Analysis of Consumer Preferences

1.0 Introduction of Question 1

Nowdays, there are many types of notebook in the market. Consumer can choose them by their preference and demand of notebook. An increase in demand for notebooks decline the quantity of demanded, but quantity supply constant. Everyone also have their desire to buy the more better notebook that have new function. If everyone income increase, the purchasing power, price and demand of notebook will increase, but supply also will increase. If the demand growing up but supply constant, it will occur imbalance the skill of economic. So, to make the economic be balance, the supply should increase.

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1.1 Demand and Supply

Demand is the ability and willingness to purchase specific quantities of goods in a given period of time at a particular price, ceteris paribus. Demand differs from desire, want, wish and like. Supply is ability and willingness to sell or produce particular product goods in a given a period of time at particular price, ceteris paribus. Demand and supply

1.2 Agreement of Demand Increase Supply Constant

In task 1, the situation of demand increase supply constant are occurred in market of notebooks and been agree by many expert. This situstion will happened because of the limited edition of notebook. The reason of provide limited edition notebook because they want to maintain their quality of product so they will supply constant.

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1.3 Statistic of Worldwide Desktop PC vs. Notebook

It is a good news for consumers who are needed to replace the old Windows-based PC was that if a person search online he can still find refurbished for new desktop that has Windows 7 installed. Otherwise, continuing demand for PCs with the lead operating system was be weak. According to International Data Corporation (IDC), they predict now expects PC shipments to decrease further by 1.3 percent in 2013 year. The disappointed news is when holiday sales to consumers, this situation leading to a year decrease of 8.3 percent in fourth quarter shipments. Furthermore, an emerging market growth potential for PCs was also bleak. 2012 is the first year that the volume decreased. According to Loren Loverde, vice president at IDC,the desktop market is still looking for updated a new model to achives tow and demonstrate sufficient appeal to drive growth in a competitive market. To refer Appendix 1.

1.4 Conclusion

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In conclusion, this task is about demand and supply of notebook. The situatution of demand increase supply constant because of supplier produce the limited edition notebook. When the demand increase supply constant so inbalance the skill of economic by increase supply. The problem solving are increase the supply of notebook or produce a new product. It can solve the problem of demand increase supply constant.

2.0 Introduction of Question 2

There have many type of coffee and tea shop such as Starbucks, Chatime ,The Coffee Bean & Tea Leaf , Dunkin Donuts and also include McCafe by McDonald. The substitute effect was occurring when the price of coffee increase then some people will go for tae and vice versa. Coffee and tea is not substitute goods because the tea demanded can monopoly the market of drink by itself. This provident is according to Kim Jage, she said tea is on the rise in the emerging market. Last but not least, according to John Fetto pointed out that the coffee affected by age like adolescence, elder and adult the market coffee is slowly improve only.

2.1 The Reason of Coffee and Tea are not substitute good

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Many studies pointed out that disagree of coffee are substitute good between it and tea. According to Kim Jage, is an executive vice president of World Tea Media. Tea is on the rise while tea may be one of the oldest and most familiar drinks of the world, it’s more popular than ever. So, it’s imperative that retailers step up their tea offerings, to reach new customers and increase profits. Kim Jage list out some types of tea such as green tea, ready to drink tea, specialty iced tea and organic tea. The U.S. is now the world’s largest market for organics and the largest consumer of Fair Trade goods. Every major supermarket chain, including Wal-Mart, now sells organic foods. Naturally, with the emphasis on global connectivity and an influx of younger people drinking tea, there is a strength­en­ing demand for organic and sustainable tea products. Organic tea can let us be health so that will have many people will buy organic tea.

According to John Fetto , under Consumer insights, coffee are such an integral part of daily life such as in America that it may be safe to say that coffee helps the United States go round. In the fact, fully 60% of all U.S. households use either whole or ground coffee beans at home. Experian Simmons extensively reviewed the American coffee drinker for this report which features detailed insights into the coffee-drinking American. Coffee is generally in people life.

2.2 Conclusion

In conclusion, coffee and tea are not substitute good between them in the market. Coffee and tea are different beverages and have their own market. Consumer can choose coffee, tea or both. That all are depend on consumer’s taste, want, like or desire. Tea and coffee both also have their unique, so that they are different and not substitute goods between them. Tea and coffee will not affect the other.

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Reference

Bell, R., Bell, R. and Profile, V. 2012.Living Stingy: Coffee or Tea?. [online] Available at: http://livingstingy.blogspot.com/2012/03/coffee-or-tea.html

Coffee : Planting, Production and Processing. 2007. [e-book] p. 87. http://site.ebrary.com/lib/alltitles/docDetail.action?docID=10416706&p00=coffee

Fetto, J. 2014.Demographic and Preferences of Coffee Drinkers in America | Marketing Forward. [online] Available at: http://www.experian.com/blogs/marketing-forward/2009/12/01/demographic-and-preferences-of-coffee-drinkers-in-america/

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Foxall, G. R. 1983.Consumer choice. New York: St. Martin’s Press.

Magazine.coffeetalk.com. 2014.Tea Is on the Rise. [online] Available at: http://magazine.coffeetalk.com/june11-tea/

R., G. 2005.Understanding Consumer Choice. [e-book] Palgrave Macmillan. p. 15. http://site.ebrary.com/lib/alltitles/docDetail.action?docID=10262345&p00=consumer+choice

Rothfos, B. 1980.Coffee production. Hamburg: Gordian-Max-Rieck.

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Saberi, H. 2010.Tea. London: Reaktion.

Tea : A Global History. 2010. [e-book] Reaktion Books. p. 147. http://site.ebrary.com/lib/alltitles/docDetail.action?docID=10470242&p00=tea

Appendix

MicroeconomicsPage 1

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