Discussion: The Lines of Washburn Guitars, New Guitar Line to Shift

WASHBURN GUITARS CASE
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1. What factors are most likely to affect demand for the lines of Washburn guitars (a) bought by first-time guitar buyers and (b) by a sophisticated musician who wants a signature model? (5 points possible)
A better value of the guitars will increase the demand and also the brand name will also play a fundamental role in increasing the demand. Some factors that might have affected the demand for the Washburn guitars are that they are usually bought by first-time buyers, and this might include the design of the guitar and the quality. The first time buyers have the high probability of beginning to learn the guitar and therefore, they would be looking for the moderately priced guitars.
However, factors that would affect the demand for the Washburn guitars that are purchased by sophisticated artists who are looking for the signature model would be a bit different. These factors would be focusing on quality and the value of the guitar. For the musicians who want the signature model the skill of the musician demand, the guitar will bring the issue to an alert. Various issues such as design, sound and the appearance will also increase the demand.
2. for Washburn, what are some factors that may cause the demand curve for the new guitar line to shift (movement of the demand curve)?
Right movement of the demand curve will typically result from a higher price of the signature guitars since the new line of guitars would be for setting the price at a lower level in such a way it moves down the demand curve
5. If for competitive reasons, Washburn eventually has to move all its production back to Asia, (a) which specific costs might be lowered and (b) what additional fixed and variable costs might it expect to incur? What are the advantages, disadvantages to making the move?
Some of the factors that mainly affect the demand for the Washburn guitars purchased by a first-time client are the cost and the popularity of the br...