What is an economics example for consumer tastes and advertising?
- Anonymous1 year ago
There are many in the real world. Boeing and Air Bus, Coca Cola and Pepsi. Macdonald' s and Burgerking, Apple and Huawei etc. But it's all the examples of imperfect market condition.
- 1 year ago
New Coke was the ultimate response from Coca-Cola due to Pepsi’s success with the “Pepsi Challenge.” Coke executives decided that if people felt that Pepsi was better in taste tests, than their soda needed to change. New Coke was a combination of changes, but the main change was in the citric acid and phosphoric acid. One of the strangest parts of the release of New Coke was that the Coca-Cola Company aired new Bill Cosby advertisements supporting the old formula just weeks before New Coke was announced. In April 1985, New Coke was announced to the American public. Within hours, things began going downhill for Coca-Cola’s New Coke. The New Coke fiasco is one of the most well-known advertising failures in modern history. Economists use the New Coke campaign as an example for students on what happens when a campaign goes horribly wrong. For many, New Coke is even larger than a teaching tool. New Coke was the largest failure seen in the Cola Wars. Coca-Cola lost part of their fan base when they forgot their Americana and nostalgic feelings. This campaign gave Pepsi an even better chance of catching up with Coke’s market share. One thing New Coke did accomplish was a sense of appreciation for Classic Coke. The consumer base for Classic Coke stayed relatively stable after the New Coke debacle, which can partially be attributed to people wanting to make sure the original recipe stayed the only recipe. In a strange way, New Coke can be attributed to helping Classic Coke’s popularity with Americans, which is perhaps what Coca-Cola hoped for all along.