Thursday, April 24, 2014

The Compelling Story of Headphones

The Compelling Story of Headphones

Nick Manriquez

Almost every day, headphones and ear buds are used throughout the human race for a variety of reasons. Whatever the reason may be to use these sound compelling inventions, from listening to audio books or just music itself, they have truly come in handy in many industries and with enjoyment for the consumers who would like to purchase a pair. However, with such a wide variety of these music blasting machines, comes with a monopolistic market that allows people to compete with making very similar of the same item, but in using different styles.
It goes into a little more than just styles though with the competition throughout the marketing floor. More people would prefer to purchase a pair that has a higher reputation within this field such as “Beats” by Dre or Skull Candy. So one might ask, how much of a difference does being a well known brand really make?

www.stanford.edu/class/ee15n/Headphones.doc‎

As you can see, Apple is the brand of headphones that are being purchased most by the consumers. This may be because the headphones Apple sells all come along with the purchase of an Iphone or Ipod. Word of mouth gets around town and the next thing you know, Apple begins to dominate the headphone market. This also may be because Apple headphones sell for the low price of $29.99 for a single pair when the rest of these brands can only be purchased for a much higher price than Apple. Also, Apple might have more of a uplift with their quality than other headphone brands. Overall, when you have the low prices people want, quality, as well as some good marketing tactics, Apple is leading in sales in this very competitive market.

http://brandsandfilms.com/wp-content/uploads/2011/03/Sleek_Amazon2.jpg


When looking at this graph, you can see that not only do different brands of headphones compete in pricing, but also with the number of products they choose to put on the market. Brands such as Monster, Pioneer, and Sony are set at lower prices than some of their competitors, but have a limited number of products available. Whereas with some competing headphone companies such as Ultrasone, Sennheiser, and Beyerdynamic, we can see that the number of products put on the market increases. This may be because people who can only afford to buy the cheaper headphones are only going to buy one pair to use until the product absolutely can’t function anymore. On the other hand, the people who buy the more expensive headphones can afford these luxuries and are going to be searching for new products to spend their money on. Since this is such a competitive market across the world, companies have to know how to market their brand to the key consumers they are trying to obtain.

After gathering all of this information it all comes down to one final solution, buy a pair that you find most affordable to you and that will give you the most bang for your buck. Don’t fall into buying the most popular brand that just looks cool but a pair that will be most efficient for you and what you would use them for.

40 comments:

  1. I agree completely with you. People shouldn't throw their money to the things that will build reputation but invest in something that will satisfy you yet not digging a hole in your pocket. And how do these headphones compare in quality?

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  2. The idea that so many people are simply making different versions of the same thing is genius because it creates competition. This is happening everywhere, for example, we have hundreds of pizza joints, grocery stores, or in your example many different kinds of headphones. Knowing that many people are making the same thing as you creates the drive to make sure that your version of the product is the absolute best, considering there are many other places people could go to purchase what you are making. You also have to be careful about pricing; although your product may be better than the rest, you can't always charge people too much more for it, considering this will greatly decrease the amount of customers you bring in. A balance of a good price and a good product are the two key factors in any successful business.

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  3. So, the first thing I would like to comment is that according to your graph, the most bought brand of headphones is Bose, not apple based on the color. I do agree that you should get headphones that suit your lifestyle. Personally I love my parents Bose quiet comfort headphones for both their noise-cancelling technology and sound quality. Also I feel like a person should also make sure that the headphones you purchase are durable to last for the long run, because I bought a pair of cheaper Samsung headphones once, only for them to fall apart within a matter of two months, while the headphones which I have now are still in great working condition from when I bought them. Therefore, I do agree with some of your points, but sometimes investing a little more money into headphones that will last longer can be worthwhile.

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  4. I’m glad that you wrote you’re blog post about this because I've recently dealt with a dilemma that related to the purchase of “beats” headphones. I've been using beats for a while now but I personally believe that they aren't worth their market value. A pair of $15 Sony headphones have the same quality as a pair of $200 beats maybe even better quality actually. This is because I've replaced by beats at least 5 times now and when I used to own the cheaper Sony headphones I rarely had to replace them. It’s all a marketing scam just like most things in the world. It’s the same situation with the “Missy Me” jeans and “Uggs”. It’s just the name that people get pulled into. Other than the name there is no greater value to these more expensive items over the cheaper items. So just be smart about it and don’t get pulled into the scam like most people do.

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  5. There are so many brands of headphones and that gives consumers variety and the companies competition. The competition is good for the economy, but some of these companies way over charge for the product such as Apple, Paying $29.99 is far too much for a pair of headphones when you could buy a pair for $5 at Walgreens or $10 at Wal-Mart so Apple is actually over charging for headphones. If you are looking for Beats by Dre then I understand why there is a high price because they are very good quality and Apple just has average headphones.

