Household Behavior and Demand Essay Example for Free

Household Behavior and Demand Essay Household behavior is one of the any basic concepts in economics which has an effect on market trends. Household demand, for instance, can be seen as related to consumer choices in terms of which products are mostly bought in the market and which products need more supplies in terms of item production and its corresponding allocation. One of the many essential features of household demand is its corresponding effect on what is being provided in the market and, more importantly, the quantities or stock that is being allocated in the market. It seems quite obvious that the quantities of certain products in the market—for instance, in a certain area or a certain supermarket—are patterned according to the existing demand and the foreseen demands a some point in the future, say within a frame of a few weeks time. Household behavior, for its effects on market trends to be realized and understood, must be taken from a general and collective standpoint since a single specific household behavior cannot entirely be taken into account as the precise and sole measure in determining the overall household behavior true for all o most instances with regard to market trends. For example, it has been observed that Chinese people rely largely on the prices of products in determining which ones are the best buys. Paul French notes that â€Å"for pragmatic Chinese shoppers, price remains the bottom-line† which translates to the idea that â€Å"win on price and you win† (French, 2007). Hence, in the context of Chinese households, producers of certain goods should greatly consider the fact that Chinese households will most likely prefer goods which are relatively lower in price as compared to other products in the market in order stay atop the competition. To be able to gain control of the price index of a certain product in the market means to be able to win the market competition if the Chinese household behavior is the primary basis to be used. The perception appears simple enough: household behavior determines household demand which, in consequence, affects a large portion of certain market trends. Thus, to analyze a specific market trend for a specific product entails the analysis and understanding of certain trends in household demand caused by household behavior. An existing household demand, say, for breakfast cereals can be looked upon the collective household behavior in terms of cereal consumption for the past six months for the locality of Chicago, for example. Given a relatively high consumption rate for breakfast cereals with the price not exceeding $4 per box among families, companies producing breakfast cereals may have the corresponding decision to pattern their product according to the existing demand. Although it may not essentially be the case that companies will sacrifice prices of their products in order to meet the demand for the value of the products, being able to adjust product prices in accordance to the existing market prices will most likely lead to favorable results on the part of the companies since market demand is met. Quite on the contrary, there are still other related factors which hinder the feat of lowering prices according to the budget and income of households which determine their capacity to buy and consume certain products. More recently, several instant-noodle corporations in China have difficulties in lowering the prices of their products due to escalating prices in wheat and other farm commodities (Zhu, 2007). With prices in instant-noodles—a popular product among individuals with meager budget—soaring, even the household demand or low-cost instant-noodles may hardly deter companies from lowering the prices of their goods just to meet the existing demand in the market. On the part of households, proper allocation of income can be one remedy in order to curb unnecessary spending so as to be able to allocate budget on goods which the households deem as a dire part of their income-spending. In this case, household behavior and demand appears to be patterned according to the existing market trends which is the opposite or reverse case of what has been provided earlier. Hence, it is also possible to have a household behavior or consumer choice that is based on existing market trends apart from the possibility that market trends may also be based on existing consumer choice and household behavior. Allocating income to maximize utility is one household behavior that determines consumer choice in the long run. For instance, there is the observation that â€Å"household expenditure patterns are affected by the share of household income accruing to women† (Hopkins, Levin, Haddad, 1994). Given this perception, the choices of consumers over a vast array of products competing in the market is not only affected by external elements determined by companies but also by internal elements sprouting from household consumption patterns of certain goods in relation to the household’s budget allocation. In terms of income and substitution effects, the changes in the prices of certain goods are proposed to alter the demands for such goods. Changes in relative prices as well as changes in the purchasing power of the money income can greatly alter the existing demands for, say, a breakfast cereal. Even if the prices for breakfast cereals remain the same for a given period, alterations in the income will result to an equal change in the budget constraint (Hamermesh, 1977). On the other hand, if the price of breakfast cereals changes, the budget constraint will change accordingly. One concrete way in further understanding the situation is that in order to maximize the utility with the decreased budget constraint, the household will tend to have shifts in their patterns of consumption. For instance, with the budget constraint arising from the decrease in the money’s purchasing power, households will tend to maximize the utility of money by increasing the segregation of purchases of goods based on low-cost preference. An example to this is when households purchase goods with relatively lower prices given a budget of $20 which results to more purchases of various goods while on the other hand households purchasing goods with relatively higher prices will result to lesser maximization of the utility or lesser goods purchased with the $20 budget. Hence, wage rates also share a crucial part in determining household behavior and demand as well as consumer choice. It has been seen that the rates of wages of certain groups of people have corresponding implications on the purchasing power of households. To arrive at the observation that the wage of a household is decreased corresponds to the observation that the purchasing capacity of the same household proportionally, if not significantly, decreases. A higher wage, then, will translate to a higher capacity to purchase goods in the market. In the larger scheme, a group of households with a high rate of wage will most likely have higher purchasing capacity thereby inducing the household behavior of increased spending assuming the household has lesser tendencies to save their income. In effect, a certain market demand will be conjured in such a way that a certain good, for instance, will experience an increase in demand which calls for a corresponding increase in goods being supplied. Thus, it can be noted that the overall rate in household demand will relatively increase given the increase in wages. On the other hand, interest rates may greatly alter or shift the persisting demand from households towards a certain good. For instance, a higher interest rates for purchased loans by households will certainly result to a higher real cost of purchase in the fulfillment of all payments made for the loan. It is quite apparent that an increase of 2% in interest rates from 4% to 6% will most certainly have a corresponding effect on the actual cost of the good purchased. For the most part, higher interest rates translate to higher cost of purchases, decreased household spending given a fixed rate of wages, and a lesser spending on other goods which result to a corresponding decrease in the demand for those other goods. The price of leisure also has a significant role in comprehending the patterns in household demand and consumer choices. For instance, higher prices in the cost of airplane travels would entail that the consumer will opt for the airline provider with the least cost. A decline in the preference for airlines with comparatively higher airline prices will most likely be felt assuming that a given set of consumers have fixed income. Budget constraints in an environment of increasing prices in leisure enable one to view the household demand for existing leisure. Indeed, it has been observed that several market trends can be viewed and analyzed using the perceptions on household behavior and demand for certain goods and products. The interrelationships existing between the market trend and the household behavior is clear although at some point several exceptions would have to be made. Essential to this understanding is the view that there may or may not be actual budget constraints and that prices of commodities may actually shift even without the presence of the shift such as a decline or incline in the demand from households. Nevertheless, there are many cases in which household behavior has its implications on the existing market trends. References French, P. (2007). When the Best Buy Is No Buy. The Wall Street Journal(August 7). Hamermesh, D. S. (1977). A Note on Income and Substitution Effects in Search Unemployment. The Economic Journal, 87(346), 312. Hopkins, J. , Levin, C. , Haddad, L. (1994). Womens Income and Household Expenditure Patterns: Gender or Flow? Evidence from Niger. American Journal of Agricultural Economics, 76(5), 1219. Zhu, E. (2007). Chinas Battle Against Inflation Puts Noodle Makers in Hot Water. The Wall Street Journal(August 29), B11.

