Reasons

Reason We Choose Baskin Robbins

Ice cream is a delicious sweet delicacy that would be loved by everyone from gender and age group. But, how willing are the consumers willing to purchase? We are curious about the factors of why Baskin Robbins’ become a favourite to the heart of the consumers and how elastic is the demand of Baskin Robbins’. 

The market competition for Baskin Robbins’ is monopolistic competition. Monopolistic competition is a market which firms have many competitors, but each has its own differentiated product. The first characteristic of monopolistic competition is that it has a large number of sellers. It involves small market share, no collusion and is independent. For an example, in the industry contains a large number of firms but each only has limited control over the market price. Secondly, it has differentiated products. Each firm in the monopolistic competition sells similar, but not identical products. Thus, it has many close substitutes. There can be a lot of product differentiations such as packaging, texture, or quality but a buyer sees it similarly. The third characteristic of monopolistic competition is that it has an easy entry and exit. It is because monopolistic competitors are typically small firms, both absolutely and relatively, economies of scale are low and capital requirements are low. Moreover, they are the price maker because there are no other perfect substitutes for their products. Lastly, buyers will have imperfect information about the product. The consumers would not know the cost of products. However, the consumers would still relatively know the brand, or the prices charged by other competitors.

Issues

The issues we currently addressing is the factors of demand for Baskin Robbins’, type of the market competition and elasticity of the demand for Baskin Robbins’. The factors of demand for Baskin Robbins’ can be various from the flavour choices to the services.

Objective

       The significant of this study is to help consumers to understand the demand factors and elasticity of Baskin Robbins products. The research is also done in order to help Baskin Robbins’ to improve their products and to understand what consumer demand from the company.

Limitation

There are several limitations when the research is conducted. Firstly, the respondent might interpret the surveys questions differently because they might not understand the questions. Next, the respondents might not answer the survey questions honestly and give socially acceptable answers. Besides that, the survey samples are too small and it could not represent the population of Taylor’s Lakeside or the real world.