Image by Flickr user : Mike Dong
Technology in the consumer electronics sector moves fast. With the culture of having a phone with a time specific contract has emerged a manufactured economy, in which we are always looking to upgrade to the latest and best handsets.
How can consumer electronics offer life changing functionality if only to be replaced with supposedly better technology months later? And why do we queue around the block in order to buy it? Tell us in the comments.
The proportion of our expendable income being spent on these products is growing, with contractual pricing plans helping to create a volatile and competitive marketplace.
Already being exploited by communications companies, this is the phenomena of the upgrade. This is the reaction of wanting to have the latest product even though you already have a fully functional device. This is widely believed to be caused by the need to safeguard against the feeling of loss, ‘loss aversion’.
Old for New
An example of this philosophy is evident in the way that people sell their old phone when a new model appears so that they may partially be able to fund the purchase of the new model, even at significant financial loss.
The phone that is being sold may almost be identical to the new one in terms of specification, but to the owner – to buy the new handset and take a financial loss is a more preferential outcome rather than having to stick with the old phone for fear that it may become defunct in any way in the future when compared to the new handset.
Trial Period?
Apps and the app market have also used this in marketing in the form of ‘trial’ periods. We are enticed by a ‘limited time only’ offer that we perceive we will be losing out if we do not take up the offer.
Then when the trial period is up, we are reminded that if we did not continue, we would lose the time and effort that we had invested in using the app. This is presented to show that by taking the financial hit in continuing with the product, we are losing only a monetary value in comparison.
In fact we are led to believe that we are losing our ability to use the app, rather than having got its use for free during the trial period.
We are not only persuaded to buy these products but the advances in their features over the models we have.
Why keep buying The Latest Thing?
The motive behind buying a new product can be the desire to be part of a community or affirm ideological views associated with a product or brand.
The typical example of this was played out by Apple’s 2006 ad campaign in which a Mac and a PC are played by actors that discuss the various pros and… Well, pros of owning a Mac compared to a Windows PC. The attributes of the owners of each are embodied by the clothes that each actor is wearing and their attitudes towards the primary functions that a computer should serve.
The draw to be among this elitist group along with celebrities is also a contributing factor in the need to upgrade, as technology becomes as much as a fashion statement and status symbol as it is a functional device.
[Read also: Technology – Are We Too Plugged in to it?]
There may be underlying influences contributing towards your decision to purchase a new device. With the electronics industry slowly filtering technology from inception at a scientific level to the consumer as a constant conveyor belt of content and devices, there are no signs that the future will be any less competitive.
[Read more: Technology – The Waiting Game vs The Impulse Buy]
New products will be released without doubt, and people will queue, will you be one of them? Let us know in the comments.
About the author : Dan Izzard writes for Strategy Internet Marketing who offer pay on results seo, meaning that you only pay for SEO that produces results for your company.
I would not queue like the one in the image. I will not as well camp outside of Sony just to be the first few to get the new Playstation. However, that does not mean I will not get the latest gadgets. Sometimes, to tech people, a little new features is already a very good reason for them to get the new thing.
I won’t stay in line either! Better to buy a month later when there’s no queue. The thing will be the same as the first day it was launched after all right?
Cause its 50% faster, or lighter, or flashier….or something.
I don’t buy into anymore. Except for Apple products. I have a 7 year old Toshiba A100 laptop that is a single core laptop. It still runs and works Ubuntu just fine.
I have a iPad 2 that I bought, and a Apple iPhone 4s. I bought the latest generations, but I won’t for a while because I know they will last. I do know why people though will sell off their “last year” model for a new one. If anything wait too years to make most of your moneys worth.
Desktops/laptops havn’t changed much in the last 10 years. There absurdly faster then they use to be, but they still do the same stuff year after year just a tad faster. Which in my opinion doesn’t make a upgrade worth it.
Yea you got your point there Brad! I have an iPad 2 as well and I wouldn’t go for the new iPad. I think the iPad 2 is already sufficient. Maybe I’ll buy another iPad when it’s iPad 10 or iPad 20 🙂
Years ago I used to upgrade my desktop computer on a regular basis. It got to a point where upgrading would barely improve speed and performance. Almost unnoticeable actually. Not to mention it was a lot of work. Now I just wait a few years and buy a new pc. As for other electronic devices I think the companies that make them sell people on the idea that we need them, and can’t live without them. I think some folks want to one up their friends. Next thing you know the friend wants to get something better. These days I use my things until they break or quit working.
My thoughts exactly Ray! I would use my gadgets until they are broken then only I’ll buy the new ones. But mostly it’s because of money, I think we shouldn’t keep upgrading our things too soon just to show off to friends, that’s just wasting money!
I do want the newest “best” stuff. And if I had not to think about money I would be getting them all the time. But not standing in line for it! I think for many people it is a status symbol. Just like with clothes. Look at women. They buy clothes for winter season one year. And they absolutely love the clothes. Then next year winter, all those clothes are boring/not good enough, and they have to go and buy all new clothes. Even though their “old” clothes are still in perfect condition and they loved them last year. (ps. I know this is a big generalisation)
I personally want the newest stuff because I just feel like the new functions are fun to play with and most times the product is just better. But if the next model is not a significant step forward, then I will be less inclined to get it.
I do like to check out what the latest stuff has to offer. I usually go to the store and play around with it and then walk away 🙂 Nice to see you dropped by Danny, how are you lately?
I’m good, a bit stressed and too busy though. But at least I have a new apartment so don’t have to worry about sleeping on the street 😛
How are you? Working hard as always I see.
I’m fine too! I think it’s good to be busy but not the stress 😛 It’s always good to see you here Danny. Oh ya, send my regards to your gf okay? 🙂