Only One Question 🙏🏻🙏🏻

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Microeconomics
Due Date: 15/11/2025 @ 23:59

Course Name: Microeconomics

Student’s Name:

Course Code: ECON101

Student’s ID Number:

Semester: First

CRN:
Academic Year: 2025-26th

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

Restricted – ‫مقيد‬

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Activity -Question:
Monopolistic competition
In monopolistic competition, many firms sell differentiated but similar products. Entry and exit
are relatively easy, but firms have some degree of price-setting power due to product
differentiation. For example, with the rapid growth of diverse dining options in cities like Riyadh
and Jeddah, eateries use branding, ambiance, and menu variations to differentiate their products
in a monopolistically competitive market. Based on this context, write report on following
aspects.
Part 1: Differentiation by menu and cuisine
•

How do Saudi restaurants use their menu and cuisine type to differentiate themselves
from competitors?

Part 2: Differentiation by customer experience and ambiance
•

Beyond the food, how do different dining concepts in Saudi Arabia differentiate through
ambiance and the overall customer experience?

Part 3: Market segmentation and target audience
•

Explain how these different dining concepts (traditional, fast food, and upscale) target
distinct market segments within Saudi Arabia. What specific needs, preferences, and
price points do each of these concepts cater to?

Part 4: Implications for monopolistic competition
•

Restricted – ‫مقيد‬

Using the analysis from the previous three parts, discuss the specific characteristics of
monopolistic competition that are reflected in the Saudi restaurant industry.

Answer:
Introduction
A market structure known as and or characterized by monopolistic competition thus occurs when
numerous or various companies sell unique goods, giving them some degree of pricing power;
hence, this concept is best illustrated by the restaurant sector in Saudi Arabia, which thus offers a
wide range of dining alternatives to suit the individual tastes and preferences of
patrons. Restaurants use a variety of and or numerous tactics, such as menu differentiation,
customer experience, and targeted market segmentation, to differentiate themselves from rivals
in the thriving market created by the expansion of dining establishments in cities like Riyadh and
Jeddah (Johnson, Kovzik & Burnett, 2022). In this paper, we will analyze how Saudi eateries
differentiate themselves through target audience segmentation, décor, and menus.
Part 1: Differentiation by menu and cuisine
Saudi eateries thus set themselves apart by carefully crafting their menus and the kinds of food
they hence provide. Restaurants thus frequently highlight distinctive gastronomic experiences
hence serving exotic cuisines like Italian, Indian, and Japanese alongside traditional Saudi fare
and or delicacies. These restaurants thus establish a unique identity that appeals to both local
and foreign customers by utilizing and or including regional products and flavours in their dishes
or menus. I have also noted that some restaurants might thus focus on classic foods like
Shawarma or Kabsa, while others might serve fusion food, hence characterized by a combination
of ingredients from different culinary traditions (Savvaidis, et al. 2022). Thus, to attract
customers, this diversity has often enabled eateries to produce a memorable dining experience,
thus strengthening loyalty; hence, seasonal and themed menus also clearly helps foster creativity

Restricted – ‫مقيد‬

and maintain the dining experience’s freshness, and this hence encourages return business and
word-of-mouth recommendations. Also, a lot of eateries emphasize and or stress their specialties,
like distinctive desserts or signature cocktails, which might hence attract more customers. Thus,
they are able to enhance the eating experience, hence inspire customers to try a variety of
cuisines, and hence provide tasting menus or chef’s specials.
Part 2: Differentiation by customer experience and ambiance
Apart from cuisine, Saudi restaurants are thus able to stand out with their atmosphere and general
clientele; hence, restaurants invest in lighting, music, and interior design to clearly help create a
welcoming ambiance that improves the dining experience, hence unforgettable. High-end
restaurants, as examples, may thus have sophisticated décor, dim lighting, and live music, hence
creating a beautiful setting that appeal to both professionals and families looking for a classy
eating experience (Asif, 2025). Also, casual dining establishments could thus embrace a bright,
modern style, drawing in younger customers seeking a lively setting. Thus, to stand out or stay
unique, restaurants also leverage distinctive themes like modern minimalist decor or classic
Arabian settings (Chebet, 2020). Thus, personalized service and attentive staff also greatly
improve the overall experience, hence making diners feel appreciated and enticing them to
return. Thus, some businesses also hold events, like tasting nights or live cooking demos, and
hence interact with customers to make lasting impressions. Thus, promoting a feeling of
community through interactive dining and social media interaction, loyalty plans, and special
incentives hence all act to help improve the customer experience, thus they feel as part of the
brand.
Part 3: Market segmentation and target audience

