In 2010, domino's launched a new advertising campaign admitting that its pizzas had not tasted very good, but claiming that they had developed a new recipe that greatly improved the taste. if domino's succeeded in convincing consumers that its pizza was significantly better than competing pizzas, would its demand curve become flatter or steeper? when a product becomes lessless differentiated from other products, its demand curve becomes ▼ steeper flatter. this happens because the slope of the demand curve reflects buyer responsiveness to a price change, which is determined in part by the availability of substitutes. thus, when a product becomes lessless differentiated from other products, buyers perceive it as having ▼ fewer more good substitutes, and this altered perception induces buyers to be ▼ less more responsive to price.

Question

Ryan Patel

Business

18 August, 21:47

In 2010, domino's launched a new advertising campaign admitting that its pizzas had not tasted very good, but claiming that they had developed a new recipe that greatly improved the taste. if domino's succeeded in convincing consumers that its pizza was significantly better than competing pizzas, would its demand curve become flatter or steeper? when a product becomes lessless differentiated from other products, its demand curve becomes ▼ steeper flatter. this happens because the slope of the demand curve reflects buyer responsiveness to a price change, which is determined in part by the availability of substitutes. thus, when a product becomes lessless differentiated from other products, buyers perceive it as having ▼ fewer more good substitutes, and this altered perception induces buyers to be ▼ less more responsive to price.

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Taylor Eaton · Answer 1

When a product becomes less differentiated from other products, its demand curve becomes flatter

The Demand curve of the company is much more influenced by prices rather than types of products. Creating new recipes for the pizza will only give the customers an additional option for substitute product, doesn't necessarily make them to buy more products.