Why do we care about consumer behavior? WANT TO KNOW(1) WILLINESS TO PURCHASE AND PAY‐At what prices? At what quantities? Why?(2) SEGMENTS‐What kinds of groupings are informative?‐How many segments are there?‐How many people are in each segment?(3) WHAT IS THE TOTAL MARKET?‐Now you can make a demand curve and do micro econ
What will people buy? We have to have a way to know how much a consumerfundamentally values an item. (Willingness to Pay)EVC: START WITH BASIC ECONOMICS‐Company has $100,000 in waste costs with old filter‐New filter technology saves $50,000 in waste costsWhat is the willingness to pay for the filter?Max price ?What doe the price that gets charged in the market depend on?
has intentionally blurred sections.
Sign up to view the full version.
Economic Value to the Consumer Analysis : HomeworkAnother Example: MP3 player1. Economic value to the consumer for this product?‐Look at all of the attributes that the product has.‐Figure out the value of every attribute associated with theproduct.