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Macbookair Macbookair Presentation Transcript

  • So Why is There a11”, 128GB, $1199 MacBook Air?Rags Srinivasan@rags IterativePath
  • The new MacBook Air versions are a case studyin Choice DesignQuestion: Just for $100 more, third option offers lot more thanthe middle option, so why is the middle option there?
  • Demand for $1,299 is likely to be lower with more opting for$999 versionSuppose there were no $1,199 version
  • Suppose there were no $999 versionMore will pick $1,299 but demand is likely to be lower andApple cannot claim under $1000
  • Screen size is the Prominent Dimension with Disk Space andProcessor Speed coming second and thirdLet us start by asking what is the ProminentChoice Dimension – the one feature they wantyou to focus on more than anything else
  • Together these dimensions offer 8 possible versions128GB,1.4GHz64GB, 1.4GHz128GB,1.86GHz256GB,1.86GHz11-inch 13-inch
  • 128GB,1.4GHz64GB, 1.4GHz128GB,1.86GHz256GB,1.86GHz11-inch 13-inchSome versions do not make economic sense
  • 128GB,1.4GHz64GB, 1.4GHz128GB,1.86GHz256GB,1.86GHz$999$1299$159911-inch 13-inchAbsence of 11”, 128GB version creates a chasm
  • 128GB,1.4GHz64GB, 1.4GHz128GB,1.86GHz256GB,1.86GHz$999$1199$1299$159911-inch 13-inchPerfect alignment across the diagonal
  • With its current line up – the middle versionserves as the decoyCompared to decoy, $1,299 version will look attractive to most
  • Further Readings1. http://iterativepath.wordpress.com2. Asymmetrically Dominated Alternative