Economic Features of Beer Industry Essay

The beer industry is incredibly large industry that has an enormous effect on the country, contributing greatly to the society. Two of its main contributions include tax dollars and jobs. The beer industry serves the country through its taxes, jobs, and purchases from other suppliers, its contribution to agriculture and more. The market growth rate of the beer industry is perplexing which is evident through following production statistics of top brewing companies (in millions hectaliters) In 2000In 2005 1. Annheuser-Busch-1211. InBev-233. 5. 2. Heineken-742. Anneheuser-Busch-152 3. Ambev-633. SABMiller-135 4. Miller Brewing 534. Hieinken-107 5. SAB (South Africa Breweries)-435. Carlsberg-78 6. Interbrew-876. Scottish &Newcastle-52 The national market consists of few major competitors as mentioned above. After 1990’s some of the leaders started expanding abroad, using progressive consolidation and leading to a small number of global players in the industry by 2004-2007. Which created high level of competition amongst the leading brands and a fight to gain the most market share. The Scope of competitive rivalry is also one the best way to identify the economic characteristics of any industry; with the beer industry the scope entails the global geographic area over which most of the leading brewing leaders compete. Penetration in the foreign market arena is becoming a key success indicator for most of the competitors in the beer industry. Use of high-speed packaging line helps in processing thousands of cases of beer per day, and with modern computerized control, the inventory can be tracked throughout the distribution network. These inventions are setting a faster pace of technological change in the industry, where by companies are delving into extensive research, and employing highly qualified personnel in order to beat the competition. To comprehensively examine the brewing industry we must also consider the factors of social ramifications to the product, the political climate, and the arena of technological advances within the business environment of the beer industry. Over the years in order to gain economies of scale some leaders have tried to increase the size of their plants, improve packaging and introduce automated breweries, thus reflecting few of the business characteristics dominant in the industry. Grupo Modelo for example tried to expand into the American beer market by the use of competitive distribution channels. Therefore indicating an economical ripple effect experienced through the effective use of technology and distribution channels in hand.

Consumer Behavior Study Notes

MKTG 4150 STUDY NOTES Chapter 1: An Introduction to Consumer Behaviour What is Consumer Behaviour? Consumer Behaviour: the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumer behaviour is a process Buyer behaviour: the interaction between consumers and producers at the time of purchase. * Exchange (two or more organizations or people give and receive something of value) is an integral part of marketing Consumer behaviour involves many different actors Purchaser and the user of a product may not necessarily be the same person * Another person can also act as an influencer when providing recommendations for or against certain products without actually buying or using them Segmenting Consumers Market Segmentation: process of identifying groups of consumers who are similar to one another in one or more ways and devising marketing strategies that appeal to one or mo re groups Demographics: statistics that measure observable aspects of a population (i. e. birth rate, age distribution, income, etc. * Changes and trends revealed in demographic studies are of great interest to marketers since it can be used to locate and predict the sizes of markets * Markets can usually be segmented by age, gender, family structure, social class and income, ethnicity, geography, and lifestyles Chapter 2: Perception Exposure Exposure: the degree to which people notice a stimulus that is within range of their sensory receptors Sensory Thresholds Psychophysics: the science that focuses on how the physical environment is integrated into our personal, subjective world The absolute thresholdAbsolute threshold: the minimum amount of stimulation that can be detected on a sensory channel The differential threshold Differential threshold: the ability of a sensory system to detect changes in a stimulus or differences between the two stimuli Just noticeable difference (JND): the minimum change in a stimulus that can be detected * The ability to detect a difference between two stimuli is the relative difference between the decibel level of the message and its surroundings Weber’s Law The stronger the initial stimulus, the greater its change must be for it to be noticed K= ? II where:K = the constant increase or decrease necessary for the stimulus to be noticed (this varies across the senses) ?I = the minimal change in intensity of the stimulus required to be just noticeable to the person (JND) I = the intensity of the stimulus before the change occurs * Retailers generally use a markdown rule of at least 20% to make an impact on shoppers Subliminal Perception * Another word for â€Å"threshold† is limen and stimuli that fall below the limen are called subliminal Subliminal perception: occurs when the stimulus is below the level of the consumer’s awareness Subliminal techniquesEmbeds: tiny figures that are inserted into magazine adver tising by using high speed photography or airbrushing (supposedly exert strong but unconscious influences on innocent readers) Does subliminal perception work? Evaluating the evidence Factors why subliminal messages do not work: 1. There are wide individual differences in threshold levels. For a subliminal message to affect all individuals, it must be able to target ALL thresholds (which is impossible) 2. Advertisers cannot control the consumer’s position and distance from the screen (not everyone