For example, greed causes businessmen to compete with other businessmen, thus, keeping prices reasonable and forces them to keep up with consumer demands. But then greed could cause businessmen to make not so smart decisions to make more money which may affect everyone in the economy negatively. But I still believe that greed is good for capitalism in the US. I
First, members of wealthy tourist-generating nations can be viewed as conspicuous consumers of the valuable resources of the developing world. The exploitation of these countries on the pleasure periphery has been interpreted by some commentators as a form of neocolonialism, although few tourists would analyse their own behaviour in such a stark manner. Second, individual holiday choices made amongst complex status hierarchies of destinations can also be understood as conspicuous consumption, especially when considered in terms of ego-enhancement motivation and trip-dropping. However, it can be demonstrated that tourism motivation is not just materialistic, but reflects a wide range of other psychological and cultural factors. Furthermore, postmodern tourism is said to break down traditional boundaries and replace them with a universe in which image, illusion and irony predominate (see also postmodernism).
By using the information, manager can use cost of capital for restructure the market price and earning per share in order to bring advantage for company. By extension, it can help determine the decision whether to cancel or invest in project. Moreover, the cost of capital can help investors to determine the performance of the top management. With the intention of compare the ability of financial managers based on evaluation between the
How does conspicuous consumption influence purchasing decisions? Think about a high-priced item that you have bought or would like to buy. To what extent does conspicuous consumption affect your decision? Conspicuous consumption is lavish or wasteful spending thought to enhance social prestige. Conspicuous consumption is the act of acquiring lavish goods or services that a person does not have to obtain or desire, merely with the idea of displaying and boasting ones riches and keep us to the social status.
This gives us a clear comparison and to let us see who has the better GDP. GNP statistics reveal huge differences in wealth between nations. So this can be considered of worth. Reasons it can be considered of worth is that GGNP statistics indicate changes in a countries overall production and the direction of its economy, it can also measure how an economy is functioning, this is very useful when looking at wealth as you would be able to see which countries are thriving and the best to trade with, and which ones are not doing so good. Other reasons statistics are of meaning and worth are because it helps us to identify that the poorest countries actually have a declining GNP.
People would accept this as long as they could see that the system was fair. Conflict might occur but it could be controlled by socialisation. Socialisation was the process whereby shared values could be passed from one generation to the next. At the time Durkheim was writing he argued that education, the family and religion were three of the important agents of socialisation. Disharmony might arise when people felt the system was not fair, for example, when large bonuses are paid to bankers during a recession.
Paradox of Affluence The money for happiness debate is one that has baffled psychological researchers for years. It is in this debate that psychologists attempt to clearly define the correlation between money and happiness; thus solving the paradox of affluence. The term paradox of affluence refers to the phenomena that some people experience in which as their income increases their subjective well-being decreases or remains the same over time. Within their research, psychologists have discovered that money only has a significant happiness increasing effect on those who are considered lower income generators. This phenomenon can be explained through Maslow's hierarchy of needs which suggests that lower level needs such as food and shelter, must be addressed before one can begin to consider higher level needs such as personal fulfillment or self-expression.
As marketer’s decision of reducing on price, which we can consider it as investing on potential customers, to ensure their interest in one specific brand. In one period we consume, in the other time we save for investment. Not to mention, in the time of having high cost of living which leads to the shrinking of consumers’ purchase power, or we can also see the inflation on the price of goods. In this case, by repositioning a company’s brand meanwhile realigning with the perception of value in consumers’ mind is critical for a firm to sustain its brand image amount the publics. Even though this action has caused a short term profitability decline, but for firms’ long-term sustainability, it is vital to keep up with customers’ perceived value, and understanding the core idea of value-pricing strategy.
The value from the information obtained from the market research and having it on hand will outweigh the cost of obtaining that information. It will be outweighed due to the fact that it will clarify the problem and discover possible opportunities. An example of the problem would be the lost of market share and shareholder value, and an opportunity would be, what new products that are appealing in order to retain the existing customers and to attract new ones. With that information, they would also gain a competitive advantage because they will know what consumers are looking for, which will eventually trickle down the chain to raising the shareholder value if implemented correctly. Step Two: Define the Problem The problem is that we do not know what the customer wants in a healthier chocolate option.
Profit maximisation occurs when a firm produces at the point where marginal cost equal marginal revenue (MC=MR). This is the point of profit maximisation as any unit produced after this point will have a greater marginal cost than marginal revenue therefore the marginal revenue being gained from the extra unit will decrease total revenue rather than increase it, thus causing profits to decrease. A reason why a firm may want to profit maximise is that it keeps shareholder happy as they receive a greater share of dividends and also if a firm has profits they can reinvest these profits into research and development (dynamic efficiency). There are many different objectives a firm could have other than profit maximisation. The knowledge of a firm finding out where marginal costs equal marginal revenue is very difficult so some firms may not be able to profit maximise as they do not have the correct knowledge required to do so.