In the article “Opportunity Cost Consideration”, Stephen Spiller aims at addressing the various issues that are involved in the decision making process of consumers. Spiller argues that buyers need to involve the concept of opportunity cost in their purchasing decisions so that they can manage to meet their unlimited wants using limited resources (Spiller 595). In relation to this, the article focuses on when buyers should embrace opportunity cost, individuals or parties that embrace opportunity cost, opportunity cost that spring into buyers’ minds and consequences involved in the consideration of the opportunity cost. The author accomplishes his goal by conducting several studies. These studies are fall under various categories such as application of multiple mechanisms in assessing opportunity cost consideration, self-reported consideration, thought listings and possibility of purchase. Thus, the author’s findings play a vital role in highlighting consumers’ need to embrace opportunity costs in their purchase decisions. When Should Buyers Embrace Opportunity Cost Spiller claims tha...
Can We Keep Our Promises? The purpose of this paper is to provide a summary of the article called “Can We Keep Our Promises?” by Robert D. Arnott, and to help better understand the three key risks facing each investor. Robert Arnott describes risk and return as “having two sides of the same coin” meaning risk is inseparable from return. Arnott points out the most important risks that are faced by managers of company pension plans: underperforming other corporate pension funds (their peers), losing money (mostly associated with portfolio standard deviation or volatility), and underperforming the values of pension obligations and therefore losing actuarial ground.
More importantly, the decision to purchase is done subconsciously. This means that the majority of the time, your consumer is not even aware of their decision to buy or not to buy your product. In fact,
Various arguments can be brought upon the fact that people should be more ethical in their purchases but at the same time reactions can support...
Wildlife tourism has become a particularly popular trend over the years. Riding on elephants, taking pictures with lions, swimming with dolphins are only a few of the adventurous and thrilling activities that wildlife tourism provides. Even my own school is planning a trip to South Africa to participate in several of the enthralling ventures.
Does Porter’s ‘Diamond’ concept convincingly explain the achievements of major national business systems, or are their weaknesses, theoretically and empirically, in his arguments?
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Consumer offerings are essential products that are available in the consumers’ market. However, not all these offerings are part of the consumers’ need at a particular time. In this brief piece of writing, readers will understand the consumer offerings that relate to their needs and when. Similarly, readers will learn the difference in these offerings and probably the products the author has patronized with a vivid example. At the end of the paper, readers should feel free to consult the references that aided the writing.
[6] Professional Jewler Magazine Archive, Lev Leviev's Angolan Connection, [internet] Accessed on: 13th November 2005, http://www.professionaljeweler.com/archives/articles/2002/feb02/0202dn1.html
Rousseau, G.G. 2007. Buyer reality: attitudes, learning, and involvement. (In Hughes, T., ed. Buyer behaviour: understanding consumer psychology and marketing. 4th ed. South Africa: Oxford university Press. p. 185-213).
In this essay we will discuss the statement: “In a prosperous society, value is predominantly of an intangible nature”. Value is “the sum of the tangible and intangible benefits and costs to customers” (Kotler & Keller, 2012). The question is however if the tangible or intangible benefits and costs are influencing the value of a product the most. This essay will evince that value is mainly of tangible nature.
Cohen and Felson (1979) proposed an innovative routine activity approach to analyze the crime rate trend. They summarized that only when the convergence in space and time of motivated offenders, suitable targets and the absence of capable guardians happened, crime could happen. They also mentioned that it is social structure that changed people’s legal activities of everyday life, and this in turn produced that convergence, which enriched the illegal activities. This means, even though the proportion of motivated offenders and suitable targets remain stable in the given area, the crime rate can still increase because of the increased likelihood of the convergence of those two at same time and location. In other words, the increasing dispersion
What is Microeconomics? This question was left unanswered when I initially enrolled in this course. Microeconomics is the social science that studies the implications of individual human actions, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals create more efficient or more productive decisions, and how individuals best coordinate and cooperate with one another. Microeconomics does not try to explain what should happen in a market, but instead only explains what to expect if certain conditions change. For instance, If the price of the new iPhone 8 is higher than the previous model will the consumer buy it? There are several elements that will play into getting an answer for this question, but gives you a general idea of what microeconomics entails.
Making decisions is an important part of our everyday life. Decisions define actions and lead to the achievement of goals. However, these depend on the effectiveness of the decision-making process. An effective decision is free from biases, uncertainties, and is deeply dependent on information and critical thinking. Poor decisions lead to the inability to achieve set objectives and could lead to losses, if finance is a factor. Therefore, it is important to contemplate about quality and ways to achieve it in decision-making, which is the focus of this paper. The purpose is to look into the needs of decision-making, including what one should do and what one should not do.
Risk taking is considered an everyday staple of life and a major part of growing up. When we limit the risks we take in our lives we also limit the capabilities those risks present, such as encountering new experiences and situations that improve us as human beings. Risk taking is imperative to personal growth and when discussed in good context it seems harmless, however that is only a half truth. To say risk taking is always safe is completely incorrect and sometimes these risks are often unsafe and not thought out. This essay addresses the following question, why do teenagers engage in this form of unhealthy risk taking? I will also be discussing whether or not certain groups are more at risk and any known strategies to make teenagers aware
Every consumer has a unique way of measuring benefits versus costs and will sometimes pay for higher quality items and other times buy the low costs items, depending on which has the highest value to them.