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Essay / Research Paper Abstract
This 4 page paper looks at the five determinants of demand and considers the way in which they would be useful in strategic management of the business. Using the example of the bar the different determinants of demand and the way they can be used discussed, including influences of price, disposable income, advertising, complement in competing goods and fashion or trends discussed individually. The bibliography cites 2 sources.
4 pages (~225 words per page)
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Unformatted sample text from the term paper:
venue which is experiencing an increase in business will want to know how and why the increases occurring, how they can maximise the factors creating increase, and the way in
which they can profit from the increase. There are a number of factors which will influence the way in which a good or service is demanded. These will include the
price, the promotion such as advertising, the availability and cost of complimentary competing goods, disposable income of the customers and fashions and trends. By looking at the way that these
blimp packed on demand we can consider how the bar manager may use them in the interests of the business. The first influences
that of price (or cost). There is a relationship between cost and demand, generally speaking1, as the price for a good or service increases the demand will decrease, and as
the price for a good or service decreases demand will increase. The point at which the supply and the demand meet is known as the point of equilibrium. In strategic
terms it is important that the bar manager knows the level of elasticity in order to maximise income. Knowing the elasticity will
give the bar manager a strong indication of the effect a price change2 may have. In calculating the impact on the demand the calculation is the percentage change in
the quantity demanded divided by the percentage change in price. The standard result of this calculation will be a negative one where there is an increase in price, as a
higher price increase will decrease the demand. If the result is more than 1 (ignoring any negative sign), then the price is elastic; this means that the increase in price