Advantages of product differentiation, Managerial Economics

Assignment Help:

Advantages of Product Differentiation

We can distinguish between those advantages for the firm itself and those for the consumer:

a.          For the firm.

i.         The ability to increase prices without losing loyal consumers

ii.       The stability of sales, due to brand loyalty. The firm will not be subject to the risks and uncertainties of intense price competition.

b.  For the Customer

i.          Consistent Product quality

ii.         Wide consumer choice, between differentiated products.


Related Discussions:- Advantages of product differentiation

Determine the studies of managerial economics, Determine the studies of Man...

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

Construction of an explanatory model, Q. Construction of an explanatory mod...

Q. Construction of an explanatory model? Construction of a sample:   To apply multiple regression a large sample is generally essential (ideally between 2,000 to 15,000 indivi

Determinants of price elasticity, Discuss the determinants of price elastic...

Discuss the determinants of price elasticity of demand

Define the term understanding oligopoly, Define the term understanding olig...

Define the term understanding oligopoly. Understanding Oligopoly; One possibility when the two companies will engage into collusion, Sellers engage into collusion while t

Managerial Economics helps create utility for the Society. , Managerial Eco...

Managerial Economics helps create utility for the Society.

Proportional tax, PROPORTIONAL TAX Is where whatever the size of incom...

PROPORTIONAL TAX Is where whatever the size of income, the same rate or same percentage is charged.  Examples are commodity taxes like customs, excise duties and sales tax.

The extreme end of the beach, Assume that Nicolas and Orson plan to sell so...

Assume that Nicolas and Orson plan to sell soft drinks on a beach this summer. The beach is 400 meters long and sunbathers are spread evenly across its length. Nicolas and Orson se

Regressive tax, REGRESSIVE TAX A tax is said to be regressive when its...

REGRESSIVE TAX A tax is said to be regressive when its burden falls more heavily on the poor than on  the rich.  No civilized government imposes a tax like this.

expected profit, The Learned Book Company has a choice of publishing one o...

The Learned Book Company has a choice of publishing one of two books o the subject of Greek mythology.  It expects the sales period for each to be extremely short, and it estimates

Price elasticity at terminal points, Price Elasticity at Terminal Points ...

Price Elasticity at Terminal Points The price elasticity at terminal point N equals 0 means that at point N, e = 0. At terminal point M, although, price-elasticity is undefined

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd