Archived posting to the Leica Users Group, 2004/03/05
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]That's a scary mirror to hold up around here, Larry! At 05:32 PM 3/4/2004, Larry Z wrote: >In a message dated 3/4/04 2:05:30 AM, owner-leica-users@mejac.palo-alto.ca.us >writes: > ><< I bought my wife the C-5060 for Christmas. She loves it. I'm impressed >for >a point & shoot digital. Lots of nice features. It was $600. That doesn't >bode well for either Panasonic or Leica if the $600 camera comes out >slightly ahead over something 2-3x its price. > >> > >Years ago one of my graduate students did a doctoral dissertation titled >"Price as a Surrogate Cue to Quality." The crux of the dissertation was >that for >many products, quality cannot be discerned by normal observation so the >average >buyer falls back on price as the best cue. The hope is that "you get what you >pay for." Astute marketers have long known that the best way to sell prestige >items is to raise the price well above that of competitive products is the >hope that this will convince the buyer that their item is better. Economists >call this "negative price elasticity." This approach is often used for >cosmetics, >i.e. "It costs more but I'm worth it."; automobiles, i.e "show them that >you've arrived" (in a Cadillac); art works; and, of course, cameras. > >Interestingly, one of the documented research findings was that the more >personally insecure the buyer, the more likely he or she is to believe the >hype. - -- To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html