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  6. I liked your topic a lot. I really think it's outrageous how expensive some of these headphones cost. The beats headphones are 200-300 dollars and the quality of them are not so good comparing to a company like Bose who has the same prices but better quality. I wonder if apple has the most headphones sales because everyone has an iPhone and the headphones comes with. Basically everyone owns at least one pair of apple headphones. To me spending hundreds of dollars on headphones is not worth it, I am perfectly fine with cheap ear-buds.

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  7. The headphone market does seem very monopolistic. They all do the same thing; however, there are different styles. Such as over the ear, on the ear, or ear buds themselves. And it is quit obvious that the name on the head phones can be a clear indication of the purchase you make. But most people go through cheap ear buds very quickly. They don't care as much about them and tend to loose them or break them without very much concern; however, If a person purchases an expensive pair they will be more likely to care for them and keep them safe and functioning. And although a name such ass "apple" might help you sell more headphones to the masses, people who rely on the best sound quality, either for their job or hobby, would be more likely to buy from a less known brand with a higher quality. But it is still very interesting to see how much it depends on just the name of the company that makes the headphones.

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  8. I haven’t really paid much attention to the headphone market as I should be. It astonishes me that there is so much copycat products in this market, you don’t know which company is selling a better product or they are trying to rip you off. Apple leads the way with this market because when someone buys a cell phone, they automatically get a pair of headphones with their Smartphone. That move is a very well thought out and strategic move on their part, which will make them have better revenue because of how many people buy smart phones every year. All in all, I think that Apple will take over the headphone market based upon how many people are eager to buy their own Smartphone and have a pair of headphones included, which will make them a powerhouse in the years to come.

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  9. I agree that when it comes to head phones you should not go with the pair that’s the most money. Just because they are a lot of money does not mean that they are a good pair. You could end up spending $100 on a pair that you think are the best pair of head phones in the whole world and then you find out that they ether don’t sound right to you are they hurt your head while wearing them or something so you never use them. That was $100 that went to nothing.

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  10. Apple is practically taking over the electronics business. Almost everything now is made by apple. For example, computers, phones, MP3 players, headphones, etc. Also I believe that they sell the most headphones is because they are the strongest and they don’t break as easy. They are more expensive but they have a better quality.

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  11. Honestly I don't even buy headphones anymore because I lose them or break them right away, which is accurate for the first consumer you talked about. However I feel as if the consumers that buy the more expensive headphones aren't always the richer ones, but maybe the ones who listen to music more. Also I didn't even know that Apple made headphones besides the cheap pair that they include with the purchase of one of their iphones or ipods. It makes me wonder if the ones that they include for free are the same as the ones they sell, and how much profit they gain off of selling them if they are willing to give them away for free.

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  12. This is a very interesting post. It's crazy how much people will spend on headphones. The demand is so high for headphones today because with technology increasing the companies that produce the headphones can make them sound better or last longer. I don't really use headphones all that much so I can't say what brand I like the most. For me, a cheap pair of headphones will be fine, I could never waste 100-300 dollars on a pair of headphones.

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  13. It was a very cool topic and I completely agree with you. Headphones are one of those products everyone has and half the time people are just paying for the name brand, when the cheap ear buds produce a sound so similar you cannot tell the difference. Two hundred to three hundred dollars for headphones is crazy, but with all the advertising and marketing done to suck people into buying them. It makes sense why they are still in stores at high prices. The free pair of ear buds that came with my phone work just fine.

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  14. I have no clue why people have to buy the most expensive headphones? Personally, I would take my 15 dollar ear buds over beats any day. The headphones I have cost around $3 to make and for $15, I know I am not wasting my money. Beats cost about $5 to manufacture in china and are sold in retail stores in the USA for $300+. Which is really the better headphone?

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  15. Its crazy to think that such a small item, could cost so much money. And it definitely makes sense that Apple basically at the top since, like you stated, a pair of headphones comes with every ipod, or iphone. People start talking about how good the headphones are that they get for free and more people want to see how it works for themselves. It's a great marketing strategy. But at least those headphones are cheaper, unlike their competitors, Beats by Dre. I for one would never spend $200 on a pair of head phones. I am completely fine with my $15 marshmallow headphones from Walmart. As long as they do the job well, then i'm all for it. But that's just me. I also, believe that the brand is not important (unless it's on sale or clearance) and that you should not just waste your money away to have the most popular items.

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  16. Peoples purchasing habits are very much influenced by the people around them. If my memory serves me right, I don’t think people even really cared what kind of headphones they had until about one or two years ago. When one type of product gains popularity and those around you begin to buy that product you feel pressure to get one for yourself. One of the most important aspects of marketing a product is not what is done by the company but what is done by the consumers and that is word of mouth. We trust our friends and families opinions far more than anyone else and if they buy a product it is likely that you will buy it too. Thus a domino effect occurs and an entire sector that was once barely in existence can grow ten fold economically where some other products may lose interest with people and become non existent. Headphones are a perfect example of this. The increase in the amount of success for many headphone companies can be related to the increase in demand that industry has seen.

