound effect on plenty of my purchasing decisions. I'm not a millionaire...yet...*snickers sinisterly*

So everything that you bought, was the cheapest brand? If so, was that your preferred choice? 

[QUOTE="D0013ER"][QUOTE="shungokustasu"]

In fact, price is not a factor at all when deciding(keyword) what product you like best.

shungokustasu

Eghwat? I speak not for every man, but price has a pretty profound effect on plenty of my purchasing decisions. I'm not a millionaire...yet...*snickers sinisterly*

So everything that you bought, was the cheapest brand? If so, was that your preferred choice?

I wouldn't take "a profound effect" to mean "everything I buy is the cheapest".  Otherwise that would have landed me with a Wii.  Regardless, money talks, and it can be very persuasive.

[QUOTE="bionicle_lover"][QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"][QUOTE="goblaa"][QUOTE="MikeE21286"]

OK...........

So you're saying it's preference and not price...

Well riddle me this.......

IF the PS3, 360, and Wii cost $250 each.....What would they buy then

[QUOTE/]

And what would be the chances of the PS3 or 360 being $250 and having no hardware changes? 0%.

At $250, the PS3 and 360 lose a lot of what makes them appealing.

MikeE21286

That's not the argument TC is posing though. He says its all about preference and not price....therefore meaning people would prefer Wii over PS3/360 (based on current sales). Well this is not entirely true. If you set the prices equal you would see that ps3/360 would sell more. So to say price is not invovled is wrong. To do this comparsion you wouldn't be changing anything but price.

He's saying that if two products are priced the same, the better one has the advantage. Problem is, comparing the PS3/360/Wii as all $250 with no changes is simply an impossible hypothetical. So how is the comparison of any use?

Because by taking price out of the equation (hence selling them for the same price of $250....hell, "sell" them for free and ask a consumer which one they would want out of the 3) you are able to truly measure the preferrence.

too unrealistic so there really is not point to this hypothetical situation. if this were so, why not just make the wii equally as powerful as the 360 or ps3 since they're all going to be the same price?

Why would we do that. We are trying to measure the preferrence of PS3 , 360 and Wii in their current state.....

but at such low prices? the basis of this hypothetical question should therefore be, which console would you get for free but are not allowed to resell? then, it would be testing which product people want.