Question

Tesla's new electric cars are making noise in the media as they are creating in increase in demand for green efficient transportation. Research an article on how the social influence from companies, such as Tesla, are impacting consumer decisions. How should the government react to these changes in consumer demand; changing the laws or letting the competitive markets determine if a company's impact on the supply and ultimately demand for certain products should be allowed.

Answer 1

In current consumer market ,influencers can impact the success or failure of a product by using it or ignoring it. Social influences from companies can target differeent consumers having different roles in purchasing products and services. If any innovative or revolutionary idea influence market , demand for particular nature of product rise drastically .Consumers analyse thier needs , evaluate alternative , make research and then choose the best alternative available.

Extraordinory social Influences like Tesla cars directly affects the taste of consumers , it modify thier choices as there was better alternative present in market now. Consumer evaluates all facts and then arrive at a logical conclusion which is either based upon the influence from market revolution, campaign or upon emotional connections .

The frequency of impact of such influences are very high and being persuasive in nature they soon expertise on whole market very soon . Social influences like Tesla cars alter the decision lifecycle of consumer and soon become the benchmark for the market .

Positive change in consumer taste leads to increased demand of particular product . Usually government does not interfere in determination of prices or demand created in market however in some cases, the government may intervene in determining the prices.But it depends on current situation in the market .

If increased demand creates irregularities and loopholes in market , government has to step in , to change the law in order to control demand and supply. e.g governement interfere with inreased demand or supply for any necassity goods like wheat pulses etc. But in Tesla's new electric car case government should let market decide impact of demand and supply in competitive market .

As we all know in open competition where competition is intense ,it gives boost to innovation . Competition among companies can spur the invention of new or better products, or more efficient processes . Companies can race to develop more efficient technolgy in ordere to survive in market , and this indirectly helps economic and social growth of economy .It can also lead to availability of electric cars to be more efficient and price effective . Hence government should not restrict or change the laws initially in such positive social influencer product .

There may be case when there's need to change the law or control the market by government market involves in malpractices or any uncontrolled demand supply scenario, but that should be an exception of the case .