ECONOMIC CONCEPT IN DOMINOS.

Dominos is a industry mainly in service based industry. Here on operation of this industry we can find a lot of economic concept to be used. Some of the economic concept which comes to play are

·         People face trade off – Dominos have a wide range of option available in their menu. Starting from their non veg to veg items with loads of toppings and different crust option. Therefor customer who went to buy from dominos became confused enough and the always felt a dilemma of choices and which often create a tradeoff situation in them choosing a particular product.

·         People response to incentive – Dominos are quite often advertise lots of promotional offer and free offering in their outlet they are not being in a specific outlet. They often have the offer buy one get one free or 50% off on medium size pizza. This is because of they incentivize people at a great extent to increase the influx of a customer. With this offer customer get attracted towards dominos which often boost up their sales.

·         Law of demand – Compared to other pizza outlet in market like pizza hut and other local or sub regional pizza outlet dominos has priced there product in a very aggressive and efficient way. Therefor the market demand get increases and which boost up the sales of dominos compared to other competitor in market.

·         Diminishing marginal utility – Dominos offered some meal option in recent days where made various promotion through various third party marketing channel. Where the often give some coupon of around 1000 rs or 500 rs which contain a voucher by using which a people can order at around double or 2.5 times of the coupon amount. Here the concept of diminishing of marginal utility comes in to play. The utility derived for the particular product diminishes as the people took an extra amount of product.  As the utility derived diminishes so people end up consuming less amount.

·         Utility measurement – After consumer consumes pizza from dominos outlet after consuming product people give rating on the basis their satisfaction. They put the feedback or rating in the cardinal measurement that is done in a 10 point scale. This is how utility measurement is done in dominos.