Question

The following companies and scenarios are fictional. In each case, you are to demonstrate graphically the change in the model and then provide a hypothetical explanation of what happened.
1. Becky’s Bongos sales are falling even while they continue to decrease price.

Answer 1

Answer:

The fact that Becky Bongos sales are falling continually even though they keep decreasing the price shows that the underlying problem is not as a result of the customers' dissatisfaction with price. The underlying problem can be any other factors like not paying attention to customers' needs, poor quality of the commodity, lack of proper marketing, and the presence of a superior competition. The solution is not the reduction of price but rather, a closer look should be paid to these other factors.