Coursework on Economic Analysis of Pizza Product

Economic Analysis of Pizza Product
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Institutional Affiliation
Economic Analysis of Pizza Product
General Information about Pizza
The product I selected for this study is pizza. It is a food product. The main reason why people buy pizza is due to its health nutrients obtained from tomatoes and other ingredients used to make it. It is also a tasty brand that has won the hearts of consumers at the international level. Sometimes people buy it to taste the luxurious brand. Pizza has been in the market for long enough and is dated back in the 18th century with Italy and the United States among the first countries to come up with the product (Durand, 2017). In the era of globalization, the product has found its way in other economies in Africa and Asia. It is available in major food stores. Recently customers can make orders online via apps. The parent companies advertise it on their online stores where consumers can place orders and have it delivered at their doorsteps.
Information about Pizza
Pizza is packed in sizes; small, medium, large and occasionally extra-large. It is measured in diameter. Ten-inch diameter would be considered a small scale; twelve inch is medium while 14 inch is a large pizza. It could vary between countries and units of measurements. The client can read the content on the package. Additionally, the seller provides enough information on the package. Other sources of information about pricing come from food outlets that sell the product and via friends and online platforms. There are also advertisement platforms such as social media and mainstream media (Pizza facts, 2018). Celebrities access information from magazines. Sellers have described pizza as a tasty delicacy and even described it as a healthy product that prevents heart diseases.
The pricing uncertainty principle states that all prices are malleable and arbitrary. This case is similar to pizza where the manufacturer determines the price. Consumers are not aware of value pricing, and the manufacturer may take advantage of this misinformation. When people place orders at the international level, the market creates an increase in demand. Consumers cannot determine its actual price because its price is based on market demand. Additionally, it is quite difficult to ascertain the real cost of pizza since different brands offer their pizza at different rates. However, there is not much uncertainty about the quality of pizza since the producers of the product have given ingredients used to make the pizza. Additionally, competition at the market level makes sure that companies maintain quality standards. The primary mechanism used to ensure that the quality of pizza remains constant is the brand. Pizza is not available in food outlet or supermarkets. It's only available in a pizza shop, ensuring that only licensed outlets produce the brand.
Demand
Pizza is favorite among the youth mostly within 14-30 years. This class of consumers loves to explore new products and have over time stuck on to pizza due to their tasty product and their services. Family-oriented people are also targeted by marketers, even though the millennial group is the primary target. Pizza is most valuable to consumers due to their affordable prices and is locall...