- Washburn Guitars - Case Study ExampleAlso, if the buyers expect the prices of the guitars to decrease in the future, they are likely to wait until the day prices come down in the future which decreases the demand of the guitars at the current time.Taste and preference of the buyer; the buyer buying behavior is likely to be influenced by the current taste of product in the market and the product of his preference. A Washburn guitar as a choice by first time buyer is likely to be influenced by current taste and preference of various guitars from different companies.Income level of the buyer; the income level of the buyer will determine if he will buy the product or not (Hartley and Rudelius, 2010). If the buyer income level is low, he is likely to buy a cheaper guitar from a different company. This is because the buyer will consider that the guitar will perform the same function a Washburn guitar can perform.Quality; the quality of the guitar will influence the choice of the guitar a sophisticated musician will go for. A sophisticated musician will buy a Washburn guitar if it is of the right quality he is looking for.Advertising; Washburn factory can undertake advertisement programs of its guitars in the market to influence the taste and preference of consumers towards buying their guitars (Hartley and Rudelius, 2010). This will result in an increase in demand that will shift the demand curve to the right.Public relations; if Washburn factory carries out public relations by way of educating potential consumers how to play the guitar. This will in turn get the potential consumer build preference for Washburn guitars when they go to buy guitars.(b) If Washburn factory increases the prices of the guitars, the decision will be along the demand curve. The price will be above the equilibrium price. The factory can lower the prices along the demand curve by setting the prices below the
