...Most marketing strategists will agree that creating customer value is fundamental to both profit-seeking companies and nonprofit organizations. Indeed, creating superior customer value is a necessary condition for a company securing a niche in a competitive environment, not to mention a leadership position in the market (Day 1990). According to Porter (1980), a company can follow two generic routes to compete in a market: differentiation and low-cost. Day (1990) maintains that both approaches have the same objectiveC to create superior customer value, because "regardless of which of these routes is emphasized, the effort will fail unless significant customer value is created" (Day 1990, p. 163). Day (1990) addresses the issues in analyzing customer value and proposes that it can be expressed in a "value equation": "Customer's Perceived Benefits-Customer's Perceived Costs=Perceived Customer Value" (p. 142). Although Day's approach to customer value is basically sound, some details regarding consumer customers remain unclear. For example, the process by which consumers perceive product benefits is nebulous: Day particularly addresses product valuation by industrial customers in detail, but this is only in principle a part of a much more complex process of product valuation by consumers. Hence a theoretical framework which underlies the consumers' overall product valuation is still missing in the literature. Such a framework should address the issues of how consumers perceive...
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...Sciences Prague Faculty of Economics and Management Department of Economics Project of Econometric Modelling © 2013 CULS in Prague I. One equation model: The following econometric model would like to analyze the impacts of consumption, interest rate and unemployment rate on Gross Domestic Product of China based on the data extracted from National Bureau of Statistics of China.(1992-2011 National Data in 1992-2011 ). 1. Economic model and econometric model 2.1. Assumption * Gross Domestic Product (GDP) depends on the following variables: * Private Consumption * Government spending * Total wage of employees * General model: GDP = f (Private Consumption, Government spending, Total wage of employees) * Dependency between variables based on economic theory: * Increase of private consumption will cause increase in GDP. * Increase of Government spending will cause increase in GDP. * Increase of Total wage will cause increase in GDP. 2.2. Economic and econometrics model * Declaration of variables Variable | Symbol | Unit | Gross Domestic Product | y1 | 100 million yuan | Unit vector | x1 | | Private Consumption | x2 | 100 million yuan | Government spending | x3 | 100 million yuan | Total wage of employees | x4 | 100 million yuan | Stochastic variable | u1t | | * Economic model: y1 = γ1+ γ2 x2 + γ3 x3 + γ4 x4 . Insert stochastic variable-...
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...transformations of 16th, 17th and 18th century Europe. The consumer society emerged in the late seventeenth century and intensified throughout the eighteenth century. While some[who?] claim that change was propelled by the growing middle-class who embraced new ideas about luxury consumption and the growing importance of fashion as an arbiter for purchasing rather than necessity, many critics[who?] argue that consumerism was a political and economic necessity for the reproduction of capitalist competition for markets and profits, while others point to the increasing political strength of international working class organizations during a rapid increase in technological productivity and decline in necessary scarcity as a catalyst to develop a consumer culture based on therapeutic entertainments, home ownership and debt. The more positive, middle-class view argues that this revolution encompassed the growth in construction of vast country estates specifically designed to cater for comfort and the increased availability of luxury goods aimed at a growing market. This included sugar, tobacco, tea and coffee; these were increasingly grown on vast plantations in the Caribbean as demand steadily rose. In particular, sugar consumption in Britain[8] during the course of the 18th...
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...as possible in your logbook. For individual activities, they must be endorsed by the other member. No free-riding for the group project is allowed. I reserve the right to read your logbook to identify each member’s contribution to the group work. After reading this article “How does the stock market affect the economy?” it is obvious that the main topic of this article is about the stock market and how it affects companies and households. There are two main ideas of the article which I will summarize in this paragraph. Stock price declines, especially those induced by profit warnings, increase shareholder pressure on managers to cut costs by laying off workers and scaling back investment. Second, a large stock price decline reduces the value of unexercised stock options, which falls as the gap narrows between a company’s stock price and the price at which workers can buy stock under an option. Third, the factors dragging down stock prices, such as a weaker or more uncertain profit outlook, may spur investors to demand higher risk premiums, which boosts the cost of financing business investment. A fourth way lower stock prices affect firms is that they will have less incentives to invest in new capital if there is a fall in the ratio (q) of the cost of buying existing capital to that of buying new capital. Lower stock prices are correlated with greater uncertainty and lower confidence, particularly because layoffs typically increase during such periods. Second, stock price changes...
