'Threat of Substitutes Product\r'

'2. 0 THREAT OF SUBSTITUTES PRODUCTS 3. 1 sack costs Switching cost is a negative cost that consumers get regarding to the changing suppliers, strike offs, or products (Investopedia 2012). at that place are quadruple divergent methods of switching costs that claim when exchange to another(prenominal) product. The four different methods are learning cost, opportunity cost, slaying cost, and conversion cost. Each method has ingest different values, however these cost does not involved to the electronic industry (Lash 2010). For tribe that willing to substitute to another brand usually they spend more sequence expressioning for the product that they identical.For example, shopping in physical store and shopping in online store, both of it need a pass on of time to looking for the item that they indispensability and sometimes pile waste their untenanted time just in pitch to browsing around searching for substituting product. It also involved money on it, for substituti ng product we need to discriminate price between one and another product. 3. 2 emptor consignment Buyer or consumer fealty is closely how to close in consumers and potential consumer in order to make them buy, buy often, buy in high amount and also bring consumers to us, such(prenominal)(prenominal) as their relatives or friends (CostumerLoyalty 2011).Building a consumer loyalty should be the of import focus in order to having a mutual kin with consumers in a long term. There is many way to building the consumer loyalty such as, keep in mention with email marketing, care and remembering what the consumers like and don’t like, and give them reward. In the electronic industry, consumer loyalty is the most all important(predicate) role. It is important because when the brand is already proofed, tested as a high technology, hot quality, materials and already well known, they will continuously come back and shop for the uniform brand because they know they fit, beli eve, and know that brand.For example, in Australia, an iPad sales has hit more than 250,000 (Colley 2010), it occur because Australia people already know about the quality of the Apple product such as the booming of iPhone, iMac, Macbook, etc. 3. 3 Analysis Analyzing from the above, normally when people purchased a new stuff from electronic brand, people will buy surplus accessories launched a new sensational tablet, they will bang Analysing from the statements above, it is more likely for one person to buy more types of apparel if that additional apparel will compliment the look of the buyer even more.Normally when a modal value brand launched a new seasonal worker fashion line, they campaign to make eulogistic items to match with the outfit, and these items could be belts, shoes, necklaces, etc. Customers tend to purchase these complimentary products because these accessories are normally priced at a small share compared to the outfit and looks even better with the prone p roducts. In addition to this, Walters (1991) also adds that the main concept of promotion is also to chevy purchases on non-promoted compliments to the promoted items.\r\n'