Sony's answer to MSFT's price cut this holiday season is:

[Kasz216]

MontanaHatchet said:

Bodhesatva said:

MontanaHatchet said:

Sony needs to understand that to most consumers, the actual cost of something is far more important than the value.

 

 

No, no, no, no Montana, this is nonsense. Obvious example: if a Toyota Camry were sold for 500 dollars, what would happen? Answer: The Camry would make up 99% market share within weeks. I don't think that's an exaggeration at all.

Value is a perception. Some products (like the Camry) would sell ridiculous amounts at 500 dollars; others would not (let's say, a normal box of Kleenex).

The problem is that most people do not value a Playstation 3 at 500 dollars. Or 400, apparently.

When Sony starts making Camrys, tell me. I thought the mention of Sony (and the topic of this thread) would negate large amounts of counter scenarios, but I suppose not.

 

I think what Bod is doing is working off of the general economist theory that

"Perceived value is the only true value."

Since value is judged by what people will pay for it... the real value of something is it's perceived value.  Which means that two identical products could be worth a different amount value wise just because of the location of the product or brand or whatever.

Which, i must admit does have a logical simple approach to it.