Digestive Disorders (liver) :: essays research papers

Digestive Disorders   Ã‚  Ã‚  Ã‚  Ã‚  Amebic Dysentry is a disorder in which there is an accumulation of pus located in the liver. This is usually caused by an internal parasite or organism. When dealing with this liver disease there are a few symptoms to look out for. Jaundice, which is something that will make your skin and eyes go yellow is a symptom of Amebic Dysentry. Other symptoms to look out for are chills, a high fever, sweating, diarrhea, loss of appetite, weight loss, abdominal pain, possible joint pain and an all around basic discomfort.   Ã‚  Ã‚  Ã‚  Ã‚  Amebic Dysentry is caused by the same micro-organism that causes a variety of intestine infections. This organism is carried through the blood stream to the liver to where the abscess is formed. For starters, the collection of pus is the bodies white blood cells forming to protect the liver. However, it collects too much and that is how the abscess is formed. When you are diagnosed with amebic liver you are very likely to also have an intestinal infection from the disease as well. This is not true for all cases though. Most cases in which both occur are in places of high temperatures and poor sanitation. Africa, Latin America, Southeast Asia, and India have many health problems associated with the disease. The most common way to get this disease is from one person to another. The other most common way is through unhealthy food and badly sanitized water. Not eating properly and excessive drinking will only worsen the disease.   Ã‚  Ã‚  Ã‚  Ã‚  There are many ways that you can help prevent getting this disease. If you go to a foreign country, especially in the tropics, always drink purified water, always peel fruit and vegetables, and cook your food at any time possible.   Ã‚  Ã‚  Ã‚  Ã‚  If you think that you may have amebic liver, you should get a liver scan and an ultrasound treatment. If you are diagnosed with it the usual treatment for this is Antimicrobial therapy is the

