Finance Investment Analysis report over JNJ and Pfizer
o To what do the buyers respond or what variable has the greatest effect on buyer decision?
o What changes the buyers’ decisions to purchase the product/service?
o What will cause them to buy more? What will cause them to buy less?
o What will cause them to buy from a different firm?
o Examples include interest rates (think buying on credit), consumption patterns, demographic characteristics, GDP, exchange rates, etc.
• Here are some ideas if you choose a variable affecting supply of capital, input cost, ability to hire scientists, research & development, or another supply–side variable.
o Remember that supply is influenced by both the costs and availability of inputs along with the costs of substitutes and compliments in the production process.
o What will cause the firm to produce more? What will cause the firm to produce less?
o What will cause the firm to sell to different buyers?
o Examples include commodity prices, interest rates, exchange rates, oil prices, etc.