...economics there are two theories that are able to measure the satisfaction of individuals. These are the cardinal utility theory and the ordinal utility theory. There are a number of differences between the two in the methodologies that they use to measure consumption satisfaction Cardinal Utility Cardinal utility states that the satisfaction the consumer derives by consuming goods and services can be measured with numbers. Cardinal utility is measured in terms of utils (the units on a scale of utility or satisfaction). Goods and services that are able to derive a higher level of satisfaction to the customer will be assigned higher utils and goods that result in a lower level of satisfaction will be assigned lower utils. Cardinal utility is a quantitative method that is used to measure consumption satisfaction. Ordinal Utility Ordinal utility states that the satisfaction the consumer derives from the consumption of goods and services cannot be measured in numbers. Ordinal utility uses a ranking system in which a ranking is provided to the satisfaction that is derived from consumption. Goods and services that offer the customer a higher level of satisfaction will be assigned higher ranks and the opposite for goods and services that offer a lower level of satisfaction. Ordinal utility is a qualitative method that is used to measure consumption satisfaction. What is the difference between Cardinal and Ordinal Utility? i. Cardinal and ordinal utility are theories that are used to explain...
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...7 TOPICS FOR FURTHER STUDY The Theory of Consumer Choice 21 Copyright©2004 South-Western The theory of consumer choice addresses the following questions: Do all demand curves slope downward? How do wages affect labor supply? How do interest rates affect household saving? Copyright©2004 South-Western THE BUDGET CONSTRAINT: WHAT THE CONSUMER CAN AFFORD The budget constraint depicts the limit on the consumption bundles that a consumer can afford. People consume less than they desire because their spending is constrained, or limited, by their income. Copyright©2004 South-Western THE BUDGET CONSTRAINT: WHAT THE CONSUMER CAN AFFORD The budget constraint shows the various combinations of goods the consumer can afford given his or her income and the prices of the two goods. Copyright©2004 South-Western The Consumer s Budget Constraint Copyright©2004 South-Western THE BUDGET CONSTRAINT: WHAT THE CONSUMER CAN AFFORD The Consumer s Budget Constraint Any point on the budget constraint line indicates the consumer s combination or tradeoff between two goods. For example, if the consumer buys no pizzas, he can afford 500 pints of Pepsi (point B). If he buys no Pepsi, he can afford 100 pizzas (point A). Copyright©2004 South-Western Figure 1 The Consumer s Budget Constraint Quantity of Pepsi 500 B Consumer s budget constraint A 0 100 Quantity of Pizza Copyright©2004 South-Western THE BUDGET CONSTRAINT: WHAT THE CONSUMER CAN AFFORD ...
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...Themes in Media Theory Dan Laughey KeyThemes in MediaTheory KeyThemes in MediaTheory Dan Laughey Open University Press Open University Press McGraw-Hill Education McGraw-Hill House Shoppenhangers Road Maidenhead Berkshire England SL6 2QL email: enquiries@openup.co.uk world wide web: www.openup.co.uk and Two Penn Plaza, New York, NY 10121–2289, USA First published 2007 Copyright # Dan Laughey 2007 All rights reserved. Except for the quotation of short passages for the purposes of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher or a licence from the Copyright Licensing Agency Limited. Details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Ltd of Saffron House, 6–10 Kirby Street, London, EC1N 8TS. A catalogue record of this book is available from the British Library ISBN–10: 0335 218 13X (pb) 0335 218 148 (hb) ISBN–13: 9780 335 218 134 (pb) 9780 335 218 141 (hb) Library of Congress Cataloguing-in-Publication Data CIP data applied for Typeset by YHT Ltd, London Printed in Poland by OZGraf S.A. www.polskabook.pl Contents List of illustrations Acknowledgements 1 What is media theory? What are media? What is theory? What is media theory? How to use this book Behaviourism and media effects Introduction Lasswell’s chain...
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...study. These terms are defined conceptually and operationally. Part Five, Delimitation of the Study, identifies the scopes and limitations encountered during the conduct of the study. It identifies the variables, the subjects, research designs and statistical analysis procedures used in the study. Likewise, it specifies the location and time of the conduct of the study. Background and Theoretical Framework of the Study Soft drinks and sodas could damage a person. Every person must remember and know that it has a lot of ways to inflict one’s body, physically or mentally. There are certain attitudes that push humans to drink carbonated or caffeinated beverages without knowing their harmful effects. Carbonated soft drink consumption is linked with a disease which is called adenocarcinoma in the esophagus which is stated in the...
