Intermediate Microeconomics CIA 1 (ECO331Y)

 

 

 

The Latest Addition to My Life: Purchasing my HP Laptop

 

Intermediate Microeconomics

ECO331Y

 

 

Bachelors in Arts

in

Psychology, Economics

 

 

 

By

 

OSHIN GUPTA

2235259

 

 

 

Submitted to

 

Dr. Feba David

Professor

 

 

 

 

 

 

 

Department of Economics

CHRIST (Deemed to be University)

Bengaluru, India

 

 

3^rd August , 2023

 

 

The Latest Addition to My Life: Purchasing my HP Laptop

 

The HP 14s-fr0012AU laptop is the newest addition to my life, and in this blog article, I'll walk you through the process of how I decided to buy it. As a university undergraduate student, the process of obtaining a laptop included numerous considerations and barriers. I stumbled across a number of microeconomic concepts along the way, and they had an impact on both my decision-making as a consumer and the strategies employed by HP as a producer. In this article, I'll discuss how I handled these many roadblocks when making the purchase, how producers perceive and affect customer behaviour, and the various elements that affected both producers and me in our respective decision-making processes.

My search for a new laptop began when I realised I needed one, so I began browsing at different laptops on the internet and discussing it with my friends and cousins. I began to encounter a number of challenges that were a combination of internal and external issues, including financial limitations, product characteristics, brand loyalty, and the product's perceived value. In my case, selecting the ideal laptop took considerable consideration and trade-offs.

The first difficulty was asymmetry of information. With so many laptop models on the market, it was important to obtain credible information in order to make an informed purchase. I spent a significant amount of time researching online, reading reviews, and comparing features to ensure that the laptop met my academic requirements and fit within my budget.

As a student, my budget was a crucial aspect of my decision-making process. I had to look for a laptop that not only fulfilled my requirements but also fell inside my tight budget of roughly Rs 30000. My quest for laptops that offered a mix between performance and price was driven by this restriction. Fortunately, this laptop costed me around 35k after GST rebate classifying it as a business purchase.

The concept of utility came into play when I considered the different features offered by various laptops.  I was drawn to the HP 14s-fr0012AU because of its lightweight design, powerful processor, and long battery life. The utility I could get out of the product was maximized by these features.  I took into consideration it’s processor, memory and storage, display, OS, etc. These specifications define a laptop's performance and capabilities and are crucial to take into account when making a purchase.

Brand loyalty and previous experiences shape consumer behaviour. I gave my prior positive experiences with HP products some thought, which was a big factor in my decision to pick an HP laptop once more.

To determine whether the perceived worth of the HP laptop justified the price, I compared the cost of the device to its features and benefits. Considering that I had a few options to pick from, including Asus, Lenovo, and Xiaomi, this evaluation helped me decide if the device offered a better utility than its competitors.

External factors, especially recommendations from friends and the marketing techniques used by laptop makers, were yet another obstacle. My perceptions of the 14s-fr0012AU laptop and the brand as a whole were influenced by peer recommendations and social media influencers' views, which shows the power of social influence on consumer decisions.

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Producers have a critical role in analysing and influencing consumer behaviour in order to increase sales. Producers attempt to attract potential customers and persuade them that their product is the best value by employing targeted marketing techniques, product positioning, and effective advertising.

They use a variety of marketing techniques to target particular consumer groups. HP's marketing efforts, for example, emphasised the laptop's portability and performance, which appealed to both students and professionals. HP, like other tech companies, promotes its laptops through a multifaceted marketing strategy. They reach a large number of people through digital marketing platforms such as social media, search engine ads, and email campaigns.

In order to connect with customers and position themselves as a trustworthy source of information, they create valuable material, such as blog articles and videos. Collaborating with influencers and reviewers helps to enhance trust and visibility. HP maintains an easy-to-use website for direct sales and ensures that its laptops are available through retail partnerships. Brand recognition is increased through advertising campaigns in various media, promotions, and trade fair participation. Their devotion to sustainability and ethical practises increases their reputation even more.

Another approach used by laptop manufacturers to make their laptops appear more enticing and desired to potential purchasers is consumer segmentation, which divides the market into separate segments depending on consumer preferences and requirements. This enables them to target specific target groups with marketing messaging and product attributes, boosting the likelihood of sales success.

They take advantage of market positioning to set their goods apart from those of rivals. The 14s-fr0012AU was positioned by HP as a sleek, high-performance laptop designed to fulfil the needs of students and professionals, and hence effective marketing also has a huge impact on consumer behaviour. HP established a favourable perception of the laptop through online marketing, social media campaigns, and product reviews, influencing my decision to consider it as a feasible option.

Pricing techniques, such as discounts or promotional offers, are used by producers to attract new clients and generate demand. HP's pricing was competitive, which encouraged me to investigate their product further.

When setting prices for their products, they also consider the concept of demand elasticity. They can establish the right price point that maximises revenue by analysing the price elasticity of demand for the 14s-fr0012AU laptop. If demand for this model is inelastic, which means that consumers are not particularly responsive to price changes, manufacturers may set a higher price in order to increase their profit margins.

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A variety of factors influence both consumers and laptop producers' decision-making processes. My personal tastes, academic needs, and budget constraints all played a role in my decision to purchase the 14s-fr0012AU laptop. I chose this model because I wanted a laptop with a powerful processor, ample storage, and a sleek design.

Laptop manufacturers, on the other hand, make decisions based on criteria like production costs, economies of scale, and market competition. These companies attempt to optimise production in order to reduce costs and improve profits. If the 14s-fr0012AU laptop's production costs were high, this could have influenced its pricing.

The decision-making processes are influenced by various external factors that affect both consumer choices and producers' decisions. These factors include:

·       Market Conditions: Factors like supply and demand, pricing trends, and competition in the laptop market impact the choices of consumers and producers like HP.

·       Technological Advancements: Innovations in laptop technology drive product design and features, influencing consumers to opt for laptops with the latest advancements.

·       Economic Factors: Inflation, currency exchange rates, and purchasing power affect laptop pricing and consumers' ability to make purchasing decisions.

·       Social and Cultural Influences: Peer influence and societal norms play a role in shaping consumer choices, and popularity among peers may impact the decision to purchase a specific laptop.

In conclusion, the process of purchasing the HP14s-fr0012AU laptop allowed me to experience firsthand the various challenges that consumers confront while making such choices. My purchase journey was heavily influenced by information asymmetry, budget limits, and external influences.

Other than that, understanding the microeconomic concepts that drive consumer behaviour provided useful insights into strategies employed by laptop companies. Consumer segmentation, demand elasticity, pricing, and other factors all had a role in the marketing of the HP14s-fr0012AU laptop, shaping its appeal to the target market.

These microeconomic concepts continue to influence market outcomes and the decisions we make as consumers when consumers and producers interact.

 

References

HP Store. (n.d.). HP 14s-fr0012AU Laptop. https://store.hp.com/in-en/default/hp-laptop-14s-fr0012au-2l1x7pa.html

Shastri, Aditya. “Extensive Marketing Strategy of HP - 2023 | IIDE.” IIDE, 21 Oct. 2022, iide.co/case-studies/marketing-strategy-of-hp.