Saturday, October 08, 2005

Setting Customer expectation, and on conspicuous consumption

First, read This.

Ringtones and iTunes downloads are drastically different products. Ringtones are about conspicuous consumption, since all your peers notice that you have trendy or eclectic tastes whenever your phone rings. iTunes downloads, on the other hand, are usually consumed alone.

You expect others to judge you by your ringtones and party clothes, and thus they are more expensive.
So, there are basically two ways to sell a product and/or service. You need the customer to care about the product, as in with itunes track, or you need customers to care about his friends noticing him with the product, that is ringtones and to a certain extend, iPods.

I paid more for my first iPod, admittedly because of gimmick. I needed an mp3 player, and there was alternatives out there that are cheaper, but I want my friends to see me with an iPod. It's cool and that's why I bought it. The fact that I found many features on the iPods I wouldn't trade for another portable player is nonmaterial. At that particular instance, I bought it because it's fashionable, it's cool.

The advance features that I fell in love with just helped making me a continuous customer. But you know what they say, it's always hardest to start then to continue. Getting the new customer is probably the hardest step Apple had to take.

Well, I lied, there's a third way to sell your product: your customers can't live without it and there's no competition. But hey, how often do we have that?

What I talked about with my iPod experience is what we called conspicuous consumption. iPod, A|X, Sony, all of them play with your desire to be noticable by your peers. The quality of these products are really not the deciding factor.

So, in order to sell this SMS Search / Directory service that I was talking about, I need to find a way to make accessing information via SMS look cool, feel cool, or at least impresses a few when you as the customer are doing it. Say you and your lady friend were looking for movie times, you can get the info you want without paying through your nose with 3G network. You know, that kind of stuffs.

yea, because you can't just plan ahead before your date. :)

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