Bill Jones Has Decided to Purchase a Printer

question 29

Essay

Bill Jones has decided to purchase a printer.He has narrowed the choice to two: Brand A and Brand B.Both brands have the same speed and use the same type of paper.Both come from companies with good reputations.The selling price for each is identical.After some review,Bill discovers that the cost of operating and maintaining Brand A over a three-year period is estimated to be $300.For Brand B,the operating and maintenance cost is $150.The sales agent for Brand B emphasizes the lower operating and maintenance cost.She claims that it is lower than any other printer.In addition,she provides Bill with a copy of an article appearing in a PC magazine that rates service performance of various printers.Brand B is rated number one.
a.Which brand should Bill buy? Why?
b.What is the total product purchased by Bill?
c.What does it mean to obtain a competitive advantage? What role does the cost management system play in helping to achieve this goal?

---

Definitions:

Demand Characteristics

Cues in an experimental environment that communicate to participants how they are expected to behave.

Ambiguous Pictures

Images designed to be open to multiple interpretations or to create visual uncertainty.

Duck/Rabbit

An ambiguous image that can be seen as either a duck or a rabbit, used to discuss perceptual shifts and cognitive processes.

Mental Images

Visual representations in the mind that are not currently being perceived through sight.