This is a general business question I'm hoping anyone can help me out with. Any help will be appreciated!
2007-03-27 19:37:04 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
In each of the businesses listed above, the item or service they provide is a commodity. By commodity, I mean that each offers an article of commerce and what article one business offers in that industry is very similar to what the others offer.
For instance, what is the difference between United and Southwest Airlines? Not much. Does it matter if you get open heart surgery at hospital A or hospital B? As long as you live through the surgery, not really. Does Captain Crunch serve a different purpose than Cheerios? Nope, they both are breakfast foods.
What do the above companies due to influence demand? Product differentiation. The goods and services the above companies provide in their respective industries are very similar, so the company sets out to make themselves different.
Banks pay similar interest rates, but one bank (like TCF Bank) offers locations in grocery stores (convenience) and they are open 364 days a year were many banks are open only 6 days a week.
One airline might use its record of being on time to differentiate itself from another airline. Midwest Express advertises larger leather seats and a first class meal for the price of coach to differentiate itself.
A cereal manufacturer will often sell the toy in the box to kids rather than the cereal itself (a strategy perfected by Sports Illustrated magazine…they sold the free gift to get people to buy the magazine) and use the toy to make it stand out from the others.
Hospitals advertise the specialists available, special equipment, or special wards that other hospitals don’t have (in the Chicagoland area, one hospital advertises the fact that all its regional hospitals are networked back to its main hospital in Chicago, so that a specialist in Chicago can review the case in real time, even if the patient is 50 miles away)
That’s my 2 cents anyway. Good Luck to you.
2007-03-27 20:14:04 · answer #1 · answered by Slider728 6 · 2⤊ 1⤋
Supermarkets and airlines use prices to stimulate demand. The other 3 use product differentiation and the cereal manufacturers add merchandising (product placement on the shelves.)
2007-03-27 21:06:33 · answer #2 · answered by Scott K 7 · 1⤊ 3⤋
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2016-10-20 02:55:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