Consider if enjoyment fades

Whether deciding to buy a new smart phone or a new camcorder, consumers often do not consider that the initial thrill of a new purchase will wear off over time, according to new research from the Yale Center for Customer Insights at the Yale School of Management (SOM). This finding may help explain why people overspend on frivolous items or expensive product features whose enjoyment will be short-lived.

In a series of experiments, the authors, Yale SOM professors Nathan Novemsky and Ravi Dhar, and doctoral candidate Jing Wang, asked participants to predict their enjoyment from products including plasma TVs, stereos and digital cameras at different points in time. They found that even when people believe they will enjoy a product less in the future as they use and adapt to it, they fail to apply that belief when making a purchase decision.

“People don’t automatically think about how their enjoyment from an item they are purchasing might change over an extended period of time,” said Novemsky. “They may judge the enjoyment of having a product by considering what it's like to acquire that product.”

When the researchers prompted participants to pay attention to time passage and the duration of using a product, it cued their beliefs about how their enjoyment from a product would diminish in the future. Those who were not prompted overestimated their long-term enjoyment. Once people thought about how they would enjoy a product less in the future, it shifted their product preferences away from higher priced choices with extra features whose enjoyment would quickly dissipate to cheaper, simpler options

“Ironically, our results suggest that marketers who highlight the duration of owning or using a product by emphasizing a positive attribute, such as durability or a 5-year warranty, might actually dampen consumer interest because consumers may think about how they will adapt to it over time,” said Novemsky.

Middle East HCP sales fall

The Middle East hardcopy peripherals (HCP) market recorded an alarming quarter-on-quarter drop in unit shipments in Q2 2008 of 6.8 percent. According to market research company IDC, the market’s value overcame the shortfall, however, to grow 4.1 percent quarter-on-quarter, following a change of focus from several vendors toward promoting higher-end products to achieve their value targets.

The overall market stood at around 825,000 units valued at approximately $327 million, driven primarily by the volume and value growth of multifunctional peripherals (MFP) shipments, which were responsible for 43.4 percent unit market share. Both single-function printers and copiers witnessed double-digit declines in unit shipments, which clearly reinforces IDC expectations of a stronger shift to MFP products in the coming quarters.

In terms of technology, inkjet devices recorded the biggest quarter-on-quarter unit decline at 14.6 percent, while shipments of monochrome laser products remained stable, growing 0.6 percent in volume over Q1. Color laser devices were the star performers, as shipments grew by around 11.0 percent in both volume and value for the quarter.

On a country level, Egypt was the fastest growing country in the region with quarter-on-quarter growth of around 26.0 percent in volume and 62.5 percent in value, reflecting the country’s strong potential and its healthy business environment. Saudi Arabia saw a slight quarter-on-quarter decline of 1.0 percent in volume, while the UAE posted a moderate 1.7 percent increase in unit shipments.

The changing dynamics in the market can mainly be attributed to growing uncertainty across the region, which has been fueled by increased inflation in several countries and a lack of consumer confidence. Several vendors had to review their short-term plans to accommodate the slower market, while others have adopted more dramatic precautions. There was a clear shift from lower-end single-function printers to MFPs, particularly in the retail sector, where the price gap between the two technologies has diminished tremendously over recent years. The shift to more advanced technology can also be explained by improved consumer awareness and an increase in the complexity of end-user requirements.

Use or abuse of technology?

In the form of a Web add-on or a standalone device, clocks that countdown to the inauguration of the next US president are cropping up everywhere. The Bush Countdown Clock can be added to Facebook profiles (www.facebook.com/apps/application.php?id=2384255757. A countdown clock is available as a Vista gadget that will show on your desktop the remaining days, hours, minutes and seconds until 12:00 EST on Jan. 20 2009, the last day of Bush’s presidency (www.softpedia.com/get/Windows-Widgets/Alarms-Clocks/Bush-Countdown-Clock.shtml. Firefox’s app is more sophisticated. Clicking on the countdown shows a more detailed timer and enables people to air their grievances on newprez.com. An icon shows when there is a new topic for discussion or a vote (https://addons.mozilla.org/en-US/firefox/addon/3792). The site National Nightmare (www.nationalnightmare.com) is offering the President Obama Hope Clock and George Bush Countdown Clock Keychains. The site notes, “As bad as it has gotten with war, deficits, injustice and just downright international embarrassment, at least there is hope!” Ten percent of the profit from each President Obama Hope Clock will be donated to Barack Obama’s campaign. Another site, ElectionKeychains (www.electionkeychains.com) is bipartisan. They offer both a McCain Countdown Clock Keychain and an Obama Countdown Clock Keychain — $12.95 per keychain, buy three get one free.

Apple’s iTunes is also bipartisan showing Countdown Apps from Spiffyware for the iPhone featuring either an Obama or a McCain inauguration countdown. One disgruntled Obama supporter noted that purchasing this app doesn't actually help the candidate’s campaign since the money paid for the app goes to the developer. Well, bravo for that! At least someone deserving is profiting from this election.