The Main Factors Which Influence Customer Buying Decision Essay

The Main Factors Which Influence Customer Buying Decision - Essay Example A fall in the price of a product will result to an increase in the quantity of a product purchased, however these depends on the price elasticity of a product. If a product is price elastic and this means that the price elasticity of the good is more than one, then the products demand will rise at a greater proportion than the rise in price. If the price elasticity of a product is less than one then the demand for the product will not rise at a greater proportion than the price. 1 The price of substitutes also play a major role in determining the consumers purchasing behaviour, in a situation where a substitute of a product is less expensive, then the consumer will purchase the substitute example margarine and butter are substitutes, if the price of butter goes up then the consumer will purchase margarine. Under the price of a product we will also consider the risk associated with buying a certain product, the more expensive a product is the higher the risk and the higher the consequ ences of making the wrong decision, buyers will also consider the scrap value of and mostly this is associated with vehicle and machinery product, products with very high prices and low scrap value will be less preferred. Another consideration is the price of the complimentary good, if the price of the complementary good is hi... tary good, if the price of the complementary good is high then a consumer will be less likely to purchase the product, a good example is petroleum products and vehicles, if the price of petroleum products is too high then the consumer will less be likely to purchase a vehicle, this can associated with the running cost of the product to be purchased will be high and therefore a rational consumer will not purchase the product with high running cost.2 Future expectations about changes in prices will also influence the buying decisions of consumers, if consumers expect a rise in price in the future for a certain product then they will tend to purchase that good in large quantities to avoid high prices of the product in the future, example if a consumer expects the price level of sugar to rise in the near future then he will purchase the sugar in large quantities today to avoid the future rise in price. Therefore the price of a product is a factor that influences the consumer buying decision, the consumer will purchase goods rationally to optimise on his real income and also maximise his utility, prices of substitute and complementary goods play a role in consumers decision making on what to buy and in what quantity.3 INCOME: Income is also another major factor that influence the buying decisions of consumers, the consumers disposable income play a major role in determining what to buy and in what quantities, however this depends on the income elasticity of a certain product, if the consumers disposable income increases and that the income elasticity of demand for that good is greater than one then the proportional rise in the demand for t hat product is greater than the rise in income levels.

Integration - Causal Chains and Strategy Essay Example | Topics and Well Written Essays - 1250 words

Integration - Causal Chains and Strategy - Essay Example This improvement will be caused due to the increased employees’ professionalism and their motivation. Thus, TCCB customers will be satisfied with an excellent service. Customer’s satisfaction will lead to improved loan and deposit balances, and non-interest income. Also, satisfied customers will advertise TCCB to other people because of its excellent service and broad assortment of products (new loans, etc.). The 3rd chain: Customer’s satisfaction and retention will be also increased due to making thank you calls and providing cards to new and existing customers. Having TCCB cards customers will come again to the TCCB, thus will be increased customer’s retention. Finally, TCCB will improve its loan balances, deposit balances, and non-interest income. While evaluating the effectiveness of the balanced scorecard approach between two categories of branches A-E and F-J, it was obvious that the first category (A-E) demonstrated much better financial results than the second category (F-J). According to the data presented in Table 3, all branches that had applied the BSC except E, demonstrated financial increases in loan balance, deposit balance and non-interest balance. While the branches F-J also have demonstrated financial improvements for one year of performance, these improvements were hardly noticeable. In 2001, F branch demonstrated decrease ($1 mln) in deposit balance comparing with the previous financial year; performance of G branch in loan balance did not change for one year; and branch H have demonstrated decrease ($3 mln) in noninterest income (Albright, Davis, Hibbets 2001, p.59). The branches that applied BSC demonstrated only increases in loan balance, deposit balance and noninterest income; there were no decreases in terms of financial performance. While the financial improvements were performed by A-E