will have the same amount of exposure) 3.Consumers must pay absolute attention to the stimulus (not everyone does, most people are distracted) 4. Even if there is an effect, it only operates on a general level (can’t get a specific message out) Attention Attention: the extent in which the brain’s processing activity is devoted to a particular stimulus Multitask: the ability to process information from more than one medium at a time Perceptual sensitivity: process in wh ich people attend to only a small portion of the stimuli to which they are exposed Personal selection factorsPerceptual vigilance: consumers are more likely to be aware of stimuli that relate to their current needs (i. e. if you are hungry†¦ you will notice more food signs) Perceptual defence: people see what they want to see – and don’t see what they don’t want to see. If a stimulus is threatening to us in some way, we may not process it or we may distort its meaning so that it is more acceptable (i. e. smokers ignoring the warning on the cigarette package) Adaptation: the degree to which consumers continue to notice a stimulus over time (the more exposed to are, the less sensitive you are to it)Factors leading to adaptation: * Intensity (less intense stimuli habituate because they have less of a sensory impact) * Duration (stimuli that require lengthy exposure to be processed tend to habituate because they require a long attention span) * Discrimination ( simple stimuli tend to habituate because they do not require attention to detail) * Exposure (frequently encountered stimuli tend to habituate as the rate of exposure increases) * Relevance (stimuli that are irrelevant or unimportant will habituate because they fail to attract attention)Stimulus selection factors Factors that allow stimuli to be noticed: * Size * Colour * Position * Novelty (stimuli that appear in unexpected ways or places tend to grab attention) Chapter 3: Learning & Memory Learning: relatively permanent change in behavior that is caused by experience. Incidental learning: unintentional acquisition of knowledge. Behavioural Learning Theories Behavioral Learning Theories: assume learning takes place because of responses to external events. Classical ConditioningClassical conditioning: when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time this 2nd stimulus (UCS) causes a similar respons e because it is associated with the first stimulus (CS). Unconditional stimulus (UCS): a stimulus naturally capable of causing a response (i. e. flavouring) Conditioned stimulus (CS): a stimulus that causes a response because of a learned association (i. e. bell) Conditioned response (CR): a new or modified response elicited by a stimulus after conditioning (i. . drool) Repetition * Repeated exposures increase the strength of stimulus-response associations and prevent the decay of these associations in memory * Most effective repetition strategy seems to be a combination of spaced exposures that alternate in terms of media that are more or less involving * Lack of association can be due to extinction (when the effects of a prior conditioning are reduced and finally disappear) Advertising wearout: repeated similar advertisements will lead to consumers tuning outStimulus generalization Stimulus Generalization: tendency of stimuli similar to CS to evoke similar conditioned responses Ma sked branding: strategy used to deliberately hide a product’s true origin Applications: * Family branding (capitalize on the repetition of a company name) * Product line extensions (related products are added to an established brand) * Licensing (well-known names are rented by others) * Look-alike packaging (distinctive packaging designs create strong associations with a particular brand)Stimulus discrimination Stimulus Discrimination: stimulus similar to CS is not followed by a UCS -> causes weakened reactions Instrumental Conditioning Instrumental Conditioning: known as operant conditioning, individual learns to perform behaviors that produce positive outcomes and avoids negative ones. There are 4 types: positive/negative reinforcement, punishment, extinction Shaping: process of rewarding intermediate actions (i. e. customers are rewarded with discounts in hopes of them coming for a second visit) 1.Positive Reinforcement: rewarding, response is strengthened and appropriate behavior learned. RECEIVES A REACTION AFTER DOING SOMETHING, SIMILAR TO PUNISHMENT. (i. e. getting a cookie for every A+) 2. Negative Reinforcement: the avoidance of a negative outcome by doing said behavior, NOTHING IS RECEIVED AFTER DOING SOMETHING. This is different from punishment, which doesn’t use avoidance to learn. (i. e. getting compliments from wearing nice perfume) 3. Punishment: a response is followed by unpleasant events. RECEIVES AN UNPLEASANT REACTION. (i. e. lap on the hand for eating without utensils) 4. Extinction: removal of positive event weakens responses, which are no longer followed by positive outcome. Consumers learn that responses no longer produce positive outcome. (i. e. woman no longer receives compliments on her perfume) Key for marketers is determining the most effective reinforcement schedule (amount of effort and resources they must devote to rewarding consumers to condition desired behaviours): * Fixed-Interval Reinforcement: A reward is made after a specified time period has elapsed. i. e. mouse hitting a button for food that will only come in intervals of 2 minutes, they'll realize that and only begin to hit the button as every 2 min. mark looms but will not do anything right after that mark has passed. textbook uses an example of holiday sales season * Variable-Interval Reinforcement: Time before reinforcement varies around some average but not specified. i. e. mystery store check ups by management, induces staff to always maintain a high-level of service as opposed to only when â€Å"check up† periods loom * Fixed-ratio Reinforcement: Reinforcement occurs after a fixed # of responses. . e. royalty programs, getting a