Answer to Question #256601 in Marketing for ashley

Question

1.4 Assume that the sneaker shack is the only shoe cleaning service to offer the pick up and delivery and the same day return of shoes, will the demand curve for the sneaker shack be elastic or inelastic(1mark)Motivate your answers by providing a specific example(1mark)

1.5 Price sensitivity is an important aspect to consider when setting a price of a product or service. indicate whether consumers would be more or less price sensitive given the following circumstance(1mark)motivate your answer in each case(1mark each).

A. consumers perceive the services offered by the sneaker shack to customers as unique and value adding.(2)

B. consumers know that competitors such as levingers abd simply the best also clean shoes(2)

C. consumers like the fact that there is a deep clean option that also removes bacteria from the shoes (2)

D. consumers think that they can wash their sneakers by hand or in the washing machine(2)

Answer 1

1.4 The demand would be elastic as a change in price will mean that the demand will fall as people will lose the interest in the service and start washing their sneakers at home.

 

1.5a. Less sensitive as the service doesnot have a rival.

1.5b. More sensitive as the service they offer can be gotten elsewhere.

1.5c. Less sensitive as deep cleaning and bacteria removal are unique to Sneakers Shack.

1.5d. More sensitive as the service offered by Sneakers Shack can be derived by customers washing their sneakers at home