Factors Affect Supply And Demand Of Acuvue
This report’s focus is on analyzing the factors that affect the supply and demand of the products. There are several variables that can affect the supply and demand of a product, including consumers’ income, prices of substitute products, costs of inputs and so on. The product discussed for this report is Acuvue, I will analysis how the factors affect the supply and demand of Acuvue.
Acuvue is Johnson & Johnson’s Vision Care Product. It is one of the most popular eye contact lenses products for nearsighted correction and eye color alteration. Acuvue has a serial of products that depend on different replacement schedule, such as daily disposable, two weeks disposable, colors and so on. All ranges of the lenses of Johnson & Johnson’s are regarded as comfortable, convenient and good eye health product. (Johnson & Johnson, 2008 )1 In 2007, as a leader and pioneer of eye contact lens producer, there was a sales increase by 17.6% prior to 2006.(Johnson & Johnson, 2008) 2
Variables of Demand
Consumer Income
Eye contact lenses are more costly than wearing glasses. The annual expense for normal glasses is $200 dollars but the Acuvue daily disposable is about $480. Take China for example, the GDP of 2007 increased 11.4% (Wiki, 2008)1, people earned more than before. When people’s income increased, those who could not afford to buy the Acuvue in the past can had enough money to afford it. Moreover, as income increased, people tend to replace their contact lenses much more frequently than before, and the demand of Acuvue increased accordingly. Also, nearsighted people may have much higher requirement for their life quality; so, for those who are tired of wearing glasses or who seek convenience by wearing eye contacts may try to change to use eye contact lenses, therefore, demand for the eye contact lenses will increase.
Consumer Preferences
Consumer preference is a significant factor which affects the demand...
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