prize for hitting a button 10x * Variable-ratio Reinforcement: Reinforcement occurs after a certain number of responses, but he/she does not know how many are required. Produces very high and steady rates, behavior is very difficult to distinguish. i. e. slot machines, you know you'll win eventua lly, just don’t know exactly how many tries Frequency Marketing: reinforces behavior of regular purchasers by giving prizes in line with amount purchased. i. e. royalty programs, frequent flyer programs. is building a database for refining product mixes, marketing strategies, tailoring communications – makes retention programs more effective, product launches/redesigns more successful, blunders prevented. Cognitive Learning Theory Cognitive Learning Theory: contrasting behavioral theories of learning, this focuses more on internal mental processes, i. e. creativity and insight. Views people as problem solvers and we actively use info to master the environment. Is Learning Conscious or Not? Mindlessness: the ability to process information in an automatic/passive manner * Argument as to whether or not learning is conscious.There are arguments that some people do things mindlessly and rely on their â€Å"adaptive unconsciousness† Observational Learning Observationa l Learning: occurs when people watch the actions of others and note the reinforcements they receive for their behaviors; learning vicariously rather than directly; AKA Modeling Lesson: marketers can show consumer a model + reinforcement without having to directly reward/punish the consumer to influence behavior The Role of Memory in Learning Memory: process of acquiring information and storing it over time for future availability The way info is encoded is important, if data can be associated with other info in memory already, better chance of new data being retained Sensory Meaning: a stimulus may be interpreted in terms of the senses it evokes, such as colour or shape Semantic Meaning: symbolic associations, i. e. rich people drink champagne Episodic memories: memories that relate to events that are personally relevant. + motivation to retain these memories Flashbulb Memories: memories that are triggered by a stimulus, i. e. (wedding) song that reminds them of their wedding Memory Systems 3 Types of Memory Systems: 1. Sensory Memory: permits storage of info received from our senses – very temporary, i. e. the smell of a bakery when we walk by. If info warrants further investigation, it passes through the attentional gate and xferred to STM. a. Capacity: High b. Duration: < 1 second (vision), few seconds (hearing) 2. Short-Term Memory/working memory: stores info for limited time, capacity is limited. Holds info that we are currently processing c.Capacity: Limited d. Duration: < 20 seconds e. Chunking: combining small pieces into larger pieces to store info 3. Long-Term Memory: a system that allows for long-term retaining of info f. Requires elaborative rehearsal: thinking about meaning of stimulus and relating to other information in memory Storing Information in Memory Activation Models of Memory: depending on nature of processing task, different levels of processing occur that activate some aspects of memory rather than others, +effort, +likely of LT M storage Associative networksAssociative Network/Knowledge Structures: a spiderweb of links containing info for a set of concepts (brands, stores, manufacturers), a storage unit * Info are placed into nodes, connected by associative links. Pieces of info seen similarly are chunked in some abstract form Hierarchical Processing Model: info is processed bottom-up, begins basic then increases to complex processing, if it fails to evoke further processing, info is terminated and capacity allocated elsewhere Evoked Set: a list of recallable information pertaining to a questioned category (i. . perfume). Implication: position itself in the right categories by providing cues (luxury for ex. ) Spreading activation Spreading Activation: as one node is activated, associated nodes are as well through links. = recalling competition/relevant attributes of brand, such as * brand-specific – claims of brand * ad-specific – claims of ad * brand identification * product category  œ how product works, where to be used, experiences with it * evaluative reactions – â€Å"that looks like fun† Levels of knowledgeLevels of Knowledge: Meaning Concepts > Proposition > Schema Script (schema): sequence of procedures expected from an individual Factors influencing forgetting Interference: stimulus-response associations will be forgotten if Retroactive: learning new responses to same/similar stimuli Proactive: prevent new learning as a result of past learning Chapter 4: Motivation and Values The Motivational Process Motivation: processes that cause behavior, occurs when need is aroused and consumer wants to satisfy it Utilitarian: desire to achieve some functional/practical benefit. i. e. cquiring a pair of durable running shoes Hedonic: experiential need involving emotional responses/fantasies. i. e. a special pair of running shoes for triathlon Goal: the desired end state Drive: the difference between a consumer's present and desired state creates tensio n. The magnitude of this tension determines the urgency of the consumer to reduce this tension. That degree of arousal is drive Want: a manifestation of a need (basic needs such as hunger); particular form of consumption to satisfy a need (such as eating hamburgers or hotdogs or chicken wings or caviar to satisfy hunger) Motivational Strength degree to which a person is willing to expend energy to reach a goal as opposed to another reflects his/her underlying motivation to attain that goal Drive Theory Drive Theory: biological needs that produce unpleasant states of arousal (stomach growling). We are motivated to reduce tension * marketing: tension = unpleasant state – desired state :. achieve balance = homeostasis Expectancy Theory Expectancy Theory: behavior is largely pulled by expectations of achieving