Mac vs Windows: Information Cascade or Direct Benefits?
In the last few lectures this week, we have been introduced to the reasons why people join crowds: most notably because of information effects or direct benefit effects. Information effects show how people have the natural tendency to join a crowd because of human nature’s curiosity and natural tendency to conform; it says the people will join crowds because they believe that the crowd has some information that they did not already have. Direct benefit effects are slightly different in that it says people join crowds because the fact of being in that crowd has some sort of benefit, thus affecting one’s payout if he or she joins.
Thinking about crowds immediately brought me to the fanatical fan bases of various companies, especially the infamous Mac OS and Windows camps. When we look back to buying a computer 10-15 years ago, we did not necessarily consider the direct benefits of joining either camp. Computers were bought based on the hardware in the machines and maybe the software that you needed it to run. People just bought a computer because either they heard good things about one side, or bad things about another. These operating systems had not become robust enough at the time for the decision to be extremely deep for the average consumer and generally we picked one through word of mouth or “information” we’ve accrued through various sources. We followed our outside information because maybe they knew something about the system we didn’t.
Yet in today’s day and age we these systems have expanded across multiple platforms, a trend that is continuing through the technology industry. Companies have realized that in order to gain loyalty and wide spread acceptance, they need to create comprehensive ecosystems. Apple is famous for this: when you buy a MacBook, there is a direct benefit of also buying an Apple TV, iPhone, and iPad because of the sync capabilities and interactions between the machines. Windows has acknowledged this success with the introduction of their Windows 8 ecosystem (which we all seem to hate). Even in other sectors of the industry we see this, with Samsung’s ecosystem of devices and the software interactions between their devices. And while the industry has shifted towards this, buying decisions are much more direct-benefit based than before. Do you choose a MacBook because you already own another Apple device, or go for the more powerful and more recommended Windows device?
I guess I’d just like to conclude with the fact that the average consumer today has many more choices to choose from in the market, especially in the technology sector. However, because of the way companies are starting to position themselves and their technologies, its no longer about buying the best machine, but being a part of the best ecosystem. We’ve switched from information-effect based to direct-benefit based decisions. I wonder if this is any better for innovation though?
Sources:
http://www.computerhope.com/issues/ch001238.htm
http://artbistro.monster.com/benefits/articles/11978-mac-or-pc-the-better-choice-for-designers?page=2