Determinants Of Computer Prices: A Case Of Selected Retail Outlets In Nairobi

Abstract

This report highlights the procedure and findings of a research carried out to establish the relationship between computer prices and some of their selected attributes. The survey was carried out in the Nairobi central business district. Respondents in 73 out of the targeted 103 outlets responded positively to a descriptive survey providing information which was analyzed to give rise to the survey’s findings. While computers have been manufactured for decades, in various shapes and sizes, some attributes have endured. This study examined how a computer’s brand, the brand of its processor, as well selected specifications, and the kind of computer affected its price. It is most likely that computers will continue to develop, but will retain the long established attributes examined in this study. Currently, concerted efforts are being made to reduce the cost computers either for competitive and social reasons. There are many initiatives aimed at availing computers to more and more people and the planned laptop per child program for public schools in Kenya is just one such initiative. In an established industry such as the global computer industry, developments often come about through continuous improvement leading to better quality products over the years – prices tend to drop while the capacity of products continues to be enhanced. The findings of this research demonstrate the areas that can be targeted through industry research and investment to make the most significant gains – in terms of lowering computer prices. The research showed the size of the hard-disk to be an important component of price. Regression models showed that about 25% of the computers price could be explained by the size of the hard disk. The aspect of branding has also turned out some significant findings – in terms of the brand of the computer itself, and the brand of its processor. Both were found to have significant bearing on the price of the computer.