The role of microeconomics in every person’s life is enormous; therefore, it is very important to study it. The objects of microeconomics surround us all the time. Microeconomics studies the….
Behaviors related to microeconomics concepts
Most of us have always wondered why this always happen when they visit a barber. This is just because of the economic concept. The cost of operations in shaving the beards is even more because more care is needed while shaving and different customers have different styles on how they it to be shaved. This wastes time and energy and to pay for this, the price has really to be high. The expenses that are incurred when perfuming this service is the same with that one that you will apply when performing other services and hence there is no reason whatsoever for its price being low.
Another factor is the skill factor in that while shaving the beards, more skill is required and this is reflected in price. As much as in shaving the head any other barber can do it the beard shaving requires potential and qualified barbers and it is this that makes the prices improve upwards. (Perloff, M. J 1999) Why does it cost higher for a woman delivering in a private hospital than that one delivering in a government hospital? Most of the women who go in private hospitals are considered as working class.
Although the services rendered may be the same as those in public hospital most of them will prefer going I n private hospitals because of their status. most of the consumers do consider social class as a factor while purchasing products or services in the market like if a dress is sold in the market at $8, and the same dress of the same quality from the same company is sold in a beauty mall at a price of $ 15, a consumer who considers herself as from high class will rather go for that dress in a shopping mall than that one in the market because she tends to think that her status does not allow her to purchase in markets.
In fact producers take this as opportunities that they think should be utilized and increase prices in high class shops and reduce in low class shops to just increase the total sales in their organization. The doctors on the other hand, will want to serve more clients within a short time to increase their portfolio income but affect the customers by attending more in less time. The real money in a consumer’s portfolio is the one that will determine where he should seek his service. It is actually this factor that determine where and what a consumer should purchase depending on his capability to pay for the services rendered.
That is why high qualified doctors can decide to open their own clinic that will cater for another class of people thus serving the needs of most of the consumers in the market. In today’s market, the key point is actually identifying the need of the customer and fulfilling it. (Mas-Colell. A. et al 1995). Why are veils quite expensive in US than in Saudi Arabia? If there are so many customers in Saudi Arabia who need to purchase this commodity, then how come it is still cheap there yet the demand is also high! The prices should have actually gone up to cut down on the demand .
This is not the case because of this culture factor that most organizations need to consider. Most of the people in Saudi Arabia are Muslims and thus most of them need veil as a requirement because of their faiths. This is unlike the customers us who may be assumed as just those who want it for luxury. The way the veil is taken as a cloth required during the worship is not the way it will be taken in the US market hence the prices will probably go high. Culture being important in the consumer behavior has a real impact in any organization.
If a customer perceives that a certain commodity is the best however much it may tend to be expensive, a customer will sacrifice and ay the premium price for this commodity than purchasing another commodity that he has no confidence with it. (Pindyck, R. et al, 2004) Bibliography Mas-Colell. A. et al (1995), Microeconomics Theory, Oxford University Press Perloff, M. J (1999), Microeconomics: Incentives in an Imperfect World, Addison-Wesley Longman. Pindyck, R. et al, (2004), Microeconomics, Pearson Prentice hall