...MY NEW HOUSE XECO/212 PRINCIPLES OF ECONOMICS 7/25/2012 Many of the decisions we make as consumers are directly related to the current state of the economy. Moreover, as consumers are faced with life changing purchases, they will weigh the marginal costs and benefits associated with their purchase. This is most apparent when there is a decision to purchase a new home. Throughout this paper I will explore the economic principles that directly relate to this type of purchase, as well as identify the contributing factors that help shape the strength of our economy. The decision to purchase a new home can be a daunting and challenging choice. As current homeowners will testify, various factors will contribute to this life-changing decision. One of these factors includes trade-offs, which they will face before and after their purchase. This trade-off is one of the fundamental principles of economics; stating that we must give up something to receive something else. For a perspective homeowner this trade-off can be a reduction in the amount of available purchasing power. Once the purchase has been completed, the homeowner would be required to spend any extra money on their mortgage payment. Or for a couple who travels, it could be the loss of multiple vacations to popular destinations around the world or for someone like me who enjoys getting massages on a regular basic it would become no more. Moreover, this first principle defines that every decision...
Words: 1572 - Pages: 7
...feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing (Hawkins & Best, 2007). For example, when leading up to purchases, a long line outside a night club is a positive factor in evaluating that club. Long lines imply that everyone wants to go there, and that club is probably very good. But, after you have purchased your ticket that long line is no longer a desirable factor, as you impatiently wait to get in. Furthermore, once you make it to the door, that long line ahead of you now means that the club is overly crowded, and therefore, a lot less appealing. So, for this example, categorizing activities by whether they occur prior to purchase versus during use shows how consumer responses can change significantly within a situation. Marketing affect us all in a daily basic whether we know it or not. It plays an important role for the consumer who is purchasing. It helps create a decision for a consumer to buy or not to buy. It helps bring for clarity and product knowledge in the purchasing the right item. Some people would search everywhere to find the best deal and save money. The companies that will come out in the top are companies that know how to market and feed on the public by what is popular and current. My recent purchase I made was an item on clearances at Ross. Ross is a discount store with a good variety of in-season, name-brand apparel, accessories, footwear, household goods, and kitchen products...
Words: 596 - Pages: 3
...such as situational influences that can affect the time and reason for the purchase or more internal influences such as a consumers perception, attitude, lifestyle that psychologically influences their buying behaviors. The external forces of social influences has increased in recent years with the expansion of social media and access to the internet. The internet has made it very easy to promote and market products in recent years. The internet has made it easier for companies to capitalize on consumer buying decisions by making their products easily available, product information at your fingertips, ability to compare products, create desire thru interactive advertising and competitive pricing. As time goes on the internet will be a very important, valuable marketing medium for companies. The internet is a major influencer in my purchasing process. It is the first place I go when I am looking at purchasing a product, especially large purchases, or products I have limited knowledge or have not purchased before. I am able to do product research, product comparisons and determine the best price for the product/service. I recently purchased a 2 in 1 product and the internet played an important role in the purchasing process. Situational, psychological and social influences all played a role in my research, evaluation, and purchase decision. The product marketing, both internet and retail, influenced my...
Words: 282 - Pages: 2
...marks) A short term monetary goal that will be achieved during this school year is for me to save enough money to purchase an iPhone and have enough money to not only pay for the purchase price of the iPhone, but some money to cover a couple of monthly plan fees. The amount that will be needed to accomplish this goal will be around $600, which will be achieved in about 3 months. My plan of action in order for this goal to be accomplished is to set aside $200 each month from my part time employment to pay for the purchase price of the phone and initial monthly payments, which is a high priority for me. One constraint that will prohibit me from reaching this goal is if there were to be an increase in the cost of the purchase price or an increase in the cost of plans. An intermediate monetary goal that will be achieved in 2 to 5 years will be to pay off my car loan. The amount that will be needed to accomplish this goal will be $7,500 which will take 36 months (3 years) to be paid. I will do this by putting aside a set amount each week from my part time employment paycheck in order to complete this goal, which is a medium priority for me as it will take 3 years to be paid. One constraint that will stop me from completing this goal are all the account expenses that I will have to incur as a result of being a car owner (ie repairs, gas, insurance). 2. Name two recent trends that you identified in the Monitoring Current Economic Conditions sheet. How will these trends influence your...