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  17. This is a really interesting topic because it seems like almost everyone in the United States owns a pair of these. It's clear that Apple is leader in this industry. The release of the ipod was paired with the release of a new form of headphones. Apple has targeted something new in consumers, a connection to the consumer desire for convenience and the desire to hold all the things we love in the palm of our hand. I think Apple's lead in sales of headphones has a lot to do with the products they have released simultaneously that have catered to the demands of consumers. Other brands of headphones just don't have the same background, and that makes all the difference.

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  18. Wow, I never thought that headphones could bring in so much money and be considered such a big market, but if you think about it almost everyone in the school has some type of headphones. It is a really good market to dominate because without music I believe everyone would be less likely to be happy. In school having music to work to makes everything more productive. I just thought headphones were a simple necessity to a students life. Turns out its a whole new world.

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  19. When you think of it, headphones is something that has a lot of competition with it. Also, I have bought a couple pairs of beats ear buds and they have broken within a year! Sometimes the brand names do not have as much quality has some of the off brands. It makes you think that if some of the brand name companies are paying much attention to the quality of their product

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  20. Considering all of the headphone brands available, I would have thought the market would have been more evenly distributed among them. Apple's marketing technique was pretty clever, and the other brands can't compete because they only make headphones, not phones/tablets/mp3 players like Apple does. And with the current durability of headphones (sadly mine break pretty often) I can believe that this is a very active market.

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  21. This is an interesting topic to post, considering all the competition with Beats and other high quality brands in the market. Personally I’m on the side of the spectrum that buys a cheap pair and throws them out when they are completely unusable. On the other hand, I have heard some things about Apple headphones. It looks as though they are now creating more quality headphones in order to grab more of the market. You are absolutely right when you say, it’s a game of best quality for cheapest price, and it looks like apple is trying to play that game a little better.

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  22. This is actually really interesting to think about that something such as headphones could bring in so much money and to see how the competition varies. I know myself i like the beats, but i also like the in the ear bud headphones, and those it is true as you said, i look for the best quality and for what one will give me the best sound for when i listen to my music. However, i have had two pairs of the solo beats and both pairs have broken to some extent. So although the brand name and advertising for them makes them come across as amazing and even thought they do give off a great sound, they are fragile and have poor quality.

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  23. Well the supply and demand of headphones is a constant meaning there is a huge supply for headphones but also a huge demand because of how many people listen to music which makes the price level so high. I use the headphones that came with my phone because they are just fine for what I need them for. It is crazy the amount people will pay for headphones just so that they can wear the name brand of beats or any other popular name brand. The competition between headphones is big but that leads me to wonder if they have a monopoly going on because all the big name brand headphones are high in price therefore leading to lower consumption yet still it ends up being a huge profit.

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  24. This is interesting to think about. Yeah there's a higher demand now that there are so many products to take with you to listen to music and such. I recently got an Iphone and of course the headphones came with it, but I personally don't like the new style of them. I would not pay $30 for a pair of them. I actually have some $5 headphones from walgreens that are good enough for me. Headphones are actually a huge profit for some companies and its weird to think about this economically. Just a tiny little product used for one thing.

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  25. I think that the headphone business has exploded as the mobile phone market gets bigger. More often now than ever before you can see that just about everyone in a certain area has a smartphone and there is barely anyone left in our general area that doesn't have a cellphone at all. With these smartphones on a huge rise right now playing music and games and watching youtube all on the same device has become much more popular. In order to keep all of these activities private headphones are needed and Apple being the smart company that they are decide to give out a pair with each purchase of one of their smart devices and that is why they are doing such a great job and dominating the headphone market. It is insane to see how far we have come in terms of how we can enjoy our music with a variety of different headphones to choose from.

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  26. Nice opinion! It's interesting to think about how the demand has gone up for this seemingly insignificant product. Now, it's a massive industry with fierce competition between brands. I myself have never made a purchase of expensive headphones or earbuds, but I can appreciate the benefit. The cheapest price isn't always a bad thing.

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  27. Headphones definitely have gained popularity with advancements of technology. They were around with cassette players, and with personal CD players, but since iPods, mp3 players and music phones, more people have started listening with ear buds. As for the sale of ear buds, and which ones sell better, when I look for ear buds i just look for the cheapest ones. Quality difference is usually very minimal, and I don't mind if I have a brand that everyone knows or not.

