Create a 6 page essay paper that discusses Customer behaviours.It is evident from the research that personal computers have become the norm in homes in the UK, so much so that prices have been driven
Create a 6 page essay paper that discusses Customer behaviours.It is evident from the research that personal computers have become the norm in homes in the UK, so much so that prices have been driven down in the industry. The personal computer changed from being one associated with high profit margins, to one where computers are purchased on the basis of cost. This has resulted in an influx of small and medium sized computer businesses entering the market which has further reduced the profit margins. This has resulted in a decline in growth for the big computer companies as personal computers become more of a commodity, which has meant that customers can easily replace the unit, after a short period of time. These factors contribute to the lack of technological differentiation between suppliers leading to a market where cost is a deciding factor in buying decisions and a market that is reaching saturation with little opportunity for growth. Customer decision making in the personal computer industry has recently become an issue and this can be demonstrated by the low prices for and the high ownership of laptops in the UK. One example of the importance of customer decision making can be demonstrated by the losses experienced by Dell. Dell used to be regarded as producing high quality laptops and computers, and consumers certainly approved of the price tag which came with it. In 2003 consumers could purchase a Dell laptop for approximately £2000, but in 2007, the equivalent laptop is being sold for approximately £400.
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