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Technology Stocks : AUTOHOME, Inc
ATHM 23.89+2.2%Dec 5 9:30 AM EST

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To: Rascal who wrote (16461)10/28/1999 9:32:00 PM
From: E. Davies  Read Replies (2) of 29970
 
you show a real lack of understanding of consumer behavior
Not really.

There are two major kinds of consumers. Leaders and followers.

The leaders are the ones who will gladly use broadband in any form they can get their hands on. They just want SPEED, and as long as it is anywhere in the realm of affordable ($50-$60/month) they will gladly pay it. They dont need any content.

The followers make up the bulk of people. When it comes time to do something with your life you look around and do whatever everyone else is doing. This is the essense of "consumer behavior".

Followers are the ones who have never bothered to update their 14.4K modem unless they happened to buy a new computer. They are the ones who sign up with AOL because as far as they know AOL *is* the internet, or because they liked the movie "You've got mail".

Followers won't pay anywhere near $40/month for broadband until they see everyone else paying it too. How does that happen? One of two ways:
1) AOL tells them to. - or-
2) Enough super cool applications arrive. Video on Demand would finish the issue once and for all.

Eric
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