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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (576)	7/5/1996 8:12:00 PM
From: charles moore	of 1585952

Paul: Speaking of Sears I see in the news the other day that Walmart is going to hace a section for 'Fashion" clothes. I guess they feel that they can succeed where Sears failed. I would think it would be just the opposite in that Sears had more of a rep for higher priced items than Walmart. Maybe they know something that we dont. Yes I think there is a certain amount of peer pressure in computers but not the pressure that there is at school and also there is the fact that some Adults probably wouldnt mind spending an extra $50.00 for Air Jordans than say and extra $700 for the more advanced Pentium. The way I work it with my son is he gets to pay the difference between a good pair and the "Status" pair and that way he can learn the difference and establish the priorties. When I took marketing in college many years ago there was a section on 'Innovation" or more particurly "new inventions " or new products.There are three stages. 1. people that purchase it just because it is "new"and they have to have it whether peeer pressure or being the first on the block etc. 2. people that want the product at its now reduced price due to competion and can now better afford it. 3. The rest of the consumers now that the item is produced in volume and just about everyone can afford it. This includes clones. So the first can be considered peer pressure to some extent but not on the scale of true peer pressure.I added 8 more megs Ram to my computer today. It cost $79.00 for the whole 8 megs. I cant believe this will continue indefinitely. I saw on CNBC last week where consumers buying computers were instead of taking the 'savings" because of the reduced Ram costs etc were instead using the savings to purchase more computer such as a faster CD ROM or more Ram or a faster modem etc. Charles

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