Saturday, September 22, 2018

ECONOMIES APPLIED IN PRACTICAL SITUATION

                         BIG BAZAAR
1) ECONOMIES OF SCOPE - As the big bazaar provides different products to the customer from only one place or particular products at the same time. So we can say economies of scope exists in Big Bazaar.

2) PRICE DISCRIMINATION BY SELF SELECTION - Many customers visit or go to Big Bazaar when their is any Offer or they are giving coupons or cash backs to the customers. So we can say that price discrimination by self selection exists in Big Bazaar.

3) Market/Segment Based price Discrimination - As we can see that Big Bazaar has counters or segments for ladies , Gents , kids, food, utensils in the same shop so that it can be segmented easily and can be bought by customers easily so that we can say market/Segment Based price discrimination exists in Big Bazaar.

4) OPPORTUNITY COST - Big Bazaar offers various products at different prices so that the customer can decide what to buy what not to buy and can sacrifice something to buy something by doing cost benefit analysis.

5) INCREASING RETURNS TO SCALE - In Big bazaar as it is running successfully due to its lower prices, high incentives, offers so it can increase more inputs i.e. more products and automatically its output will increase proportionally.

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