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Senior vs. Youth Cell Phone Feature Usage

Consider this scenario: Talkaphone, Inc. discovered that teenagers preferred text messaging and that senior citizens preferred cell phones that could take pictures. They also discovered that it was too expensive to provide the highest quality of both these functions in a cell phone so they decided to provide a second-tier level of quality, but included both features in the cell phone to appeal to both markets. From your perspective, what do you think is likely to happen?

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Talkaphone Inc. has taken a wrong decision by going in for a second tier level of quality. Consider this, if a teenager purchases a Talkaphone and uses it, the teenager will be dissatisfied with the phone because the text messaging function is of a second tier level of quality. The teenager will be dissatisfied with the performance of Talkaphone. The teenager will inform her friends and peers that Talkaphone is a phone of second tier quality and should be avoided. The teenagers in general are likely to be dissatisfied with the product and cease purchasing Talkaphone.

Similarly, consider the senior citizens. They are likely to be dissatisfied because the pictures ...

Solution Summary

This posting gives you a step-by-step explanation of why a firm should not lower the quality of its products. The response also contains the sources used.