ajaz_eco_204_2012_2013_chapter_16_Market_Power

See this article glass with attitude the preciousness

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Unformatted text preview: -2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. but in my opinion it is not that easy and there is no magic bullet: there are cases where brand cultivation/management, advertising, targeting have changed preferences to make demand inelastic but this is not a universal, general phenomenon. In practice, changing price elasticity takes time, creativity and luck. Here is where cases come in handy – we can learn much from other companies’ experiences. Here are some examples. In Western countries and Japan it is a cultural norm (like wearing clothes) that a man should propose to a woman with a diamond ring and consequently demand for diamonds is highly inelastic. See this article: Glass with attitude The preciousness of the diamond is perhaps the world’s most sophisticated illusion —a feat of marketing more dazzling than the gem itself THE entrance to the local office of De Beers, the world’s diamond barons, in the Angolan capital of Luanda is hidden in an unmarked shady passage off a foul-smelling street. Outside, litter clogs the gutt...
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