Price Elasticity Scenario
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- Category: Politics: Economics
- Date Submitted: 03/19/2010 09:01 PM
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Running head: WILL BURY PRICE ELASTICITY SCENARIO
Will Bury Price Elasticity Scenario
NAME
University NAME
January 28, 2009
ECO561 / Economics
Will Bury Price Elasticity Scenario
Will Bury is an inventor who has developed technology that will transform printed word for books and create a file that provides the option of digital reading or listening to it with a life-like voice (University of Phoenix, 2009). Will believes that the future of reading books in hard copy will evolve into reading or listening to books digitally. The use of his new technology and his vision of the future leads Will to determine how to best enter into the seller’s market.
Market Research
To determine who, what, where, when and how, Will should conduct market research to identify what customers have purchased in the past and what situational changes have occurred to alter not only what consumers want now but also what they are likely to want in the in the future (Nickels, 2008, pp. 348-373). Market research will also solicit feedback from potential buyers on how often they read books and how much they are willing to pay in order to acquire these new products. Consumer profiles will also identify the incomes of individuals who are willing and able to pay higher prices for this technology.
In addition to determining the consumer demographics, Will should investigate the competitive layout of the market to determine product pricing, distribution, communication, and promotional strategies.
Product Demand
McConnell and Brue (2005) stated, “The basic determinants of demand are (1) consumers’ tastes (preferences), (2) the number of consumers in the market, (3) consumers’ incomes, (4) the prices of related goods, and (5) consumer expectations about future prices and incomes” (McConnell and Brue, 2005). The market study conducted by Will provides necessary information in making decisions on what price to charge for these items, the buying...
Will Bury Price Elasticity Scenario
NAME
University NAME
January 28, 2009
ECO561 / Economics
Will Bury Price Elasticity Scenario
Will Bury is an inventor who has developed technology that will transform printed word for books and create a file that provides the option of digital reading or listening to it with a life-like voice (University of Phoenix, 2009). Will believes that the future of reading books in hard copy will evolve into reading or listening to books digitally. The use of his new technology and his vision of the future leads Will to determine how to best enter into the seller’s market.
Market Research
To determine who, what, where, when and how, Will should conduct market research to identify what customers have purchased in the past and what situational changes have occurred to alter not only what consumers want now but also what they are likely to want in the in the future (Nickels, 2008, pp. 348-373). Market research will also solicit feedback from potential buyers on how often they read books and how much they are willing to pay in order to acquire these new products. Consumer profiles will also identify the incomes of individuals who are willing and able to pay higher prices for this technology.
In addition to determining the consumer demographics, Will should investigate the competitive layout of the market to determine product pricing, distribution, communication, and promotional strategies.
Product Demand
McConnell and Brue (2005) stated, “The basic determinants of demand are (1) consumers’ tastes (preferences), (2) the number of consumers in the market, (3) consumers’ incomes, (4) the prices of related goods, and (5) consumer expectations about future prices and incomes” (McConnell and Brue, 2005). The market study conducted by Will provides necessary information in making decisions on what price to charge for these items, the buying...