Factors Affecting Consumer Demands

Given the values of all the other variables that affect demand, a higher price tends to reduce the quantity people demand, and a lower price tends to increase it. Of course, price alone does not determine the quantity of a good or service that people consume. Coffee consumption, for example, will be affected by such variables and income and preferences, as we will see later.

Cultural diversity is a concept that is crucial to the basis in the understanding of consumer behaviour. It includes abstract ideas, such as individual values or ethics, and the material objects or services. As a perspective, various cultures belong to the sharing of meanings, rituals, and with the norms or traditions that are amongst society.

The demand for hotel rooms for people planning a vacation is price elastic. The choice of a different hotel can be made if the price of the hotel increases or if it is too expensive for the vacationer.

The restaurant industry is highly competitive with respect to price, value and promotions, service, locations, and food quality. Consumers are highly focused on value and

Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless

Potential or existing customers can consider product prices high, low or fair, thereby regulating the active demand for the products of the company.

When this group is satisfied then prices are reduced to target the price sensitive segment of the market.

1. Using the tricomponent attitude model, compare the differences in attitude of consumers towards Kraft Foods versus their attitude towards Vegemite.

Price: Sensitive to the price elasticity of its product and overall consumer demand- i.e. offering low to high prices

Indeed, costs should be utilized as a gauge to set the lower bounds of the prices for the products and accommodations you are selling. An efficacious pricing strategy includes elements of several methods. However, regardless of the policy utilized, price must be justified by value to the customer. Recollect, ultimately, customers determine

To identify the unique characteristics of the hospitality and tourism product and discussing their implications in achieving service excellence in the Hospitality Industry.

• Evaluating all current and future purchasing policies and practices across the brands to ensure that the range of products placed in hotels not only enhance the guest experience but drive value for owners while supporting the company's overall

With the development of tourism, hotel industry competes sharply.A hotel using the different strategy to increase their competitive advantage.Cliff Bowman advance a theory which is Strategy clock, is a tool to analysis enterprise's strategic choice with 8 different type of competitive strategy options including 'No fills', Low price, Hybrid, Differentiation, Focused differentiation, increased price with standard value, increased price with low value and low value with standard price.In the price based strategy( 'No fills', Low price etc) is the most common strategy used in the hotel industry.A low-price strategy reflects to seek to achieve a lower price than competitors whilst trying to maintain similar perceived product or service benefits to those offered by competitors.(Johnson & Scholes, 2008)'No frills' means combine a low price, low perceive product or service benefits and focus on the price-sensitive market segment. Nowadays, there have a lot of argument and discussion about the impact of price-based strategy.In this essay will explain two side arguments of price-based strategy which including pros and cons, needs and risk, also my opinions.

. Hospitality is one of the largest growing industries in the world. Word witnessed booming growth of hospitality industry. There is different category of service offers to different Clients like luxury to budget etc. This sector play very important role in countries GDP growth and employment growth. Nevertheless there are lot issues facing this industry these are different sustainable issues like social, economical and environmental issues which increase coast .another one is increasing operating cost and labor cost problem one of the major problem facing nowadays because shortage of skilled labors, highest staff turnover etc. another problem is increasing competition many companies force to cut down their prices because of this which

This research has shown that there are differences in perceptions and expectations of Chinese Mainland tourists compared to other foreign tourists and this impacts upon satisfaction levels. Chinese Mainland tourists spend less on hotel accommodation than other foreign tourists, however have high expectations and expect value for money, making price a major factor in the consideration process for hotel selection and an aspect that the Hong Kong hotel market must consider when marketing their hotels and services, to the Chinese Mainland tourist.