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...Valued Possessions vs. Insignificant Desires Anna Quindlen, a novelist, social critic, and journalist wrote an intriguing essay “Stuff is Not Salvation” about the addiction of Americans, who splurge on materialistic items that have no real meaning. The ability to obtain credit is one of the main reasons to blame for society’s consumption epidemic. However, Quindlen feels the economic decline due to credit card debt is insignificant compared to the underlying issues of American’s binging problems. Quindlen’s essay gives excellent points regarding the differences in America’s typical shopping habits. Additionally, she mentions how people acquire all this “stuff” but seem to never realize, “why did I get this?”(501). Quindlen makes her audience visualize a world where we acquire our needs versus our meaningless desires. Yet, she fails to mention people who could live a life of happiness through the possessions they acquire. In summary, Quindlen supports her point of view with examples of American spending habits in the past decades of depression compared to now. She mentions Black Friday and how people become enthralled by cheap bargains (Quindlen 500-501). In Quindlen’s essay, she refers to an accident in which a worker at Walmart was trampled to death by a mob of shoppers and despite the horrific incident people kept shopping (500). With the U.S. depression, Black Friday brings hopes of more money spent, therefore a rise in the markets. The dream of an uplifted economy became...
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...Consumerism Term 3, Lecture 1 Now, consumerism is more widespread than before. Before- What you produce determines who you are and how people look at you Now- Consumption= what is consumed, when it is consumed and how much, determines who you are and how people look at you 2. The roots of consumerism Began towards the end of the 18th century Sugar, tea, coffee- consumerist products With these consumerist products, came the associated pieces (cups, coffee cups, saucers, coffee shops) Consumerism= caused by increased prosperity. As people earn more, they consume more. Social, political and economic revolutions changed people- from this comes consumerism Consumerism becomes feminized- focuses on what goes on in the homes. Which is a woman’s job After consumerism (18th century), women are seen as more beautiful. Before, men were seen more beautiful. Thus women buy more to make themselves more beautiful. Men started to go shopping, as a fun activity. This was not the case before consumerism came along. 3. The growth on consumerism Uneven geographically- consumerism more in urban areas than rural areas a) changes in retailing(shops) changes in retailing boosts consumerism = department stores advertisement boosts consumerism = first in America Peasant societies don’t produce consumerism Changes in media boosts consumerism= radio Kleptomania= compulsion to steal...
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...STRATEGY in the SPECIAL ISSUE NEW WORLD The 10 Trends You Have to Watch | by Eric Beinhocker, Ian Davis, and Lenny Mendonca AFTER A FULL YEAR in heads-down crisis mode, to the evolving role of business in society. Here we discuss how the crisis may affect their trajectories, and we address the implications for strategy. Some trends, we argue, remain firmly on track, but uncertainties are cropping up around others. We also see signs of new forces emerging, which we will be exploring in more detail in the months ahead. The overall picture is of an altered business landscape. It does seem there will be no going back to the precrisis world. hbr.org Are these the right trends to watch? Share your thoughts with the authors at landscape.hbr.org. business executives are looking again to the future. As they reengage in strategic thinking, many are struck by a sense that the world has changed: The turmoil was not merely another turn of the business cycle but a restructuring of the economic order. Is that impression accurate? To answer this question, it is necessary to examine the underlying forces that shape the business environment and to look for discontinuities. McKinsey & Company tracks the most important of these forces, from the growth of emerging markets Lorenzo Petrantoni Eric Beinhocker is a senior fellow at the McKinsey Global Institute, McKinsey & Company’s economics research arm, where he leads research on economic, management, and public policy issues;...
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...has mastered these equations, the new-found confidence should enable him or her to tackle most of the elementary mathematics that macroeconomics requires. THE FIRST MODEL The first model in equation form seen by macroeconomics students is usually: Y = C + 1 (16-1) C = Co + cY (16-2) I = Io (16-3) It is convenient to think of the symbols in these equations as words, and the equations themselves as sentences. Thus it is possible to translate an English sentence into an equation or an equation into an English sentence. First consider the symbols in this model. Y translated into English is the equilibrium level of income, C is planned consumption; I is planned investment; c is the marginal propensity to consume; Co is autonomous consumption, meaning that it is a fixed amount of consumption that occurs no matter what the level of income; and Io is autonomous...
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...average of $407.02 from the Thursday through Sunday that bookends Black Friday, as stated by the National Retail Federation. This topsy-turvy day recognized by a vast majority of American culture has been seen by many as the yearly peak of the country’s ever-increasing trend towards consumerism. Consumerism, the belief that goods give meaning to individuals and their roles in society, has presented itself to Americans in both a positive and negative spirit. On the one hand, consumer spending drives the economy, gives consumers a vast myriad of retailers to choose from, and renders shopping as a social experience. On the other hand, consumerism can render all aspects of life as merely a commodity, encourages excess consumption, and distorts our personal values. In this paper, I will explore these details in greater depth. After that point, I will assess said details and form my own opinion on whether consumerism as a whole is healthy or unhealthy for the average American shopper. Finally, I will...
