Manager’s plan related to priceless elastic in a low microwavable frozen food
The effects of keeping the prices of a product inelastic are to make a pricing strategy that will have no impact on consumers regarding the commodity they desire as well as purchasing such product. This type of product demand is common in a goods and services that are dispensable as the consumers cannot do without these commodities.
In the case of microwavable food products, the demand are not unnecessary as the consumer has an alternative which makes the demand function for low-calorie microwavable frozen foods majorly falls on the price of the company’s product compare to its substitutes, the marketing strategy and most especially the consumers income. …show more content…
In this situation, managers can only determine to raise the price of low-calorie microwavable frozen food by differentiating the company’s products from the competitors. Because, when a company’s product looks different from its competitor, consumers will not be able to identify substitute for such product quickly. And as the market for low-calorie microwavable frozen foods is not elastic. One plan a manager can use to stabilize his/her product in the market as he/she increases the price.
Examples of production differentiations are the introduction of more nutritious contents to the microwavable food or make a change in the content quantity of the product as well as the rebranding of the products.
Effects of government policy on production and employment
Government policy plays a significant role in company’s output and job, as the market depends mostly on government policy. The following explains the effects of government policy on production and …show more content…
But with the help of government regulation, food industries are forced to follow the safety management guideline for producing their food. These guidelines include the ingredient such as the ban of Tran’s fat in the food industry, the production environment and the nutritional information for the food. As stated in the food safety modernization Act by the US Food and Drug Administration in 2011. (Filipovic,
The effects of keeping the prices of a product inelastic are to make a pricing strategy that will have no impact on consumers regarding the commodity they desire as well as purchasing such product. This type of product demand is common in a goods and services that are dispensable as the consumers cannot do without these commodities.
In the case of microwavable food products, the demand are not unnecessary as the consumer has an alternative which makes the demand function for low-calorie microwavable frozen foods majorly falls on the price of the company’s product compare to its substitutes, the marketing strategy and most especially the consumers income. …show more content…
In this situation, managers can only determine to raise the price of low-calorie microwavable frozen food by differentiating the company’s products from the competitors. Because, when a company’s product looks different from its competitor, consumers will not be able to identify substitute for such product quickly. And as the market for low-calorie microwavable frozen foods is not elastic. One plan a manager can use to stabilize his/her product in the market as he/she increases the price.
Examples of production differentiations are the introduction of more nutritious contents to the microwavable food or make a change in the content quantity of the product as well as the rebranding of the products.
Effects of government policy on production and employment
Government policy plays a significant role in company’s output and job, as the market depends mostly on government policy. The following explains the effects of government policy on production and …show more content…
But with the help of government regulation, food industries are forced to follow the safety management guideline for producing their food. These guidelines include the ingredient such as the ban of Tran’s fat in the food industry, the production environment and the nutritional information for the food. As stated in the food safety modernization Act by the US Food and Drug Administration in 2011. (Filipovic,