Gene,
I took a few moments this weekend to stop into the local CompUSA. Just a few observations:
The Cyrix computer from Compaq LOOKED cheap (regardless of it's functional capability, the average consumer WILL NOT spend $800 on something that appears inferior), and from my experience marketing through retail, my guess is that they are using it to draw traffic, with an easy sell up to a better system.
All Intel based computers had a POP sign with the speed rating, can't remember the name (C-something), which made for a very clear deferentiation of product to the consumer, I was impressed. There are a certain percentage of consumers who will allways buy the least expensive product, but they are in the minority. Most consumer don't identify themselves with the low end or the high end, but if given a clear choice of price vs. benefit, will place themselves somewhere in the middle range. Human nature.
I still believe the industry as a whole is doing a lousy job of marketing computers. They are lined up with no logical progression, most POP is based on specifications which the average consumer doesn't relate to, there is no selling of real life benefits. My best guess, most potential first time buyers walk because of confusion and lack of compelling reasons to purchase.
Bottom line though, Intel still owns at least this retailer.
John |
