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Answer on Macroeconomics Question for ying

Question #2490
In the modern business today , business leaders earn more by telling the consumers what to buy instead of the traditional approach of listening to what consumers want. Discuss
Expert's answer
In modern business, business leaders feel free to make their own decisions about the produced products not often listening to the needs of the consumers. In my opinion, the situation is like that because first of all they want to reduce the expenses on marketing research. Marketing research takes time and money, deals with amounts of data and statistics and not making it on the contrary saves money. Second thing, in my opinion, is the competition. The managers of the companies take more efforts to be competitive, to overcome the companies working in the same sphere – thus, they compete between each other and the consumers are aside. Third thing, taking into consideration the opinion of the consumers can cost for the business leaders more than they would like, because the consumers will have reasonable demands for better quality, better packing, better service, etc. So the business leaders (not taking into consideration the needs of consumers) can make the product reducing to the minimum the expenses needed to its production and realization and thus making the maximum of their own profit.

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