Friday, December 10, 2010

Post 8: Malcolm Gladwell

Companies are always trying to create the new flavor or design that appeals to people. The more variety a company has, the more someone will like one of their products. Also, with a variety of choices in the food industry, people will have to “taste test” the different variations to find their favorite taste leading to more people buying multiple products of a company.  If the prices are close, people chose their preferred products. Whether it be by taste, looks, style, or popularits, choices are made based upon many factors that appel to the consumers. Relating to Chapter 6, the Perfect competition market structure makes companies compete over something other than price. They have to make their product different, also called product differentiation,  so that it appelas to the consumer greater than the other related products. The Malcolm Gladwell video reminds me of the potato chip industry and the variety of flavors, choices and companies consumers can chose from.

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