Product Differentiation, Marketing Strategy, and the ASUS P8Z68 Line

BonzaiDuck

Lifer
Jun 30, 2004
16,391
1,915
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What did I say -- somewhere . . . earlier? I've had reticence about using ASUS after two boards that had disappointments. The FSB-533 board -- circa 2003 with RAMBUS memory -- was a terrible over-clocker. The 680i Striker Extreme had a "frequency hole" -- you could only get the bus frequency up so far.

But I wouldn't count a player out of the game in successive seasons.

Struck by so many stellar reviews that came from sources not known for hollow hype, and a review that compared against the Gigabyte and ASRock entries, I ordered the P8Z68-V-Pro.

No reviews for the "V" -- but customer-review postings illuminated the things it didn't have. And I might actually have opted for the V board, just to save some ducats. It's not a matter of whether the extras are offered; it's a matter of whether or not you will ever use them. Otherwise, they would "have no value."

Then we discover that the "Deluxe" -- the P8Z68-Deluxe -- was off the review radar. they didn't bother with it.

Used to be the small-town GP doctor would practice "price-discrimination" -- charging the wealthy more for the same services and extracting less from those of modest means. In a way, Intel did it in the late '90s with the Pentium II, except that it was more "product-differentiation" than price-discrimination. They ran the P-II's off the same assembly-line, then divvied them up to disable certain features on different binnings. They could then sell the same processor as the "P-II-300," the "P-II-400," the "P-II-450," etc. FTC was casting a watchful eye at Intel, while offshore counterfeiters discovered a way to re-enable a P-II-333 and make it a P-II-400. I know, because I unknowingly bought one of the counterfeit processors.

Whole point of this: the seller/manufacturer makes more money by producing greater volume off the same assembly-line, then making them "different" and offering items of different apparent value to different market segments. Can't afford the P-II-400? You buy the P-II-300. Rather than making all the processors top end, they capture a bigger customer base, draw in more revenue, and make more profit.

I could see what the ASUS P8Z68-V-Pro has over the "V." I was more mystified about the "Deluxe." The two lesser-priced boards include the DVI and VGA plugs to tap the iGPU of the processor; the Deluxe has none -- Nada! What gives? Is Less equal to More? It doesn't make sense!

Closer inspection shows the Deluxe gives you a single PS/2 port; the other versions require you to get a converter-cable or use USB keyboard and mouse. I can only say that the converter cable (for PS/2) cost me $20. And you only get one PS/2 port on the Deluxe -- not two. Speculate about the "value" of that port, based on what it took to make up the difference.

The Deluxe gives you an extra gigabit LAN port; the others sport only one. As for the LAN port, a PCI or PCI-E LAN card can be as cheap as $10 and expensive as $30.

Finally -- the Deluxe throws in a cable and USB3 box that would fit in a bay of your case and connect to the USB3 port on the motherboard.

USB3 boxes -- by Koutech, Bitecc and others -- are kludges. They STILL make you run a cable out the back of your computer to plug in to an external USB3. If it were USB2, you could scavage your parts-locker for an old PCI-plate USB ports with cable, remove the plate, plug in the Koutech Male USB, tape them together, plug the cable to the motherboard and "Voila!" Otherwise, with USB3 -- S-O-L. Unless, of course, you buy the "Deluxe." Figure if the Koutech USB3 front-panel costs $20 or $25, they should charge $30 or $35 for the ASUS box.

Add up the extras and subtract the VGA/DVI that isn't there. That should account for the price difference. But the price difference may not be a cost difference to ASUS, who might be able to throw those extras into the mix for pennies.

It's like the difference between an old '64 Impala Super-Sport and the regular '64 Impala: the chrome trim, hubcaps and bucket-seats differentiate a wider spread in price than extra cost to Chevrolet.

Now, here's my friend. He's always bought "Deluxe." He has to have . . . the BEST. No compromises! And I asked him about this -- "What are the differences?"

"Hey! The Deluxe has 'Dual INtelligent PRocessors!"

"They ALL have dual intelligent processors . . . . "

"How can that be? Look at the pictures! Look at the pictures! Don't you see it? The Deluxe says 'dual intelligent processors' on that thing in the center of the board!"

"That's an extra heatsink, on which they engraved their selling point 'dual intelligent processors.' Remove the heatsink, and the boards will show identical components for all three models."

You can guess what the cost of that heatsink may have been.