Restricted – ‫مقيد‬

Thus, different eating ideas and or menus hence serve different market segments in the Saudi
restaurant sector, and as usual, each has their own unique demands, preferences, and budgets.
Thus, traditional eateries, frequently visited by families, hence focus on cultural history and real
Saudi food, making them appealing to customers seeking a cozy and familial setting. However,
fast food restaurants often cater to and or attract young people and working professionals who
are thus looking for affordability and convenience (Bhardwaj, 2023). Thus, these joints are wellliked by young people since they frequently offer affordable options and prompt service; hence,
exquisite dining experiences are the main or primary focus of upscale restaurants, which attract
wealthy customers who are hence prepared to pay more for superior cuisine and outstanding
service (O’Sullivan, Sheffrin & Perez, 2020). Additionally, numerous restaurants leverage
marketing techniques that are thus specific to their target area or demography, hence reaching
out to potential clients through local advertising and social media. Fast food restaurants may thus
leverage and or use influencer partnerships and promotional offers to attract younger customers,
while more upmarket businesses may use branding that hence highlights exclusivity and
luxury. Thus, traditional eateries might also use family-friendly advertising to draw in bigger
crowds; hence, Saudi dining ideas can successfully position themselves in the competitive
landscape and cultivate a devoted or loyal clientele by understanding and serving these varied
market segments.
Part 4: Implications for monopolistic competition

Restricted – ‫مقيد‬

Conclusion
Therefore, the diversified products and strategic differentiation of the Saudi restaurant business
hence make it an excellent example of monopolistic competition. Thus, restaurants in places like
Riyadh and Jeddah successfully negotiate the competitive terrain by hence emphasizing
distinctive menus, captivating customer experiences, and focused market segmentation. It is thus
clear that in a market that is getting more and more saturated, this strategy hence not only
increases customer happiness but also ensures loyalty; hence, understanding these characteristics
will be vital for both new and established players hoping to succeed in the dynamic Saudi
restaurant as the industry continues to change and or shift. Therefore, differentiation and
competition work together to keep the culinary scene vibrant and or competitive, hence meet the
wide range of consumer demands.

Restricted – ‫مقيد‬

References
Savvaidis, I. N., Al Katheeri, A., Lim, S. H. E., Lai, K. S., & Abushelaibi, A. (2022). Traditional
foods, food safety practices, and food culture in the Middle East. In Food safety in the
Middle East (pp. 1-31). Academic Press.
Johnson, M., Kovzik, A., & Burnett, N. J. (2022). The Micro in Principles of Macro: A Survey
and Modest Proposal. A version is forthcoming in the Journal for Economic
Educators, 22.
O’Sullivan, Sheffrin & Perez (2020). Survey of Economics: Principles, Applications and Tools.
8th Ed. Pearson Education, Inc.
Chebet, S. M. W. (2020). INTEGRATING EGYPTIAN (ARABIC) GEOMETRIC PATTERNS
INTO CONTEMPO-RARY DESIGN TO CREATE APPEALING INTERIORS (Doctoral
dissertation, College of Architecture and Engineering School of The Arts And Design
BDS 413: PROJECT PAPER (Interior Design Specialisation) INTEGRATING
EGYPTIAN (ARABIC) GEOMETRIC PATTERNS INTO CONTEMPO-RARY
DESIGN TO CREATE APPEALING INTERIORS The Arabian Cuisine Restaurant By:
Saina Mercy Wendy Chebet B05/44285/2017 Supervisor: Mr. COLLINS MAKUNDA
Project Paper Submitted in Partial Fulfilment of the Requirements for the Bachelor of Art
in De-sign degree submitted to the School of The Arts and Design, University of
Nairobi).
Asif, A. (2025). The Influence of Background Music on Customer Satisfaction: A Case Study of
Fine Dining Restaurant in West Asia (Master’s thesis, Itä-Suomen yliopisto).

Restricted – ‫مقيد‬

Bhardwaj, R. (2023). A STUDY ON ANALYSIS OF YOUNG CONSUMERS FOOD LIFESTYLE
BEHAVIOUR IN FAST FOOD SECTOR (Doctoral dissertation, Kashmir University).
Toor, H. H. (2024). Navigating Finland’s Restaurant Industry: Insights into Market Entry and
Operational Obstacles.

Restricted – ‫مقيد‬

Purchase answer to see full
attachment