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

Arguments for uneven distribution of income and wealth, Arguments for Uneve...

Arguments for Uneven Distribution of Income and Wealth The basic economic argument to justify large income inequality was the assumption that high personal and corporate income

Real rigidities in the labour market, Real Rigidities in the Labour Market ...

Real Rigidities in the Labour Market   New Keynesian  theories of the labour market help in explaining  the existence of involuntary unemployment. The theories also attempt to

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Short run output and price, SHORT RUN OUTPUT AND PRICE In monopolistic...

SHORT RUN OUTPUT AND PRICE In monopolistic competition, it's the product differentiation that permits its price without losing sales.  Due to brand loyalty consumers will c

Show the isoquant touching axis, Q. Show the Isoquant touching axis? I...

Q. Show the Isoquant touching axis? Isoquants do not intersect: By definition isoquants such as indifference curves, can never cut each other. If they cut each other it will

Theories of cost, what is traditional theory of cost/explain with suitable...

what is traditional theory of cost/explain with suitable diagram

State the demand analysis, State the Demand analysis Analysis of dem...

State the Demand analysis Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since

cyert and march''s behavior theory, What is Cyert and March's behavior the...

What is Cyert and March's behavior theory? What are the demerits.

Monopolistic competition, Evaluate critically chamberlin''s model of monopo...

Evaluate critically chamberlin''s model of monopolistic copetition

Rock-paper-scissors game, A mother is torn among choosing her son Leonardo ...

A mother is torn among choosing her son Leonardo and her daughter Meryl to have the last bar of chocolate in her cupboard. As both her children's needs the chocolate and she needs

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