Until that time, the lower classes, as they were known, would produce most of what they needed at their own homes, and the upper classes would simply employ the lower classes to produce whatever goods they needed and subsequently purchase them, or employ craftsmen to produce 'quality' goods that were usually required by noblemen. (Elemental Economics: Intermediate Microeconomics)
There were also firms that would purchase goods and services and these would be the 'inputs' in the production process of the final products and services. Those goods or services that are purchased by such firms are generally known as either 'intermediate' or as 'producer' goods, and style and taste hardly have any significance here; rather, it is either the price or the technical quality of the good that becomes more important than anything else. (Elemental Economics: Intermediate Microeconomics) in a nutshell, a consumer good can be explained as something that is intended for consumption, and this can be clothing, food, consumer durables, and accessories, and so on that keep in touch with the latest trends, and so on. (Consumer Goods: (www.elook.org) the basic meaning and purpose of these goods is that of satisfying the human need or want that has made he person purchase it for his use. (Consumer Goods: Answers.com)
Why do certain people desire to purchase certain things, and what does Veblen's theory state about this phenomenon? It has been proved that the average American consumes 269 pounds of meat, 605 pounds of paper, and about the same energy equivalent to 8 metric tons of oil, every year. Every two people in the U.S.A. own one car, while in Europe; every 3.5 people own one car. In developing countries, on the other hand, there is one car for every 68 people, on an average. Why is there this type of difference in consumption, and why must people purchase certain things and not certain others? Basically, consumption is the process by which the goods and the services that have been purchased by them are put to the specific use they were meant for. The process of consumption starts at the beginning, with the evaluation of the resources available, then on to the production of the goods, and then the distribution, after which the people acquire them by purchasing them. It is after this that the goods or services that have been bought would be used or consumed. The consumption has the effect of depletion of resources, and the generation of waste, and also the betterment of human civilization, and how they flourish. (Consumption and the Consumer Society)
Most economists believe that anything that human's value about the functioning of the economy was to be found in the final demand for the goods and services that have been produced. Therefore, consumer satisfaction may be the ultimate goal of a producer, and this type of economy ruled by the desires and demands of the consumer is known as 'consumer sovereignty', and this is how consumers prove themselves to be useful to the economy. Anyway, consumers keep the economy functioning at its best by the process of generating demand for goods as well as services, and it is basic reasoning that without this demand, the supply would come to a complete standstill. In other words, how long can producers keep on producing their various goods if nobody wants the goods? Therefore, it must be said that consumers are more often interested in such goals as self-realization, fulfillment of their desires, freedom, a sense of fairness, social relations and so on, and they would be able to achieve these goals by playing out their roles as consumers.
'sovereign consumer' is someone who generally makes his own informed decisions, and if, for example, these decisions were to be influenced to a large extent by the norms and the rules of society, as it would inevitably be, then it can be said that consumer behavior has been cultivated as a means to an end, rather than as an end to the means. There are a few theories on why consumers do what they do. Some of the reasons, according to experts are: physiological needs like, for example, hunger, thirst, and so on, secondly, safety needs, like for example, protection from something, then there are social needs like...
They goal for globalization is to increase material wealth and the distribution of goods and services through a more international division of labor and then, in turn, a process in which regional cultures integrate through communication, transportation and trade. The overall theory is that if countries are tied together cooperatively economically, they will not have needed to become political enemies (Smith 2007). Notice the continuum here -- globalization, like
Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands
A b) Consider the articles on behavioral economics at http://myweb.liu.edu/~uroy/eco54/histlist/behav-econ/index.html. Summarizethe main thrust of some of these articles. Based on these articles, what's your opinion of behavioral economics? Do you think behavioral economics represents a return to Veblen's ideas? In many respects it can be agreed that behavioral economics has much in common with Veblen's theories. Behavioral economists agree with Veblen that in most cases humans act illogically, because they are
Addictive Virus" -- later to become the thirteenth chapter of their bestselling book Affluenza -- John De Graaf, David Wann, and Thomas H. Naylor engage in a highly rhetorical comparison of addictive shopping to physical addictions such as alcoholism and drug addiction and behavioral addictions like compulsive gambling. It becomes clear shortly into their paper that their purpose is largely alarmist and moralistic, rather than medically or therapeutically intended:
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