desirable outcomes, positive incentives. It is a cognitive theory rather than biological Types of Needs think Maslow's hierarchy of needs Biogenic: elements necessary to ma intain life (water, air, shelter) Psychogenic: culturally related, as belonging to groups, having status, power, affiliation Motivational Conflicts Valence: a goal can be either positive or negative Approach-approach conflict * choice between two desirable alternatives i. e. go home for holidays to see family or ski with friends Theory of Cognitive Dissonance: when picking between two products and one is selected, inherently you'll lose on the benefits of the other and gain the negatives of the one chosen.People will start to rationalize their purchase, as a marketer, you can aid this conflict by bundling several benefits in your communications to help Approach-avoidance conflict * desire a goal but wish to avoid it as well i. e. want a goose to look cool, don't want to be labeled Canada douche, bag of chips * marketing implication: overcome guilt by convincing luxury is worth it, remove the negative aspects (fake fur) Avoidance-avoidance conflict * choice between two undesirable al ternatives i. e. throw + money at old car vs. buying a new one marketing implication: help them realize the unforeseen options of one option Maslow’s Hierarchy of Needs Consumer Involvement Involvement: a person's perceived relevance of the object based on their inherent needs, values and interests. object = brand, product, advertisement or purchase situation Level of Involvement: * can range from simple processing to elaboration (info is related to pre-existing knowledge systems) * a continuum * low end = inertia (decisions = habit because consumer lacks motivation to consider alt) * high end will find passionate intensity for people objects that carry great meaning Flow state: when consumers are truly involved with a product, ad, or website Characterized by: * sense of playfulness * feeling of control * concentration/highly focused attention * mental enjoyment of activity for its own sake * distorted sense of time * match between challenge at hand and one's skills * Another view is the type of involvement: cognitive or affective (rational/emotional) Cult products Cult Products: commands fierce loyalty, devotion and worship by consumers who are highly involved with brand i. e. Apple fanboys The Many Faces of InvolvementProduct involvement Product Involvement: a consumer's level of interest in a particular product. It can increase by having consumers involved in designing/personalizing. Mass customization: customization on mass production prices i. e. t-shirts, Dell computers Message-response involvement Message-Response Involvement: level of interest within a medium of communication i. e. tv = low, print ad = higher (can pause and reflect) Tactic: spectacles or performances, where message is also entertainment Marketing performances: turn public places into advertising stages, such as flash mobs. x. Sony BMG hired a group of passengers to burst into Thriller dance to promote MJ's 25th anniversary of Thriller album Interactive mobile marketing: particip ation in real-time promotional campaigns through cell phones Purchase situation involvement Purchase Situation Involvement: differences that may occur when buying the same object in different contexts i. e. when trying to impress someone you may buy a nice brand to reflect good taste, but if buying for your hated cousin, you may buy something shit because you don't care ValuesValues: a belief that some condition is preferable to its opposite. a function of individual, social and cultural forces Core Values Value System: a culture's ranking of universal values, such as health, wisdom, or world peace Socialization Agents: institutions/people that teach us beliefs, like parents, teachers or friends Enculturation: process of learning beliefs and behaviors endorsed by one's own culture Acculturation: learning of another's culture How Values Link to Consumer Behaviour * Cultural values (i. e. security or happiness) * Consumption-specific values (i. . convenient shopping or prompt service) * Product-specfic values (i. e. ease of use or durability) Hofstede’s cultural dimensions Hofstede's Cultural Dimensions: scores a country based on its standing of 5 dimensions so users can compare/contrast values * Power distance – extent of expectations and acceptance of unequal power distribution by less powerful members of organizations/institutions (like a family) * individualism – degree to which an individuals are integrated into groups * masculinity – distribution of roles between genders uncertainty avoidance – society's tolerance with uncertainty & ambiguity * long-term orientation – values of; long term = thrift/perseverance; short term = tradition, fulfilling social obligations, protecting one's â€Å"face† The Rokeach value survey Rokeach Value Suvery: set of terminal values (end states) and instrumental values (actions required to achieve terminal values) i. e. American's love for freedom (freedom to bear arms, expressi on, etc. due in large to history of wars for freedom, Canadians love equality The list of values (LOV) scale List of Values (LOV) Scale: developed to isolate values w/ more direct-marketing applications. Identifies nine consumer segments based on values The means-end chain model Means-End Chain Model: products are valued as a means to an end (they have abstract value beyond its bare product state) Laddering: consumers â€Å"climb† a ladder of abstraction that connects functional product attributes to desired end states i. . diamond ring for wedding = size of paycheque = size of love = size of self-worth Means-End Conceptualization of the Components of Advertising Strategy (MECCAS): 1st map relationship of product to terminal values, then employ: * message elements – specific attributes/features to be depicted * consumer benefits – + consequences of usage of product * executional framework – overall style/tone of ad leverage