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Macbookair

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Macbookair

  1. 1. So Why is There a 11”, 128GB, $1199 MacBook Air? Rags Srinivasan @rags IterativePath
  2. 2. The new MacBook Air versions are a case study in Choice Design Question: Just for $100 more, third option offers lot more than the middle option, so why is the middle option there?
  3. 3. Demand for $1,299 is likely to be lower with more opting for $999 version Suppose there were no $1,199 version
  4. 4. Suppose there were no $999 version More will pick $1,299 but demand is likely to be lower and Apple cannot claim under $1000
  5. 5. Screen size is the Prominent Dimension with Disk Space and Processor Speed coming second and third Let us start by asking what is the Prominent Choice Dimension – the one feature they want you to focus on more than anything else
  6. 6. Together these dimensions offer 8 possible versions 128GB,1.4G Hz 64GB, 1.4G Hz 128GB,1.86 GHz 256GB,1.86 GHz 11-inch 13-inch
  7. 7. 128GB,1.4G Hz 64GB, 1.4G Hz 128GB,1.86 GHz 256GB,1.86 GHz 11-inch 13-inch Some versions do not make economic sense
  8. 8. 128GB,1.4G Hz 64GB, 1.4G Hz 128GB,1.86 GHz 256GB,1.86 GHz $999 $1299 $1599 11-inch 13-inch Absence of 11”, 128GB version creates a chasm
  9. 9. 128GB,1.4G Hz 64GB, 1.4G Hz 128GB,1.86 GHz 256GB,1.86 GHz $999 $1199 $1299 $1599 11-inch 13-inch Perfect alignment across the diagonal
  10. 10. With its current line up – the middle version serves as the decoy Compared to decoy, $1,299 version will look attractive to most
  11. 11. Further Readings 1. http://iterativepath.wordpress.com 2. Asymmetrically Dominated Alternative

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