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...American Economic Association Sudden Stops, Financial Crises, and Leverage Author(s): Enrique G. Mendoza Reviewed work(s): Source: The American Economic Review, Vol. 100, No. 5 (DECEMBER 2010), pp. 1941-1966 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/41038751 . Accessed: 04/03/2013 15:09 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to The American Economic Review. http://www.jstor.org This content downloaded on Mon, 4 Mar 2013 15:09:41 PM All use subject to JSTOR Terms and Conditions American Economic Review (December 100 2010): 1941-1966 http://www.aeaweb.org/articles.php?doi=10.1257/aerJ00.5.1941 Sudden Stops, FinancialCrises, and Leverage ByEnrique G. Mendoza* Financial crasheswerefollowedby deep recessions theSudden Stops of in economies. equilibrium An businesscyclemodelwitha collateral emerging constraint this as and of explains phenomenon a result theamplification...
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...that the United States has become a consumerist society since the early 1900’s. A consumerist society is defined as one directed largely by the accumulation and consumption of material goods (O’Shaughnessy and O’Shaughnessy, 2002). This consumerism was said to have peaked during the 1950’s when it is said that happiness and contentment with life was at its greatest. Today, things have changed significantly. The adoption of modern marketing practices has led to the emergence of consumerist societies in the swelling middle classes (Chan and Cui, 2004). On one hand, this means that more people are earning enough money to spend. However, the increase in the spending power of the middle class had led to greater demand for consumer goods and thus the resources that are used to make them. The video discussed how much marketing has played a role in the way that people advocate for consumerism. Those who advocate against consumerism stated that social progress and economic development have caused contemporary marketing practice to contribute to a consumerist or materialistic society. The main issue with consumerism seems to be the fact that it is a system that consumes way more than it produces. As the video discussed the process through which consumer goods endure from extraction to production to distribution to consumption to disposal. The woman in the video pointed out that there are some missing links in the linear map that we are using to understand the process through...
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...reaction to the evils of consumer society * what if counterculture rebellion was a contributing factor? * people in wealthy industrialized society are on average happier than poor ones * greater wealth comes a greater ability to meet needs and desires * economic development has been shown to generate a steady increase in average happiness levels, but after a certain level of development has been reached the effects disappear completely * the middle class continue to feel squeezed economically * people are working harder, under more stress, less free time * some people question the value of economic growth altogether * serious sacrifices in order to keep a high growth rate * but growth isn’t making us happier * people spend their money on private consumption goods * something pathological about consumption habits * obsessed with acquiring more even though this leads to unreasonable sacrifices * is social criticism really a criticism or rather a piece...
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...Consumerisms Effect Consumerisms Effect Consumerism is defined as, “the theory that an increasing consumption to goods is economically desirable; also: a preoccupation with and an inclination toward the buying of consumer goods” (“Consumerism,” n.d.). With this said, is consumerism healthy for anyone who is involved? From American cultures birth after the revolutionary war, this society has relished the flattery of consumerism. The search for wealth, material goods, and happiness has no boundaries in this society. Although some positive influences exist within consumerisms definition, a darker side to this phenomenon cannot be over looked. Consumerism reflects many negative human attributes and its increase is adversely affecting American culture, societal equalities, and the environment. Consumerism, in all its forms, has been around since the earliest times of American culture. From the earliest time of America, directly after the Revolutionary War, this attitude of need and want for material good and what was considered the best was very evident. One would think that during a life altering divide of nations the concept of consumerism would stop between them, but during this time, Americans still sought British goods. A high perceived value and thought pattern that these goods were of superior quality allowed these items to become a status symbol for early Americans. George Washington, weeks after signing a peace treaty with Britain, ordered a large...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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...Assignment 02 Essay Plan: Introduction: * Outline what intend to explore in essay * Description of a consumer society. Part 1 * What is consumerism * Mass consumption origins – include quote from R Williams * Affluence * Supermarket contribution to consumerism Part 2 * Outline the impact of rubbish / wastage on environment – include statistics from reports shown in Making Social Lives text book. * Explain what unsustainability means and how does it refer to rubbish. * What is recycling and its role * Other ways to use rubbish i.e. charity shops, used as art Conclusion * Conclude whether society is a throwaway society. Explore the claim that a consumer society is always a ‘throw-away’ society. In this essay I will attempt to explore the claim stated above that a consumer society is always a ‘throw-away’ society and find examples to support this. Before beginning to explore the claim stated above, it is important to understand what is meant by a ‘consumer society’. Many social scientists state that we live in times of a consumer which means “a label use to refer to a society which is defined as much by how and what people purchase and use, as by what they make or do.” (Hetherington, 2009, p.13). Consumerism is a form of socialisation evolving from the Industrial Revolution and it has continued to evolve through the decades to the present day. With so many produces being so readily available it seems there are a number of...
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