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Pages:
2 pages/β‰ˆ550 words
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Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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Topic:

The Lines of Washburn Guitars Questions: Responses

Essay Instructions:

Please read the topic, then each response to it and respond to and build upon the comments made in each response. Tell what you like/dislike, agree/disagree, and any questions you have. Please keep separate. 
Topic: In attachments. 
Response 1: 
1. What factors are most likely to affect the demand the lines of Washburn guitars (a) bought by a first-time guitar buyer and (b) bought by a sophisticated musician who wants a signature model?
a. Washburn uses their mass-produced units that are targeted at first-time buyers and are manufactured in Asian factories.
b. Washburn uses the on-of-a-kind custom products to appeal to the demands of sophisticated musicians who want signature models.
2. For Washburn, what are examples of (a) shifting the demand curve to the right to get a higher price for a guitar line (movement of the demand curve) and (b) pricing decisions involving moving along a demand curve?
a. Washburn uses endorsements by internationally known musician who play their instruments and signature lines by these musicians to lower the public’s sensitivity for some of its products. When people see a celebrity using something they usually want to buy that same product, Washburn has done an excellent job of using that to their advantage.
b. Washburn purchase of competitor Parker Guitars assists in Washburn to lower fixed and variable costs like rent and taxes by 40% and hours of work needed for each unit by 15%.
5.If, for competitive reasons, Washburn eventually has to move all its production back to Asia, (a) which specific fixed and variable costs might be lowered and (b) what additional fixed and variable costs might it expect to incur?
a. Taxes and rent would be lowered because of the location of their production. This would bring more funds into the company to import materials if need be because of how Americanized the company has become.
b. Additional fixed and variable costs would be direct materials, management and quality control, along with skilled employers. While moving to America they have gained skilled workers for guitars due to training and education and having them relocate to Asia is an additional fee. Also with the move the management team would have to relocate as well and fly back to America to insure Washburn maintains their status as power house of guitars, which is another additional cost.
Response 2: 1a) A first time guitar buyer will be affected by price and availability, income, and their own personal tastes. Being a first time buyer they are likely to not have any brand loyalty other than the influence they may have received from personal influences. They will be more apt to making a selection based off appearance, price, and features for comparison to other guitar manufactures.
1b) A sophisticated musician wanting a signature model guitar will have some brand loyalty because a lot musicians like to have their own signature sound, such as B.B. King with Lucille (Gibson ES-355TD-SV) or Hendrix (Fender Stratocaster with custom strings). These types of buyers will make purchases like professionals focusing on Craftsmanship, sound, and quality.
2a) A shifting in the demand curve to the right is an indication of a demand change. If Washburn were to sign a new guitarist to advertise their product, the hopeful response would be new customers coming to purchase guitars which would represent an increase in demand for any given price. Which would be a shift of the demand curve to the right.
2b) If Washburn were to run a sale on their entry level guitars customers would in turn purchase their guitars also increasing the demand at the lower price. This would represent movement along the demand curve.
5a) If Washburn were to relocate back to Asia it could reduce first the cost of labor, management costs, building rental, and materials.
Washburn would incur shipment costs to send product back to the US and additional cost of importation of those goods. 

Essay Sample Content Preview:

Responses
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Responses
Response 1 a). The first responder does not address reasons that would drive demand by the consumers. Kindly can the responder provide details what factors will cause first time guitar buyers to purchase? The second responder talks about appearance as a factor. Unless it is explained in detail on how it will affect, it does not seem as a factor.
b). the first responder responds from a supplier point of view. It is vital he/she addresses the need from the consumer side. Example, why would the one of a kind custom products appeal to the demands of the guitar player? Secondly why would those produced in Asia increase or decrease the number of purchases made by sophisticated musicians? The second response addresses the reason for the increase in demand. He/she should also explain in detail why quality and craftsmanship would increase demand.
Response 2 a). The first response rightly gives the example of increased demand. However, the response should note that the shift in demand curve is because of increased demand. The second response should note that the shift to the right shows an increase of demand. It should not be an afterthought as shown. When the demand curve shits to the right, there is an increase of demand for the product.
b). Movement along the demand curve shows a change in the price level. When Washburn would take the ready factory and hires professionals, it means the fixed costs and vari...
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