Bun and Ellis Supermarket Analysis of Cost and Prices Essay

Bun and Ellis Supermarket Analysis of Cost and Prices Essay

Length: 1356 words (3.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

2.3 The variation on Price changes in different period
Bunn and Ellis suggested that comparing the probability of price change in a different period could help them find if the time-dependent models match their data. These models have the same probability on price flexibility in each stage. There are two ways to examine this one is comparing the frequency of price adjustment in different time period; the other is to draw the diagram of the hazard function.
In their study, the correlation coefficient between price increasing rate and inflation is 0.6, which indicated there is a positive relationship. Instead, there is little correlation between share of decreasing price and inflation. (Figure 4) Meanwhile, Bunn and Ellis hold the point that the theory of time-dependent model is inconsistent with the changes on frequency of the price flexibility.
In addition, their study shows there is around 35% of price falls without the short-term promotion, which suggest that the downward nominal rigidities may not have strong influence in the production in the UK markets. According to the price adjustments in micro-data, Bunn and Ellis found that January and April are more likely to reduce prices compares to any other months across the year.

2.4 The size of the consumer price change
Bunn and Ellis considered that it may help to verify the most relevant state-dependent models by measuring the size of UK individual price changes according to their data. The research on the distribution of price changes could show the degree of the downward rigidity in product market. Meanwhile this rigidity may be relevant to the price falls especially with the small range of price cut.
Once more, the behaviour of consumer goods differs from the service, whi...

... middle of paper ...

...y of price change among the different product group, specifically price change for good are more frequently than services. Fourthly, there is a wide range of distribution for the Price change however some of the figures nearly did not change.

These outcomes in Bunn and Ellis’s observations are similar to the other international researches on the individual pricing behaviours. The probability of the price changing varying in the different time period and the heterogeneity between the different product groups which is demonstrated by the data seems extraordinary. In their study for UK micro-data they discovered that there is higher frequency in actual price than it applied in the macroeconomic models. Because the existed models did not match their observation precisely, they suggested creating a new model or assumption to describe the behaviour of the price-setting.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Supermarket Chains And The Supermarket Chain Essay

- Since from 19th century, the supermarket appeared in our lives. With the developing of supermarket, there are many lager supermarket chains now and we can see it everywhere with different companies which not only UK local but also other countries, such as Tesco, Sainsbury 's, Metro, Waitrose and Marks & Spencer. In 2015, Tesco, Asda and Sainsbury 's occupy 28.4%, 17.1% and 16.9% of the whole markets (Wikipedia) which means the large supermarket chains hold the most market. So this essay is aimed to show that in what extent the positive things that the lager supermarket chains can offer to the customers....   [tags: Retailing, Supermarket, Wal-Mart, Hypermarket]

Better Essays
1295 words (3.7 pages)

Cost Benefits Of Cost Benefit Analysis Essay

- Cost benefit analysis, abbreviated as CBA, is a tool derived from utilitarianism to help businesses compare the costs of carrying out and the benefits that result from a decision. It lays down a set of guidelines that help businesses compare the costs and benefits of each available option and figure out which is the best option to choose. (Velsaquez, 63) A simple scenario utilizing cost benefit analysis is judging the production value of item “x”. If the “benefits” or the revenue made from selling “x” is high enough to cover the monetary costs, the costs of the time spent on the product, and produce profit, then cost benefit analysis would state that “x” is worth making because the benefit...   [tags: Cost, Cost-benefit analysis, Decision theory]

Better Essays
1074 words (3.1 pages)

Swot Analysis Of Bob 's Supermarket Essay example

- Company Overview Bob 's Supermarket is a family-owned independent supermarket located in Hanover, Indiana. The company retails "groceries, fresh foods, and ready-to-eat food that is the highest quality and convenient at a fair price." Bob 's Supermarket 's focus is being a good, family-oriented neighbor, and valued member of the surrounding counties (Parnell, 2014). SWOT Analysis Bob 's Supermarket 's strengths are its employees, meat department, ready-to-eat products, and locally produced items....   [tags: Strategic management, SWOT analysis, Marketing]

