Sunday, November 6, 2011
Thursday, November 3, 2011
Whoever came up with dynamic pricing is genius. Knowing that the demand of tickets is going to increase depending on different variables, just as weather, opponents, times, or even days of the week. The St. Louis Cardinals baseball organization exhibited dynamic pricing at is finest during and after the World Series Game 6. It showed the different prices jumping up $100 in a mere inning; less than an hour! Then jumping another $60 in less than an hour, and by the morning after the Cardinals won game 6, forcing a sudden death atmosphere forcing the deciding game 7, another $100 increase. The average price for a World Series ticket at The Cardinals stadium was around $750-$800 jumped to around $950, in less than 12 hours. The demand of these tickets affected by just a variable such as winning, sky rockets, not usually happening during the regular season if a team wins 1 out of 162 games. But if dynamic pricing is so successful, there have to be SOME cons of this perfectly good pricing method, so what do you think they are?
Do you think we’re stilling feeling aftereffects of the recession ended in 2009? According to “The New Republic” article, our economy is growing too slow for the uprising population we’re seeing increase. The economy is getting left in the dust comparing to population, which could make our economy decrease quite a bit, therefore possibly sending us into another recession. Unemployment and under-employment is also affecting our economy by not giving a paycheck to employees for them to spend it and feed it back into our much-needed economy.
So how can we help the economy now? We could try and manage our importing and exporting a little, by that I mean we could try and not import, or buy as much, because then we just lose money even while we’re exporting, much fewer goods. We need to balance it out a little more, then jobs in that industry would have to be cut, therefore leading to more unemployment. Another possible solution is get the citizens to not be scared, and take there money out of savings and buying more things, raising the demand for employees, thus circulating money through our economy.
Wednesday, November 2, 2011
Monday, October 31, 2011
Sunday, October 30, 2011
Friday, October 28, 2011
Link to source: http://www.gobankingrates.com/savings-account/how-much-is-a-mcdonalds-mcrib-sandwich-worth-to-you/
Link 2 to source: http://www.kleincast.com/maps/mcrib.php
Thursday, October 27, 2011
Wednesday, October 26, 2011
Tuesday, October 25, 2011
Thursday, October 13, 2011
The infrastructure being down could potentially change the consumer's perception of the product, which could bring a devestating change in demand for BlackBerry's. This "leftward" shift of demand creates an excess of supply, which would eventually force BlackBerry to lower their prices. The Substitution effect will take place as well with Andriods and iPhones stealing frustrated customers away from BlackBerry.
- Taylor E.
Wednesday, October 12, 2011
Before the 2008 Bejing Olympics, China mainly focused on rowing- one of the sports that could earn them the most medals due to the sheer quantity of events. This sport however is rather difficult and costs money and effort to achieve perfection. China took initiative on training to win many gold medals on their own soil for the '08 games. China hired a new coach and gave him these specific standards: "one gold medal equals 1,000 silver medals" and the bar was set. The new focus on rowing easily shifted from the previous sports of soccer and basketball and a substitution was made. The Chinese knew that they would have a greater opportunity of winning more medals (specifically gold) if they spend more time and effort on their rowing team. Due to the command economy of China at the time; their government can dictate how they spend their money and the majority was for their rowing program. In comparison to America's mixed economy, our funding is not as exponential as China's because the state does not see it as importaint as alternatives. Since the gold medals are what all countries strive for, the competition for China will be stiff. One could say that gold medals are an inelastic good simply because no matter what the cost is to attain them, everyone still wants one. In 2008, China qualified for nine out of the fourteen events but only won one gold (for the first time ever in a rowing event) and one silver medal. China is still calculating the cost-benefit analysis of their efforts to improve their rowing team and theis reaction will be reflected in their standings in the 2012 Olympics. However, for the 2012 Olympics, China only qualified for eight out of the fourteen events, will they still be able to win any gold? China hopes that their financial investments in their rowing program will finally pay off for the 2012 Olympics in England. China no longer plans to dominate in the soccer fields and the basketball courts, but rather the bodies of water all over the world. Could China capitalize on their efforts to win gold medals, or will their competition's efforts (and results of the cost-benefit analysis) exceed China's expectations?
Monday, October 10, 2011
Thursday, September 29, 2011
Although Novak Djokovic clearly demonstrated his superiority by winning the US Open singles championship and had one of the best tennis seasons for a tennis player ever, playing with the Head YOUTEK IG Speed racket, Head rackets are not crowding the shelves of tenniswarehouse.com, Golfsmith, Academy, or Sports Authority. The last overwhelmingly successful tennis player to play with a Head racket was Andre Agassi, and before him Arthur Ashe. In contrast, the more popular and well known star of the Grand Slam circuit, Rafael Nadal, has generated enormous market interest with his Babolat AeroPro Drive GT. Rafa is very well known for his extremely athletic style of championship tennis play. Nadal's muscular definition, warrior-like head band, and his long hair drenched with sweat defines him as an athletic icon. Many athletes inside and outside of tennis aspire to achieve the persona of Rafa. Nadal's image and 10 Grandslam titles have allowed him to become an image that can sell products. His racket has become extremely popular among junior tennis players throughout the world. The black and yellow "weapon" known as "Nadal's stick" is a top-seller at popular tennis retailers and internet sites. The demand for the Nadal image has greatly increased the "value" of his endorsed products. It has even lead to the development of look-alike products for little kids with junior rackets. This marketing strategy has allowed Babolat to encroach on the racket share of Prince, Wilson and Head. Consumers aspire to be able to be a champion like Rafa, and look good doing it also. Nadal's line of products accomplishes both of these targets for the consumer.
It is likely that even as Nadal's career declines that his endorsed products will continue to sell well in the market. Nadal's personal appeal, in comparison to that of Djokovic, has been a superior marketing instrument. This is in spite of the fact that Djokovic's level of play at the recent US Open was a quantum above that of Nadal. Nadal's appeal is partially related to his Western-European heritage compared with the more foreign Easter-European heritage of Djokovic.
The ability of Babolat and Nike to increase sales through their sponsorships is a perfect example of increased consumer expectations. The expectations of a consumer to have the athletic edge through advanced equipment have caused a shift of demand. The shift of demand with more people wanting to purchase Rafa's products has completely changed the point of equilibrium for the cost of tennis rackets. Not only are the products greatly desired for aesthetic purposes, committed tennis players feel that if they do not have the product, they are actually at a disadvantage. Tennis competitors at all levels of capability are willing to pay more and more for tennis rackets. Consumer expectations and public appeal continues to keep tennis companies searching for the equilibrium price.
The effectiveness of sports sponsorships and advertising has been studied by researchers of NeuroFocus with regards to NBA broadcasting. Their studies have resulted in proof to show increased focus, attention, retention and overall effectiveness of advertising through sponsorships and endorsements.