Friday, October 26, 2012

journal entry 12 Pizza for Pesos?

Pizza for Pesos?
The story in the video talks about the integration of pesos. It is not capitalizing nor supporting that they are accepting illegal mexican immegrants. However, this new addition of pesos for pizzas will provide more utility for the tourists who travel to mexico for vacation and then come back with left over pesos. However, there are a group of seemingly ignorant people who oppose this and think that the company is promoted illegal immigration, so they are sending hate messages to this company. This ties in with consumer preferences, because the haters no longer prefer this pizza company. This effect will increase their business and also increase the budget lines of its consumers, because with the addition of pesos, a new method of payment is introduced as well as the potential for a consumer to pay with it. The argument against accepting pesos is the "illegal immigrants don't below here" argument, which is somewhat invalid considering the intentions of the company. This pesos promotion is simply allowing for the potential of the rightward shift in the budget line due to the income effect. I think that this promotion is great and innovative, despite the hate that they have received, I am sure that even the haters will come to realize Pizza Patron's real motive.

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