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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 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 good


s 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 Unite

Some common words found in the essay are:
Phone Choices, Characteristic Theory, , neoclassic theory, consumer demand, theory consumer demand, 1999 phone, view quality product, neoclassic theory consumer, 1999 phone market, characteristic theory, caller id, marketing strategy, phone market, theory consumer, hedonic pricing, consumer's preference,
Approximate Word count = 574
Approximate Pages = 2 (250 words per page double spaced)


  

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