The Undercover Economist delivers a clear, fresh and explicit explanation of how the modern economy works. It illustrates a depiction of how to be most effective in the modern business. Have you ever wonder, what kind of influence attracts a customer to buy one product, but not the other? What kind of pricing strategy does each market used? The book, The Undercover Economist answers it all.
The Undercover Economist, an explicit and a fresh economics book, explains how the modern economy works and the way to be an effective economist in modern business. It illustrates one of the simple influences that attract demands for a product. That is location. Tim Harford talks about the importance of coffee in London and how AMT contain the most advantageous strategies compared to other coffee shop in Waterloo station. It doesn’t take much need attention if you don’t know what AMT is but what Tim Harford is trying to explain is how AMT manage to overcome its competitor by winning the heart of customers who has desperation for coffee. The most significant advantage that AMT has over it competitor is its location on the desirable line of seventy-four million commutes. It is in the very best spot that a coffee bar could possibly be located and since that is no direct customer allowed next door. Location is one of the most important factors in modern business because nobody is caring to waste their time 8:30 in the morning to save a few pennies in trying to find a cheaper coffee. People just want coffee and they want it now which simply explains why the location of a coffee bar is important.
What kind of pricing strategies does each market used? Businesses try to segment their customers into different category. Why is this? It is one of the pricing strategies in trying to increase overall revenues through discrimination. Since supermarket sell a variety of labels and quality and are always seeking ways to get the most price-insensitive customers to pay more through self-identification. Tim Harford talks about pricing strategies and how businesses/firm should focus on pricing either high or low but not somewhere in the middle because this can give a misconception about the product itself and may not be as effective as selling high/low.
As a sixth former, I think that this book is really helpful in my studies since I am learning both business and economies. Therefore, this book made me understand more about the things I am studying at the moment and how the system of business and economics work. In addition I recommend people to read this books if they are interested in how the modern economy works and also how to be the most effective in the modern business. However to take into consideration, some of the part in the book is a bit hard to understand, personally because I found it hard to interpret some part of the chapter. Furthermore people who do not learn either business or economies may find this book confusing if you are not a strong reader.
Overall, the Undercover Economist is an entertaining and a factual book to read about which sums up about the modern economy and business.