Trends in Consumption Patterns - 1063 Words

Trends in Consumption Patterns The business world is very susceptible to the subtleties of consumer choices. The ability to anticipate the trends in consumer consumption patterns is vital to any company desiring to be a leader or major factor in their industry. Millions of dollars are spent each year in research and analysis to determine or to create trends in, not only who the company’s customers may be, now and in the near future, but also, what will those customers want to buy, and why. To truly understand trends in consumption patterns, one must first understand the basic principles of economics. Economics is the science that deals with the production, distribution, and consumption of goods and services (economics, n.d.). The†¦show more content†¦Every calculation at the time placed the elasticity at one or less, proving that point was the financial trouble experienced by A T T and WorldCom, both industry leaders. With a demand elasticity of three, simply lowering their prices should have greatly increased revenues and profits, yet neither company did so (Weingarten, Stuck, 2001). The article states that there are two trend factors that drive telecom growth. First is population that was currently growing at the rate of 1% per year. The second factor was the increasing per capita gross domestic product (GDP), which at the time was rising at 4.6% nominal per year. The conclusion could be drawn that an increase in volume would occur regardless of any change in pricing structure. As these factors were not included in the calculations espoused by the executives, the results stated would be considered skewed (Weingarten, Stuck, 2001). Consumption Trends The article predicted the shifting to next generation networks (NGN) that would provide the availability of greater communication features for both businesses and individuals (Weingarten, Stuck, 2001). Providers have determined this desire as the current utility for the industry. This has proven true over the last seven years by the proliferation of cellular phones that take pictures, send/receive text messages, email capabilities, mobile internet access, and coast to coast walkie-talkie communication technology. As with new products, the articleShow MoreRelatedComparative Study on Consumption Patterns of Soft Drinks and Fruit Juices846 Words   |  4 PagesComparative Study On Consumption Patterns Of Soft Drinks And Fruit Juices A COMPARATIVE STUDY ON CONSUMPTION PATTERNS OF SOFT DRINKS AND FRUIT JUICES EXECUTIVE SUMMARY Soft Drinks were common preference among all the individuals before juices were being introduced, With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlyingRead MoreArticle Analysis: Trends in Gasoline Consumption720 Words   |  3 PagesArticle Analysis: Trends in Gasoline Consumption The business world is influenced by intricacies of the choices consumers’ make. Many companies spend large amounts of money dedicated to researching and analyzing consumer trends to help steer them to success. Having the ability to anticipate trends in consumer consumption patterns of gasoline is crucial for a company that strives to be a leader in their industry. To gain an understanding of trends in consumption patterns, one must first understandRead MoreArticle Analysis Paper1275 Words   |  6 Pagesdemand. This paper will also summarize the article and explain the basis for the trends in consumption patterns as discussed in the article and describe what occurred to change the demand for crude oil, or the supply of crude oil and market prices of such crude oil. 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At a global level the spatial patterns of viticulture are spread out over the old (Italy, France, Spain e.g.) and new (Australia, America, South Africa, New Zealand e.g.) worlds. These major viticultureRead MoreStrengths And Weaknesses Of The New Zealand Owned And Operated Essay1298 Words   |  6 Pagesdone, and, the way the market is going to be shaped. This analysis uses a PESTE framework which investigates factors (or trends) with the potential to threaten the prosperity of or provide opportunities to the Mountain Dew brand; they are listed here in order on a scale of 1-5 by the likelihood of occurrence and magnitude of impact. Political Likelihood: 1 Impact: 4 Health trends in the marketplace are causing pressure to mount from the media and the public to bring about a 20% tax on fizzy drinksRead MoreObesity And Its Effects On Obesity Essay1339 Words   |  6 Pagesreduce the risk of obesity, to the implementation of â€Å"diet† or â€Å"low fat† products to counter the ever growing spread of obesity. Although obesity has become a hot topic among today’s policy makers and health officials, it is not a new phenomenon with trends of obesity being noted as far back as 50 years ago, when Douglas Coleman, a scientist who pioneered research in the pathophysiology of obesity, a investigated â€Å"how excess fat affect[ed] health and disease† in mice (Wood 16). At around the same timeRead MoreThe World s Population Growth1099 Words   |  5 Pagespercent today. The world has faced an unprecedented rise in population during the past century having dramatic shifts in the production and consumption of food and for the mos t part has accommodated this population explosion, but with the changes in the consumption of meats in the world, the strain on resources will become more severe. In 1965, the per capita consumption of meat in developing countries was around ten kilograms a year, but is projected to rise to over 36 kilograms by 2030, which will increaseRead MoreArticle Analysis Week 1 Economics 3651064 Words   |  5 Pagessocial norms or expectations, political forces, tastes, and prices of other goods, to name a few. Four Steady Trends In the Harvard Business Review, Beinhocker, Davis, and Mendoca discuss 10 trends emerging in this economy. They consist of four trends that are steady, five that are accelerating, and one that is decelerating (Beinhocker, Davis, amp; Mendonca, 2009). The four steady trends can be summarized as a scarcity of resources, the science of management, the economic growth of Asia, and progress