Words: 886 - Pages: 4
...Annotated Bibliography Tesa S. Malone EN 116: Speech Herzing University The article in Renting Versus Buying a Home, states that when considering buying a home, determining the annual rent to the purchase price ratio is very important. As far as taxes go when becoming a homeowner mortgage interest and property tax can be deducted from your taxes. Although the author is anonymous, this source is credible because it is recent and scholarly. (Renting versus buying a home. (2015)....
Words: 627 - Pages: 3
...injured? How well do you understand the plan? Yes I am covered with a Health care plan for my children and myself; with my insurance my children and I are completely covered, If I become ill or injured I may be responsible for an ambulance fee (if used), but I am able to acquire medical services at the ER (Emergency Room), I am able to obtain the medication needed for my conditions and my children and I are covered with Dental Care as well. * Disability Income Insurance. Are you covered by disability income insurance? What would happen if you were unable to work for two or three years because of illness or injury? My insurance is currently not covered by disability Income insurance, I do know that my insurance will pay for physical therapy services and ambulatory service if needed but as far as covering my financial with food and shelter, No it wouldn’t. * Thinking About Life Insurance. What were your feelings about the need for life insurance before you read this chapter? What are they now? Have they been influenced by the recent poor economy? Before reading this chapter I felt that life insurance is very important aspect for those who have heirs. I have purchase life insurance for both of my children using my auto insurance and even if I get rid of my car I can continue to pay on my life insurance. Life insurance has not been influenced by recent poor economy, now you can purchase life insurance at an affordable amount. * Life Insurance for Married Couples. In many...
Words: 455 - Pages: 2
...Method Introduction I have calculated the ending inventory for Fan Company A using the four following inventory valuation methods: Periodic FIFO (First In, First Out) Periodic Average Cost Perpetual FIFO Perpetual LIFO (Last In , First Out) to determine which inventory method to recommend to the management of the Company. A summary of my calculations follows. Provide an explanation of your calculations for each of the inventory valuation methods. Finally, your recommendation. Fully explain how your inventory valuation method impacts the Company’s net income and why it is better than the other methods. INCOME EFFECT LIFO | WA | FIFO | Sales | 100,000 | 100,000 | 100,000 | CGAS (Beg Inv. + Purchases) | 74,000 | 72,000 | 70,000 | Ending Inventory | (48,000) earlier cost | (50,000) | (52,000) later cost | CGS | 26,000 later cost | 22,000 | 18,000 earlier cost | Income Effect | 74,000 | 78,000 | 82,000 | Under the FIFO method, the first goods purchased are considered to be the first goods used or sold. Ending inventory is thus made up of the latest (most recent) purchases. Because of this, the FIFO method closely approximates the actual physical flow of merchandise and the cost allocated to ending inventory approximates current cost. Whenever the FIFO method is used, the ending inventory is the same whether a perpetual or periodic system is used. This is true even during periods of rising or falling prices because the inventory...
Words: 710 - Pages: 3
...Behind the visible act of making a purchase lies a decision process that represents a chain reaction that starts with a realized need. However, it’s also important to point out that the consumption process is not as simple as an individual having the need or want for a product. The consumer can be motivated by the desire to feel a certain way. For example, my most recent purchase was a winter coat. After the arctic temperatures we had in the Western New York area over the last few days, I decided it was time to invest in a nice warm winter jacket. I first started to look online then I visited a few stores but I didn’t find anything I really liked. If the consumption process was as simple as finding a product that meets my need, any warm winter jacket would have satisfied my need. Nevertheless, there I was walking around at Macy’s, I didn’t have anything particular in mind, I was simply looking around. Suddenly, on a mannequin, I see a beautiful grey button up hooded jacket with white fur trim around the hood. The lining was this stunning soft pink. When I looked through the racks, as you can imagine, I was delighted to see they had my size. The price didn’t even matter. I didn’t simply need a jacket anymore, I wanted that jacket. The main psychological process influencing my purchase was my concept of self. Because a jacket is something that I am going to wear every day during the winter season, it became part of my extended...
