The demand for a particular good depends on various factors other than price. The non-price determinants of demand are tastes of the consumers, number, and price of substitutes, income, expectations and many more.
Recently I came across an interesting case study. Tata company a few years back came up with the product called "Tata Nano" targeting the fact that consumers in India have a tendency to opt for relatively cheap products. The company also did research on the trend that more people are willing to afford 4 wheelers nowadays. The company after some obstacles finally managed to launch the product. It did not record good sales though because of the fact that people's taste and preference is different as far as purchasing a car is concerned. In India possessing a car is not just having a commodity, it is considered a resemblance to class. The product "Tata Nano" gave an impression of a cheap product rather than an economic one so, people were apprehensive about making it a choice.
Recently I came across an interesting case study. Tata company a few years back came up with the product called "Tata Nano" targeting the fact that consumers in India have a tendency to opt for relatively cheap products. The company also did research on the trend that more people are willing to afford 4 wheelers nowadays. The company after some obstacles finally managed to launch the product. It did not record good sales though because of the fact that people's taste and preference is different as far as purchasing a car is concerned. In India possessing a car is not just having a commodity, it is considered a resemblance to class. The product "Tata Nano" gave an impression of a cheap product rather than an economic one so, people were apprehensive about making it a choice.
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