• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Describe and explain the likely causes of the rise in the demand for Champagne in recent years.

Extracts from this document...

Introduction

Describe and explain the likely causes of the rise in the demand for Champagne in recent years. Tim Hoffmann Economics 11 IB HL 23/09/03 The rise in demand for champagne recently can be set down to certain factors. The six determinants that will have affected the rise in demand for champagne over the last few years include: Rise in income, rise in the price of substitutes, fall in price of complements, change in tastes (in favour of champagne), increase in population and an increase in price expected. ...read more.

Middle

When champagne is considered, substitutes such as wine or perhaps whisky must be taken into account. If wine is not selling well, or perhaps it is a very good year for selling and the prices are allowed to rise, there will be a lower demand for wine. This drop in demand for wine will mean more available income that can possibly be spent on champagne, therefore a rise in demand for it. A fall in the price of substitutes would also increase the demand for champagne. ...read more.

Conclusion

An increase in population creates quite a simple example: more people, more consumption. The more people there are the more possible consumers to spend money on champagne. Finally, the price expected can create a rise in demand. If, for example, prices were "expected" to rise over the next few years, consumers in general would usually purchase champagne now as it is a good that keeps for a long time and would be a much more rational thing to do to purchase it at a cheaper price now than for a dearer price later (for the same good.) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. The Causes of the Industrial Revolution in Britain

    Despite, this, the growth in the value of Britain's exports during this period of increased foreign demand should not be underestimated: for example, the value of cotton exports increased massively from a value of �0.8 million in the period between 1784-86, to a value of �15.8 million in 1804-06 (More 1997).

  2. Marketing Research

    But in most research, there is a multistage selection. For e.g, We may first select specific areas or blocks in a city. These form the first stage sampling units. Next, we may select specific streets within a block or area and these are called second stage sampling unit.

  1. Applied Business Studies

    Strength could be: * Your specialist marketing expertise. * A new, innovative product or service. * Location of your business. * The quality processes and procedures. * Any other aspect of your business that adds value to your product or service Weakness could be: * A lack of marketing expertise.

  2. Price Elasticity of Demand.

    For a demand curve that is a straight line, the slope is constant. Therefore the slope does not change as it moves along the demand curve. However, for the same demand curve, price elasticity varies depending upon the range of the demand curve in question.

  1. Aravind Eye Hospital - Case

    as Sight Savers International), an organization that was supporting eye camps in India. Dr. V and Sir John Wilson went to the then Prime Minister of India, Mrs. Indira Gandhi, to ask for support for a national organization to control blindness.

  2. Consumer Decision Making Process for Purchasing Property in Spain

    55 Figure 17. Satisfaction Levels and Purchase Experience (n=101) 58 Figure 18. The Satisfaction Levels of Each Gender (n=101) 92 Figure 19. An Oen-Ended Question Asking "If Consumers Could Repeat Their Purchase Process What Would They Change?" (n=101) 93 Figure 20.

  1. Find out why these past few years, demand for public transport is gradually decreasing.

    But in many markets there are either only fewer buys or fewer sellers. For example, in the rail transport industry, for instance, most travellers have no choice about which company to use on a particular journey. The same really goes to buses transport; there are really no other companies for buses except one.

  2. SunCity - developing marketing strategy for problem

    I have decided to have this as my aim because once I have determined where all of Sun City's money goes I can perhaps attempt to adjust this if it is not as cost efficient as it could be, for example if a lot of money is being spent in

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work