Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Elasticities & Market Structure
There are many different factors to consider when making strategic decision such as the one that Autoedge currently faces. The board of directors needs to consider many different implications that might occur if the company decides to relocate its manufacturing to the United States. If the company manufactures its products domestically, then one possible implication might be that this could add value in terms of consumer perceptions. Although it seems that the "Made in the USA" brand maybe a secondary consideration for many consumers, there is some evidence that it does actually add substantial value to products and services. For example, one study found that (Schurenberg, 2012):
"In a study of consumer perceptions of clothing made in the United States vs. that made in China, Jung Ha-Brookshire, an assistant professor at the University of Missouri, found that when offered a choice between a shirt made in the U.S. with U.S. cotton and one made in China with local materials, American consumers strongly preferred the "Made in USA" label. They also valued the American-made garment nearly twice that of the Chinese one."
However, the price elasticity of the product lines is really...
The price elasticity will include all relevant factors that are associated with how much a consumer is willing to pay for a good or service on the aggregate level. For example, if you increase the price of any product, then there will be less people in the market that are willing to buy the product for a variety of reasons. One example might be that they choice a substitute product instead, or simple make no purchase at all. Typically, if the price rises at all, there will be some portion of the market that choses some other option.
It is difficult to encompass the entire auto parts market into a single category. For example, a part that is specifically designed for a U.S. made automobile might not have any substitute products available in the market would have a lower elasticity (more inelastic or relatively inelastic) because people would be more willing to buy it at any price; especially if their transportation needs depended on it. However, a part that had more substitutes, was not as specialized, and was not critical to the car's performance…
Works Cited
Bennett, J. (2015, 9 18). 5 Things to Know About the U.S. Auto-Parts Industry. Retrieved from Wall Street Journal: http://blogs.wsj.com/briefly/2015/09/18/5-things-to-know-about-the-u-s-auto-parts-industry/
Schurenberg, E. (2012, November 22). What Is 'Made in America' Worth? Retrieved from Inc.: http://www.inc.com/eric-schurenberg/what-is-made-in-america-worth.html
They may be forced to follow the technical procedures that are related to the recall that may seem time consuming on their part. In cases where the defect has caused the life of someone then monetary compensation may not suffice as life is deemed precious than the monetary compensation that may be awarded. Recall usually causes a lot of disruption to consumers hence creating a major confusion to the personnel
Perception of Customer Behavior The Psychological State of Consumer Behavior The psychological state of the customer plays an important part in determining the consumer satisfaction. The perception and behavior of the consumer has an impact on the service climate as well as customer perception of service equality. According to Benjamin Schneider, Suzan White and Michelle Paul in the journal of applied psychology (Schneider, White & Paul, 1998), a given set of foundation
133). Marks & Spencer is currently met with a wide array of challenges, among which the emergence of the internationalized economic crisis which reduces the buying powers of the individuals, but also the incremental pressures for sustainable development. As the rest of the retailers, Marks & Spencer promotes its development through high levels of consumption, but given the unstable state of the environment, the governments militate for sustainable and limited
Consumer Behavior for Marketing Understanding Consumer Behavior Understanding consumers' perceptions is critical to marketing and advertising. Consumers are increasingly selective with regard to the advertising that they pay attention to and mass marketing is fast losing its effectiveness and appeal. There is any number of strategies that marketers can employ to increase positive consumer perception of their brands. Several suggestions follow: (1) Engage in socially responsible investing in causes that can
For instance, approximately 33 per cent of Thailand's water sources are categorized as having poor quality and the phenomenon is considered a serious environment problem. Moreover, Thailand is ranked among the last Asian countries based on amounts of fresh water available per capita (WWF, 2010). In this context, the Thai government and the Thai people have commenced to pay more attention to the effect of the environmental problems, as well
Consumer Behavior and Countries of Origin (COO) Countries of origin (COO) effects dominates other effects in influencing consumer buying patterns Importance of COO Consumers transfers imagined qualities of COO to product COO is used as heuristic in regards to expensive products. COO impacts brand name COO influences consumer's impression of brand name. Negative COO may require different marketing techniques for brand name. Percepts that Impact COO Emotions / Ideology Influence Perception of COO Emotional Political / moral Consumers tend to be influenced