Discuss consumer behavior and how people respond to price changes Essay

Discuss consumer behavior and how people respond to price changes - Essay Example There are several conditions where consumers will not tend to consume more even if the price is lowered nor will they tend to consume less if the price is driven up. In general, consumer demand changes depending on the rate of change of prices. As the law of price elasticity dictates, demand is sensitive to price. This however particularly true to regular products that are regularly consumed which are categorized as elastic. There are several factors that affect price sensitivity or elasticity of a product which affects consumer behavior. First and the most obvious are the products that people can live without are highly elastic and therefore the change in price also affects the price. The most typical examples for these are luxury items such as jewelries where its steep price prohibits many people to acquire and a drop in price significantly increases the demand. The same is true with branded bags or clothing where a sale will almost immediately increase consumption. Another factor that affects elasticity is the availability of alternative products which affects consumption. Availability of products does not only mean substitute products but also competitors who could offer the same product at a lower price. The classic example of this is our favorite McDonald where it has to be priced low otherwise its customers will either move to its competitors such as Burger King or look for alternative for hamburgers such as taking pizza instead of a burger. There is an instance however that demand will become inelastic or consumer behavior will not change regardless of price. This is true with inelastic products such as medicine that no matter how much the price is, the rate of purchase or consumer behavior will remain the same. It is because people need to buy medicine when they are sick. They also cannot defer purchase regardless of price and will immediately purchase once the money is available to them because they do not want to

Classmates Evaluation Personal Statement Example | Topics and Well Written Essays - 1750 words

Classmates Evaluation - Personal Statement Example Donald Brown: At first, Donald seems to be just an ordinary classmate with nothing really special about him. However, as time went by I notice a characteristic which sets him apart from a typical student. Different from the rest of us, I can say that he has deep sense of responsibility making him punctual in submitting individual requirements and his tasks for group projects. Arosha Desilva: Arosha is one of a kind and deviates from my expectations of what a typical guy should be like. First of all, he disproves my misconception that organization is out of a man's vocabulary. Seeing his lecture notebook and handouts for the first time, am amazed at how systematic he can be. Second, I always thought women should be nurturing and men should be authoritative. But not with him-having him in my group is an honor because he was always there to support me especially at times when I am losing my confidence. His calm personality enables him to manage stress and helps me focus on the job at hand. This trait stood out while we were on the process of writing the report and juggling it with our other individual requirements. Lastly, who says all guys are more tech savvy than girls Well, everyone has his own set of strengths and weaknesses. Computer skill is definitely not of Arosha's strong points. Sean Detorres: Sean Sean Detorres: Sean is someone I can never forget in this class. I admire him for his helpfulness and sincerity. Being on the same team as a compiler with him, I have seen how transparent he is with his feelings. Among my group mates, there have been instances that Sean and I have dissenting opinions about matters. I have to admit that I sometimes find his opinion rather irrational and unprofessional. I do appreciate how Sean shows his true feeling of disagreement on me, because it made me realized my flaws. However, I do wish Sean could have come up and talk with me in person and let me know what he is experiencing from me instead of just showing his dislike. I am thinking that maybe he is not just that vocal and has problems verbally communicating his feelings and emotions thus, he just resort on showing them. This is a room for improvement for him. I believe that he should work on his communication skills in order for him to effectively and professionally deal with his colleagues. Joshua Feng: I can say that Joshua has two good points-he is very smart as well as very articulate. During the class, he has been able to show his knowledge and skills in tackling different topics. I believe that these capabilities are really exceptional. I have noted that even though some people are smart, they do not have the capacity to share what they know. This is not the case with Joshua-he s knowledgeable and is very willing and articulate to communicate what he knows. However, I should also add that he is lazy and like to procrastinate at times. Well this can be justified by his efficiency and adeptness which enables him to tackle tasks in no time. When he starts doing his work, I am amazed how at fast and well written he is. Without his laziness, I am sure he will become a influential leader.