Question

What makes the SoundDock Portable iPod docking station worth $388 when similar products by competitors cost much less?
Demonstrate how a consumer might evaluate such a purchase. What decision rules might be used? What strategies might Bose use to educate the consumer as to the value of their product?

Answer 1

Customers use following decision rules while evaluating such products.

(a) Reliability of the product. This product is perceived as more reliable owing to its superiror technology as compared to the competitors.

(b) Performance of the product. It includes ease of use, quality of output, richnss of user experience etc. which is superior to the competitors.

(c) Useful life of the product. Owing to technological superiority, it will last longer than competiton.

(d) Social value. Ownership of the product from such highly perceived brand adds to the social value of the owner, and puts him /her in a different league.

(e) Poduct asthetics - Sleek, simplistic yet elegant look makes it score high over competition.

Bose needs to educate the customers about how the product features can enhance the user experience. It can focus on  functional utility, longevity of the product and technological superiority that makes it different from the similar looking ye different products. This exercise can be done with help of marketing communication, training the sales staff about the fine details about product features and conducting a brand building exercise by using customer experience to convey the functional superiority to the prospective customers, who would be more willing to know from the actual users.