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...MKT10007 FUNDAMENTALS OF MARKETING ASSIGNMENT TEMPLATE Instructions for using this template: You can’t rely solely on this document when completing your assignment. You will need to also: * Check the Assessment Criteria / Breakdown of marks. * Study the learning materials closely. Make sure you apply what you learn to this report. * Search for good sources using the Library and cite them throughout the report to support your explanations. Before submitting your assignment * Delete this page * Delete all red text * Replace highlighted text with your own words Before submitting your assignment * Delete this page * Delete all red text * Replace highlighted text with your own words Notes: * It is not compulsory to use the format of this template – it is provided to help those who are new to this type of document. * This document is not intended to serve as an ideal format for all reports – always check specific assignment requirements. Include an assessment coversheet at the front of every assessment submitted. Please ensure that all sections are completed correctly before submission. | MKT10007 ASSIGNMENT COVER SHEET | DETAILS OF ASSIGNMENT | | STUDENT NAME: | ID: | | | UNIT CODE * NAME | MKT10007 Fundamentals of Marketing | ASSESSMENT TITLE /TOPIC | | TUTOR’S NAME: | | DATE OF SUBMISSION: | | | | DECLARATION | | Enter Y / N | I declare that:(the first four boxes must be completed...
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...Student’s Name: Course Name: Instructor’s Name: Institution: Date: Consumer choice theory is a microeconomics branch that tries to relate preferences to both consumer demand curves and consumer expenditures. The theory analyses the way consumers maximize their need to consume which is measured by their preferences against the limited ways on their expenditure. Consumers do this by utility maximization subject to a constraint on their budget. Other times it gets referred to as the theory of consumer behavior. Through the study of this theory, researchers can explain why the consumers would buy more of the product when its price is less as compared to when its price is high. Another elaboration of the theory is that it shows the reason why the households spend their income as they always do (Haugtvedt, Herr, & Kardes, 2008). The greater assumption is that every consumer is rational and aims at maximizing their satisfaction. Some major theories explain the consumer behavior. First is the Cardinalist approach or the marginal utility theory and the second is the ordinalist approach or the analysis of the indifference curves. The former describes extra satisfaction a consumer derives after consuming an extra unit of a commodity while consumption of all other products remains unchanged. The law of diminishing marginal utility gives a thorough elaboration on why the demand curves always have a downward sloping nature. The latter shows the line of combinations (indifference curves)...
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...not clear on what he bases that instance, but it has certainly made for a better story than him dying because he didn’t bring enough food. Over the years Jon Krakauer has put forward several theories for this poisoning, each being scientifically disproven. Recently he published an article in the New Yorker, giving his theory yet another try. You can read the article here. When I read the article myself, it raised a number of questions for me. Krakauer’s conclusions, as conclusive as they were, seemed based on almost no evidence, and the rest of the evidence outright contradicted his conclusions. As a summary, Krakauer believes McCandless was poisoned from eating the seeds of wild potato. He bases that on a note in the journal of Chris McCandless, stating that on day 94 he ate potato seeds, and he was too weak to walk as a result. He combines this note with research done by the Nazis in a concentration camp during WWII, showing that prolonged consumption of such potato seeds over a period of a few months can lead to a debilitating crippling, making it difficult and then eventually impossible for people to use their legs. Krakauer’s conclusions struck me as odd for several reasons. For starters, there is no mention of prolonged consumption of these potato seeds, and if the consumption was in fact prolonged over the 94 days prior to McCandless’ mention of the seeds on day 94, how could he have possibly linked them to this condition caused by accumulation of an amino acid. The...
