Consumers of tofu care about 2 things: quality and price. Your firm Scooby Tofu

Question

Consumers of tofu care about 2 things: quality and price. Your firm Scooby Tofu has one competitor, ACME. You are interested in raising your price and are curious as to how much your sales would decrease if you increased price 10%. You know the quality level and current price of both products. You also know that a linear multiattribute model describes consumer behavior well, and you have estimates for the quality and price weights for each of 100 representative tofu consumers. Describe the analysis and calculations you would undertake to answer your price increase question.

Explanation / Answer

I do not mind suggesting increase in price of our firm. Since We do not want to compromise quality of the products, we can take the risk of increasing the price of our products. Nowa days people are more quality consicious than price conscious. If we are able to provide good quality products at reasonably higher price, people would not mind to spend liitle extra .

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