...Consumer income Consumer income is defined as consumer income is the money that a consumer earns from either work or investment, such as dividends distributed by companies to its shareholders and the gain realized on the sale of an asset, such as a house.(Effects Of Consumer Income, 2011). Income of the consumer is detrimental to the overall development and growth of the economy across the globe. In today’s standing the average individual income is the median wage in the US per person is $26,695. This tells us a lot since the median household income is at $50,500, according to ("Household Median", 2011). When mentioning supply and demand and the potential effects the consumer income would have on this, one could easily assume the importance as stated above. Consumer income is a key determinant of consumer demand. The relationship between income and demand can be both direct and inverse. This yield staggering results and curve unpredictable information. Discussing the topic of classical and Keynesian prospective, unlike any other event consumer income is beneficial on both sides (Vitez, 2012). Income of consumer is migrated back into the economic circulation. In which this effect has a domino effect in every way. Starting from consumer spending, incline and decline of interest rates, taxes and unemployment. All of these factors combine has major decision in both prospective. Vitez, O. (2012). Difference between classical and Keynesian. Retrieved from http://www.smallbusiness...
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...Consumer income is a very important factor when dealing with economics. The aspect of consumer income affects the spectrums of the expectations, the debt, the interest rates and the other pieces of the economic puzzle. Consumer income can simply be defined as disposable income or household income of the average consumer. This term is also closely related to the country’s gross domestic product or (GDP). This amount is the amount after taxes and living expenses have been deducted. This remainder is the income used to purchase goods and services such as groceries and other household needs along the way. The US Household Income was analyzed late in 2012. (Information for 2013 will be released later this year.) As of then, the average US household income was $51,371 dollars. To put that into perspective, the median income decreased by .36% since 2011. Also, this number has decreased by -4.44% in the past 3 years before. We can see that the income is decreasing slightly each year as we go along. With this decrease comes a major shift in the economy. This decrease can be the direct cause of unemployment and then can be a cause in higher interest rates as well as an effect on inflation and aggregate supply and demand. Supply and demand creates economy for the United States. The numbers discussed above with negatively affect supply and demand currently and in the future. Supply and demand is defined as the amount of a commodity, product, or service available and the desire of buyers...
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...Consumer Income, Interest rates, Aggregate demand and supply Consumer income in the United States can be described as better than most compared to other countries. As of June, consumer income has increased .5 percent and personal disposal income has increased .4 percent (). Although the consumer income increased the consumer expenditures continued to decrease. This displays the consumer’s conservative spending habits. The consumer is yet to fully believe that the economy will continue to strengthen. As history has proven before wages are take time to increase with prices if at all. A middle class individual would be the most to agree with this statement. The rich do not need the help and the unfortunate have the ability to apply for some type of assistance. Interest rates in the United States are the lowest they have been in years. This shows the government’s stance on lending money. They are trying to get consumers to file for loans and possibly encourage banks to approve these potential homeowners. If a consumer is looking to purchase a house, car, or even take out a personal loan this is the time to do it. A homeowner might even consider refinancing his or her home. There are a few factors that a homeowner should consider when trying to refinance. With interest rates this low and consumer income increasing, one would expect consumers to increase their buying on more significant items. Aggregate demand and supply are viewed by economists to make assumptions or predictions...
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...Income, Risk, and Consumer Demand for Healthcare Why is the depreciation of capital good a cost of society? In what ways does a person’s health depreciate? Depreciation is the way to track the wear and tear of assets over time. Now, only those assets which are defined as being capital goods can depreciate. The capital goods will provide value or generate income for the company over a period of time normally greater than one year. The depreciation of capital goods requires knowing three different variables: the original cost of the asset, the salvage value of the asset and the life expectancy of the asset. All three of these variables help the organizations or companies to determine the amount to write policies off against income on an annual basis. Based on that, the cost for the society for the use or availability of this service or technology will be established. So the investment for example on a new instrument or new technology will be recuperated thru the years of use as income, and this income would be obtained from the users (customers). At the end, the company will obtain the total investment plus some income from that investment if used by customers to obtain good health. The health is treated as a stock which degrades over time in the absence of "investments" in health, so that health is viewed as a sort of capital. Unfortunately the depreciation rate increases with age similar to any instrument or technology. It is more difficult to achieve or...
