I took a quick cruise through the eBay discussion boards just to get a feel for how Elmo is doing in the public opinion polls. It would seem that Elmo and the PS3 gaming console are less than the ultimate in popularity right now. The trouble centers not around the items themselves, but there's some negative sentiment regarding the alleged phantom shortages that we've been reading about.
The discussions center around two schools of thought. On the one hand we have the hard core capitalists (of which I am one), who say it's a market driven economy and holding back merchandise to create supply side value is a valid marketing concept and there's nothing evil about it. On the other hand we hear the social responsibility group whimpering that those wicked old merchandisers should release all available product to immediately bottom out prices.
Which group do you align yourself with? Are you one of the people who think controlling supply to enhance demand is an honest business practice? Or are you one of the people who think product should flow as soon as it is actually available? Remember that we're not discussing food items or heating fuel. These are toys which anyone can do without.
Give me your opinion. I promise that I'll tell someone about it!
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
12-12-2006 @ 2:38PM
Rob said...
The idea of holding back merchandise is a great marketing maneuver. For a week straight all I heard on the news were lines for PS3 releases and the subsequent shortage. Compared with the Wii, the PS3 received 10x the publicity. What I don't understand is the ongoing shortage. Sony needs to capitalize on the publicity during the Christmas season when people are okay with paying $600 for a system.
12-12-2006 @ 4:36PM
John Holman said...
I don't think Sony created a false shortage. The shortage of PS3s is a distinct disadvantage for them. Right now most avid gamers are comfortable with waiting until spring when they can walk into a store and pay retail. Only the fruits and nuts would be willing to pay double the price at an auction site just to have it now.
12-12-2006 @ 4:38PM
jojonyc said...
i agree - generating publicity and rewarding the hardcore fans who will wait in line is a decent reason to limit initial supply, but it is foolish not to hit the stores hard shortly thereafter to profit from the pent up demand. otherwise you are wasting a great opportunity and turning away potential holiday customers who will have no incentive to purchase in january.
12-13-2006 @ 1:16PM
fred flinstone said...
Personally I dont have a problem with a manufacturer holding back stock in order to keep the demand up,but their must be a fine line as to how long and how much of the supply is being held back,when it directly effects the prices by third party vendor's.
A place like Ebay that artificially drives prices beyond the reach of would be consumer's sparks resentment by those who out of diguist now goes to a competitor,Sony can keep their junk I for one will not fall for their bad marketing strategy it being the bussiest shopping season of the year I dont have the time to wait around for them to release more consoles in which they had several years advance in making the cases for them prior to its release,Sony this year to me is the Grinch!