Describe what happens to the demand for Coca-Cola products when the temperature
ID: 1180764 • Letter: D
Question
Describe what happens to the demand for Coca-Cola products when the temperature changes (for example in cold days of winter and hot days of summer). In 1999, the Coca-Cola Company began testing vending machines that use thermometers to adjust the price of its products according to the temperature. Explain the effect these vending machines have on the speed of market adjustment. Have you ever wanted to buy a soft-drink on a very hot day, only to find that the vending machines are sold out. How would widespread use of such vending machines affect the availability of soft drinks on hot summer days??
Explanation / Answer
Well,to be precise definitely the sales are less in winter season and it happens at an enormous range in summer season. However the flow of products is always in plenty although it depends on extension or decrease in sales depending on the weather.
The automatic vending machines however can maintain the balance flow of goods during winter season by reducing the price accordingly with the temperature. But the drawback is these automated machines also increase the prices in summer and can lead to a drawback.
And yes,personal experience also states the given condition of being the given material sold out,during excess heat and moisture in the terrible summer season.