Macbookair
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The 11-inch, 128GB MacBook Air at $1199 serves as a decoy option between the $999 and $1299 models. Its existence makes the $1299 option seem relatively more attractive, even though it offers less value than spending $100 more. Without the $1199 option, more people would choose the $999 model, reducing Apple's average sale price. The different storage sizes, screen sizes, and processor speeds create eight potential versions, but not all are economically sensible, so Apple strategically positions options to influence customers' choices.
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Macbookair
- 1. So Why is There a 11”, 128GB, $1199 MacBook Air? Rags Srinivasan @rags IterativePath
- 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. Demand for $1,299 is likely to be lower with more opting for $999 version Suppose there were no $1,199 version
- 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. 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. 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. 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. 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. 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. With its current line up – the middle version serves as the decoy Compared to decoy, $1,299 version will look attractive to most
- 11. Further Readings 1. http://iterativepath.wordpress.com 2. Asymmetrically Dominated Alternative