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Observing the niche.
As the article observes, many pruchasers obtained the less expensive home / student version. In fact, given the $201 average purchase price, it's possible the majority of sales were of that low-priced version.

Microsoft observed open office and even WordPerfect trying to obtain the low cost niche market. (Microsoft usually innovates its products, not markets.)

So, thanks in part to open office, Microsoft will increase its profits by $100's of billions over the years. Open source does have value. ( wink )


Also, Microsoft has found $150 to be an acceptable price to home users. Better, apparently, than upgrading Works with Word for less than $100.

The acceptable price concept appears important to marketing. And, for most people, the acceptable price is not $0. Partly because they don't have to pay very often.
Posted by: Anton Philidor   Posted on: 02/13/07 You are currently: a Guest | Members login | Terms of Use

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It's been everywhere  Richard Flude | 02/12/07
funny  xuniL_z | 02/13/07
I've seen quite a magazine ads  voska | 02/13/07
cheese?  xuniL_z | 02/13/07
Yeah it sucked  voska | 02/13/07
Mac Zealot?  xuniL_z | 02/13/07
The difference between Office 2003 and Office 2007  rupaa62 | 02/12/07
Exactly!  3dguru | 02/18/07
Upgrades  dwsmith | 02/13/07
Makes sense  voska | 02/13/07
Observing the niche.  Anton Philidor | 02/13/07

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