Holt Renfrew Essay

Executive Summary Holt Renfrew, is high-end retail chain for designer fashions and cosmetics that imports their products from Europe, Asia and USA. They are facing some challenges regarding the size of their current warehouse and inventory levels. The warehouse is not big enough to accommodate all their inventory and as such goods are always scattered everywhere. They are also finding it difficult to track their orders, due to the fact that they do not have an updated Enterprise Resource Planning (ERP) system to help them track these orders. They follow up over the phone which is never accurate. For this reason, they hardly how much goods are coming in and what to expect at a particular time. This has also created an issue of stock outs. These issues need to be addressed to ensure customer order fulfillment. Different  options have been made available to help Holt Renfrew address these issues which are improving the physical structure of the warehouse by installing mezzanines, outsourcing warehousin g to a third party or building/leasing a new warehouse, modernizing their distribution process and human resource reallocation. Upon review of the different options, the most favourable one for the company would be to install mezzanines. By installing mezzanines, the physical layout of the warehouse will be increased and it will create more room for inventory. The new available space will accommodate the extra products, usually scattered on the ground as well as the ones that are usually sent to the secondary warehouse where unsold goods are kept. This will enable the company shut down the secondary warehouse and save that extra cost of leasing, since the newly installed mezzanine will now owned by the company. This will save the company a total cost of $540,000 per year that is used to lease the secondary warehouse in Mississauga. A proper and updated ERP system will also need to be installed for the company to keep track of their inventory records. The human brain is never as effective as machines when it comes to record keeping. This will produce accurate records so that the company knows exactly what to expect, how much to expect at any given time and will be able to provide equal storage bins for the products. This will solve the issue of clustered merchandizes scattered everywhere, causing health and safety hazards. Once these strategies are implemented, Holt Renfrew will enjoy continued substantial growth and business sustainability because they will now be able keep track of their inventory and store them accordingly. There will no longer be the issue of stock outs and customer fulfillment will be at the highest level. They will also be able to increase profit, while maintaining and increasing their market share. Situational Analysis Holt Renfrew is a high-end Canadian retail chain based in Toronto, Ontario. It was founded in 1837 as a hat and fur shop and is owned by The Wittington Group, headed by Canadian business leader Galen Weston. Tony is a new employee and will have to prepare a detailed plan that will identify the major steps he intended to take in his new position. He will do this well because new employees are more likely to introduce radical change into an organization than old employees. Peak sales for the company are in  March/April, July/August, and November/December but used publicity campaigns for promotion. This meant more advertising cost and less sales for Holt Renfrew for half of a year. There is need for marketing and sales improvement. The company has approximately 3,000 suppliers but only 1,000 are used in a typical year. Secondary warehouse was used to store items that were not sold in the store which is a huge waste of a whole 60,000 sq. ft. facility. There is no need for that additional facility since it increases direct and overhead costs. It should be eliminated. The DC is cluttered with merchandise everywhere, under conveyors and scattered across aisles. Tony considered three strategies: improving the physical structure and process flow in the distribution center, the modernization of distribution systems and business processes, and to reallocate human resources. He had to obtain goods from the companies international suppliers and quickly distribute them to their stores within Canada to gain competitive edge. It will be dangerous not to do anything about the issues the company is facing. Even though the company will save a little cost by doing nothing now, it will have long term effects because if they keep dissatisfying their consumers by not delivering their orders on time because of the issue of stock outs, and no space to put inventory, they will have a reduced market share, which is not good for any company. Recommendation It is my recommendation that mezzanines be installed in the current warehouse. This is the best option because it is the most cost effective, least expensive and less time consuming. Tony estimated that the cost of installing a 20,000 sq. ft. mezzanine to accommodate the inventory is $1 million dollars, which is much less than the cost of leasing/building or outsourcing. The current activities of the warehouse will not be disrupted and the geographical location will not shift. There will be no additional cost of marketing any new location and the mezzanines will be engineered to Holt Renfrew’s specs. Another important consideration is ownership, it will be owned and operated strictly by Holt Renfrew. Once there is a mezzanine installed and more room to store inventory, health and safety concerns will be reduced because the products will be stored perfectly. Tactical Improvements A project team should be set up that will oversee the installation of the mezzanines over the period of installation. Mezzanines should be bought from ArcForce Mezzanines. They are manufacturers of this product which makes their own price cheaper than most other dealers. Their skilled staff will assist the project team from the project conception through completion with insight, experience and engineering integrity. The design engineers will customize any steel mezzanine storage system to meet Holt Renfrew’s warehouse requirements. Once purchased, work should begin immediately and installation should get started. After the installation is complete, management will need to constantly follow up and inspect the mezzanines regularly to ensure it is utilized effectively, and maintained. Conclusion Holt Renfrew has faced several issues regarding their stock keeping unit. This has led to stock outs, delivery inconsistences and lack of space in the current warehouse due to bad record keeping. However, from the recommendation given above, this issue will be resolved but not completely, giving the warehouse enough room to store their inventory. Once the mezzanine has been installed, the next action plan should be to get an up to date ERP system that will enable the staff keep proper record and track of their inventory. If the mezzanines are built and there is still no proper track kept, the issues will not be solved completely. They will still be unsure of their inventory supplies. The complete solution will be to install the mezzanines and then immediately after, update the ERP system. Bibliography Ivey Case Study- Holt Renfrew. (2012) StudyMode.com. Retrieved from http://www.studymode.com/essays/Ivey-Case-Study-Holt-Renfrew-937118.html Hi-Cube Blog (2013). All about Structural Mezzanine. Retrieved from http://blog.hicube.com/blog/bid/280503/All-about-Structural-Mezzanine ArcForce Mezzanines (n.d). Custom Steel Industrial Mezzanines -Direct from the Manufacturer! Retrieved from http://www.arcforce.com/default.htm