Words: 265 - Pages: 2
...that influence a consumers decision on what product or service they purchase. Two of these factors is the actual self-concept and ideal self-concept. The actual self-concept is defined as the individuals belief about himself, which includes the person’s attributes and how they evaluate themselves. The ideal self-concept is how you would like to see yourself. When consumers purchase products they are often purchasing the product to enhance how they feel about themselves as well as get closer to their ideal self. My most recent important purchase was a car in September. I purchased a 2012 GMC Terrain with some special features. The GMC is a mid size SUV that is known to have one of best gas mileage for its type. My choice of an SUV was mainly based on the fact that I like bigger cars because I travel a lot with large items (bowling balls) and I like to sit up higher in a car so I can see everything. Most of the time, SUV drivers are described as people who like to feel in control, which is a lot of the times what I like to do. I often take control of situations because that it is personality. The purchase of a newer also indicates that I want to have a sense of pride and a feeling of accomplishment because I purchased a brand new car. This explanation would be an example of how I tried to enhance my ideal self-concept of being someone who looks accomplished. I also chose the vehicle based on needs. My old car had very poor gas mileage and it was costing me a lot of money...
Words: 445 - Pages: 2
...Kevin Fox XECO212 2-11-14 New Home Risk and Benefits There are many risks associated with purchasing a new home. Understanding what the risks and benefits that are associated with purchasing a new home will help a potential buyer make the right decision. I recently purchased my first home last year, and found myself weighing in on all the benefits and risks associated with my first home purchase. A couple of more recent fiscal policies that the government implemented recently were the first time home buyer credit and a new low interest rate of 3.1% for qualifying buyers towards a first home purchase. These two policies that were implemented by the government were meant to change the demand for homes in the economy and target new home buyers to purchase their first new home. This in return would jump start a boost in the economy by theory. These two policies where what made my decide to purchase a new home because they were and are great incentives. The first time home buyer tax break/ credit has since expired, however all time low mortgage rates are enticing buyers to purchase new homes still. The government also backing FHA loans allows first time home buyers to be approved for their first home loan in a tough economy. If the economy takes off, more houses will be purchased, the values of homes will rise, and eventually interest rates will rise once the government feels that spending is at a high point in order to slow the economy from over growth. I feel that the risk...
Words: 357 - Pages: 2
...accounting purposes but allowing it for tax purposes by removing the conformity requirement or allowing it for financial reporting and tax purposes by conforming IFRS to US standards in some way my response is “Eliminate LIFO”. So, Last-in-first-out (LIFO) is an inventory accounting technique which allocates the most recent inventory prices to cost of goods sold and the oldest inventory prices to items remaining in the inventory. In a period of increasing prices, this assumption assigns the recent and higher prices to cost of goods sold and the older lower prices to inventory. LIFO can have a significant cumulative downward effect on the inventory’s value. The cost of goods sold for any particular year equals the sum of beginning inventory, plus purchases, less ending inventory. Thus, a lower ending inventory increases cost of goods sold and reduces taxable income. Under current tax law, companies are allowed to use LIFO for tax purposes only if it also uses LIFO for financial reporting purposes. LIFO inventories means that the last stock admitted is the first to go withdrawing from the system. So at the end we will have only those stocks with an older cost. Just to put an example, just imagine this: the January 1 Buyer of 10 pants to a value of $ 22 each, while the January 10 purchases 22 pants to a value of $ 22.50 each. On January 15 a sale of 18 pants is made, as is applying the LIFO method, the...