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...in technology and way of life. One of the most significant forces driving this development is the ability to record and deliver information across distances and at rates expanding exponentially. This is also referred to as the information age. Digital technology has changed the economy. The new terminology being used is e-marketing where the primary source of value creation for consumers has shifted from physical goods to services and information. This does not mean that everything we previously knew about business becomes irrelevant and obsolete, but it does mean that significant changes in business environment justify new approaches to thinking of the best marketing strategy and management. In summary E-commerce can be defined as an exchange of goods and services between parties, individuals and organizations as well as the electronically based intra and inter organizational activities that facilitate such exchanges.(Dave.C.,2007,p,4) There are four categories of E-commerce:- a) Business to business b) Business to consumer c) Consumer to business d) Consumer to consumer Most business still carries out the traditional ways of conducting business. This is by having a physical address where they have their products and services and translations are made there. Due to the new dot com community and ways of doing business many businesses have taken up the opportunity of conducting business online. This is because of the benefits brought about by...
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...MARIMEKKO INTEREST IN ENTERING THE INDIAN MARKET ⁃ WORLD'S SECOND LARGEST POPULATION. WILL BECOME FIRST IN 2020 ⁃ HIGH ECONOMIC GROWTH. LAST YEAR BEING 8%. SURPASS GERMAN ECONOMY IN 2015 ⁃ HUGH MIDDLE INCOME POPULATION. BY 2025, WILL BECOME UPPER WITH HIGH DISPOSABLE INCOME ⁃ EXODUS OF NON-RESIDENT INDIANS BACK TO TAKE ADVANTAGE OF HIGH GROWTH ⁃ WORLD'S LARGEST DEMOCRACY ⁃ LARGE LOW COST HIGHLY EDUCATED LABOR AVAILABLE CAMPAIGN MARIMEKKO BRAND SIGNIFIES CHANGE AND INDIA IS CHANGING FAST. SO THE CAMPAIGN MARIMEKKO SHOULD ADOPT IS IT'S TIME FOR CHANGE FINLAND -1951- PEOPLE WANTED CHANGE AFTER LONG WAR AND REBUILDING INDIA - 1991- ECONOMIC REFORMS - ECONOMY OPEN TO FOREIGN INVESTMENT AFTER LONG SOCIALISM. LOT OF MULTINATIONAL'S ENTERED INDIAN MARKET INDIAN IT SECTOR BOOM OFF-SOURCING JOBS TO LOW PAID WORKFORCE • START OF HIGHLY EDUCATED, EFFLUENT CLASS • FASHION CONSCIOUS CLASS - 1994 - MISS UNIVERSE SUSHMITA SEN, MISS WORLD AISHWARYA RAI • TALENTED INDIAN FASHION DESIGNERS MARIMEKKO CAN UTILIZE INDIA DIVERSE COUNTRY - MARIMEKKO DIVERSE COMPANY India is a very diverse country with people speaking more than 50 regional languages having different customs and traditions. Marimekko is a diverse company with designers from different parts of the world. As a...
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...perspective, e-commerce is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web. 2. From an interface perspective, e-commerce involves various information and transaction exchanges: business-to-business, business-to-consumer, consumer-to-consumer. 3. From a business perspective, e-commerce includes activities that directly support commerce electronically by means of networked connections. 4. From an online perspective, e-commerce is an electronic environment that makes it possible to buy and sell products, services, and information on the Internet. 5. From a structural perspective, e-commerce involves various media: data, text, web pages, Internet telephony, and internet desktop video. 6. As a market, e-commerce is a worldwide network. A local store can open a Web storefront and find the world at its doorstep-customers, suppliers, competitors, and payment services. E-business: Connecting critical business systems and constituencies directly via the Internet, Extranets, and Intranets. It goes beyond a web site on the Internet to affect all aspects of business, from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the Web. E-business enables organizations to accomplish the following goals: 1. Reach new markets. 2. Create new products and services. 3. Build customer...