SOCIOLOGY - Intellectuals and Revolutionary Politics Term Paper

SOCIOLOGY - Intellectuals and Revolutionary Politics - Term Paper Example Adam Smith in the Wealth of Nations describes this phenomenon in the following way: â€Å"proclaimed the principle of the ‘invisible Hand’; every individual, in pursuing only his own selfish good, [is] led as if by an invisible hand, to achieve the best good for all...† (Buchholz, 1999). Thus Smith underlines that in the first place of the modern Western society is selfish interests of every individual. Everybody thinks that the more money he earns the less problems he would have. Of course, some contemporaries think that in case they had a lot of money they would share it with poor people. In reality, even if a person succeeds and gains lots of money there are only a few who share it with the poor. It also can be argued that the modern world is being developed at full speed and it is necessary to earn money to keep pace with this progress. Moreover, world’s economics is being developed following the main principle: to make the greatest profits. From this p erspective, a root of monetary obsession of the modern Westerners is involuntarily dictated by external conditions. Furthermore, from the perspective of economics it may be claimed that â€Å"Money ...provides the measuring rod of values† (Buchholz, 1999). ... In order to define values, intellectuals claimed that there was an â€Å"interior need to penetrate beyond the screen of immediate concrete experience† (Shils 1972, p. 3). In such a way, money as a value is argued by Shils for sure. This value is relevant to modern society, but ‘beyond the screen of immediate concrete experience’ it is not a value. The members of the Western society hardly realize that a deep-rooted system of values is good, but it’s not the system to be deeply rooted. For example, in the earlier society the one of the basic values and an honor was to die for one’s country. This value could hardly exist in the ‘monetized’ society nowadays. Therefore if to discuss the deep rooted system of values of the Western society it can be metaphorically explained what this really means: â€Å"Everyone has a god, but not everyone is aware of who or what that god is†Ã‚  (Buchholz, 1999). Q 2 Romantic German nationalism as a tr igger of Nazi politics The upheaval of national consciousness is triggered by intervention of aliens in the territory of a certain nation. Romanticism and ‘wars of liberation’ of different classes in Germany triggered Nazi politics. From one perspective it may seem that there is nothing in common between Romanticism and Nazism. There is a perfect explanation of German nationalism that occurred under influence of Romanticism: â€Å"When, later, the last hopes which the German patriots had rested on liberation from the foreign yoke had burst like over-blown bubbles, their spirits sought refuge in the moonlit magic night and the fairy world of dreamy longing conjured up for them by romanticism, in order to forget the gray reality of life and its shameful disappointments† (Romanticism and Nationalism). Partially, German

Narrative of the Life of Frederick Douglass by Frederick Douglass Essay

Narrative of the Life of Frederick Douglass by Frederick Douglass - Essay Example It was Douglas’ firm belief in his abilities that empowered him to act as a revolutionary activist, who then played a key role in the abolitionist movement. The hard earned self-education also enabled Douglass to write his remarkable autobiography ‘Narrative of the Life of Frederick Douglas, an American Slave’, which details various aspects of his life as a slave and immorality of slavery itself. His escape from slavery was a major event narrated in his book that further determined the course of his life. In order to understand Douglas fight against slavery, it is important to identify the key motivations behind his struggle that will probably address how the slave became a citizen. Earlier in the story, Douglas describes a series of events in which he witnessed some acts of cruel brutality against fellow slaves in his early age. His mother passed away when he was seven but felt nothing difficult due to their forced separation a lot earlier. He saw Aunt Hesterâ₠¬â„¢s being cruelly whipped by his master till she was covered with blood. This event introduced him to the real and horrible character of slavery. In his own words, "it was the first of a long series of such outrages, of which I was doomed to be a witness and a participant. It struck me with awful force. It was the blood-stained gate, the entrance to the hell of slavery, through which I was about to pass. It was a most terrible spectacle" (Douglas, 1996). Douglas later describes of himself as being deeply affected by the singing of slaves in detail. He also narrates several events that left him with an immense hatred of slavery, including the brutal murder of Demby at the hands of Gore. Such brutal and inhumane occurrences motivated in him the utmost desire to escape from slavery. The prime event that helped him to determine his pathway and provoked in him the desire to gain knowledge occurred after he was removed from Colonel Lloyd's plantation to Baltimore, for serving the son of Hugh and Sophia Auld. It was here that he discovered the joy of learning when Sophia Auld taught him how to read a word using alphabets. However, Hugh Auld disliked his wife's efforts and forbade her by saying that, "If you give a nigger an inch, he will take an ell. A nigger should know nothing but to obey his master - to do as he is told to do. Learning will spoil the best nigger in the world. Now if you teach that nigger how to read, there would be no keeping him" (Douglas, 1996). These words deeply convinced Douglas that learning was the pathway leading to ultimate freedom of a slave. After being sent back to the country from Baltimore, Douglas was eventually lent to Edward Covey for a year. Mr. Covey fed him enough food to eat but often whipped him for his awkwardness. Covey was known to be a slave-breaker and his cruel treatment crushed his strong spirit. One day, when Covey tried to tie him up, he strongly resisted and fought back. Douglas regards his fight with Covey and hi s surprising cowardly response as one of the major turning points in his slave career. According to him, "it rekindled the few expiring embers of freedom, and revived within me a sense of my own manhood. It recalled the departed self-confidence, and inspired me again with a determination to be free" (Douglas, 1996). He became confident in his belief that no matter how long he remains a slave, he will get freedom eventually. He also planned to escape with some fellow