point – the way message will link terminal value with features * driving force – end value upon which advertising focuses on Syndicated Surveys Syndicated Surveys: large-scale, syndicated surveys to track changes in values Voluntary Simplifiers: believe once basic material needs are met, + income adds no value Conscientious consumerism: a new core value? Conscientious Consumerism: a value related directly to consumerism (ex. green) LOHAS: lifestyles of health and sustainabilityThe carbon footprint and offsets Carbon footprint: measures (in units of carbon dioxide) the impact human activities have on the environment in terms of the amount of greenhouse gases they produce Primary footprint: measure of our direct emissions of CO2 from the burning of fossil fuels Secondary footprint: measure of the indirect emissions of CO2 from the whole life cycle of products we use Materialism: importance of which people attach to worldly possessions Chapter 5: The SelfPerspectives on the Self Self-Concept Self-Conce pt: beliefs a person holds about his attributes and they evaluate these qualities Self-esteem Self-esteem: the positivity of your attitude toward yourself Social Comparison: a process where person evaluates themselves by comparing to others/media images; a basic human motive * High Self Esteem = takes more risks, expect success, *accepted socially, center of attention * Low = avoids risks, embarrassment, failures, or rejection Real & Ideal SelvesIdeal Self: conception of how they’d want themselves to be Actual Self: more realistic appraisal of qualities we do/don’t have * Purchase products in line with our qualities and others to help us attain our ideal self Impression Management: a process of managing how others think of us Multiple Selves Role Identities: different roles, such as husband, father, boss, student, etc. Virtual identity Virtual Identity: fictional depictions in a real-time, interactive virtual world (WOW) Computer-Mediated Environments (CME): virtual ro le-playing worlds Symbolic interactionismSymbolic Interactionism: relations with others play large part in forming â€Å"the self† * Who am I in this situation? And what do others think I am? * Pattern behavior on the perceived expectations, self-fulfilling prophecy * By acting the way we assume others expect us to act, we conform to those perceptions^ The looking glass self Looking-Glass Self: imagining the reactions of others towards us * Reflexive evaluation occurs when someone attempts to define the self; â€Å"bouncing† signals off others and trying to project the impression they have of us Self-Consciousness High Self-Monitors are more likely to evaluate products in terms of public impressions Consumption and Self-Concept Products that Shape the Self: You are What You Consume Symbolic Self-Completion Theory: predicts that people with incomplete self-definition tend to complete this identity by acquiring and displaying symbols associated with it (i. e. adolescent boys purchase macho products to complete their masculinity) * Prisons remove personal objects to reduce personal identity and create group identity * Burglary victims feel alienation, depression, or feeling â€Å"violated†Self/Product Congruence Self-Image Congruence Models: predicts that products will be chosen if their attributes match some aspect of the self * Ideal self more relevant for highly expressive social products like perfume * Actual self more relevant for everyday, functional products The Extended Self The Extended Self: Props or settings (external objects) considered to be a part of us i. e. my computer is an extension of myself, it represents me 4 levels of the extended self: Individual Level: Personal possessions, such as jewelry, cars, clothing * Family Level: A consumer's residence and furnishings. House = symbolic body of family * Community Level: Neighbourhood or town of origin * Group Level: Attachment to social groups, such as landmarks, monuments, spor ts teams Gender Roles Gender Differences in Socialization Agentic Goals: stresses self-assertion and mastery; pertains mostly to males Communal Goals: affiliation and fostering of harmonious relationships; females * Every society creates a set of expectations of behaviour for men/women.Starts early with stories * Biological gender =/= sex typed traits, characteristics stereotypically associated with a gender * Masculinity and femininity are NOT biological characteristics; culturally determined Sex-Typed Products: products that take on mascu/feminine attributes Androgyny: mascu/femininity are not opposites (duality); can possess both at the same time * like Korean doods * *guys typically influenced by overall theme of message, girls = specific pieces of info Chapter 6: Personality and Lifestyles Personality Personality: person's unique psychological makeup + how it consistently influences responses to environmentFreudian Systems Freudian Systems: consists of 3 â€Å"systems† I d: entirely oriented toward immediate gratification – â€Å"party animal† * Pleasure Principle: behaviour = desire to max pleasure and avoid pain Superego: counterweight to id. The â€Å"conscience†, internalizes societal norms and prevents id from seeking selfish gratification Ego: system that mediates id and superego * Finds ways to gratify id that is socially acceptable (reality principle); unconscious * Marketing Implication: consumers cannot tell us motivation as it may be unconscious * Product represents socially unacceptable, true id goal.By purchasing, live vicariously through it Trait Theory Trait Theory: identifiable characteristics that define a person * consumption differences between idiocentrics (individualist) vs. allocentrics (collective) * Contentment: idios are more satisfied with the way their life is * Health Consciousness: Allos avoid poor food choices * Food Preparation: Allo's spend more time preparing meals * Workacholics: Idios more like ly to say they work harder and stay later for work * Travel and Entertainment: idios interested in other