Thursday, November 11, 2004

Would you like to pay more?

When you buy a hamburger, what would you like to do? Do you prefer to buy a more expensive "brand name" hamburger, or just a cheaper store name humburger? Some people want to buy "brand name", because they think that the hamburger is different from others and its taste is better than others. Other people prefer to cheaper hamburgers, because they think there are not definately difference between these two kinds of burgers. Therefore, they would like to spend less. I think that there are not obvious difference on the taste of hamburgers. People want to "brand name" because of their habits. They always buy the same kind of hamburgers and they are accustomed to eating the hamburger. Therefore, they don't want to change to others, even if they know that there are some other cheaper hamburgers. On the other hand, "brand name" hamburgers have enough consumers who always buy their products. They don't worry about those consumers will give up their hamburgers and buy other store name hamburgers. Therefore, "brand name" can fix much higher price than other hamburgers and they also can spend more on advertisement.

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