Monday, December 20, 2010

Post 8

Malcolm Gladwell on the Spaghetti Industry

       In this video Gladwell made several good points to what people want and how they don't really know what they want until they try it. Also, he talked about Howard Moskawitz who was a man who helped food businesses succeed in the market. He would let them know what the people like by conducting experiments and polls.
          Companies compete in this way all the time! They try to come up with new and better ingrediants that the mass population will enjoy. They try to raise demand for their product and make it seem better than the rest. If the prices are close between two similar products, most people will go with the higher priced one, assuming it is of higher quality. It is somewhat of a trick that businesses use to get people to get there product sold.  These businesses are competeing over something other than price, which is Monopolistic Competition.


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