Words: 512 - Pages: 3
...Report of strategies and recommendations to improve the hospital’s financial status In my analysis of the problems now facing the hospital, I have pointed out key areas that continue to lose money for the hospital and ways to improve on the now running systems to improve efficiency. It is clear that the hospital continues to lose patients and with the patients significant income. There is an array of issues causing this in my opinion but I very well agree with the recent audit. In this spirit I present this report which in my best opinion will go miles to overcome our current situation and even better it. I believe that it is high time the hospital undertook a serious bench marking exercise. It is important to keep the hospital trendy and up to date with the latest in modern healthcare practices. This will not only help us in competing better in the market but will also increase the efficiency of our services and the general company outlook. A good example is with the fitness and wellness center currently running in one of our competing hospitals. Having a fitness center in the hospital will definitely increase the flow of patients and with that our financial situation. Encouraging members to take up membership to the wellness center that will tag along with free medical checkups and discounts on services once you are a member will also widen revenue streams. It is also paramount that we look at our labor force. In order to run an efficient business it’s important to keep a...
Words: 828 - Pages: 4
...Abstract For the last decade there has been a drastic increase in the debate over gun control. A Constitutional right set forth by our forefathers is now seemingly being laid to rest by the leaders of our country. However, as a modern Democratic society the people of our nation are refusing to go down without a fight. By evaluating and analyzing recent gun control policies and the reaction of such policies by the general public, supported by a graphical representation of my theory, I will argue that through recent policy that the increase in the limiting of sale of firearms and ammunition and the attempted disarming of the American public has endangered the law abiding citizens of this country instead of saving them as many would have us believe. I hypothesize that with stricter...
Words: 1698 - Pages: 7
...17. Give an example of a recent purchase you made where the purchase of an ongoing relationship with the seller. Discuss what the seller has (or could do better) to strengthen the relationship and increase the odds of you being a loyal customer in the future. I’m a loyal customer of Jimmy Johns restaurant they make gourmet sub sandwiches. I eat a sub almost every week. The restaurant is in a prim location that sits right of the main street that I take to get home from work. Jimmy John’s subs are large and cheap and are made very fast. The restaurant also has a drive through which makes the ordering and purchase of the subs even that much faster. If I’m home and feeling a little lazy I can even order a sub and have it delivered to my house. Jimmy John’s has covered all bases, that’s why I will continue to be a loyal customer. 18. In your own words explain several reasons why a marketing manager should consider international markets when evaluating possible opportunities. International trade is growing around the world and the obstacles of trade are going away. Also with progress in e-commerce, transportation, and communication it has become more affordable and less difficult to reach international customers. Internet exercise page 10 About 20 different manufacturers products are shown on the home page of target.com. I don’t think consumers would be better off if each manufacture sold directly from its own website. Its easier to go to websites like target...
Words: 375 - Pages: 2
...Abstract This report is to discuss about the reason why Yellowstone Cattle Bank (YCB) will be the prefer transaction. The first part will analyse which type of leverage buy out (LBO) YCB belong to, thus find out the ways to get success in this transaction theoretically. The second part of this report will elaborate and analyse the pros and cons by choosing YCB surround different steps of whole transaction. Define the type of deal in YCB transaction According to the information provided by the case and the definition of variety of Private Equity investments, in this case Yellowstone Cattle Bank is involved in both Platform roll–up and growth LBO. From the information that provided, YCB is operated in a fragmented and consolidated industry and the company have opportunities to reduce the operating cost at future, these two points illustrated that it is obvious YCB transaction is a platform roll–up type Private equity deal. However to investigate deeper of the company background the Private Equity firm can also rely on the operating income growth to achieve successful and However if the company need to achieve the growth continuously, Newport’s must have the assist from the CEO due to his industry familiarisation and the previous result that he got. It is barely impossible to find a new manager to have similar managing experience in this industry. When he was founding the company at the same time that amazon are just launch, it prove that his experience is un-doubtable. The...
Words: 2312 - Pages: 10
