ECON 525 Spring 15 Instructions for Analysis of Demand Project

7/24/2019 ECON 525 Spring 15 Instructions for Analysis of Demand Project

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ECON 525 – SPRING

16

Demand

Analysis PaperDescriptionand Outline



Demand Analysis

• Project learnin o!jecti"e# St$dents %ill $semicroeconomic t&eories and analytical s'illslearned in t&is class to com(lete an analysiso) demand )or a sinle ood or ser"ice %it&inan act$al mar'et* St$dents %ill identi)y t&e)actors a+ectin demand and t&e e+ects t&att&ese &a"e on re"en$e*

•

C&oose a (rod$ct to st$dy*• Clear yo$r mind o) (reconce(tions and (ay

care)$l attention to t&e instr$ctions t&at)ollo%*



In ,&is ,&o$&t Pa(er• -ery little data can !e $sed .in )act/ yo$ need not to

$se any &ard data0• Any ra(&s are t&eoretical only !$t mi&t !e $se)$l

• ,&is as an essay and yo$ are e(ected to i"e yo$ro(inions on

–

&at "aria!les or )actors dri"e demand )or yo$r (rod$ct –&y do (eo(le !$y t&is (rod$ct/ %&at in3$ence or moti"ate

(otential cons$mers o) t&e (rod$ct

• 4oc$s needs to !e on demand and on t&e cons$mer

• 4oc$s on t&e $se o) economic terminoloy .im(ortant0

• e care)$l not to %rite a!o$t rm stratey .i*e*tareted mar'ets7 it is not a mar'etin (a(er0

• Cite re)erences/ APA style not re8$ired



,9IS IS NO, A RESEARC9PRO:EC,

• It is !asically an essay

• In)ormation a!o$t t&e (rod$ct is )o$nd on t&einternet

• ;In"estiation< in"ol"es readin a!o$t t&e

(rod$ct and $nderstandin %&y (eo(le %ant to!$y it instead o) its com(etitor .micro analysis0

• E(lain %&at yo$ t&in' dri"es demand )or t&is(rod$ct and t&at may !e o$tside o) t&e rm=s

control .macro analysis0• >o$ are (ro"ided an ed$cated o(inion onto/

%&y do (eo(le !$y t&is (artic$lar (rod$ct?



Start Readin A!o$t t&e Prod$ct

• Start %it& com(any %e!site and (rod$ctdescri(tion

• Searc& )or ne%s articles .recent and old to

loo' )or (ossi!le s&i)ts in demand o"ertime0

• S$ested so$rces#

–EN@ li!rary data!ases

–@ajor ne%s(a(ers

–Ne%s maaBines

• ee( trac' o) yo$r so$rces



Identi)yin Determinants o) Demandto Disc$ss in >o$r Pa(er

Start !y t&in'in a!o$t t&e eneraliBeddemand )$nction

2-%

%&ere# is t&e n$m!er o) $nits o) ood demanded7

is t&e (rice o) ood 7 is t&e (rice o) a related ood >7 is income7 is t&e "al$e o) any ot&er "aria!le

a+ectin demand*



Identi)yin Determinants o) Demandto Disc$ss in >o$r Pa(er

• S(end time on t&e ot&er )actors*

• Clearly e(lain and %it& s$Fcient detail whyand how e"ery determinant yo$ identied

can a+ect or not t&e demand )or t&e (rod$ct*• ,&e ad# (rice is an im(ortant determinant o)

demand

• ,&e Good# (rice is not an im(ortant determinant

o) demand !eca$se it is a l$$ry ood %it& )e%s$!stit$tes t&at tarets a nic&e mar'et

2-&



Pa(er O$tline•

A descri(tion o) t&e rm and t&e (rod$ct – Easy on t&e s(ecs/ s(end more time on t&e

(rod$ct/ less on t&e rm .not to eceed one (ae0

• A re"ie% o) c$rrent e"ents in t&e mar'et/ – &at=s !een &a((enin to sales lately – >o$ can also (ro"ide a &istorical (ers(ecti"e

• A t&oro$& and oraniBed disc$ssion

o) t&e determinants o) demand• A list o) re)erences $sed*



• &at dri"es demand )or t&is (rod$ct in t&is

mar'et? – ist t&e main determinants o) demand

• Prod$ct c&aracteristics

• Price

•

S$!stit$tes/ Com(lements?• Income? Normal/ in)erior or l$$ry ood?

• Cons$mer tastes H (re)erences .ne t$ne/ do not $se ascateory/ it incl$des ender/ ae/ eora(&y/ etc0

• Ad"ertisin?

•

Instit$tions/ demora(&y/ cons$mers e(ectations – rite a (arara(& a!o$t eac& determinant o) demand

on yo$r list e(lainin %&y and &o% yo$ t&in'cons$mers react to c&anes in t&is "aria!le/ ceteris paribus

2-'

DemandCome Up With A List Specifc to YourProduct



S$mmary•

,&is is not a (a(er a!o$t t&e (rod$ct• ,&is is not a (a(er a!o$t t&e rmt&at=s t&e

s$((ly side

• rie3y i"e !ac'ro$nd in)ormation on t&e(rod$ct/ t&e rm and t&e mar'et

• S(end most o the paper discussingwhat you elie!e to e the

determinants o demand )or t&is (rod$ct• Present %ell/ $se (arara(&s/ clearly identi)y

t&e determinants yo$ are disc$ssin/ etc*

2-10



4ormat and ent&• S$!mit a (a(er in a (ro)essional )ormat

– ellJ%ritten – ellJoraniBed and str$ct$res

– Easy to read

– Correct rammar and s(ellin

• >o$ do need to !ein yo$r analysis o) demand%it& a !$lleted list o) t&e determinants o) demand

• Pa(er s&o$ld not eceed "e (aes 1*5 (tss(acin .not incl$din t&e co"er (ae0*

• Descri(tion o) rm/ (rod$ct/ and c$rrent mar'ete"ent cannot not eceed t%o (aes*

• Present %ell and incl$de co$rse n$m!er/ (a(ertitle/ instr$ctor/ date/ etc*

2-11



9o% t&e Pa(er ill eGraded

• O"erall 8$ality needs to !e ood• Needs to !e %ritten as an essay/ not a

researc& (a(er

• Needs to incl$de a loical list o) t&emost im(ortant determinants o)demand

• Eac& determinant o) demand needs to!e e(lained loically and %it&in)rame%or' o) manaerial economics

2-12



Re"ise and Res$!mit

• I %ill &a((y to re"ie% yo$r rst dra)t .m$st!e s$!mitted at least )o$r days !e)ore t&ed$e date0

•I %ill i"e yo$ comments a!o$tim(ro"ements needed

• It (ro!a!ly %ill !e !est to disc$ss re"isionsdirectly !y (&one/ Colla!orate or in (erson

• A)ter disc$ssion and re"ision/ radeassined is t&e nal rade )or t&is (art o)t&e (a(er

2-1(

ECON 525 Spring 15 Instructions for Analysis of Demand Project

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