We learned examples of monopolistic competition from class: Big Mac vs Whopper vs Double Double, Coke vs Pepsi vs generic brand. Something that you might not have considered to be monopolistic competition is the cheap Chinese market.
When I was looking for a new keyboard, I watched a review that noticed something odd about keyboards made by 4 different companies. The DB Power, Rii, Mafiti, and Bluedragon keyboards were not only similar, but exactly the same. They were produced in the same Chinese factory, share the same design defects, and cost around $20 dollars. The only thing that separates them are the small nuances. One comes with a higher quality cable, another with a longer warranty, yet another with more lighting options, and finally one that comes with a extremely poorly made mouse. These companies aren't trying to differentiate themselves with price: because their products are made in the same factory, their prices are all going to be similar. As a result, they need to entice potential consumers with unique features.
See the similarities with the more traditional examples? Just like how the Big Mac, Whopper, and Double Double are made of the same base ingredients of beef, flour, and various toppings applied in different ways, these brands also try to take the same cheap keyboard and add their own flair on it. Just like how some companies like Coke and Pepsi have managed to draw people into exclusively buying their product, some of these companies have also built up a reputation. Anker differentiated itself by providing above average customer service (offering a lifetime warranty for their products), thus, they capitalize on their reputation by charging a higher price for their products than the other brands(and to offset some of the cost of providing that lifetime warranty).
It's interesting to see the concepts we learnt in class being applied to an unexpected portion of the market and how each of the 4 companies try so hard to differentiate themselves from each other, despite the fact that they are selling what is essentially the same product.
Source:
https://www.youtube.com/watch?v=2i1PdfaAKFA
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This was an interesting post about considering the concepts learned in class while going about your life as usual. Which bonus feature do you think people appreciate the most and therefore choose to buy the most?
ReplyDeleteThis was an interesting read. I think this can also apply to chicken sandwiches. People debate, and sometimes get really heated, over which store sells the best chicken sandwiches (e.g. popeyes vs. chick-fil-a). Each of the stores have basically the same ingredients, but people give very different reviews. Like the keyboards, I think that it probably depends on what people like more. For keyboards, it might be the inclusion of a mouse. But for sandwiches, it could be the amount of pickles for example.
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