I need a substantive response to this classmate’s post:
For this week discussion instead of going to a store I picked to check online stores, in this case, I selected amazon.com, honestly, I am not the kind of person that likes to go to the store or shopping, but I for this topic amazon.com is a good example about product comparison.
As a product, I choose a shirt in particular polo style, I found that there is an economy shirt at $ 12 (Amazon Essential) but then I found that the same shirt but with a recognized brand cost $ 70, I compared same color, style, size and composition (%100 cotton). If we compare logos the polo shirt from amazon essentials does not have any logo and the other one has the logo from Polo Ralph Lauren. About the shelves because this is an online store we can compare this with the position of the product if we look at this the polo shirt from amazon essential appeared in the first place as the best option and the polo from a recognized brand was on 12th position, (All my preferences settings were deactivated such as prime, delivery, cost, etc.). Normally these products are directed to people that want to save, also amazon wants to sell their products first, but if you are looking for more brands or trusted brands you have more options like Tommy, Under Armor, Lacoste, etc. As a narrower market even if you are buying from Amazon.com sometimes you look for trusted products, some people don’t care if they have to pay $ 70 dollars but they know that they are paying for a product that has a narrower market, also amazon essentials are only on sale on the web page but the rest of the brands you can find them in any kind of stores so We call this brand loyalty.
What did I learn about this activity and monopolistic competition?, I learned that we have a lot of options in terms of prices, we are not only directed to buy only one product or brand, sometimes the quality isn’t the same but you have other chooses.
In my opinion, if we have a lot of competitors we have a lot of chooses and we don’t have to pay higher prices, one good example was Tesla when they start innovating with their cars that help environment these cars were some expensive but now other companies are producing vehicles with the same power that helps the environment so the monopoly of this company is ending in some way because people that care about the environment have more option like Toyota in specific Toyota Prius that this car was in the market before Tesla takes holds the market but with the innovation of this company helped others to take action about this market, and now we have competitive prices.