The term "cost performance ratio" originally refers to the ratio between performance and price. What we usually say is high cost performance, which means that you can buy products with the same performance/better performance for less money. In general, the high cost performance ratio means that the product is more worth buying. However, is it because the price performance ratio is not high, we can't buy it? Are cost-effective products necessarily suitable for everyone?

In order to facilitate everyone's understanding, the author gives an example of the mobile phone market that everyone must be familiar with. There are two mobile phones with the same configuration, one is a well-known brand, and the other is Huaqiang Beizhai; The price of the mobile phone of a well-known brand is 3000 yuan, and the price of the mobile phone of Huaqiang Beizhai is 2800 yuan. Which is more cost-effective? Which do you choose?

In fact, if you know enough about the two products, you may not choose the one with "higher cost performance". Why? Isn't it more cost-effective?

But is high cost performance really suitable for you? In fact, in the eyes of different users, the concept of "cost performance" is different.

Everyone's understanding of "cost performance" is different, although we are all talking about "cost performance", However, when we consider products, we often include more factors into our assessment system, including but not limited to the brand's market recognition, function dependence, appearance design, hardware configuration, pre-sales/after-sales service, star IP value, etc., rather than just hardware performance.

Here, the author divides price performance ratio into two categories: narrow price performance ratio and broad price performance ratio

Broad cost performance ratio : (brand market recognition+function dependence+user experience+appearance design+hardware configuration+pre-sales/after-sales service+star IP value+N)/price

Price performance ratio in narrow sense : Hardware performance/price

A mobile phone can always be equipped with a luxurious enough configuration at a price of 2000~3000 yuan (but the selfie is a little poor). Should everyone buy a A mobile phone? B always asks a bunch of stars to endorse and sponsor variety shows. At the same price, I can only buy the configuration of low A mobile phones (but it's better to take selfies). Are people who buy B mobile phones stupid? Not at all.

For a user who doesn't play games, likes taking self portraits, and thinks that it is good to use sex. Both he and his friends have a higher degree of brand recognition for mobile phone B. In his eyes, mobile phone B may be better than mobile phone A. He made the decision after considering various factors.

In fact, although the price performance ratio of mobile phone A is very high in the narrow sense, mobile phone A reduces its hardware cost by attaching "advertising" to the system. But for a digital technology house, if he has the ability to remove the ads in mobile phone A, likes to run points, likes to pursue performance, and doesn't like taking selfies, he will definitely choose mobile phone A. There is no right or wrong choice.

Not only that, in fact, for mobile phone products, the stronger the hardware stack, the better the user experience will be. In fact, there are many parts that we cannot directly see that will also affect the user experience, such as system optimization, camera algorithms, and so on.

Why does B mobile phone invite stars to speak for it? Because star IP can bring ancillary value to the product. Advertising, stars and sponsorship can increase people's recognition of the brand. For some users, this is equivalent to increasing the value of the product itself; Why does C mobile phone advertise at the airport? Why do business people always appear in C mobile phone advertisements? Because C mobile phones follow high-end business routes, which can increase brand recognition;

Different users have different requirements for products, and some users care about "hardware parameters"; Some users don't think the hardware parameters are too good, but they care more about the appearance design; Some will focus on the innovation of product functions; If some users have brand plot, they will even care about the logo of the product.

In fact, what we usually refer to as "cost performance" is mostly a generalized cost performance When choosing products, we often consider many aspects. What is suitable for others may not be suitable for us. What you like may not be suitable for your parents.