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  28. Headphones are a product that has a ever expanding market because of the growing demand for electronics. According to your graph Bose is the company with the highest percent of the market. This is an accurate figure in showing that the companies we would normally think to be leaders are really only getting a small piece of the other 50%.

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  29. I always choose a pair based on price as well. Especially if I'm just deciding between two different pairs of earbuds, price doesn't really have much to do with the sound quality given that earbuds don't really have the best sound quality as they are. If I'm looking for a pair of soundproofing headphones that go over my ears and produce a more bass and all around better sound quality, spending a bit more is worth it. I liked what you said though about choosing what fits for you and being wise with the money you have. There's no reason someone should buy more than they need just to get a special brand. I've never known Nike to be that much different than general brands yet Nike always charges sometimes up to twice the amount for the same quality as others. The name brand only means something if you care more about what others see than what you hear.

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  30. This article was very interesting to me because I have a iPhone myself but i never realized how even the headphones I got with it helped apple spread its influence over the headphone business. I learned a lot from this piece but I do have one complaints in the first paragraph you stated "a monopolistic market that allows people to compete with making very similar of the same item, but in using different styles", when in reality a monopolistic market is when one company or business controls the majority of the market; rather than creating competition it makes the ease of entry extremity difficult for other producers. Although I agree that Apple is very large in the headphone business I wouldn't consider them a monopoly in the market, also because in a "monopolistic market" their wouldn't be much of competition, nice try though.

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  31. What you ended with was really smart, don't buy for the brand but buy for the quality because in the long wrong- it does pay off. " A lot of people at Pewaukee High School buy beats because of the look. Yes I understand that they aren't poor quality, but the demand for them is so high the cost is way more than the quality, only because people want it for the look and the brand. Where on the other hand Bose Speakers are one of the best quality out there, no one wants them because they aren't beats.

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  32. I agree with Julia! I hate when people buy headphones just because other people like them. I think that especially a pair of headphones you don't need to spend $200 on headphones... Can you seriously tell the difference between super expensive headphones and ones that cost like $30. I mean I guess i'm half deaf so I might not be the best to judge but whatever. It is also crazy because I never realized that apple was the main people when it came to headphone sales.

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  34. I've gone through many pairs of headphones and earbuds over the year. It certainly is difficult to find a pair cheap and affordable but also efficient and not going to break quickly. Some brands are worth the extra bucks, but others aren't. I've bought expensive headphones and earbuds and ended up having them stop working within only two month. To say I was upset wouldn't begin to cover it. I think it's just a matter of searching around to find an affordable pair of headphones or earbuds.

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  35. A lot of people do purchase headphones just because of the brand name. There are plenty of high quality headphones out there that aren't a popular brand but still have a decent quality of sound. Some of the headphones that bigger companies sell, such as Beats by Dre, are definitely not worth the extra money because every pair of headphones does the same thing. Sure the quality is a little bit better and they look a lot cooler than any other pair of headphones, but there is always a brand out there that has just as good of quality, and can be a lot more affordable.

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  36. I always thought it was a little strange for consumers to revolve their spending options on brand names rather than price - I personally go straight to the clearance section when entering a store. I buy a lot of my stuff on amazon because the headphones that come in the iPod packages tend to break quickly and easily, but I admit that the $5 ear buds I find are not always better quality. However, I recently went to the Apple store at Mayfair mall and their products cost much more than $30 - it was more like $50-$60 just for a plastic pair of ear buds. As a bargain shopper, that is an amazingly high price and I would probably never spend that much money on anything that simple. From an economist point of view, I do see how shopping by brand would benefit the companies extensively, because they have the ability to raise prices without losing loyal customers. But contrary to popular habit, I exclude myself from that shopping choice simply because I don't have the money for it.

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  37. There is an incredible variety of earphones and what kind the person buys depends on that specific person but everyone in some way or another wants some beats headphones because everyone else has them. Because beats is a popular brand and everyone seems to have a pair of beats which is great but there are many other really great headphones out there that may not be such a popular brand.

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  38. Super interesting topic! This got me thinking about head phones vs. ear buds. The demand for head phones is probably way down now that everyone uses ear buds instead. I know they still sell head phones in the store but only certain people use them. As you were saying, beats are very popular and I know that they have head phones as well. Those seem to be popular among teens also but it shows that almost everyone has ear buds. They are easier to carry around and use when you need them. I know that I have like 10 pair lying around my house or in my car and locker! When I need them I just shove them in my pocket for later! I also agree that the brand should not matter; it should be quality. I find it interesting that the most people use apple ear buds. I wonder if that is because they are cheaper or just because it is a name brand. This was a fantastic topic! Good job!

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  39. This blog has very distinct features. Thanks
    earbud reviews

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  40. An important topic-I'm so happy to see it addressed. Thanks for sharing insights of various headphone companies.Get the best headphones with mic & it effortlessly combines style, comfort and convenience.

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