Amity Assignment

Topics: Marketing, Television, Time Pages: 1 (315 words) Published: October 23, 2014
Answer Durable goods are those which are used for a longer period of time. It does not wear out very quickly and works for a longer period of time. For example, television set is a durable good because it is used for a longer period of time and does not last very quickly. One the most important problem in determining the demand for television set arises from the fact that sale of television creates secondhand market not controlled by the original seller. This creates problem in the estimating the real demand for television set because the transaction in secondary market often get unreported. The second problem associated with the determination of demand for durable goods is uncertainty regarding product replacement time i.e. the time gap after which the consumer would look for new television set. Firms are not able to analysis when the consumer would look to purchase the new television set since television are often used for longer period of time, so firms cannot determine the exact product replacement. This makes estimation of demand for television set very difficult. The third problem could be uncertainty regarding consumer preferences. Firms do not know whether consumers attach more value to price or to quality or to features. There is always a kind of dilemma between price and quality (or features). If the product is of high quality and features, it is likely to carry high price. Now if consumers attach more value to price, they are likely to purchase a product with fewer features because it would less costly to them. However, these things are not know to the firms producing durable goods and it creates problem in determining the demand for a durable good. Y, dXiJ(x( I_TS 1EZBmU/xYy5g/GMGeD3Vqq8K)fw9 xrxwrTZaGy8IjbRcXI

RuKV.ELM2fi V vlu8zH
(W uV4(Tn
7_m-UBww_8(/0hFL)7iAs),Qg20ppf DU4p
2FhsFYn3E6945Z5k8Fmw-dznZ xJZp/P,)KQk5qpN8KGbe Sd17paSR 6Q
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Assignment Ethics Essay
  • “the Traditional International Assignment Is No Longer the Preferred Choice for Multinational Corporations (Mncs) in Staffing Their Global...
  • Week 5 Assignments New Essay
  • 5 Written Assignment 5 Unit 5001V1 Revision 1 Essay
  • Week 2 Assignment Essay
  • Assignment 1 Answer Essay
  • Essay on Mat 222 Week 1 Assignment
  • Quantitative Techniques (Assignment Method) Essay

Become a StudyMode Member

Sign Up - It's Free