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Homework answers / question archive / 1 Short answer type questions Discuss the statement "Marketers don't create needs; needs pre-exist marketers
1 Short answer type questions Discuss the statement "Marketers don't create needs; needs pre-exist marketers." Can marketing efforts change consumers' needs? Can they arouse consumer needs? If yes, how?
2
Subjects taken at the University of Queensland nearly always prescribe a textbook. The textbook can be examinable so it may be necessary for students to obtain the text, if they wish to get a good grade.
Answer the following questions:
1
Marketing can be defined as an approach of promoting the sales level of a commodity. The marketing can be referred to a step or promoting an item into satisfaction of requirements therefore illustrates that needs pre-exist marketing. The needs or wants of the consumer are the drivers of all strategic decisions in marketing; however these needs are not created by marketers as these already exists and needs would be satisfied with or without marketing. However the marketing act as a step to promote an item into satisfaction of customer needs therefore we can conclude that it needs pre-exist marketing; and marketers can highlight customer need but would not create it. The efforts of marketers are not generally designed to change needs of consumer but to trigger or create ‘wants’ for items/services desired by the consumers who would then purchase for their satisfaction on the needs that already exist
2
1.If a subject states that sections of the textbook are examinable, so the textbook really is essential, then demand will be _____L___ elastic compared to if the textbook was not examinable, ceteris paribus.
Explanation: Demand will be less elastic if text book is examinable as it will be necessity for student demand for necessities is always less elastic.
2. According to midpoint formula
![Midpoint Formula: Price elasticity of demand = (Q2 - Q1)/[(Q2 + Q1)/2] / (P2 - P1)/[(P2 + P1)/2]](https://quickonomics.com/wp-content/uploads/2018/11/midpoint-formula.jpg)
where Q2 = New Demand , Q1 = Previous Demand
P2 = New Price , P1 = Previous Price
Q2 = 479 , Q1 = 601
P2 = $79.99, P1 = $59.99.
Applying above formula
Ped = [(479 - 601)/479 + 601) /2]/[ $79.99 - $ 59.99/$79.99 + $59.99/2] = 0.71 Ans
3.Assume the Co-op Bookshop is trying to maximise revenue. Considering your findings in part b), did the Co-op Bookshop's decision to increase the price of the textbook agree with increasing revenue?_____Y___ . Type Y for Yes, N for No or U for Unknown.
Yes, as per our findings in b demand for textbooks is inelastic i.e percentage change in demand will be less than percentage change in price as a result revenue will increase with increase in price.
It is evident also :
| Price($) | Demand for textbooks | Total Revenue($) |
| 59.99 | 601 | 36053 |
| 79.99 | 479 | 38315 |
Total Revnue is increasing with the increase in price.