cultures, travelling, movies, libraries Problems with trait theory in consumer research Scales for measurement are not valid/reliable * Tests are developed for specific populations then adopted to general population ultimately how individual decisions add up to society’s well-being * Consumer Confidence: optimism/pessimism of economic future Social Class: * Standing in society * Pecking Order: social hierarchy determines in ranking, the access to resources such as, education, housing, and consumer goods * People belonging in the same class share roughly the same occupations, lead similar lifestyles by virtue of income, tend to socialize and share many ideas and values regarding lifestyle. Homogamy: tendency to marry someone of same social standing * Social Stratification: process in which social system distributes scarce resources unequally amongst social classes in a rela tively permanent manner * Reputation Economy: â€Å"currency† people earn when they post comments online and others recommend their comments * Ascribed Status vs Achieved Status: those who were born with it vs. those who earned it Blurring Social Classes * increasingly harder to link brands/stores to specific class, i. e. affordable luxuries†, university kids who splurge on clothing (Burberry, etc. ) but eat KD * Mass Class: those with purchasing power that allows for high quality goods, except for big ticket items such as cars, American colleges, luxury homes (Zara, H&M) Components of Social Class * Occupational Prestige: worth derived from what they do for a living (i. e. white vs blue collar) * Income * Social Class better predictor of purchases with symbolic aspects and low-moderate price * Income better predictor of major expenditures with no symbolic meaning (major appliances)How Social Class affects purchase decisions * Attitudes towards luxury (consumers): * Fun ctional: buys things that will last/enduring value. Conducts extensive research & logical decision making * Reward: typically younger than first group and older than 3rd group. A way of saying â€Å"I've made it† * Indulgence: smallest group. owning luxury items is to be lavish and self-indulgent – to express individuality and make others take notice. ery emotional approach * Old Money: old money families distinguish themselves NOT ON WEALTH, but on history of public service, philanthropy, and tangible markers (Ivey Business School) * Taste Cultures: differentiates in terms of aesthetic and intellectual preferences * it's like saying upper/upper-middle likely to go to museums, middle like camping and fishing. It's like saying that you're less sophisticated * Codes: ways consumers interpret and express meanings restricted codes: focus on content of objects, not relationships amongst objects * elaborated: more complex and depend on a more sophisticated worldview (p. 417) * Pierre Bourdieu concluded that taste is a status-marking force, or habitus * social capital: organizational affiliations and networks (connections) * cultural capital: set of distinctive and socially rare tastes and practices. basically the culture of the rich that allows them to stay within the upper echelon of society because they keep passing it downStatus Symbols * we purchase products not to enjoy them, but to let others know that we can afford them * isn't the same across all cultures. Bulky phones are more â€Å"luxurious† than slim sleek phones compared with the Western world. * invidious distinction: to inspire envy in others through display of wealth/power (reason for consumption) * conspicuous consumption: people's desire to provide prominent, visible evidence of their ability to afford luxury goods * parody consumption: to seek status by mocking it and avoiding status symbols. i. e. frayed edges of denim clothing, wins with irreverent labels Chapter 14: Age Sub cultures Subculture: group whose members share beliefs and common experiences that set them apart from others Microculture: a subset of subculture, which is based on lifestyle or aesthetic preference Age and Consumer Identity * era in which we grow up bonds us will millions of others from the same age * identity may become stronger when the beliefs/goals of one age group conflict with another * Age cohort: group of consumers of same/approximate age who have gone through similar exp. Marketers often target products to specific age cohort b/c possessions play key role in identity with others of a certain age and express priorities/needs of each life stage * Multigenerational Marketing Strategy: use imagery that appeals ;1 generation Chapter 15: Canadian Identity and Ethnic Subcultures Ethnic Subculture: self-perpetuating group of consumers who share common cultural/genetic ties recognized by both its members and others as a distinct category High-Context Culture: group members tend to be tightly knit, infer meanings that go beyond spoken word. x. symbols, gestures carry much more weight than spoken word (Koreans respecting elders) Low-Context culture: more literal. like Caucasians as opposed to minorities De-ethnicitization: occurs when detaches from roots (original ethnicity) and appeals to other subcultures Ethnicity as a moving target * becoming harder to target distinct ethnic groups: greater immigration and interracial marriage and cultural blending * Ethnic Stereotypes: you know what it is. Negative feedback in recent use Level of Acculturation: Acculturation: process of movement and adaptation to a cultural environment from another * Movement: factors that motivate people to uproot themselves physically from one to another place * Translation: to master a set of rules for operating in a new environment (fashion, social meaning) * Adaptation: process of forming new consumption patterns * assimilation: adopting new products, habits, and values identified wi th mainsteam culture * maintenance: retaining practices associated with culture of origin * resistance: resent pressure to submerge their cultural identities and take on new roles * Raymond Ng's five