Your assignment is to prepare and submit a paper on the relationship of internal governance and consumer demand. Marketing becomes a micro level concern involving job roles, product variety, and balancing inventories. It should be said that consumers are one of the most prominent microeconomic issues concerning businesses with product and service offerings.
In reference to consumption, Rowe (2010) offers that consumer trends have driven a new pricing sensitivity due to economic conditions. In order for a restaurant to adapt, smaller portion sizes are being offered at a lower price. Valenza Restaurant in Atlanta, Georgia offers such selections as gorgonzola-stuffed olives, rabbit liver mousse, and roast figs on their small plate specials. Why foods services and how does this relate to the microeconomic environment? New price sensitivity is driven by market conditions and households or certain environmental conditions that change a behavior. Because of this change, consumers have new substitute goods options based on pricing. This promotes internal adaptive behavior in relation to pricing without sacrificing the quality of service and product that requires innovation in marketing or perhaps even operational. Shifts in consumer demand, based on pricing differences, disrupts the equilibrium between supply and demand. If the restaurant in this case study had not adapted the menu to meet issues with consumer considerations of substitutes or tradeoffs, it would lose its comparative advantage. If the restaurant performs restructuring internally in order to make an adaptive menu based on demand cycles and can do it at a low opportunity cost, this advantage is present.
On a different side of the micro issue is the linkage between consumer substitution and scarcity is another factor that drives internal business mechanics. . .
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