More expensive product result in higher willingness to pay

Assignment Help Business Economics

Reference no: EM131424590

Sometimes the more expensive product wins since higher customer willingness to pay more than offsets the higher price. For example, Starbucks' market share exceeds that of nearly every rival, despite higher prices. Please provide pictures of two products that compete in the same market where the more expensive product has a higher market share. What features of the more expensive product result in the higher willingness to pay?

Please provide a difference example than iphone and cosmetics or health care product.

Reference no: EM131424590

Questions Cloud

Assuming that the marginal cost of extraction is constant : Suppose the demand function for a mineral (exhaustible resource) is given by pt = 700 - 0.2qt: Assuming that the marginal cost of extraction is constant and equal to $200 per unit extracted, and the discount rate (r) is 0:05. State the values of the ..

Markets becoming more competitive because of new technology : Are U.S. markets becoming less competitive because of mergers and acquisitions? Are U.S. markets becoming more competitive because of new technology? Are U.S. markets becoming more or less competitive because of globalization? Is enough information a..

What is the expected unit sales increase to result : The short-run elasticity of demand for a consumer product is measured from NPD data at epsilon = -2.9. What is the expected unit sales increase to result from a 10 percent price decrease? If the contribution margin for the value chain is 60 percent, ..

What is land only time-adjusted price per acre for each sale : You are appraising a 480 acre irrigated farm with a current valuation date. Improvements contribute $210,000 to the property value. The property is located outside Lotta-Water Irrigation District; irrigation water is obtained from an on-site well and..

More expensive product result in higher willingness to pay : Sometimes the more expensive product wins since higher customer willingness to pay more than offsets the higher price. For example, Starbucks' market share exceeds that of nearly every rival, despite higher prices. Please provide pictures of two prod..

Consider the data for a hypothetical economy : Graph the ppf. calculate the oppurtunity cost of guns in terms of butter and that of butter in terms of guns. If you observed this economy producing 700 guns and 3 tons of butter, what would you conclued about how this economy is solving the 'how' pr..

What would be maximum allowable loss in number of unit sold : A retailer is considering a 33% off sale on blenders currently priced at $54. The retailer pays $29 per blender from the manufacturer. D. Instead of a sale management is considering a price increase to $59. What would be the maximum allowable loss in..

Determine the labor force and the number of employed : Suppose that the labor force participate rate is 79%, the total working-age population is 100 million, and the number of unemployed is 2.5 million. Determine: (i) the labor force; (ii) the number of employed workers; (iii) the unemployment rate; and ..

What is the opportunity cost of apples in terms of bananas : Home has 600 units of labor available. It can produce two goods, apples (QA) and bananas (QB). The unit labor requirement in apple production is 3, while it is 2 in banana production. Graph Home’s production possibilities frontier with the production..

User Account

All Pages