But for price? It has a marvelous effect. People will look at that board, look at the V and V-Pro, and say "I want the one guaranteed to have dual intelligent processors. And if it says so, it's guaranteed."
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Unless you actually read the specs of course.

In fairness to Asus, the super-duper-deluxe-with-cherry model may overclock slightly higher thanks to the extra heatsink. And having an extra 30 or 40 phases to the power circuitry is worth money to people who care about reaching an overclock of 5.2 GHz instead of just a lousy 5.1.
 

Dribble

Platinum Member
Aug 9, 2005
2,076
611
136
The asus deluxe boards are a brand in themselves. They are what I'd call a safe bet - you can either spend ages looking through specs trying to find out all the details and picking the ones you want then going for the cheapest board that does that, ... or you can just buy the current deluxe board. You know it's bound to have every thing you need, work well, etc. Sure they cost more, but they aren't massively expensive.

There are quite a few people who do build their own pc's but don't want to spend months thinking about it. I suspect they always buy something like an asus deluxe board, and intel i5 cpu and an evga nvidia gpu. They don't always get the best value for money but they get a pretty fast reliable system that does what they need it too every time.
 

StrangerGuy

Diamond Member
May 9, 2004
8,443
124
106
With more and more components getting integrated into the CPU and chipset, Asus etc knows they have little room left to differentiate their product line these days and thats why you see marketing gimmicks popping out left and right.

Nobody even cared about CPU power phases before and during the A64 X2 era but we are still OCing and CPUs are more generally more power hungry back then. So, why the sudden obsession with power phases now with cooler CPUs?
 

BonzaiDuck

Lifer
Jun 30, 2004
16,391
1,915
126
Unless you actually read the specs of course.

In fairness to Asus, the super-duper-deluxe-with-cherry model may overclock slightly higher thanks to the extra heatsink. And having an extra 30 or 40 phases to the power circuitry is worth money to people who care about reaching an overclock of 5.2 GHz instead of just a lousy 5.1.

Did I miss something? I was pretty sure that the SS-capacitors, the phase-design to the power circuitry, VRM and intelligent-power-regulation and saving features were common to all three boards. True -- the extra heatsink may have some marginal value. I couldn't find any single component underneath it that needed such attention, but maybe I'm wrong.

RETURNING TO EDIT THIS:
I won't gloat about it, but the phase-spec, power-design and related features are identical across all three boards. So -- there's the heatsink. The USB3 front-panel. The PS/2 port. The double-LAN. What else? Did I miss something?

It isn't as though they don't "give you something" for the difference, and I'd like to think I accounted for that -- at least by "orders of magnitude." Frankly, it was once the case that the power-design and some other factors were part of the difference. I remember the ASUS P4C800 series versus the P4P800's -- but they were slightly different chipsets -- SPringdale and Canterwood.


Even so -- while it depends on some prior OC'ing experience and a burgeoning "parts-locker" inventory that would include some aluminum heatsinks from Sidewinder Computers and the two tubes of Arctic Alumina or something less permanent, any deficiency there could be diminished . . . .

In the mix -- if you still want the USB3 box, the extra LAN port, etc. -- you "get what you pay for" without paying in excess.

On the matter of the USB3 box. To DIY the equivalent, you can buy the $20 Koutech, Bitecc, or other equivalent, disassemble the USB3 two-port "PCI-slot" cable and plate, and make the connection to the motherboard that way. You still have to spend the $20; you give up the slot-ports to the case interior. So no matter which way you do it, it will cost you.

[By the way. I was once the proud owner of an Impala Super-Sport during the '70s. Rebuilt engine and tranny, new paint, all chrome restored with "chrome-hood-locks," the original SS hub-caps, new suspension . . . . I wouldn't have let myself be stuck with the "other Impala" for anything. And also -- by the way: That was the 1964 Limited Edition SS!! I cut loose my current girlfriend at the time -- for other reasons, but no less because she said "When are you going to get rid of this old beauty-queen?" No matter now -- statute-of-limitations: I had that thing up to 135 mph between Amarillo and Wichita Falls on a sunny day after Xmas-'75 -- before I saw the little town with the speed-trap looming. My good luck. Everybody was probably asleep, and I "made" the limit before I reached the sign. The follies of my callow youth . . . ]
 
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chimaxi83

Diamond Member
May 18, 2003
5,457
63
101
I have the V, as opposed to the V Pro. I bought the V because I wasn't interested in the 2 Marvell controlled SATA 6 Gb/s ports, 2 1394 ports, or the 2 port USB 3.0 PCI slot bracket.

Those are the differences.

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