GROUP3

 Some of the related products of ipad includes the optional keyboard dock, ipad cases, Dock Connector to VGA Adapter etc which are complement goods to the ipad. Complements are goods for which the use of one good requires the use of another. If the demand of the ipad increase, the prices of its complements (keyboard dock, cases,Dock Connector to VGA Adapter) will decrease. This is because, when the demand of the ipad increases, the company will expect an increase in the demand of its complements, hence causing an increase in the supply of its complements beforehand. This will result in a drop in the price of its complements, hence demonstrating the concept of complementary goods. For example, when the price of iPad increase, the quantity demanded of iPads will decrease, leading to a decrease in the demand for its complements. Hence the price of complements such as the optional keyboard dock will decrease in order to ration more consumers in to minimise loss.    The other type of related products include Samsung Galaxy Tab, Acer iconia Tab A100 Android Tablet and HP Slate 500 Tablet PC. They are known as substitutes, products that satisfy the same wants or needs. As the prices of these substitutes are relatively cheaper compared to the iPad and they are considered close substitutes, consumers will be more willing to buy these substitutes such as the Samsung Galaxy Tab. Hence the demand of iPad will decrease with these competition. However, due to people’s taste and preference as well as their loyalty to Apple, most are still willing to purchase iPad despite its higher price.   (conceptual error here - Rise in dd for complementary products leads to rise in SS and hence falling price??). Good egs of complementary products brought in. But what is your focus here? The market for iPads or the market for complementary products? Does related products refers to complements only?  Credit: http://news.bbc.co.uk/2/hi/8603599.stm http://en.wikipedia.org/wiki/Ipad http://ipadinformation.org/ ||  ||
 * ~  ||~ Student's post ||~ Teacher's comments ||
 * Project A || The idea of ipad started with Apple's Newton Message Pad 100, which was first introduced back in 1993. But today's ipad was actually released on April 2010. The interaction of demand and supply determines the market prices of the ipad. The reason for the high price of ipad is due to the overwhelming demand for it internationally, along with its relatively lower supply. Any evidence to substantiate these 2 points?  The initial supply of iPad will be low when it was just introduced because producers are uncertain of the consumers’ response to the new gadget, the iPad is high due to previous advertising. This can be seen from the long queue of people camping overnight near the Apple stores during the day of iPad release just to secure their ownership of the new iPad. Research shows that more than 300 000 iPads were sold on the first day in US.  <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">With a relatively lower supply (perhaps due to supply remaining constant), the price of the iPad will have to increase in order to ration some consumers out of the market, otherwise, there would be a shortage in the iPad market. Why would SS of iPad remain constant?
 * Project B || IPad was introduced in April 2010 as the first ever tablet computer. And, there are many factors affecting the pricing and marketing decision of iPad.