phases of adjustment * Honeymoon: immigrant marvels at wonders of new environment * Culture Shock: reality of situation sets in * Superficial Adjustment: immigrant forays into new culture/manages day2day life * Stress and Depression: immigrant disparages aspects of new life: lack of high paying job opportunities, taxes, cold and wet weather. Intergenerational conflicts arise, often over career choices of kids * Integration: immigrant moves through society with degree of ase comparable to that of native born * Progressive Learning Model: assumes that people gradually learn new culture as they increasingly come in contact with it. Therefore, mix original culture with host culture Chapter 16: Cultural Influences on Consumer Behaviour UNDERSTANDING CULTURE: * culture – abstract ideas and material objects/services making up a society’s personality – determines the overall priorities s/he attaches to different activities and products – mandates the success/failure of specific products/services – a product that provides benefits consistent with those desired by members of a culture at a particular time has a much better chance of attaining acceptance in the marketplace * aspects of culture: ecology – the way in which a system is adapted to its habitat; this area is shaped by the technology used to obtain and distribute resources * social structure – the way in which orderly social life is maintained; includes dominant domestic and political groups * ideology – mental characteristics of a people and the way in which they relate to their environment and social groups; revolves around the belief that members of a society possess a common worldview and share ethos (a set of moral principles and aesthetic principles) Cul ture: is a concept to understand consumer behavior as society’s personality. It includes: Abstract ideas, Material objects and service. * Culture is the lens through which people view product. The relationship between consumer behavior and culture is two way street. Products relates to priorities of a culture being accepted more by consumer * Product, successfully produced by culture, provide a window onto the dominant cultural ideal of that period Culture system contains 3 functional areas 1. Ecology: which a system adapted to its habitat. 2. Social structure: the way which orderly social life is maintained. 3. Ideology: the mental characters of a people relate to their environment and social groups. Different dimensions on culture 1. Power distance – how much power 2. Uncertainly avoidance – degree people feel threatened 3. Masculinity and femininity – gender roles 4. Individualism – individual vs groupNorms – rules dictating what is right or wrong, acceptable or unacceptable * Enacted norms – explicitly decided upon * Crescive norms – imbedded in a culture and discovered through interaction with other members of that culture * Custom – norm handed down from the past that controls basic behavior, such as division of labour in a household, or practice of particular ceremonies * When to eat * More – custom with strong moral overtone, often involves a taboo, or forbidden behavior, such as incest or cannibalism * What kind of food is permissible to eat * Convention – norms regarding the conduct of everyday life, correct way to furnish house, wear clothes, host a dinner party * how to eat the food Myth and ritualsMyth: is a story containing symbolic elements that express the shared emotions and ideals of a culture * Often features some kind of conflict between two opposing forces, outcome serves as a moral guide for people * Provides guidelines about their world Functions of myths * Meta physical – explain origin of existence * Cosmological – emphasize all components of the universe are part of a single picture * Sociological – maintain social order by authorizing a social code to be followed by members of a culture * Psychological – provides models for personal conduct Monomyth – common to many cultures Ritual: is a set of multiple, symbolic behaviors that occur in a fixed sequence and tend to be repeated periodically Ritual Artifacts: items used n the performance of rituals – to consumers, ex. birthday candles, diamond rings Types of ritual * Grooming rituals – purpose ranging from inspiring confidence before confronting the world to cleansing the body of dirt and other profane materials * Gift giving rituals – promotion of appropriate gifts for every conceivable holiday and occasion, three stages * 1. During gestation, giver is motivated by an event to procure a gift * 2. Presentation or process of gift exch ange * 3. Reformulation, bonds between the giver and receiver are adjust to reflect the new relationship that emerges * Re-gifting is unwanted * Holiday rituals Rites of passage: a special times marked by a change in social status, three phases * Separation – detaches from original group or status, ex. leave home for school * Liminality – person literally in between status, ex. arrival on campus tries to figure out what is happing in O week * Aggregation – when person re-enters society after the rite of passage is complete, ex. returns home for summer vacation as university â€Å"veteran† Sacred and Profane Consumption Sacred Consumption – involves objects and events that are set apart from normal activities and are treated with degree of respect awe Profane Consumption – Involves consumer objects are ordinary, everyday things we do Domains of Sacred Consumption Scared places – set apart by society because they have religious or mysti cal significant, or because commemorate some aspect of a country’s heritage * Home can be sacred place, represents a crucial distinction between the harsh, external world and consumers â€Å"inner space† * People – idolized and set apart from the masses, ex. celebrities * Event – world sports is sacred and almost assumes the status of religion, ex. Olympics * Souvenirs are big industry Desacralization: occurs when a scared item or symbol is removed from its special place becoming profane as