business studies topic 13 & 14 (design process (choose design from…
business studies topic 13 & 14
factors that affect the demand for a product: price, media, demographics, ethnicity and age.
percentage change: change in value ÷ original value x 100
price elasticity of demand: % change demand ÷ % change in price
price elastic good: if the price goes up, people will stop buying or greatly reduce demand of a particular product. if the price goes down, demand will increase
price inelastic good: if the price goes up, demand will only slightly decrease, customers will have to continue buying the essential product, but may reduce demand. if the price goes down, people will slightly increase demand.
if a product is price elastic, then dropping the price will increase revenue.
if the figure is above 1.5 = price elastic. if the figure 0 to 1.5 then the demand is not highly sensitive, it is a normal good
income elasticity of demand: % changed in quantity ÷ change in income
design: finding the balance between creating a product that people desire, can afford & functions correctly
identify gap in the market
conduct market research
prepare a design brief
approach a design team
choose design from initial submission
trial the product sample
tool up machinery for manufacture & organise supply of raw material
start full scale production