In nowadays society, people have certain
inclination to buy certain product. By looking at the demonstration in the
video, even though there are many kinds of peanut butter, consumers still
choose the one that might be the cheapest. Choosing cheap product not only
because consumers want to save money but also because consumers seem to care
about products' price more than products' brand. Personally, I don't have high
utility on buying famous brand of food. I can easily be satisfied as long as I
think food's quality is as same as its price. However, sometimes, I have high
utility on buying clothing stuff. Comparing my demand curves with non-name
products, I will not buy non-name products, even though it is sold in a low price.
Conversely, if it's famous brand such as Nike, or Adidas, then my quantity of
demand will increase while the price of the clothes is decreasing. For
instance, if a Nike T-shirt costs 1000, I will probably only buy one; however,
if the price of T-shirt decreases, then I will probably go for two. In
conclusion, every people have different utility towards different products;
therefore, companies have to figure out what product they made can attract most
of people with high utility.
No comments:
Post a Comment