Dominos
The following are the 5 economic concepts involved in the
Dominos.
1.Demand
2.People Respond to
Incentives
3.Ordinal Utility
4.Consumer Surplus
5.Opportunity Cost
1.DEMAND
During wednesday(there is wednesday offer) they give discounts of 300 which result to rise in demand and on other days it is normal without discount.
2.People Respond
to Incentives
Dominos offering huge discounts, Wednesday discounts,
coupons, cashback offers, movie vouchers and flight offers to attract the
customers.
3.Ordinal Utility
It states that the satisfaction which a consumer derives
from the consumption of services
Example: qualitative (feedback of customers, satisfied or
not satisfied, good or bad).
4.Consumer Surplus
Difference between the price consumer is willing to pay and
consumer actually pays.
My willing to pay -600
Wednesday offer-300
Coupons-100
Consumer surplus- 400
5.Opportunity Cost
Compare to the other restaurants it is charging somewhat
high than the other but at the same time it is providing many more dishes than
the others providing, so here is the opportunity cost arises.
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