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From: ark@alice.UucP (Andrew Koenig)
Newsgroups: net.taxes
Subject: Re: Companies *do* pay taxes
Message-ID: <6101@alice.uUCp>
Date: Tue, 23-Sep-86 19:27:32 EDT
Article-I.D.: alice.6101
Posted: Tue Sep 23 19:27:32 1986
Date-Received: Wed, 24-Sep-86 22:12:51 EDT
References: <755@mtx5w.UUCP>
Organization: Bell Labs, Murray Hill
Lines: 16

>> A customer making a choice between equivalent products made by
>> competing companies will choose the least expensive one (at least
>> according to the "rational person" premise of economic theory).

> I don't know what all the "rational person" premise says,
> but I do know from a few marketing courses that price
> isn't the only factor a person considers when making a
> purchase decision.  Any argument that starts from that
> premise is suspect in my mind.

Note the use of "equivalent" above.  I claim there are only two
things to consider when making a purchase decision: price and
value.  Price is usually fairly straightforward, but not always.
Value is usually pretty complicated.  For example, it may include
such things as the buyer's feelings about the seller, the probability
of repeat business as it affects service after the sale, and so on.