Month: August 2010

The Economics Perspective

The economics view the things with different perspective, every human being in the world want to blessed with the resources present in the World but unfortunately this is not possible due to the scarcity of resources. The scarcity of resources in terms of limited agriculture production, services, human resource equipment, budget, and time. There is no free lunch if you want to have free lunch it must cost you something or it may have impact on the society. To deal with the scarcity of resources human being have to make the choices among the available opportunities. In economics choices is represented by a term “Opportunity cost” means to get something you have to sacrifice another thing. For Example, A person giving time to study sacrificing activities such as watching TV, playing with friends, spending time with family member. It is true that lands contains unlimited natural resources in the form of Gas, oil, coal and etc but it also need man power, equipment and other skills to discover available...

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Price Adjustment Strategies

The price adjustment strategies relate to all the strategies implemented by an organization that takes into account the differences between customers and rapidly changing. The price adjustment strategies are: geographical pricing, psychological prices, segmented prices, promotional prices, international prices, supply and pricing of allowances. The explanation of these strategies is as follows. Discount and allowance pricing Several companies offer discounts and bonuses in their basic price to reward customers for their specific responses. Discounts can take many forms, such as cash discount which give the buyer a discount if paid before the due date of payment. Similarly there is a quantity discount on the purchase of products in large quantities. For example the price of a shirt is $ 5, but if the buyer purchases two shirts, then the price is $ 4 per shirt. Other functional forms off discount (which is given to channel members by the seller to perform certain functions) and the discount season (in which discount is given to buyers to purchase goods off-season). Segmented Pricing Companies use segmented pricing to charge different prices to buyers on the basis of differences in customers, products and places. Some of the major forms of price fixing are targeted customer segment, the shape of the product price, location, etc. Low price pricing segment of customers, firms charge different prices to different customers. For example, students pay less for...

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Factors Affecting Consumer Behavior

Consumer behavior refers to the selection, acquisition and consumption of goods and services to meet their needs. There are different processes involved in consumer behavior. Initially, the consumer tries to find what products you would like to consume, then select only those products that promise greater utility. After selecting the products, the consumer makes an estimate of available funds that can happen. Finally, the consumer looks at the current prices of commodities and makes the decision about which products to consume. Meanwhile, there are several factors that influence consumer purchases, such as social, cultural, personal and psychological. The explanation of these factors is as follows. 1. Cultural factors Consumer behavior is deeply influenced by cultural factors, such as buyer’s culture, subculture and social class. • Culture Essentially, culture is the share of each company and is the major cause of the person who wants and behavior. The influence of culture on the purchasing behavior varies from country to country, therefore sellers have to be very careful in the analysis of the culture of different groups, regions or even countries. • Subculture Each culture has different subcultures, such as religions, nationalities, geographical regions, racial, etc. marketing groups may use these groups, segmenting the market in several small portions. For example, marketers can design products according to the needs of a specific geographical group. • Social Class Every society has some...

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