<span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"> From the consumer’s point of view, the prices of the iPad’s substitutes are one of the factors affecting its pricing and marketing decision. Recently, after the iPad was introduced, many analogous products have been developed. For example, the Samsung Galaxy Tab, Acer Iconia Tab A100 Android Tablet. Moreover, Google gives away Android for free, hence, the price of the Android Tablet is relatively low as compared to that of the iPad. For example, one Android Tablet produced by Acer costs only $299 in US but one iPad costs $499. Also, the iPad is considered a luxurious item, hence, should the price of the iPad increase, a significant number of people would switch to relatively cheaper substitutes like the Samsung galaxy tab. Hence, as rational consumers, we would prefer to purchase an Android Tablet instead of an iPad due to its lower price, hence causing the demand for iPad to drop and hence, the equilibrium price of the ipad will fall followed by the fall in the amount supplied. For example, if the price of the Samsung Galaxy Tab increase, demand for it will drop. Thus,people will switch to substitutes such as the ipad. Hence the demand for ipad will increase, causing a rightward shift from Do to D1. Hence, this raises the equilibrium price as the supply remains constant, ceteris paribus. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">               <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">(Rise in price of iPad causes fall in dd for iPads and hence fall in price again? What is this about? Incorrect economic analysis) <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"> This will hence affect the pricing decisions of the ipad, where Apple may have to consider lowering the price of the ipad in order to stay on a competitive level price-wise with its substitutes, hence attracting its more consumers to purchase the ipad again with its lower price. <span style="color: #0001ff; font-family: 'Times New Roman','serif'; font-size: 12pt;">Appropriate pricing strategy! <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"> Also, from a consumer’s point of view, as there are more and more tablet computers out there in the market, there would be other factors other than price that would affect my choice. For example, good reviews of the ipad would be important to us now, such as in what way would the ipad be better than the other substitutes. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">(Which factor is this? How is this a recent development?) Hence, the producers should adopt some marketing strategies such as approach reviewers to offer glowing reviews of ipad as well as lend out review units of the iPad to outlets that don’t usually receive pre-releases, in order to get the iPad out to more media outlets than usual. Also, producers should also advertise more of the only-for-ipad games to garner more consumer’s attention as these are what consumers are interested as well-how effective is ipad as a form of entertainment as well as for work. Hence, satisfying more consumer’s curiosity as to how good the ipad is. Hence, further leading to more of us consumers wanting to buy the ipad as we know more about it and how good it is, leading to demand of the ipad being higher, which will prove the effectiveness of this new marketing strategy. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">Good point! <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"> Now, looking from a producer’s perspective, technology is advancing at much faster pace nowadays. With the improved technology aid, more ipads can now be produced efficiently with the same amount of input as before. For example, the production of ipad produced by faster and improved machines and this greatly increases the efficiency of ipad production. This will thereby result in a lower unit cost of production of ipad and earn a higher profit per unit of ipad sold. This will motivate me, as a rational producer to make the decision to increase the supply of the ipad by producing more so as to earn more revenue from the high demand of ipads, which are luxury goods. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">(Why relate to luxury goods here?) Hence, with the increase in supply and a relatively constant high demand, I as a producer will lower the price of the ipad in order to attract more consumers with my lowered price, hence increasing my quantity demanded. Firstly, the income effect of the decreased prices of the ipad is that a given income can now buy more units of ipads and the purchasing power of consumers will therefore increase, attracting more consumers to purchase the ipads. Also through the substitution effect in which, ipads although known as luxury goods, with its decrease in price will result in more people choosing to buy more units of them instead of relatively normal goods such as the Kindle. Thus, this is one of a change in pricing decision I can make to increase my profits as a producer. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">Well done! I'm impressed by the accurate interpretation of the requirements of the report and the sound economic analysis that your group as demonstrated! <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"> Next we focus on a rational producer’s perspective marketing-wise. Previously, the ipad was relatively more popular amongst the working population. However recently, there seems to be an increase in number of youths being interested in such android/smart phone devices, it would be wise to target these youths as well. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">(Evidence??) We can do it via the television, by getting popular television serials like The Vampire Diaries or Glee <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">(ohh..i love Glee!) to endorse the ipad. This will appeal to our intended audience which are today’s youth. With an iPad-centric episode, more attention would be placed on the ipad and as youths become more hyped up about it, it would soon become an “in” product and demand of ipad would naturally follow. As such, as the demand for the iPad increase, I as a producer will see an increase in my profits. This will also lead to my ipad becoming more price inelastic as consumers do not readily switch to substitutes, possibly due to the ipad being now used as a “fashionable device” so hence lead to a decrease in substitutability with other tablet computers. <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">Is this appropriate under recent devt in SS side? the focus seems to be on dd side. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">Conclusion? What strategies would your group recommend? Justify. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> In conclusion, a rational decision would be to decrease the price of Ipads since it better benefit both parties- the consumers and the producers, maximising the consumers’ satisfaction and profits and producers. Thus this is a win-win solution. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> Credit: Only 1 source?? [] ||   ||
 * Presentation materials || [[file:sb.pptx.lnk]] || Diagrams? ||

Group members: Lim Jia Ying, Teng Kai Wen, Ng Jun Ming, Dai Chu Peng, Lee Wei Liang, Jonathan Ng

Ms Quek: I like the practical and well-supported strategies that your group has recommended. They are backed by sound economic reasonings. The intent of the report has been fully grasp too! Good job! It gain more credit, it'll be good for your group to think about some evaluative comments to demonstrate higher order thinking skills.