Economic Concept Inside Flipkart

Economic of Scope:

       Economic of scope is the economic factor that makes thesimultaneous manufacturing of different products more cost-effective than manufacturingthem on their own. Flipkart has its own brand Billion. It producing electric iron, Electric cattle, electric trimmer. It can reduce the cost of manufacturing unit also and as well as the storehouse by producing at same place instead of making different.

Price Discrimination:

      Price Discrimination tells that we charge a different price for different people for the same product. Like when a product is new at Flipkart its price is higher than that of when it is a little bit old. So people give a higher price when they are buying at the starting and people give a low price when it is old.

Ordinal Utility:

       Ordinal utility defines as the utility that cannot be measured perfectly but we can assign them ranking, rating etc. So Flipkart uses this concept in its product by considering the purchasing behavior of people, utility given by that product etc so that when a customer is not known about the product then he/ she can see the review and rating and know the quality of the product.

Incentive:

      People respond to incentive. If some incentive will there it definitely attract towards that. So by taking advantage of this concept Flipkart gives so many incentives to people during every festival and on many other occasions. it gives incentive to its employee also.

Laws of demand:

      Laws of demand tells that if the price of goods is decreased then the demand of that product is increases so when Flipkart launches new product generally lower its price so that demand will increase among the people and will buy more.