GB519 Decision Making and Measurement: Unit 5 Discussion
Just because there is an economic downturn does not mean that consumer prices will fall. Even though gas prices might plummet, it does not necessarily equate to lower gas prices as experienced by consumers at the gas pump (Emerson, 2012).
Fuel oil prices have remained high from 2013–2015. Industry forecasts do not indicate declining fuel prices in the near future. According to forecasts, fuel prices will remain near or above $3.00 per gallon well into 2016 (http://www.eia.gov/petroleum/gasdiesel/).
In the global economy fuel prices can affect many other aspects of daily living including food prices. Country governments in pressuring energy companies to provide more bio-diesel fuel which relies on corn has subsequently exacerbated a shortage of this food item which in turn has driven prices of corn up (Rice, 2011).
Emerson, L. (2012, March 11) Higher gas prices affect prices of other consumer goods. The Augusta Chronicle. Retrieved from http://chronicle.augusta.com/news/business/local-business/2012-03-11/higher-gas-prices-affect-prices-other-consumer-goods
Rice, T. (2011). Biofuels are driving food prices higher. The Guardian. Retrieved from http://www.theguardian.com/global-development/poverty-matters/2011/jun/01/biofuels-driving-food-prices-higher
The state of food and agriculture. (2008).Food and Agriculture Organization of the United Nations. Retrieved from http://www.fao.org/docrep/011/i0100e/i0100e00.HTM
U.S. Department of Energy. (2015, October 26). Gasoline and diesel fuel update. Retrieved from www.eia.gov
- Explain how you believe the rising prices affect strategic pricing decisions made by companies that produce packaged food, cereals, canned meats and other common products found in a supermarket.
- Your Discussion should include an examination of how consumer behavior might impact those pricing, marketing, and packaging decisions.
- Include any personal anecdotal experiences you have had with one or two items you or your family buy regularly. Let classmates and instructor know if you have discovered any techniques for reducing costs used by the manufacturer or marketer for your products that seem particularly unique or unusual. For example, does the inside roller for your bathroom tissue seem to be growing in diameter?
Post to the Discussion per your Syllabus guidelines.