DETERMINANTS & ELASTICITY FOR MBA COURSE 2016-17

By, Sagar Ajagaonkar {01}

Synopsis… Defn:- Demand &

Determinants. Why MBA..? Determinants of MBA

course with an example.Defn:- Elasticity. Price Elasticity affecting

Factors.

Definition of Determinant…

Demand:-In economics, demand is the utility for a

good or service of an economic agent, relative to his/her income

Determinant:-Any Factor affecting the demand for a

commodity/product/service is defined as a Determinant of demand for that particular commodity/product/service.

Common Reasons• Versus

Real Reasons

Common Reasons..

Real Reasons..1.   Career Progression

2.   Career Shift

3.   To Gain Knowledge

4.   Networking

5.   Brand Equity

6.   Self-Growth/Personal Development

DETERMINANTS FOR MBA COURSE IN FIMS(FARIDABAD INSTITUTE OF MANAGEMENT STUDIES)

Explanation with the help of Example:-

• Consumer’s Income:-In general, the demand varies

proportionately with theincome of the Consumer. But as per the below data of FIMS for MBA course it seems that the income factor does not affect the demand increase/decrease for students pursuing MBA.Year Lowest Income of

Guardian/Parent(in p.a)2014 42015 3.52016 4.2 - 5.0( Predictive)

Contd..• Consumer Preferences :-

Normally, Favorable change leads to an increase in demand, unfavorable change lead to a decrease.

In this case the preferences for choosing MBA course in FIMS college seems to be increasing from past years because of the trend and popularity in terms of faculty, infrastructure, placements.

19%

21%29%

30%

No. of students ad-mitted in FIMS for

MBA course 2013201420152016

Contd..• Number of Buyers :-

The more buyers lead to an increase in demand; fewer buyers lead to decrease.

In my Example, the buyers are the applicants/students pursuing for MBA and no .of admissions observes an upward trend which concludes that the demand for this course in FIMS is being increasing.

Year 2013

Year 2014

Year 2015

Year 2016

050

100150

MBA Admissions in FIMS

No. of Students

Contd..• Price of related goods:-

Substitute Goods:- price of substitute and demand for the other good are directly related.

 Complement Goods :- price of complement and demand for the other good are inversely related.

In my Example, the substitutes for MBA course can be considered as PGDM, Executive MBA, CS , ICWA etc. courses. When there is increase in price for fees of MBA there is increase in other courses too.

Contd..•Expectation of future: :-

When people expect that the value of something will rise, then they demand more of it.

In my Example, People are investing more for MBA course in terms of the money and time because they expect more returns after placements from FIMS, as per the analytical data the average package of FIMS is higher then past once hence there are applicants are willing to get admissions in the institute.

Definition of Elasticity

Defn:-Elasticity refers to the degree of

responsiveness in supply or demand in relation to changes in price.

Price Elasticity Affecting Factors ..Factors Elastic/

InelasticReason

Number of substitutes available

Elastic PGDM has more subjects which adds value.

Price/Income Ratio Inelastic Educational Loan facilities, Freeships

Necessity Of the course

Elastic If the job opportunities are less the demand will decrease for MBA.

Time Factor Elastic If the course of duration is more people would prefer JOB.

 Variation in Course

Elastic Extensive & Double specialization courses can decrease demand for MMS.

THANK YOU…!!!