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...concern for the community, even compared to tobacco and heroin. This summary aims to determine the economic theory underpinning the taxation of alcohol and the impact of taxation on economic efficiency. Overall, on average, per capita consumption of pure alcohol is 10.35 litres per person (ABS, 2012). From 2006 to 2011, alcohol consumption per capita for ages 15 and over in litres increased from 10.31 to 10.57 in 2006-07 and started to decrease from 10.56 to 9.99 in 2007-11 (ABS, 2012). From Figure 1, it can be concluded that Australians are slightly heavy drinkers when compared to other countries with similar cultural, social and economic profiles. AIHW (2011) reports that males and those aged between 18 and 29, and also Indigenous Australians were more likely to consume alcohol in risky quantities. Figure 1: Alcohol consumption litres per capita among population aged 15 and over in 2009 (Source: Adapted from OECD iLibrary, 2012) Costs of alcohol consumption affect labour, health and crime. Collins and Lapsley (2008) report that total tangible costs in Australia attributed to alcohol consumption in 2004-05 were estimated to be $10.8 million. Figure 2 shows that lost production in the workforce contributes a large portion, followed by road accidents, healthcare and crime. According to Grogan (2012), 25 drinkers were arrested for involvement in alcohol-related crime just in December 2012. Excessive consumption of alcohol leads to chronic health problems, particularly liver...
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...Meghan Corvington February 29. 2016 EC492 Forecasting Prof. Orlowski PROBLEM SET #1 (Due date: February 29, 2016) Use the quarterly data base from the Federal Reserve Bank of St. Louis FRED provided to you in the EViews program to answer the following questions: 1. Choose the real US export of goods and services (REXPGS), real import of goods and services (RIMPGS) and disposable personal income (DPI) variables. View their descriptive statistics. Analyze skewness, kurtosis and volatility (measured by the coefficient of variation) of each of them. Discuss possible economic factors underlying the data asymmetry, kurtosis and relative volatility. In this example, all three variables are left skewed, while kurtosis is between 1.99 and 2.29 for each of the three variables. I measured volatility based on the standard deviation of the three variables. DPI is extremely volatile, while RIMPGS and REXPGS are not as volatile as DPI. It seems as if there is a strong correlation between the amounts of standard deviations compared to the kurtosis. There is a lack of asymmetry between the three variables, as there is no equivalence in various measurements. | |REXPGS |RIMPGS |DPI | | Mean | 747.1115 | 962.0551 | 4682.076 | | Median | 447.5000 | 636.0000 | 3400.400...
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...at attaining the highest possible satisfaction or utility. However in order to achieve this objective, he must be able to compare the satisfaction of the different baskets of goods he can buy with his income. Utility is the measure of personal satisfaction. Marginal utility is the additional satisfaction that a consumer derives from an additional unit of a commodity or service. Total utility is the total satisfaction derived from consumption of a given combination of commodities. Consumer equilibrium is attained when the consumer purchases a combination of commodities that achieves utility maximization, given his income and price of commodities. The theory of demand tries to analyse consumer behaviour during the process of utility maximization. Once utility maximization is achieved, a consumer cannot increase utility by consuming more of one good and less of another because the marginal utility-price ratio equated. That is to say, utility is maximised when the consumer equates utility to the last amount spent on each good consumed. A summary equation to explain this is as follows: Marginal Utility of Good 1 = Marginal Utility of Good 2 Price of Good 1 Price of Good 2 Sometimes, the rule of consumer equilibrium is not satisfied, which means that utility is not maximized. This utility can be increased by changing the combination of goods consumed. E.g. in a basket of goods containing hotdogs and sandwiches, a consumer’s income may not afford 3 Hotdogs...
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...CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the summary of related literature and studies that were gathered by the researchers from different references like the Internet, books and unpublished theses that were really a big help in relating this study. The gathered related information served as a starting point in evaluating and understanding the whole study. The following chapter shall review the current literature on energy related consumer behavior and attitudes to sustainable consumption. This section of the research also reviews the trends of previous research conducted on domestic energy use. The chapter shall finally delve into some of the instruments used to affect energy efficient consumer behavior, as well as the effectiveness of one or a set of instruments. Related Literature Saving energy is one of the most fundamental things we can do as student of Bicol University to save money and help balance our budget. "This is an opportunity to cut expenses without affecting services; I encourage everyone to make energy conservation part of our daily routine", (President Curt Tompkins), [1]. The energy is conserved by the “law of conservation of energy”. It states that energy can be neither created nor be destroyed. Energy is a finite resource. The materials we derive energy from (oil, coal, electricity, etc.) can also harm the environment. By conserving energy you help to save parts of the environment. There are many ways to conserve...