Better Essays
929 words (2.7 pages)

Essay about A STEEPLE Analysis of Countdown Supermarket

- ... The wrappers usually used for product wrapped by Countdown are plastic in origin. This is an environmental issue regarding Countdown, as the plastic they use to wrap their product is not recyclable, and is not biodegradable. This means that Countdown is having a huge negative impact on the environment. This is because for every Countdown product that is sold to the customer, the packaging is thrown away and cannot be recycled or biodegradable. This means society has no way other than to burn Countdowns packaging waste....   [tags: 10 year business plan]

Better Essays
1340 words (3.8 pages)

Cost -benefit Analysis And Risk Assessment Essay

- Cost -Benefit Analysis and Risk Assessment Any pathological or medical institution should carry out any decision to implement Blood-bank System products and services on a thorough analysis of the costs and benefits associated with such action. Some of the reasons institutions offer Blood-bank services include: • Lower operating costs, • To improve or maintain their competitive position. • Increased customer demand for services, and • New revenue opportunities. • Availability of database to take strategic decisions • Reduce the labour cost • Automate the working for customer and staff ease....   [tags: Cost, Cost-benefit analysis, Costs, Optimism bias]

Better Essays
711 words (2 pages)

Essay about The Mission Of Bob 's Supermarket

- Bob Thompson, along with his brother Sam, reopened and operated Bob’s supermarket, a family-owned independent grocery store in Hanover, Indiana (Parnell, 2014). The mission of Bob’s Supermarket is “to provide groceries, fresh foods, and ready-to-eat food that is of the highest quality and convenient at a fair price, while being a valued member of Hanover” (Parnell, 2014, p. 396). With such a strong mission, Bob’s Supermarket did not appear to focus on marketing, growth, and innovation. The small supermarket seemed to be meeting its mission....   [tags: Wal-Mart, Hypermarket, Supermarket, Grocery store]

Better Essays
788 words (2.3 pages)

Cost Benefit Analysis : The Cost Of Tragedy Essay

- Cost-benefit analysis is an economic approach decision making that compares the strengths and weaknesses of each choice in order to determine which option will provide the most amount of benefits and the least amount of costs. This method is often applied to decisions that concern the environment as an attempt to determine the value of the environment before following through with decisions to preserve or utilize the environment for resources. Although many economists believe that cost-benefit analysis is an efficient way to make most decisions, some philosophers suggest that certain things, including the environment, have innumerable values, therefore, cost-benefit analysis may not be a rel...   [tags: Decision making, Decision theory, Morality, Cost]

Better Essays
1761 words (5 pages)

Essay on Engineering Cost Analysis

- Engineering Cost Analysis Accurately forecasting the cost of projects is vital to the survival of any business or organization. Cost estimators develop the cost information that business owners or managers, professional design team members, and construction contractors need to make budgetary and feasibility determinations. From an Owner's perspective the cost estimate may be used to determine the project scope or whether the project should proceed....   [tags: Engineering Cost Analysis Finance]

Better Essays
1512 words (4.3 pages)

Financial Analysis of Three Supermarket Chains Essay

- Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance....   [tags: Business Finance Analysis]

Better Essays
966 words (2.8 pages)

Character Analysis Of Anse Bun Essay

- Character Analysis of Anse Bundren Anse Bundren is an ugly old man. He is probably in his fifties or sixties. He is very ugly. He has terrible posture and a hump in his back. He looks like he never shaves in a scraggly way and his face is very wrinkled. It isn’t tan because he never spends much time in the hot sun. He has no teeth which is probably his most distinguishing characteristic. He used to be a tall man but even when he was young, he was beginning to show the signs of a hump....   [tags: essays research papers]

Better Essays
739 words (2.1 pages)