#!markdown
I might argue that in this case brand has become more important as quality has
become more consistent. Essentially if everyone makes good bikes with similar
geometry etc. the only things left to differentiate are brand and price.
Pricing is still fairly non-elastic across brands seeing certain brands can
charge massive premiums for bikes that perform similarly to others that sell
at much lower prices. Had brand lost its power that wouldn't happen. Look to
the airline industry as an example where brand has lost nearly all power.
People almost exclusively shop by price, you will see massive shifts in market
share based on price differences of 1%. The marketing managers at cyclings
winning companies should go and ask for a raise.
June 14, 2016, 12:17 p.m. - Humanpowered
#!markdown I might argue that in this case brand has become more important as quality has become more consistent. Essentially if everyone makes good bikes with similar geometry etc. the only things left to differentiate are brand and price. Pricing is still fairly non-elastic across brands seeing certain brands can charge massive premiums for bikes that perform similarly to others that sell at much lower prices. Had brand lost its power that wouldn't happen. Look to the airline industry as an example where brand has lost nearly all power. People almost exclusively shop by price, you will see massive shifts in market share based on price differences of 1%. The marketing managers at cyclings winning companies should go and ask for a raise.