Companies Essay Example | Topics and Well Written Essays - 500 words

Companies - Essay Example Thus non-price competition prevails in the market and it is up to a particular firm to convince consumers that its product is superior. Only then can it charge a higher price vis-Ã  -vis rivals. Given a large number of sellers, collusion is practically impossible In the event of an increase in demand, leading to an increase in price, the firms in the industry may earn higher profits in the short run. However, over time, the existing firms in the market will increase their production capacity or new firms will enter the industry to take advantage of the higher price. Either way, the supply demand mismatch would vanish and the firms will earn normal profit only. The assumption of symmetry in monopolistic competition, which states that when a new firm enters the industry it draws customers equally from all firms, will lead to negligible change in the CR of the industry. The aforesaid discussion suggests that if J’s Assistant Living is to start operations, the company will have to offer a differentiated product. The company will not be able to compete on the price plank and will earn normal profits in the long run. In case J’s Assistant Living does not succeed, it will be able to exit the industry easily. The Concentration Ratio (CR) of 80 percent in industry B with 20 firms signifies that there is ‘high concentration’ in the industry. The industry is oligopoly as the few largest firms account for 80 percent of the market share. In an oligopoly, the market dominated by a relatively small number of large firms. These firms have considerable market power and may either sell standardized products or differentiated products. Each firm realizes that any move that it makes would be taken note of by competitors. As such, the decisions that a firm takes is strategic in nature as it invariably elicits a response from the rivals. The main characteristics of this industry type include barriers to entry and

Luxurymarket in china Dissertation Example | Topics and Well Written Essays - 8000 words

Luxurymarket in china - Dissertation Example After testing the relationship between independent variables (i.e. â€Å"CSR†, â€Å"CA†, and â€Å"CSR + CA†) will significantly affect the dependent variables (i.e. â€Å"willingness to purchase† and â€Å"willingness to pay a premium price†), the research findings show that only CA can directly affect the Chinese consumers’ willingness to purchase and willingness to pay a premium price for luxury clothing brands in China. Since the Chinese consumers expect luxury fashion clothing brands exert an effort to become socially responsible, this study highly recommends that the luxury clothing companies should develop and implement a â€Å"high-fit, proactive initiatives† in order to strengthen their corporate and brand image, increase the customers’ brand loyalty, build a stronger relationship with the community members, establish trust among the public consumers, and increase the overall satisfaction of the customers. Table of Con tents Executive Summary ............................................................................................................. 2 Table of Contents ................................................................................................................. 3 1. ... ............................................. 6 1.3 Research Questions .................................................................................... 6 1.4 Research Hypotheses ................................................................................. 7 1.5 Proposed Theoretical Framework .............................................................. 7 1.6 Assumptions .............................................................................................. 8 1.7 Rationale for Selecting the Research Topic ............................................... 8 1.8 Scope and Limitations of the Study ........................................................... 9 2. Literature Review ..................................................................................................... 10 2.1 Basic Information about Corporate Social Responsibility (CSR) ............. 10 2.2 Impact of CSR Initiatives on Consumer Behaviour, Intention to Purchase, and Intention to Pay a Premium Price for Luxury Items ........... 12 2.3 Conditions that will make CSR Initiatives Create a Positive Impact on Consumers’ Purchasing Behaviour .............................................................. 16 2.4 CSR Initiatives of Well-Known Luxury Clothing Brands ......................... 19 2.5 Chinese Consumers’ Perception on CSR Initiatives .................................. 20 3. Research Methodology ............................................................................................. 21 3.1 Research Methodology .............................................................................. 21 3.2 Population and Sample Size ...................................................................... 22 3.3 Research Analysis