GM Strategy Essay Example | Topics and Well Written Essays - 3000 words

GM Strategy - Essay Example The emergency of the low cost Japanese made cars compounded the difficult situation of competition which was already taking a toll on General Motors. Various global changes also took place in the motor industry such as new technological innovations, new marketing strategies that specifically focused on meeting the interests of the customers among other factors. In response, GM invested heavily in its endeavour to keep pace with these global changes. However, the major setback that hampered its efforts was the aspect of bureaucracy resulting from hundreds of divisions within the company which made it difficult to have focused, well coordinated operation systems. During its heydays, GM used to pay very high benefit packages since it was very profitable especially during the mid 1970s when it dominated the US markets. However, due to changing global trends especially the emergency and ultimate dominance of other rival competitors such as Toyota and Nissan, GM has lost some of its competitive advantages to these rivals. Compared to Toyota, GM pays as much as $35 for pension benefits whilst Toyota pays around $11, which gives it a cost advantage of about $1500 a car contrary to GM’s position. GM has to charge less premium than its strongest competitors hence it sells its vehicles at a loss. GM is now in a predicament of continuing paying high benefits to its workers against the backdrop of losses owing to the union laws that are a bit stringent such that it cannot abruptly cut these benefits to meet the global trends nor simply layoff some of the workers. It seems GM’s revenues are higher than those of Toyota but at the end of the day Toyota has higher earnings as a result of the fact that GM spends more money on operating costs and other expenses. GM makes more cars than it can profitably sell which means that it would end up selling at a loss. In fact it is no longer getting profits from its

Interdependence and Independence Essay Example | Topics and Well Written Essays - 500 words

Interdependence and Independence - Essay Example 201). In support of the observations, people are, in the modern times, learning about becoming independent. People no longer wish to share their concerns with others. This is because they tend to create social security for their private matters. Culture is fading away slowly and gradually, it does not significantly affect the decisions made by the people. For instance, if someone has issues with their spouse, culture would dictate that they continue living together. This should not be the case as people have the right to make their own independent decisions. An individual’s needs are more important than the community’s needs. People are more important than their communities are. The community regulates the rules and regulations that involve assisting one another. The rules advocate for community coexistence, getting it wrong. People in the community should push for what is beneficial to their lives. A person cannot seek for the rights of the community at the expense of their own benefit. I will raise my children differently from the way I was raised. It is important to appreciate and respect their efforts and decisions. There is need to encourage them to become independent thinkers. This is because they must be accountable for their own decisions and actions. Parents should only provide their children with guidance, in order to have them make the right choices in life. Through independence, individuals are able to understand themselves. They realize their uniqueness and acquire the ability for self-development. Independence affects the personality of an individual positively because they act without other people’s influence. People are able to keep their thoughts and feelings as secrets, increasing their internal activity. Independence gives an individual a sense of control over their lives. It is important to listen to parents whenever they give

GM Strategy Essay Example | Topics and Well Written Essays - 3000 words

GM Strategy - Essay Example The emergency of the low cost Japanese made cars compounded the difficult situation of competition which was already taking a toll on General Motors. Various global changes also took place in the motor industry such as new technological innovations, new marketing strategies that specifically focused on meeting the interests of the customers among other factors. In response, GM invested heavily in its endeavour to keep pace with these global changes. However, the major setback that hampered its efforts was the aspect of bureaucracy resulting from hundreds of divisions within the company which made it difficult to have focused, well coordinated operation systems. During its heydays, GM used to pay very high benefit packages since it was very profitable especially during the mid 1970s when it dominated the US markets. However, due to changing global trends especially the emergency and ultimate dominance of other rival competitors such as Toyota and Nissan, GM has lost some of its competitive advantages to these rivals. Compared to Toyota, GM pays as much as $35 for pension benefits whilst Toyota pays around $11, which gives it a cost advantage of about $1500 a car contrary to GM’s position. GM has to charge less premium than its strongest competitors hence it sells its vehicles at a loss. GM is now in a predicament of continuing paying high benefits to its workers against the backdrop of losses owing to the union laws that are a bit stringent such that it cannot abruptly cut these benefits to meet the global trends nor simply layoff some of the workers. It seems GM’s revenues are higher than those of Toyota but at the end of the day Toyota has higher earnings as a result of the fact that GM spends more money on operating costs and other expenses. GM makes more cars than it can profitably sell which means that it would end up selling at a loss. In fact it is no longer getting profits from its