BUSS1 15 Mark answer, opinions please?

Please have a look at my answer giving an estimate of the amount of marks it would receive with positive or constructive feedback, particularly pay attention to the structure of it as that's what I'm trying to refine and let me know if a conclusion is necessary for this question. Thanks and sorry if it seems a little long winded!!

Case Study Quote:

Ed purchased a 2015 market research report from a major market research agency.This report showed that most electricians charged similar prices because lower prices hadlittle impact on the number of customers who employed electricians. The market researchreport indicated that families often spent money to improve their homes.

The high quality of his workimpressed a local building firm which gave him contracts that guaranteed him lots of jobsdoing most of the electrical work on the new houses it was building. The recent increasesin consumers’ incomes had meant a significant growth in the number of new houses beingbuilt.

QUESTION:

A number of factors influenced demand for Ed’s electrical services. Ed believed thatprice and seasonal factors were more important influences than income. To whatextent do you agree? Justify your view.[15 marks]

ANSWER:
Demand is the desire for a good backed by the capacity to purchase it.

Ed believed that price and seasonal factors were more important influences than income. I agree as there are an increased amount of houses built during the hotter months, therefore causing an increase in demand. At this point in the year, it’s not just families but new housing estates that are built which makes income a subordinate factor to seasonal factors.

On the other hand if he does not have the capacity to take on contracts and instead concentrates on private jobs, then income will become a developing factor in the demand for his services.
One solution would be to have options to hire extra labourers so he can increase his productivity and take on extra work. Therefore reducing the chance of turning away business to competitors or worse still, receiving ill-will from customers.

With price however I do not believe that it is a more important influence on demand than income.When analysing the 2015 market research report, it was found that ‘most electricians charged similar prices because lower prices had little impact on the number of electricians who employed electricians..’
Given the fact that trade trade of electricians in the area is relatively price inelastic, I would come to the conclusion that price is much less important than income, as a demand factor.

However that being said, Ed managed to secure a building contract with a local building firm to supply the electrical needs of the new houses. This was a crucial piece of work for Ed as he had just started and now could reply on the stability of a contract for the foreseeable future. If he had set his prices against what was logical ie. at similar prices and instead had charged too little or too much, it could of made him seem inexperienced or desperate, at which point he would have been an unattractive option to be given a contract.

Therefore I believe Ed is partially or half right in his assessment of factors that affect demand, but he should also look at other factors, such as brand image, and placement of his business, demographics of the area so he can gain a wider and more balanced prospective.

Please have a look at my answer giving an estimate of the amount of marks it would receive with positive or constructive feedback, particularly pay attention to the structure of it as that's what I'm trying to refine and let me know if a conclusion is necessary for this question. Thanks and sorry if it seems a little long winded!!

Case Study Quote:

Ed purchased a 2015 market research report from a major market research agency.This report showed that most electricians charged similar prices because lower prices hadlittle impact on the number of customers who employed electricians. The market researchreport indicated that families often spent money to improve their homes.

The high quality of his workimpressed a local building firm which gave him contracts that guaranteed him lots of jobsdoing most of the electrical work on the new houses it was building. The recent increasesin consumers’ incomes had meant a significant growth in the number of new houses beingbuilt.

QUESTION:

A number of factors influenced demand for Ed’s electrical services. Ed believed thatprice and seasonal factors were more important influences than income. To whatextent do you agree? Justify your view.[15 marks]

ANSWER:
Demand is the desire for a good backed by the capacity to purchase it.

Ed believed that price and seasonal factors were more important influences than income. I agree as there are an increased amount of houses built during the hotter months, therefore causing an increase in demand. At this point in the year, it’s not just families but new housing estates that are built which makes income a subordinate factor to seasonal factors.

On the other hand if he does not have the capacity to take on contracts and instead concentrates on private jobs, then income will become a developing factor in the demand for his services.
One solution would be to have options to hire extra labourers so he can increase his productivity and take on extra work. Therefore reducing the chance of turning away business to competitors or worse still, receiving ill-will from customers.

With price however I do not believe that it is a more important influence on demand than income.When analysing the 2015 market research report, it was found that ‘most electricians charged similar prices because lower prices had little impact on the number of electricians who employed electricians..’
Given the fact that trade trade of electricians in the area is relatively price inelastic, I would come to the conclusion that price is much less important than income, as a demand factor.

However that being said, Ed managed to secure a building contract with a local building firm to supply the electrical needs of the new houses. This was a crucial piece of work for Ed as he had just started and now could reply on the stability of a contract for the foreseeable future. If he had set his prices against what was logical ie. at similar prices and instead had charged too little or too much, it could of made him seem inexperienced or desperate, at which point he would have been an unattractive option to be given a contract.

Therefore I believe Ed is partially or half right in his assessment of factors that affect demand, but he should also look at other factors, such as brand image, and placement of his business, demographics of the area so he can gain a wider and more balanced prospective.