Best mobile and turbo tech inc. are two competitors in the mobile phone market. the cost incurred by each company to manufacture smartphones is $200 per unit. although both the companies sell their smartphones at the same price, turbo tech has a larger market share in the laptop industry. what does this imply

Turbo Tech has been able to offer more perceived value than Best Mobile.

Explanation:

Before making a purchase, there are two main questions that will be considered by most customers

1. Can I afford the price ?

2. Is the price of the product will be worth the value of the product I'm getting.

If they decided to purchase a product that they never purchased before, they would not be sure about the value of the product that they about to but. Because of this, consumers will make their own initial evaluation toward the benefit that they can get from a certain product. This is what we referred to as perceived value.

From the case above, both Best mobile and Turbo Tech sell similar products, with an exact same price. Because of this, the difference of market share can be fully explained by preferred value between the two products (refer to the first main question above)

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