Sqrl said:
"stop talking about value or whatever" This little quote highlights perfectly your position. The "or whatever" tells us that you don't understand what was said and so you tack on "or whatever" as a sort of nervous all-inclusive. The "stop talking about value" part is probably best translated as "I don't get it..you're confusing me..please stop!". A price drop alone is simply not a gauranteed increase in demand, that is a matter of fact not even up for debate. The example I can use use that I can sell my dog's crap for $50 on the streets of New York city even if I cut my price down to absolutely free I doubt my sales would increase. This is of course because New Yorkers have absolutely no need of dog poo and its values as a fertilizer have no value to them. Values and their sum representation as a value to a consumer are the key factors in determing how effective a price drop is or is not.
|
how simple you want this be??? demand line is always have negative slope, as price fall quantity demand will increas, the better question of the topic is will a $50 drop be significant enough to increase the quantity demand. yes consumer have a fixed value to everything they are willing to purchase but you cant denied the fact at $50 drop there will be someone out there that this drop will hit their target mark on the ps3. you have to think a bigger picture not just a small group that think ps3 have very little value to them.
every price drop will always gauranteed an increase in demand either is a small increase or big increase, its still an increase value. Like I say the better quoting for the title is will $50 drop have a significant impact to help them boost a disirable sales figure.
your dogs illustration fails, you should be cow's shit instead. or using the Gamecube or Xbox. something that is 0 value to start with does not apply here.
