CASE-STUDY 1 "Hi, I'm a Mac... and I'm a PC." You probably know this successful TV campaign that features a very smart,
Posted: Tue Apr 26, 2022 12:17 pm
CASE-STUDY 1
"Hi, I'm a Mac... and I'm a PC." You probably know this
successful TV campaign that features a very smart, cool Mac guy and
a nerdy PC guy. These ads for Apple's Mac laptops aimed to grab a
big chunk of the personal computing business, especially among
younger users.
Microsoft fired back as the company tried to separate itself
from the undesirable PC-guy image. Its first attempt; a quirky
campaign featuring comedian Jerry Seinfeld and Windows founder Bill
Gates, failed to move the sales needle. Microsoft had more success
with the “I'm a PC ad" that featured testimonials claiming
allegiance to PCs from all sorts of PC users, ranging from
celebrities to an adorable 4 1⁄2-year-old. Still, it's an uphill
battle: For a generation of consumers raised on cool products like
the iPod and the iPad, it's a tough sell to shake Apple's spell.
Although PCs still have the majority of market share, a growing
number of Macs show up on college campuses every fall.
In the spring of 2011, Microsoft tried a new tactic: A student
who purchased a PC for $699 or more received a free Xbox. He or she
only needed to walk into Best Buy with a college ID or email
address and walk out carrying a PC along with an Xbox with a retail
value of approximately $300. Compared to a Mac that starts at $999,
this bundle offered an attractive value proposition to students who
were also into gaming.
Is this a simple pricing promotion, or part of a more elaborate
branding strategy? The Xbox represents the "fun" side of
Microsoft's personality, so this bundle might help to reposition
Microsoft away from the awkward office-worker stereotype and closer
to Apple's cool image among members of this crucial market
segment.
Microsoft is still evaluating the results of the promotion.
Marketers continue to debate the effectiveness of "free” offers.
Assuming that the promotion drives short-term sales of PCs, will it
also influence long-term loyalty? What does this bundling mean for
the Xbox, the current market leader in gaming consoles within the
college market? With a free Xbox as an option in the marketplace,
will college students be less willing to pay $300 for a stand-alone
Xbox console? Finally, the question remains whether a free console
is like a free cell phone from your wireless company, where the
revenues come from add-on purchases in the form of talk minutes.
Will Microsoft still profit from those free units through game
purchases, online subscriptions, accessories, and loyalty to future
Xbox consoles? How will the new tablets that combine features of
gaming consoles and laptops affect all of this?
QUESTION 1: What characteristics of extended
problem solving are involved in a computer purchase?
QUESTION 2: How might the free Xbox offer
influence a consumer's mental accounting and perceived risk?
QUESTION 3: How might Apple be creating a
heuristic for its consumers?
"Hi, I'm a Mac... and I'm a PC." You probably know this
successful TV campaign that features a very smart, cool Mac guy and
a nerdy PC guy. These ads for Apple's Mac laptops aimed to grab a
big chunk of the personal computing business, especially among
younger users.
Microsoft fired back as the company tried to separate itself
from the undesirable PC-guy image. Its first attempt; a quirky
campaign featuring comedian Jerry Seinfeld and Windows founder Bill
Gates, failed to move the sales needle. Microsoft had more success
with the “I'm a PC ad" that featured testimonials claiming
allegiance to PCs from all sorts of PC users, ranging from
celebrities to an adorable 4 1⁄2-year-old. Still, it's an uphill
battle: For a generation of consumers raised on cool products like
the iPod and the iPad, it's a tough sell to shake Apple's spell.
Although PCs still have the majority of market share, a growing
number of Macs show up on college campuses every fall.
In the spring of 2011, Microsoft tried a new tactic: A student
who purchased a PC for $699 or more received a free Xbox. He or she
only needed to walk into Best Buy with a college ID or email
address and walk out carrying a PC along with an Xbox with a retail
value of approximately $300. Compared to a Mac that starts at $999,
this bundle offered an attractive value proposition to students who
were also into gaming.
Is this a simple pricing promotion, or part of a more elaborate
branding strategy? The Xbox represents the "fun" side of
Microsoft's personality, so this bundle might help to reposition
Microsoft away from the awkward office-worker stereotype and closer
to Apple's cool image among members of this crucial market
segment.
Microsoft is still evaluating the results of the promotion.
Marketers continue to debate the effectiveness of "free” offers.
Assuming that the promotion drives short-term sales of PCs, will it
also influence long-term loyalty? What does this bundling mean for
the Xbox, the current market leader in gaming consoles within the
college market? With a free Xbox as an option in the marketplace,
will college students be less willing to pay $300 for a stand-alone
Xbox console? Finally, the question remains whether a free console
is like a free cell phone from your wireless company, where the
revenues come from add-on purchases in the form of talk minutes.
Will Microsoft still profit from those free units through game
purchases, online subscriptions, accessories, and loyalty to future
Xbox consoles? How will the new tablets that combine features of
gaming consoles and laptops affect all of this?
QUESTION 1: What characteristics of extended
problem solving are involved in a computer purchase?
QUESTION 2: How might the free Xbox offer
influence a consumer's mental accounting and perceived risk?
QUESTION 3: How might Apple be creating a
heuristic for its consumers?