ECO 550 Assignment 2 Operations Decision

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Assignment 2 Operations Decision ECO 555 Managerial Economics Strayer University August, 2014 Despite outstanding technological advancements in the industry, the quality of manufactured food products has become a major concern of the time when seen from the health and wellness perspective. In the 21st century higher income, urbanization, other demographic shifts, improved transportation, and consumer perceptions regarding quality and safety are changing the global food consumption patterns. Even though the consumption of such food products is ever increasing due to the rising population growth in the world, thanks to the advancement of information technology people has now become more and more concerned about their…show more content…
Moreover investigations on employment as well as inflation trends must be considered as well. Having a price strategy which is customer friendly is also another big matter which must be looked at. (Perloff, 2004) 2.The most vital factors which caused change in market structure are the changes in customer tastes and customer income. These two factors are solely related with the demand and needs. When the customers start earning more, they will have a tendency to purchase more and expensive products. Their buying ability is increased in such a situation. On the other hand, when the income of the customers is not that high, they will not have that much interest on purchasing the expensive products or purchasing products in large amounts. That means the size of sales revenue for a particular company is totally dependent on the customers purchasing abilities. The other factor, the customer taste, is something that should be considered as well. If the customers like a particular product, they are more likely to purchase that particular product even if that product is a bit expensive. On the other hand they will not be interested to purchase something which they don’t like even if that product is quite cheap. The first factor can’t be controlled by the company. The second one can slightly be controlled. The company should design the products and make its pricing strategy by considering these two factors if they want to make a customer
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