In terms of　Economics Why is Nintendo DS chosen - Essay Example

BANDWAGON I Introduction A General issues: economics, supply and demand, their effect on high- technology and entertainment goods. B Thesis ment “Looking at microeconomics, through case example, one can see the clear influence of the bandwagon effect on the sales of Nintendo DS: as more people have bought the system, this has increased commodity preference, leading to a disruption in the normal system of supply and demand curves, as well as traditional marketing channels.” II Body—A, B, C, and D should relate to thesis above A Background of Nintendo DS—sales and marketing patterns, growth 1.

Explain popularity of the gaming system and brand loyalty to Nintendo; why do people buy Nintendo? Is it because of advertising or because they see their friends with a new system? 2. Show how sales growth on the DS system has proceeded in recent years—Nintendo should post SEC papers, showing their yearly performance accounts. B The bandwagon effect explained—economics 1. Explain the bandwagon effect and give an example—people keeping up with the Joneses, etc. “In microeconomics, bandwagon effect describes interactions of demand and preference.

The bandwagon effect arises when peoples preference for a commodity increases as the number of people buying it increases” (Rohlfs and Varian, 2002, 137). 2. Apply the bandwagon effect to video game systems—think of the target market (children and young adults), their buying power and how it is associated with their parents’ wallets—how “fitting in” is very important at these age stages, leading to more of a bandwagon effect. C Normal and disrupted S/D curves 1. Explain and show how you can understand S/D curves—S is Supply and D is Demand.

These are basic graphs—demand goes up, supply goes down, vice-versa. Price and preference are assumed to be the main reasons that people utilize supply and demand. 2. Show how Nintendo DS, due to the bandwagon effect, disrupts this normal process, because demand is being artificially created and has nothing to do with supply. D Normal and disrupted marketing channels1. Normal marketing channels— TV during children and young adults’ programming, sponsorships, publications.2. Show how Nintendo DS, due to the bandwagon effect, has disrupted marketing channels through the bandwagon effect, leading to alternative channels—word of mouth, etc.

replace the above channels. 3. Focus on analyzing Nintendo DS advertising—what are the commercials like? Are/were there special/seasonal promotions (Xmas, new game releases, etc.)? III Conclusion A Restate thesis statement—show if you have supported or contradicted your assumptions through research; state ideas for future research efforts. REFERENCERohlfs, J and H. Varian (2002). Bandwagon Effects in High Technology Industries. New York: Hyperion. BONUS: Here is a link for Nintendo DS sales figures: http://www.nowpublic.com/money/nintendo-announce-wii-and-nintendo-ds-sales-figures