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...Human Resource Roles and Responsibilities Human resource roles and responsibilities are changing because business trends are changing. Technology, e-business, ethics, and globalization are changing the way companies do business and therefore, the human resource management need to make changes to keep up with the new trends. Globalization and Technology During the past century companies have made changes to the way human resource department’s run. Many companies created jobs overseas, which slowed down the hiring in the United States (Noe, R., Hollenbeck, J., Gerhart, B. & Wright, P., 2004). Companies are finding to survive they must compete in international markets and fend off their competitors. Companies are also outsourcing and offshoring the workload in order to compete and pay employees lower pay. Technology is constantly advancing forward. In today’s business world technology is changing rapidly and human resource department find they need to move with it. These days few companies use paper for job applications now businesses rely on the internet which combines data from several sources into a single site. Shared service centers consolidate different human resource functions into a single location (Noe, et al, 2004). Diversity and E-Business Diversity in the U.S. labor force is growing in racial, ethnic, and gender terms. Many U.S. companies have already committed themselves to ensuring they recognize the diversity of their internal labor force and use it to gain...
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...H-E-B grocery store https://www.heb.com/ fits the category of a non – news organization that utilizes social media feeds alongside traditional media feeds. Mixed media is the best way to describe H-E-B online communication (i.e. identified as a mixture of owned media, paid media shared/social media and earned media). The organization has its own website (owned media pg. 175) that allows the company to have control over information disseminated out to both its internal and external publics (pg. 118). When it comes to paid media (pg. 176), H-E-B paid to have control over 60 seconds of air time during the 2018 super bowl. Its commercial in this case demonstrated corporate advertising (pg. 176) as it promoted its annual contest Quest for Texas...
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...Marketing Challenges in a New Economy There is a new trend in today’s economy that does not involve large chain suppliers, retailers or wholesalers. This new trend involves companies that allow owners to rent out their physical assets to increase their income. This new business practice puts the producer directly in contact with the consumer to conduct business. This new trend in the consumer marketplace is known as the share economy. This paper will discuss how this new concept of the share economy has had an effect on the traditional economy and whether the shared economy is creating new value for the consumer or if it is just replacing existing business. The share economy concept involves individuals renting out their physical assets. For example, an individual who is looking to increase their monthly income has the option to increase their income by renting out their home. Another example would be an individual who rents out their car, which would otherwise be unused in their driveway. According to Geron (2013) Forbes estimates that this new economy will generate revenue into people’s wallets that will surpass $3.5 billion this year, with growth exceeding twenty-five percent. This new share economy has been able to grow at a very successful rate and has impacted a stagnant wage market into a disruptive economic force (Geron, 2013, para 9). One element that has helped to drive the share economy is technology. Technology has helped in improving the connection between buyers...
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...Executive Summary This business plan provides an analysis of a key business opportunity available to high street retailer, River Island. The plan identifies and evaluates the past needs of British fashion consumers, how they have developed and their impact on retailers, there is recognition of the decrease in demand for disposable fashion and investigation into competitor brands and ranges who are responding to the market. The plan discusses the different pricing strategies that River Island can use to differentiate the collection from their existing product offering and to a different consumer base. There is also investigation into the company’s opportunity to penetrate the market and win a share of the British manufactured garment industry. The plan offers consideration of corporate social responsibility, the impact of fashion products on the environment, ethical sourcing and the effect of British manufacture on the UK economy and particularly the individual communities, as well as suggestions of promotional marketing techniques that could be adopted by the brand to evoke excitement within the customer base. Business Plan The Business Opportunity River Island is established as one of the biggest British fashion retailers on the high street and is becoming one of the UK’s key retail exports. There are almost 300 River Island stores across the globe, including Europe, Asia and the Middle East, thus the brand represents a unique and original, British style internationally...