Taste of Cherry 1997 Film - 1202 Words

Using the Rosenbaum-Ford debate I will be analyzing how Abbas Kiarostami’s 1997 film Taste of Cherry’s epilogue and final scene comment on post-revolutionary Iran using the open image as well as how each has argued on what the scenes have achieved in relation to the rest of the film. The film has been mostly well received by international critics winning a Palme d’OR at Cannes but not so much in Iran as many felt it had problematic images of the society of the time. It follows the protagonist Mr. Badii as he rides through the outskirts of Tehran looking for someone to help him complete a task. As the film is shot in Iran it will carry signs of post revolutionary Iranian culture already opening up our curiosity to the cultural discourse that surrounds the film. What Kiarostami does is portray an Iranian image and by including the epilogue raises questions of how to transcend it. In his writing Rosenbaums argument that the end sequence acts as a relief from the solitude of Mr. Baadhis consciousness and journey that we have followed is based on the motif of solitude that Kiarostami established throughout the film. He sees it as an uplifting ending, one that gives the film a hopefulness that had up to then not been present, stating that it is the opposite to the distancing effect felt beforehand that Kiarostami had created. Hamish Ford on the other hand has a different view, seeing the epilogue as a kind of cop out on Kiarostamis part. Kiarostami creates a visual andShow MoreRelatedShining A Light On Eyewitnesses1617 Words   |  7 Pagesrespondent to answer in a particular way. Carpenter and Huffman use an example from Loftus in their book Visualizing Psychology, [I]n one study subjects watched a film of a car driving through the countryside, and were then asked to estimate how fast the car was going when it passed the barn. 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