In the market of razor and blade, some consumers own multiple razors like owning Gillette and Schick razors at the same time. Consumers then have to decide which razor to use for shaving when they own multiple razors.
Questions arise: (1) What is the percentage of consumers who own multiple razors? (2) Would the majority of consumers keep using the same razor even if they own multiple razors or they switch quite often?
Hi, Jianhui:
Perhaps this issue can be explored from a pricing perspective (particularly from your original project question #2) as to why consumers continue to use same razor and or switch! A recent research study (Dhebar, 2016) argued that from razors and blades to printers and ink cartridges to smartphones and monthly usage charges to media devices and content, razor-and-blades pricing is commonplace.
The argument for such a business model is compelling: entice consumers to adopt with a low initial price for the ‘razor,’ build up an installed base, and more than make up for the initial subsidy by charging a high price for replacement ‘blades.’
The problem is, many consumer enticement, customer lock-in, and competitive lock-out mechanisms look less and less tenable given modern-day developments such as the Internet, Google searches, social media, the hacker revolution, the ‘maker movement,’ rapidly improving technology, leaky supply chains, and global markets.
This study characterizes the what, why, and how of razor-and-blades pricing; then examines the present-day tenability of such a pricing practice; and concludes with an impetus and a call for innovation—innovation in, perhaps, the pricing of and the purchasing arrangement for the initial razor; the value proposition from the razor and the razor-and-blades system; the architecture of the razor-and-blades system; and the delivery, especially in terms of customer experience, of value from the razor-and-blades system!
- Dhebar, A. (2016). Razor-and-Blades pricing revisited. Business Horizons, 59(3), 303-310.
Hope this helps!
Kind Regards, Nadeem
I dont think so. Although, there are plenty of confused customers in the razor industry but they dont often switch razors due to congruence with their skin. If one razor is congruent with their skin they dont like to switch to another brand.
Should vary within consumer groups. Based on psychographics for instance for a metrosexual a razor would hold a completely different meaning as compared to someone who is looking for just decent.
Another dimension could be skin type and dermatological consderations. Also frequent travellers may use schick for on the go whereas gillette for regular use,
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