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...Royal Economic Society 2004. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. THE INEFFICIENCY OF SPLITTING THE BILL* Uri Gneezy, Ernan Haruvy and Hadas Yafe When agents are ascribed selfish motives, economic theory points to grave inefficiencies resulting from externalities. We study a restaurant setting in which groups of diners are faced with different ways of paying the bill. The two main manipulations are splitting the bill between the diners and having each pay individually. We find that subjects consume more when the cost is split, resulting in a substantial loss of efficiency. Diners prefer the individual pay to the inefficient split-bill method. When forced to play according to a less preferred set of rules, they minimise their individual losses by taking advantage of others. Economic theory is unambiguous in its prediction that if externalities exist, outcomes are likely to be inefficient when agents selfishly maximise. The literature on externalities, as well as its derivatives in public goods, tragedy of the commons and moral hazard studies, has shown that externalities lead to inefficient levels of production and consumption. This result depends crucially on the general assumption taken by such studies that human agents maximise selfish payoffs without regard for others. With the emergence of behavioural economics, economists have come to question whether people actually ignore costs imposed on others...
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...chosen part of life. According to the text “the family exists for the care and protection of offspring and is a major unit for economic consumption ( ). Throughout this essay I will describe how the social institutions of family impact sociological theories, functionalism, conflict, and interactionism. II. How Social Theories, Functionalism, Conflict, and Interactionism apply to Family? A. Similarities B. Differences III. How does; Social Theories, Functionalism, Conflict, and Interactionism affect the views of the members who are a part of the family? A. Effect of Social Theories on the Family. B. Effect of Functionalism on the Family. C. Effect of Conflict on the Family. D. Effect of Interactionism on the Family. IV. How does; Social Theories, Functionalism, Conflict, and Interactionism affect the approach to social change within the family? A. How does Social Theories affect social change within the Family? B. How does Functionalism affect social change within the Family? C. How does Conflict affect social change within the Family? D. How does Interactionism affect social change within the Family? V. Within family how does; Social Theories, Functionalism, Conflict, and Interactionism affect the views of society? A. How does Social Theories affect the views of Society? B. How does Functionalism affect the views of Society? C. How does Conflict affect the...
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...Article 1: “Economists see cost pressure fuelling consumer prices” Table of content A: Introduction……………………………………………………………………….1 1.Summary………………………………………………………………………1 2.Theories applied………………………………………………………………1 B: Analysis……………………………………………………………………………2 1. Research findings……………………………………………………………...2 2. Interpretation……………………………………………………………………2 . I. Cost-push inflation……..……………………………………………………2 II. Demand-pull inflation………………………………………………………..3 3. Application………………………………………………………………………5 4. Conclusion……………………………………………………………………...6 5, Recommendation………………………………………………………………7 C: References list……………………………………………………………………7 A: Introduction 1.Summary Headline in-inflation may have moderated more than expected in December. But economists say inflation is unlikely to stay this low for long, especially with domestic cost pressure driving up consumer prices in 2014. A decline in private road transport costs which was in turn thanks to lower COE premiums. Economists polled by Bloomberg had been expecting a 2 per cent rise in (CPI) in December from a year ago. COE premiums were lower last year than in 2012, but we probably underestimated the magnitude of the impact this would have on head line inflation was said by DBS economist Irvin Seah. So the monetary Authority of Singapore ( MAS) and the Ministry of Trade and Industry (MTI) said the recent weakness in car COE premiums partly reflected a high base as premiums surged in the same period one year earlier...
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...studies, which examined entirely different aspects of customer satisfaction, and synthesize valuable new information. Objectives The objectives of the study can be summarized as follows: * Contribute to the emerging literature on pricing and consumption in examining and defining the key perceived values. * Interpret and expand existing consumer behavior models. * Generate a framework to help marketers to build and monitor the pricing of products. * Stimulate further research on pricing and customer satisfaction. Problem Statement How can mangers use various pricing strategies to build stable, long-term relationships with their customers? Pricing has a significant and broad impact on how consumers view and use products, However, it is more difficult to judge the effects that pricing has on product consumption. The relationship between pricing and consumption lies at the core of customer strategy. The extent to which a customer uses a product during a certain time period often determines whether he or she will buy a product again. So pricing tactics that encourage people to use the products they have paid for help companies building long-term relationships with customers. The link between pricing and consumption is clear, people are more likely to consume a product when they are aware of its cost. But for many executives, the idea that they should draw the consumer’s...
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