Purchasing behavioral change

Consumers purchasing behavior is driven by household resources. But access to credit means that consumer purchases may not always be limited by current earnings. Many household purchases are based on expected changes in future income. The fact that as many as 50% of adults can expect to find themselves in a different income quintile in the next five years suggests that payment flexibility will be a critical tool for enterprises trying to meet the ever-more elusive needs of the 21st century consumer. 

New products focused on cost reductions are products that do not have dramatic changes, but have changes that can influence consumer purchase behavior, especially when connected with implementing a new pricing policy or sustaining a cost advantage. 

Base stock specifications, as defined by the producer or the purchaser, largely enumerate the physical properties required for the fluid—typically density, viscosity at two temperatures, viscosity index (VI), low temperature performance measures, flash and volatility properties, and solubility information from aniline point or viscosity-gravity constant (VGC)—the latter two are usually for naphthenic base stocks. While chemical composition is responsible for physical properties, it usually only surfaces as measurements of heteroatom content—sulfur and nitrogen—and aromatics content (or conversely that of saturates). Sulfur and aromatics levels in paraffinic base stocks are now criteria for American Petroleum Institute (API) classifications. However, detailed chemical compositional information is needed to understand the chemistry of the unit processes, the effects of changes in feeds, catalysts, and operating conditions, and behaviors of finished lubricant products. 

Dynamic pricing can be a powerfnl tool to increase profits if the customers sensitivity to price changes in the course of the season. This is often the case for fashion products, for which customers are less price sensitive early in the season but become more price sensitive toward the end of the season. Dynamic pricing should, however, carefully consider strategic behavior by customers who may anticipate future price drops and delay their purchase. With strategic customers it may be better to have a fixed price or reduce the quantity offered. 

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