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...international investments * Widely used technique for deciding where a company should compete * Focuses on national GDP, consumer wealth levels, and tendency to consume * Emphasis on potential sales * Ignores costs and risks of doing business in a new market * Ignores barriers from cultural, administrative, geographic, economic (CAGE) * Known as 4 Dimensions of Distance 4 Dimensions of Distance: * Attributes creating distance for each dimension Cultural | Administrative | Geographic | Economic | - different languages - different ethnicities - different religions - different social norms | - absence of colonial ties - absence of shared monetary or political association - political hostility - government policies - institutional weakness | - physical remoteness - lack of common border - lack of sea/river access - size of country - weak transportation or communication links - differences in climates | - differences in consumer incomes - differences in cost and quality of: *Natural resources *Financial resources *Human resources *Infrastructure *Intermediate inputs *Information/knowledge | * Industries or products affected by distance Cultural | Administrative | Geographic | Economic | - products have high linguistic content (TV) - products affect cultural or national identity of consumers (food) - product features vary in terms of: *Size (cars) *Standards (ele. Applian) *Packaging - products carry country specific...
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...Similarly the large catalogue (Peckham, 2014) and good relationships with consumers through strong marketing communications online help to reach a large consumer base. Some key weaknesses include poor relationships with some popular artists. An example is Taylor Swift (McIntyre, 2015) and this may impact Spotify’s reputation. The low level of consumers moving to the paid model is also a weakness, creating a larger issue of poor finances (Dredge, 2015), also as a result of the reliance on advertising income. This limits the amount of capital available for reinvestment. Opportunities for Spotify include building stronger relationships with artists and consumers, to gain a larger market share and to increase paid subscribers. This can be completed through education and further diversification in the market. Also seeking to launch in developing countries such as Africa, like they are in Japan (Music Week, 2015), could increase market share and profitability. Competitors within the market including Pandora, Deezer and Apple Music are all threats to Spotify (Dredge, 2014). The rapid changing technologies and developments could threaten Spotify’s position as market leader because Spotify have poor finances for reinvestment to keep up with competitors. Finally, piracy and competitors like Songza (Songza, 2015) which offer music without advertisements for free, are ongoing threats, seeing potential consumers seek alternatives to Spotify. Firm Analysis At the moment Spotify...
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...percent of adults earning $50,000 to $100,000 a year, and 27 percent of those earning more than $100,000, agree that "I cannot afford to buy everything I really need." One third and 19 percent, respectively, agree that "I spend nearly all of my money on the basic necessities of life." I believe that our politics would profit from reviving a discourse of need, in which we talk about the material requirements for every person and household to participate fully in society. Of course, there are many ways in which such a right might be enforced: government income transfers or vouchers, direct provision of basic needs, employment guarantees, and the like. For reasons of space, I leave that discussion aside; the main point is to revive the distinction between needs and desires. Quality of life rather than quantity of stuff. Twenty-five years ago quality-of-life indicators began moving in an opposite direction from our measures of income, or Gross Domestic Product, a striking divergence...
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...Joshua Tollison Phase 4 Individual Project MGM310-1204B-01 Bari Courts 23 December 2012 If I were to start an e-business the main thing I would focus on would be functionality of the site and ease to make customers feel comfortable and confident about shopping with my storefront. By this I mean designing a site that gives customers several options for the products they are shopping for; along with that my customers would have access to multiple pictures of every product available, and a detailed description of the item they are interested in. My customers would also be able to compare similar items by their available options and provide a side by side analysis. The main thing for my e-business though would be the superior customer service that is provided to my clients by means of email, live chat, and a customer service hotline if you would prefer to talk to a representative. One of the final details that would make my site superior to others would be a hassle free return policy that even included return shipping for those who need to return their products for any reason. To be able to make this dream come true there are several other factors that I will be discussing throughout this paper as I present my business plan for establishing my storefront. I. E-Commerce Infrastructure Just as brick and mortar companies have an infrastructure to help them succeed in business, so do e-businesses. By having the correct infrastructure in place allows a company to run...
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