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Market Demand

In: Business and Management

Submitted By 874887041
Words 651
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Product description: Finking’s Running Shoes.
Traditional sneakers may not provide the support and comfort consumer’s need, resulting in foot or lower-back pain. However, Finking’s running shoes with special design could protect consumer’s foot and improve her/his exercise performance, since Finking have three unique features regarding materials. First, two types of rubber on the outsole: carbon rubber is a stiff and heavy material, while blown rubber is lighter-weight, cushioned and flexible. Additional, the midsole of Finking’s shoes is the shock-absorbent material between the outsole and the upper shoe. Next, Finking’s shoes are not too soft or too thick. The materials that make up these running shoes are lightweight mesh and heavy-duty leather. Thus, Finking is going to provide the most stable, comfortable and excited exercise experience.
The running shoe industry has a very competitive landscape. There are many shoes manufactures in the world, such as Nike, Adidas, and New Balance. However, Finking’s shoes have special designed treads and the unique materials, which can make Finking’s shoes more competitive.

Through a combination of market research and data from pricing experiments, we estimate that at a price of $160, consumers would not demand any shoes; at a price of $140, consumers would demand 5,000 pairs; at a price of $120, consumers would demand 10,000 pairs, and so on.
According to the demand equation of the functional form: P= a – b Q
We can get: a = 160 b= △Q/△P = (160-140)/5=4
Thus: P = 160 – 4Q
All the prices and demand are based on the market research regarding running shoes, such as Nike, Adidas, and Puma. Comparing the price with other competitors, Finking makes the assumption based on the average data.

C (a)
Assuming: a price of $100 per pair, consumers would demand 15,000 pairs of Funking’s running shoes each week. And…...

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