What role does price play in a consumer’s selection of a home printer? What about a business buyer making a purchase decision about an office printer?

the printer industry is intensively competitive with respect to pricing. the first home printers, marketed by companies such as Epson and HP, were almost as expensive as computers themselves. but like most technology products, as technology improves and features are added, the price is forced down. Today, consumers can choose from a wide range of desktop printers for home use. Printers come with a variety of features and can be purchased from many different vendors.

1. What role does price play in a consumer’s selection of a home printer? What about a business buyer making a purchase decision about an office printer? What about a business person selecting a portable printer to take on business trips?

Expert Solution

Price is one of the important factors which is required to determine the good purchased. Higher the price, lower would be the demand for the good.

In case of a decision to buy a home printer, several factors like income, price of substitute goods etc would be considered along with the price of the good. The price would act as an important basis of comparison in the buying decision. The consumer could compare the substitute printers with the brand to determine what others are providing at the same price. Hence price would play an important role in purchasing printer for home.

On the other hand, if a printer is to be purchased for a business purpose, the factors may differ slightly. If the business is large, then price would be a secondary factor because the company would value efficiency more than the price of the printer ie it doesn't require much maintenance and is not struck at places.

Even if the business is small, the owner would want to invest such that it increases the productivity rather than hamper it.

Similarly price would be less of a concern if the businessman is looking for a portable printer for trips. The main factors would be considered would be light weight, low maintenance, size etc.

So the price would be less of a concern in case the income is higher or in case it is for business purposes. But when considered for household, which has a limited income, price may become an important factor.

Rahul Sunny answered 2 years ago

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