Competition In The Market Is Beneficial For Consumers
Submitted By wmutoppo
Words: 755
Pages: 4
Competition in the Market is Beneficial for Consumers
In the capitalist driven society that most of us live in today, competition is a major driving force that influences the actions of each individual in the market. Whether one is a supplier or a consumer, one’s choices, and more importantly, life itself is affected by competition. Competition is defined as the “contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources”. Although each culture is taught differently on the aspects of competition, it is undisputable that competition is a big part on one’s life. Whether it’s going to the store to buy milk or getting the car fueled, competition (or lack of competition) will determine the prices and possible choices for consumers. Competition in the market is efficient and beneficial for the consumer in the sense that it decreases market price, increase suppliers incentive to work, which contributes to better quality of goods. As competition increases in supplying a product, the price and value of that product will decrease. Price is the amount required to acquire a quantity of goods; which reflects the consumer’s willingness to pay. Because a value of a good is reflected by price in the world of capitalism, as price decreases, value will also decrease. This shows how people are less willing to pay for what is abundant in the market. It is similar to the market for money. If more money is printed in an economy, the value of that currency will decrease (also known as inflation). Therefore, if a product is abundant, suppliers will be forced to push down price to attract more customers. Hence, this new price will represent the market value of the good. As all suppliers do this, the process goes on until the lowest price is reached and only some suppliers survive in the market. In contrast, if there was only one supplier, the price would be set above its true value. Ultimately, competition will benefit the consumer by forcing suppliers to set a lower price. With more competition in the market, suppliers are forced to work harder to make profit, hence making better quality products. According to Mankiw, the competitiveness in the market raised the quality of the goods. It can be said that these better quality products are the side effects of competition. It is hard to imagine that a supplier would work as hard if he or she is the only supplier in the market. Therefore with competition, suppliers will produce better or more varied products to make themselves more profit. If every supplier acts this way, there will eventually be more choices of goods for consumers in the market. Even though competition decreases price, and produces better quality of goods, there are socially negative effects such as unemployment. In a competitive market, as mentioned earlier, prices may be driven down to the point where small companies are unable to compete with large scale companies. This example is seen in the
Related Documents: Competition In The Market Is Beneficial For Consumers
Class # 3 Agenda: Chapter 5 (Consumer Behavior) Chapter 6 (Business Buyer Behavior) Dr. Rebecca Reczek Autumn 2014 What is Consumer Behavior? • Consumer buyer behavior: the buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption Model of Consumer Behavior Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Characteristics Affecting Consumer Behavior: Culture • What is culture? LEARNED set of meanings…
Alyssa Shenk Professor Bechkoff Bus 134A Sec 80 14 January 2015 Utilitarian Motivation Utilitarian consumer motivation can be described as a push to do and purchase things based on its utility and functionality (Dhar & Wertenbroch, 2000). Utilitarian motivation usually leads to purchases such as refrigerators, air conditioners, and strollers rather than designer handbags and diamond earrings (hedonic motivated purchases). Items purchased with utilitarian motivation serve a purpose and solve problems…
Consumer Behavior Understanding how consumers, feel, think, reason, and choose between different brands or products is an important factor for any company to be aware of when trying to gain market share. When you purchase a service or a good you are a consumer. Consumers have attitudes, thoughts, believes, habits, and reason behind every product or service purchased. The consumers’ behavior is important to be aware study so you can gear your product or service to what they are will buy…
so that consumers are truly intrigued in their company is setting high goals as a company so that consumers notice them in a way that keeps Johnson and Johnson at the top of their game. The way that john and Johnson keeps close with all of their consumers is relating with them as much as possible so that they can build a relationship with their customers and the same reasons why people want to work at Johnson and Johnson. By keeping in top ranks of all types of categories shows consumers how much…
5/9/14 Consumer Behavior & Persuasive Sales Techniques Chapter 5 Summary Guide What is Attitude? Let’s Talk Question: What Goes into our Attitudes? The Cognitive element- What we have experienced or seen it is in our mind, marketers puts information in our mind about their products. The Affective element- How we feel is our emotions and our emotions affect us. Color can be an example, color shows emotions. The Behavioral element- Our actions towards objects can be positive or negative…
extent to which the consumer is uncertain about the consequences of an action Inconsistency with attitudes: extent to which new info is consistent with previously acquired knowledge or attitudes MASLOW’S HIERARCHY OF NEEDS GOALS A goal is a particular end state (outcome) that we would like to achieve (concrete or abstract) CONCRETE: specific to a given behaviour or action & determined by situation ABSTRACT: e.g. to be a good student Promotion focused: consumer motivated to achieve…
Marketing and Consumer Behaviour –MEMBERSHIP # ?????? Marketing and Consumer Behaviour I confirm that in forwarding this assessment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment/ project is the result of my own independent work/investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has…
South American and Latin-American region. With a population of just over 40 million people, the Spanish speaking country has multiple aspects of consumer behavior that influence the way that people spend. Marketing in Argentina is communicated in ways very similar to the United States. Radio and television are large factors in how marketers reach consumers in Argentina. There are 170 AM radio stations and 2000 FM radio stations in Argentina with about twelve million radio sets in use and 46 television…
these newly acquired female fans. In the following pages we will introduce the events that led to this possible rift, explain how that translates into a marketing problem for the NFL brand, identify specific consumer behavior issues that are related to the marketing problem, analyze consumer behavior that we have observed in our research, and make recommendations for fixing this marketing problem. Recently, the NFL’s brand image has been damaged by the unfortunate decisions of a few high-profile players…