AIRTEL AND JIO

Example: “AIRTEL AND JIO”

Airtel “449 plan” and jio “448 plan”

Airtel prepaid customers purchasing the Airtel Rs 449 pack benefit from 2GB daily 4G data. users end up with a total 140GB data. This plan has a validity of 70 days.

Jio Prime membership, Rs 448, the jio is offering 168 GB data at 4G Speed, unlimited voice calls and unlimited messages (daily 100 SMS), Jio Apps Complimentary subscription with 84 days’ validity.

 Airtel Rs 449 plan with 2GB daily data aims to compete with Jio Rs 448 plan offering similar benefits. At Rs 1 less, Jio provides a longer validity of 84 days. As a result, Jio prepaid customers can avail up to 168GB high-speed 4G data, which is 28GB more than what Airtel Rs 449 plan manages to offer.

Jio Rs 448 plan offers the best value for money followed by Airtel Rs 449 plan in comparison.

1.Rational people think at marginal

Rational people systematically and purposefully do the best they can to achieve their objectives given the opportunities they have.

From the above example people get marginal benfit by taking the jio prime membership than compared to airtel.

2.Opportunity cost:

The loss of other alternatives when one alternative is chosen.

From the above example is airtel and jio:

If the user selects jio prime membership plan the opportunity cost is loss of airtel prepaid plan.

3.Price-quality-demand-decision of consumer:

The concept price and demand, price and quality plays a key role in increasing demand.

From the above example is airtel and jio:

The price offered by the jio is one rupee less than the airtel. Most of the people go for jio offer,

Because the quality they are getting better compared to airtel by paying one rupee less and validity period also plays a role in taking decision (84 days in jio,70 days in airtel) and the data provided by jio is more with high speed compared to airtel (168 GB by jio and 140 GB by airtel).

Price and quality places a key role in increasing demand.

4.law of equi-marginal utility:

Every consumer will try to make the best use of money and derive the maximum satisfaction

 From the above example is airtel and jio:

the best use of money and derive the maximum satisfaction is exactly for jio prime membership offer.

5. Elasticity of demand:

An elasticity is a measure of the sensitivity of one variable to another.

·         percent change that will occur in one variable in response to a percent change in another variable.

From the above example is airtel and jio:

Two variables are airtel and jio.

The price and offers of jio are making impact on airtel.

There is elasticity on demand between airtel and jio.