Chapter 9 Question 005

Aluminum cans could be cheaper to produce, so why don't people do that? (Charles Rodin) The task of aluminum cans is to hold beverages.The twelve-ounce aluminum soda cans sold in most parts of the world are cylindrical and about twice as tall (twelve centimeters high) as wide (6.5 centimeters in diameter).If this can is made shorter and fatter, a lot of aluminum can be used less.For example, Gao Qi.Eight centimeters, seven in diameter.The six-centimeter cylindrical aluminum can has the same capacity as the current standard can, but it can use nearly 30% less aluminum.Why do people still use standard soda cans today, when shorter cans cost less?One of the possible explanations is that consumers are misled by the horizontal and vertical illusion.The so-called horizontal and vertical illusion is a famous optical illusion in psychology.For example, look at the horizontal and vertical bars in the picture below, which one is longer?Most people will confidently say that the vertical bar is long.But you only need to measure it to know that the horizontal and vertical bars are actually the same length.

Because of this illusion, consumers may be reluctant to buy soft drinks in chunky cans, thinking they are small.But this explanation seems to imply that competitors are forgoing easy profit opportunities.That is, if optical illusions were the only reason consumers were reluctant to buy chunky soda cans, a competitor could have offered them and made it clear that the containers held exactly the same capacity as traditional soda cans.Now that chunky cans are cheaper to produce, beverage makers who sell them can offer slightly lower prices than traditional manufacturers and cover their costs.So, if optical illusions are the only problem, there are bound to be opportunities for easy money that competitors can exploit.

Another possible explanation is that customers who buy soft drinks prefer the look of elongated cans.Even though they know the chunky can has the same capacity, they'd still pay more for the slim one, just as they'd pay more for a hotel room with a better view. Product design features sometimes reflect the manufacturer's deliberation: what kind of impact different features have on user behavior.For example, if someone does not want to get a speeding ticket, he may be willing to pay more for a car with a speeding warning function.The following two examples illustrate how a manufacturer's strategic decision about a design feature (how this feature will affect the use of the product) is reflected in the product.