Each Year Apple Computers Produces a New Line of IPods

question 41

Essay

Each year Apple Computers produces a new line of IPods with greater storage capacity and more features. Sales continue to soar even though the prices each year rise as well. Is this a refutation of the law of demand or is there something else going on here that doesn't meet the eye?

Recognize the strategies to overcome barriers to adoption and encourage product trial.

Comprehend how segmentation in the diffusion of innovation can impact marketing strategies.

Acknowledge the role of consumer behavior and social influence in the adoption of new products.

Learn the impact of marketing actions (e.g., demonstrations, free samples) in counteracting barriers to adoption.

---

Definitions:

Plant Capacity

Plant capacity refers to the maximum output or production that a manufacturing facility can achieve under normal conditions.

Variable Costs

Costs that vary directly with the level of production or volume of output, in contrast to fixed costs.

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including lease payments, wages, and insurance fees.

Variable Cost

A cost that grows in direct proportion to the volume of output or sales.