Inelastic Case Study

in numerous rural communities, beef and dairy products that are less nutritious than they could

Threat of Substitutes: This is most strongly affected by three factors, the switching costs to the buyer, the verity of substitutes and the necessity of the foods. In terms of the switching costs, the buyers' switching costs are generally very low, since they may choose to eat any other food to satisfy their hunger and the worst possible scenario is just they hated the taste. Moving to the verity of choices, since the primary objective of eating is to satisfy hunger, there are many other choices

A possible explanation for why food production has changed so much can be that its consumers have also evolved as a society--the commercialization of agriculture has culminated this alteration within the industry. The consumer's desire to connect back with their ancestors can be easily ascertained by going to “healthier” markets like Wholefoods, among others. Pollan compares Wholefoods to a good-quality "bookstore," filled with extensive nutritional vocabulary on their packaging. However, much of it is not

a. an increase in the demand for red meat products and a decrease in the demand for fish & poultry b. an increase in the demand for dairy products and a decrease in the demand for red meat c. an increase in the demand for fruits, vegetables and fish and a decrease in demand from fried foods, dairy

The demand for beef was caused by the expeditious growth of fast food restaurants in a short amount of time. Over the past several decades of the industrialization of food, most Americans have resorted to eating mainly processed foods, including beef and products that are derived from cows’ milk. These products were made to become appealing through countless advertisements, many of which exaggerated their health benefits and tried to bring a shot of sex appeal to their

. . by comparison, George Naylor will see only $0.04 of every dollar spent on corn sweeteners” (95). So ultimately, the increase in processed foods have to do with its easy and cheap ingredients.

The price of soft drinks, water, tea, juice, or any other beverage is relatively low compared the average consumers income. Additionally, government programs like SNAP (Supplemental Nutrition Assistance Program) benefits offer an interesting capital proposition. The proposition is unique to the grocery industry because it adds the opportunity to access capital in addition to traditional income. Consumers are given the freedom to make purchasing decisions with that supplemental income on a “use it or lose it basis.” Furthermore, it is believed by many that the utilization of SNAP benefits changes consumers overall eating behaviors ( Hamrick and Andrews, 2016). The result of the hypothesized observed behavioral change seems to benefit the soft drink companies. Although there has been some debate on what products consumers should or should not be allowed to purchase, currently sugar sweetened beverages are included in the state of Tennessee (Barnhill, 2011). So, out of the three factors that affect elasticity, the percentage of consumer’s budget is the least

Food is one of the most important aspects of the human body. Over time it has been proven that food is the key to survival. Food for human beings has definitely made a drastic change throughout the centuries. With that the food industry has been talked about quite a bit. We consume so much processed food to the point where we adapt unhealthy diets which causes us to develop unhealthy habits. In order to combat this we humans have taken different approaches to including buying organic produce as an alternative to conventional, going vegan, as well as just plain watching what they eat

Another macro concern is the rise of more vegans. Since, everyone is on this new health conscious diet, more of the population have become vegan, and do not consume meats, poultry, or eggs. This has a drastic impact on the company’s profit because if less people are consuming non-vegan dishes, then that means their money is going towards vegan “health geared” franchises.

willingness to pay goes down. When this happens, consumers turn to alternate goods that may not be as efficient or as high in status, but still get the job done. If the price of butter goes up,

Volatility in pricing of key Ingredients: The volatility in the price of cheese is mentioned in the case as a key factor that caused major problems for Papa John’s as it contributed to as much as 40% of a location’s ingredient costs.

Explain the cardiovascular response between Noah and his dad while they were running the half marathon together.

Most of all, we will pay more for healthy nutrition. You can bet that got food manufacturers on board. This refocus on better nutrition coincides with a change in what style of yogurt we buy.

High bargaining power of buyers due to large number of ice-cream suppliers, high customers’ price sensitivity. This could cause buyers to pressure us on lowering selling price or improve quality of products. (Jim Wilkinson, 2013) Furthermore, ice-cream is not a necessity, thus customers have higher price sensitivity than other food. Low income group of consumers, for example students are sensitive towards price of ice-cream, hence they are able to control our price indirectly.

In the first place we have to see in general why people buy ice creams, and what value it has to them this type of product and then we have to analyze the different types of markets because the reasons will change accordingly with the type of (children or adults, for example) and product (premium or not, for example). So basically the answer to this question is that the reason why consumers buy an ice cream depend of some variable factors that I will try to explain here. Consumers just buy a product because of the value it has to them, because it satisfy a need they had and possibly they didn´t know. In the case of Ice creams, in general people buy the normal type of ice cream because of the flavor, the ice cream is competing with other