Demand and investment for jewellery at the time of economic crisis
|Year:||2015 - summer|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The consumer demand defines strategy and tactics of the organization of jewelry
manufacture. The demand and its forecasting for short-term and long-term prospect is one of the
major problems of marketing for the various organizations and firms. The demand size is
influenced by price and non price factors which should be traced accurately on a constant basis
by special departments of firms. My research question is how the demand for jewelry changes at
the time of economic crisis. In this work a number of the major factors are identified which
influence almost all buyers to get the jewelry.
The concept of elasticity of demand has a direct bearing on the pricing policy of the
companies. Therefore, considerable attention in this work is given to this economic category. In
real life it is very difficult to obtain reliable and stable data on factors of cross elasticity to use it
for pricing. The analysis carried out shows that price elasticity of jewels in most cases is low.
Demand for luxury goods linearly depends on the personal income.
The demand research accepts a special urgency in the conditions of the economic crises
aggravating the competitive struggle between suppliers of jewelry. The world economic crisis
has brought a rise in prices for gold and falling incomes of the population. It has led consumers
to switch demand in the market of jewelry in a direction of the goods of a lower price category.
The requirement for jewelry from buyers in the conditions of crisis remains, however consumers
in the majority cannot pay for it the same money, as before crisis. Demand for cheaper jewelry
of original design from silver therefore rises.
The greatest popularity of gold jewelry among buyers is presented by products of an
average price at this period, and the first place on popularity is occupied with gold ornaments
without inserts. The crisis has affected demand for jewelry of the lowest price category less than
the expensive one. First of all there are products from silver and costume jewelry.
In a study for several shops of Russia in the crisis the practical analysis of change of
demand for jewels is carried out. The results testify to positive dynamics in the growth of
demand for jewelry in the conditions of financial crisis declining. In the conditions of the crisis
all factors influencing demand become aggravated.