Economics inside Big Bazaar

Price Discrimination by Self Selection:

Big bazaar will discounts on every Wednesday stating that as Wednesday bazaar, where big bazaar knows that people are price sensitive and people themselves reveals themselves as price sensitive so, big bazaar uses this concept in increase the sales.

Economics of Scope:

 In Big bazaar store we can see so many products of different brands where all different brands are using only one input(store) for there sales so Big bazaar uses Economics of scope to increase their profits.

People respond to incentive:

Now a days Big bazaar started an offer like If we purchase more than 500 rupees we can free parking so this encourages the buyers to buy minimum 500 rupees whenever possible so,they will think of buying more. which tells big bazaar uses the concept People respond to incentives to increase their sales.

Economics of Scale:

Big bazaar buys goods in bulk quantities from producers directly in order to get the goods at low cost so they can sell the goods at low price which increases the buyers consumer surplus and they attract to big bazaar

Utility:

Generally customers attract to stores only when they are satisfied so big bazaar wants to satisfy customers with variety of products, price and by its service.