How Quality Maneuvers the Rise and fall of High Tech Products
It is thought that products that have a loyal base of followers would always trump over other smaller but higher-quality products, but that is not often true. Recent research has found that situations are reversed when it comes to the popularity of the products.
There is a reason why android phones have started to do better than iPhones. We are slowly witnessing a decline in affection for these products. Though Apple has an array of products that have witnessed massive success within the tech industry, Android companies are stepping up their game and bagging more profits than Apple did a couple of years ago. This phenomenon is called the network effects where the users of a product benefit heavily from its features, especially compared to the products they already use.
Within economics, the conventional wisdom dictates that the network effects can often overwhelm the considerations of quality. This enables the early entrants of the market to take over it even if they have inferior products. A lot of economists have concurred that the new customers would choose their brand mostly based on the direct and indirect benefits of accruing from the network of current users, rather than just from the intrinsic quality of the brand.
How does quality affect the faring capability of a brand?
If network effects were the aspects that would describe a brand’s fame amongst the mobile phone users, then the early entrants would remain market leaders, and there would be absolutely no competition. People want the best of everything. They expect to progress and have the products they use to evolve as well. Usually, people want brands to predict what they want and produce a product that would make their life more efficient. The reason why companies like Cre8 Sounds is able to retain its customers is because of their constant focus on quality. The US-based audio devices producing company has been building a reputation around itself. They currently have Bluetooth earbuds, power banks, and wireless speakers in their portfolio and are constantly expanding. Well known celebrities like Lil bow wow, Sam Asghari, and Sean Kingston along with some professional athletes have been shown to be using their products often.
