Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Vera has decided to upgrade the operating system on her new \(\mathrm{PC}\). She hears that the new Linux operating system is technologically superior to Windows and substantially lower in price. However, when she asks her friends, it turns out they all use PCs with Windows. They agree that Linux is more appealing but add that they see relatively few copies of Linux on sale at local stores. Vera chooses Windows. Can you explain her decision?

Short Answer

Expert verified
Vera's decision can be largely determined by peer influence and availability in stores. While Linux might have better features, Vera's friends, who all use Windows, might have praised the user-experience with Windows. Plus, seeing fewer Linux options in local stores implies that getting technical support or guidance for Linux could be more difficult. Consequently, she chose Windows over Linux.

Step by step solution

01

Analyze Vera's Initial Preference

Vera initially considers Linux as her first choice based on its technological superiority and lower cost.
02

Consider Peer Influence

Upon consulting with her friends, who all use Windows on their PCs, Vera potentially considers their user experience and suggestions. The trust in her friends' opinions might play a significant role in evaluating her options.
03

Evaluate Market Availability

In addition to her friends' opinions, Vera notices that Linux copies are rarely seen on sale at local stores. The accessibility and ease of purchase for Windows may have influenced her final decision.
04

Make the Final Decision

Considering her friends' preference for Windows and the less availability of Linux in the market, Vera decides to go for Windows. Despite the technological superiority and lower cost of Linux, Vera prioritizes the accessibility and peer recommendation over those factors.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Peer Influence
Consumer decision-making is often greatly affected by peer influence. This is especially true when the decision involves technological products like computers or software. Peers play a role in shaping preferences through sharing opinions and experiences.
For Vera, consulting her friends who are Windows users gave her insights into the operating system's everyday use.
This influence occurs because people generally trust those with whom they have personal relationships, valuing their opinions more than impersonal reviews or advertisements.
  • Peers provide recommendations based on personal experience, offering real-world use cases.
  • They can also suggest what they think would be best based on your specific needs.
  • There's a sense of safety in choosing what others approve of, especially if they have similar needs to your own.
In Vera's case, even though her friends acknowledged Linux's appeal, their use and approval of Windows created a convincing scenario for its choice.
Market Availability
Market availability can significantly impact consumer choices, as seen in Vera's decision process. When a product is readily available, it often becomes more convenient to purchase, encouraging consumers to select it over others.
In Vera's situation, the lower visibility of Linux in local stores played a crucial role. The lack of Linux on shelves might have led her to believe that support or resources for Linux might be similarly scarce.
Convenience in purchasing is a driving factor of market availability:
  • Easy access means finding the product in nearby stores or having quick delivery options.
  • High availability often indicates popularity and possibly better post-purchase support.
  • Consumers may prefer familiar shopping experiences, choosing the products they see more frequently.
For Vera, these factors pointed towards Windows, which was more accessible and seemed to ensure better availability of support materials and purchasing ease.
Technological Superiority
Technological superiority is a significant consideration for tech-savvy consumers like Vera, who initially opened to the idea of Linux due to its advanced features and cost-effectiveness.
Technology today is essential in helping software stand out, offering features that improve user experience, enhance efficiency, or provide novel capabilities. Even if a product is technologically advanced, however, it doesn't always secure consumer preference. Tech superiority considerations include:
  • Access to advanced features that competitors might not offer.
  • Long-term cost savings through better performance or energy efficiency.
  • Potential future-proofing, staying ahead with cutting-edge technology.
Vera's decision demonstrated that while technological superiority is attractive, it can be outweighed by factors like peer influence and market availability, which appear to offer more immediate practical benefits.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The demand for bridge crossings \(Q\) is given by \(P=15-(1 / 2) Q\) a. Draw the demand curve for bridge crossings. b. How many people would cross the bridge if there were no toll? c. What is the loss of consumer surplus associated with a bridge toll of \(\$ 5 ?\) d. The toll-bridge operator is considering an increase in the toll to \(\$ 7 .\) At this higher price, how many people would cross the bridge? Would the toll- bridge revenue increase or decrease? What does your answer tell you about the elasticity of demand? e. Find the lost consumer surplus associated with the increase in the price of the toll from \(\$ 5\) to \(\$ 7\)

The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic consulting firm to estimate the demand for tickets. The firm has classified people who go to the theater into two groups and has come up with two demand functions. The demand curves for the general public \(\left(Q_{g p}\right)\) and students \(\left(Q_{s}\right)\) are given below: \\[ \begin{aligned} Q_{8 p} &=500-5 P \\ Q_{s} &=200-4 p \end{aligned} \\] a. Graph the two demand curves on one graph, with \(P\) on the vertical axis and \(Q\) on the horizontal axis. If the current price of tickets is \(\$ 35,\) identify the quantity demanded by each group. b. Find the price elasticity of demand for each group at the current price and quantity. c. Is the director maximizing the revenue he collects from ticket sales by charging \(\$ 35\) for each ticket? Explain. d. What price should he charge each group if he wants to maximize revenue collected from ticket sales?

By observing an individual's behavior in the situations outlined below, determine the relevant income elasticities of demand for each good (i.e., whether it is normal or inferior). If you cannot determine the income elasticity, what additional information do you need? a. Bill spends all his income on books and coffee. He finds \(\$ 20\) while rummaging through a used paperback bin at the bookstore. He immediately buys a new hardcover book of poetry. b. Bill loses \(\$ 10\) he was going to use to buy a double espresso. He decides to sell his new book at a discount to a friend and use the money to buy coffee. c. Being bohemian becomes the latest teen fad. As a result, coffee and book prices rise by 25 percent. Bill lowers his consumption of both goods by the same percentage. d. Bill drops out of art school and gets an M.B.A. in stead. He stops reading books and drinking coffee. Now he reads the Wall Street Journal and drinks bottled mineral water.

A consumer lives on a diet of solely steak and potatoes. Her budget is \(\$ 30\) for every 10 days, and she must buy enough potatoes to eat at least two potatoes per day. a. A potato costs \(\$ 0.50\) and the price of a steak is \(\$ 10\). How much will the consumer purchase of each good? b. Now suppose that the price of a potato increases to S1. How much will the consumer purchase of each good? c. Now suppose that the price of a potato increases to \(\$ 1.25 .\) How much will the consumer purchase of each good? What kind of good is the potato? e. Would you expect the demand curve for potatoes to continue to follow this trend indefinitely? Why or why not?

a. Orange juice and apple juice are known to be perfect substitutes. Draw the appropriate priceconsumption curve (for a variable price of orange juice) and income-consumption curve. b. Left shoes and right shoes are perfect complements. Draw the appropriate price-consumption and income-consumption curves.

See all solutions

Recommended explanations on Economics Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free