in 1978 and proposed that profit was less important than fairness in the relationship. According to Hatfield (2011) “According to Equity theory, people feel most comfortable when they are getting exactly what they deserve from their relationships—no more and certainly no less” Exchange Theory is more concerned with under-benefit as a disadvantage but Equity Theory places a greater emphasis on both under-benefit and over-benefit. Under-benefits are likely to provoke a sense of anger and resentment and over-benefits are likely to provoke a sense of guilt. The Equity model suggests that a person would be driven to restore the equity within an unbalanced relationship by either reducing their input or increasing their outputs and it is the inability to reach balance that can lead to the breaking of the relationship. Investment theory focusses on the extent to which commitment is determined by investment in a relationship rather than solely satisfaction or reward.
By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
That’s not the case, for every bad thing that happens, a good thing will arise, it may take a few tries until the good comes but it always does. I think the consumers need to go with the flow and try to help the economy the best way they can, work, save money, spend money. For each concept about how consumers act irrationally, explain how it might
How does Adam Smith's concept of the invisible hand explain why markets move toward equilibrium? Do market participants need to know about the invisible hand for it to function? Explain your answer. Answer: Adam Smith’s concept of the invisible hand explains why markets move toward equilibrium because it allows consumers to freely choose what to buy and producers to choose freely what to sell and ultimately how to product it. It is important for market participants to know how the invisible hand functions so they can all benefit by understanding how self-interest regulates the markets supply and demand.
When couples are faced with life changing events or illnesses the balance changes quickly and they will find themselves in the difficult position of facing their own feelings and fears while trying to support each other. People are happiest in relationships where the give and take is about equal. If one person is getting too little from the relationship, then not only are they going to be unhappy with this, the person getting the lion’s share will also be feeling rather guilty about this imbalance. This is reinforced by strong social norms about fairness. In short-term relationships we tend to trade in things, such as swapping or borrowing items or buying drinks, in long term relationships the trade is more emotional.
At this point, sales are virtually diminished, pricing is considerably offset from market trends, and the ability to maintain a level of profitability becomes a major challenge. An organization can put forth efforts in the attempt to reverse, or otherwise avoid, the decline stage by a few idealogic strategies, all of which are designed to readapt and conform to newly enhanced demands by the industry and its respective consumers. Most importantly, an organization can empower itself to readapt and act in a proactive manner by analyzing market trends and determining the future scope of a certain type of product or service within a reasnable timeframe prior to the onset of saturation and declination. Perhaps it would be in the best interest of an organization to produce/ provide a product of similar fashion, yet a unique alternative, before actually retiring or discontuing a product. For production to end indefinitely of a specific good, an alternative must be researched, produced, and introduced into the marketplace at the same time to create an equilibrium of market introduction of one product and declination of another.
The price elasticity is important in business because it refers to the change in quantity demanded to the change in the price of a service or product. Elastic demand is a change in the price of the service or goods that can affect the demand. Will Bury product is different, and the success of his product can assume that the price can be elastic for his product. In the market, there are similar products that are available for different prices the lower the price may work out better in attracting new buyers. However, in Will Bury situation he may have to raise prices and sell more items to bring in more
In supply chain management, strategic capacity planning controls the demand of new opportunities at minimal cost (Chase, Jacobs, and Aquilano, 2006). Strategic capacity planning is essential in establishing the permanent capacity capability a business needs to maintain or improve its market share. Poorly planned capacity needs can help the competition, costing the business customers (Chase, Jacobs, and Aquilano, 2006). Performing a break-even analysis would assist Riordan in calculating the proper capacity needs of their
It depends on how this change would affect not only the company, but how it would affect the brokers? If they did make the change to more subjective assessments and cross-selling, they would have to consider the fact that many brokers may leave because they prefer their pay to be determined based on objective/incentive based measures. With a greater emphasis on cross-selling, this adds more areas the brokers need to become knowledgeable in which could require more time, resources, and training. One the other hand, this also adds a competitive advantage for the company and another area for brokers to make money, which could be a leg up within the bidding wars, especially if they have the opportunity to make more money. Overall, I would say that Bank of America needs to do their research and gather data from not only the brokers but also the customers to help determine their best course of
A society is classed as a consumer society when its foremost activity is purchasing and using items or services. It is the argument of some that a consumer society is a divided society. This essay will outline this view using concepts such as Bauman’s seduced and repressed theory and Wrong’s zero-sum and positive-sum game. Evidence will then be given to support these concepts. Zygmunt Bauman (1988) stated that consumers in western societies could be split into two groups; the seduced and the repressed (Bauman, cited in Hetherington, 2009, p. 25).