Similarly as consumers we buy what is on sale in the nearest shops or we buy from someone because we got a leaflet through the door or they rang us up. It is amazing how people persist in buying products which cost the same but have less functionality, or cost more for the same features. This happens because they do not know about the alternatives. For example, people pay very high prices for international telephone calls because they are not aware that many companies offer inexpensive and easy to use international telephone services. Let the buyer beware.
Inferior products can survive in the marketplace because of imperfect information.
They exist, they have a presence, they advertise, they have a sales force out on the road, and purchasers do not know about the better or more appropriate alternatives. On the other hand, incomplete information also fuels brand power. Dominant standards such as those in the computing and telecoms industries make consumers feel more certain and less confused about which standard to purchase. These standards can even be technologically inferior, because this disadvantage is outweighed by the advantage of having a stable industry force. Because gathering and acquiring information is costly, it is imperfect.