Introduction-Bargain
The one time that I had received an unsatisfying bargain was when I purchased the inauthentic version of the Michael Kors (MK) watch. Steered by Bill the store owner, I began to believe that the reason for the watches being 50% off its original pricing was because there were plenty of watches to be sold. Bill began to go into details about how popular the watch was during this season and how he had a competitive advantage over other stores because his main supplier was a distributor in the Michael Kors factory channel re-assuring me that the watches are made of 100% good quality. To make himself more convincing, he began researching all the stores nearby who had the same watches but at higher prices. In my mind, I began …show more content…
To be more specific, if one form of currency holds more value than the other currency but is harder to keep up, it is at that point that the less valued currency would be used in the transaction process. This is because it is expensive to set up and maintain the lesser valued currency.
An example that demonstrates how Gresham’s law can be best defined is through the Rupee (Rs) currency. For example, a customer may want to buy a good worth 10 Rs (10 notes). The customer hands the cashier one of the worst Rs 10 notes. Therefore, the cashier will issue the buyers change in the worst note form as possible as well. This way both parties will be distributing the currency that is most commonly …show more content…
Like, consumers who may prefer good bargains instead of the name brand products. Nevertheless, there are a few buyers who believe that the name brands that are advertised on tv are better. This may not always be the case. 2 brands that demonstrate this scenario are exploited through a generic brand called toasted oats and another name brand called cheerios which both contain the same ingredients. The cheerios trademark is advertised on tv as being the #1 valued brand cholesterol helper. If toasted oats have the same ingredients as cheerios, then it would also be considered as a healthy cholesterol booster. By the consumer purchasing the less popularized valued product, also known as toasted oats, the consumer saves and gains all of the benefits of the commercialized
The one time that I had received an unsatisfying bargain was when I purchased the inauthentic version of the Michael Kors (MK) watch. Steered by Bill the store owner, I began to believe that the reason for the watches being 50% off its original pricing was because there were plenty of watches to be sold. Bill began to go into details about how popular the watch was during this season and how he had a competitive advantage over other stores because his main supplier was a distributor in the Michael Kors factory channel re-assuring me that the watches are made of 100% good quality. To make himself more convincing, he began researching all the stores nearby who had the same watches but at higher prices. In my mind, I began …show more content…
To be more specific, if one form of currency holds more value than the other currency but is harder to keep up, it is at that point that the less valued currency would be used in the transaction process. This is because it is expensive to set up and maintain the lesser valued currency.
An example that demonstrates how Gresham’s law can be best defined is through the Rupee (Rs) currency. For example, a customer may want to buy a good worth 10 Rs (10 notes). The customer hands the cashier one of the worst Rs 10 notes. Therefore, the cashier will issue the buyers change in the worst note form as possible as well. This way both parties will be distributing the currency that is most commonly …show more content…
Like, consumers who may prefer good bargains instead of the name brand products. Nevertheless, there are a few buyers who believe that the name brands that are advertised on tv are better. This may not always be the case. 2 brands that demonstrate this scenario are exploited through a generic brand called toasted oats and another name brand called cheerios which both contain the same ingredients. The cheerios trademark is advertised on tv as being the #1 valued brand cholesterol helper. If toasted oats have the same ingredients as cheerios, then it would also be considered as a healthy cholesterol booster. By the consumer purchasing the less popularized valued product, also known as toasted oats, the consumer saves and gains all of the benefits of the commercialized