Saturday, September 8, 2018

so much of ECONOMICS in our lives


Can anyone learn to swim the very first time?

OBVIOULSY NO, first step is to learn how to swim then practice in shallow depth water so can stand if want to. Later try in more and more deep water level. By experience can learn different skills in swimming like floating, exhaling underwater, diving and more.
This example can be related to many companies/organisations/industries. Initially they find difficult to sustain in the market but by passage of time they learn skills and understand different tricks. Hence become experienced and experts. This is known as Learning Curve (increase in learning comes from greater experience)

Ohh..Yeahhh…Student passes

In some amusement parks (like Wonderla) there is a 20% discount available on entry ticket only for students. These are known as student passes.
The above example is related to Market/segment based price discrimination. Here the different segments of customers are identified and price is decided according to it. Price discriminates by charging different prices to different market/segments of customers.

Dominos Vs PizzaHut

In market, if there is only one type of pizza available then there is no option for tastes, preferences, price, discounts, quality. And no picture of price differentiation. But BRANDS become the differentiator offering different prices, tastes, discounts.
When it comes to me and my friend, considering price and taste as factors I like dominos pizza and my friend loves pizzaHut pizza.

Why TEZ?

Tez is a mobile application used for different mobile payments. Recently I installed this application and gave my friend referral code. There was a 200 rupees added to my friend account by using her referral code. For my first payment there was 50 rupees added to my account.
This is an example of Price discrimination by self-selection (here the firms offer discounts, coupons and cashbacks so that consumers sort themselves out)








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