a result * Can be religion itself, the crosses are in mainstream fashion, Christmas is more materialistic Sacralisation: When events, people take on scared meaning to a culture or a group within a culture, ex. Stanley cup, or collections Chapter 17: The Creation and Diffusion of CultureCultural Selection – how the culture in which we live creates the meanings for everyday products and how these meanings move through a society to consumers * Linking back to Chapt er 1, people buy things for what they mean, not what they do * Though it seems like we have so many choices, our options only represent a small portion * Selection of certain alternatives is the culmination of a complex filtration process resembling a funnel * Cultural selection – many possibilities initially compete for adoption slowly winnowed down to make their way along the path from conception to consumption * Our tastes and product preferences not formed in a vacuum, * Choices are driven by images presented in mass media, observations of those around us, our desire to live in a fantasy world created by marketers * Constantly evolving and changing – what is hot one year may be out the next * Characteristics of fashion and popular culture include: * Styles often rooted in and reflect deeper societal trends, ex. olitics and social conditions * Styles usually originate as an interplay between deliberate inventions of designers and businesspeople and the spontaneous a ctions of ordinary people, help fuel fire by encouraging mass distribution (those anticipate what consumers want succeed) * Trends can travel widely, often between countries and continents * Influential people in the media play a large role in deciding which trends succeed * Style begins as a risky or unique statement by a relatively small group of people spread to others increase aware of the style feel confident about trying it * Most styles eventually wear out, as people continually search for new ways to express themselves and markers try to keep up * Cultural selection process never stops, when styles become obsolete others wait to replace them in popular culture Culture Production Systems – set of individuals and organizations responsible for creating and marketing a cultural product * No single designer, company or ad agency is totally responsible for creating popular culture, may different factors * Important factors include the number and diversity of competing syste ms and the among of innovation vs. conformity that is encouraged Components of a CPS – has three major subsystems: 1. Creative subsystem – responsible for generating new symbols or products ex. singer 2.Managerial subsystem – responsible for selecting, making tangible , mass producing, and managing the distribution of new symbols or products, ex. producer/distributor of CD 3. Communication subsystem – responsible for giving meaning to new products and providing them with symbolic sets of attributes that are communicated to consumers, ex. advertising agencies hired to promote music Cultural Gatekeepers – judges or â€Å"testmakers† influence the product that are eventually offered to consumers * Filter the overflow of information and material intended for consumers, ex. movie, restaurant, car reviewers * Collectively called – throughput sector Changed from top-down to bottom up, companies listen to everyday consumers; due to factors su ch as social networking * We now live in consumerspace – where customers act as partners with companies to decide what the marketplace will offer * Xerox uses voice of the consumer data in its R&D – feedback from end customers well before it put new product on the market * First make prototype, then gets feed back â€Å"customer-led innovation† High Culture and Popular Culture * Culture production systems create many diverse kinds of products, basic distinctions through characteristics * Art Product – viewed primarily as an object of aesthetic contemplation without an functional value * Original, subtle, and valuable elite of society * Craft Product – admired because of beauty with which it performs some function, ex. ceramic ashtray * Permits rapid production High Art vs. Low Art (high and low culture) * We assume rich have culture and poor do not * Blended together in interesting ways, ex. fine art at Costco * We appreciate advertising as an art form The arts are big business, marketers often incorporate high art to promote products Cultural Formulae * Mass culture churns out products specifically for a mass market * Aiming to please average tastes of undifferentiated audience * Predictable because they follow certain patterns * Usually a formula followed because roles and props occur consistently * This means that we â€Å"recycle† images * Creative subsystem members reach back through time and remix the past, ex. Gilligan’s Island Brandy Bunch Reality Engineering – elements of popular culture are used and converted to promotional strategies * Many consumer environments have images/characters spawned by marketing campaigns or are retreads, ex.Real like Kwik-E-Mart * Hard to tell what is real – â€Å"new vintage† (used jeans) * Cultivation hypothesis – media’s ability to distort consumers’ perception of reality * Media tend to exaggerate or distort the frequency of beh aviours such as drinking and smoking Product Placement – inserting real products in movies, ex. E. T and Reese’s pieces Advergaming – online games merge with interactive advertisements that let companies target specific type of customers Plinking – embedding a product or service link in video (you-tube) The Diffusion of Innovations – process whereby a new product, service, or idea spreads through a population * New products and styles constantly enter the market * Occur both consumer and industrial setting Form of clothing, new manufacturing technique or novel way to deliver a service * If innovation is successful it spreads through the population * First bought or used by few people more and more consumers decided until everyone has bought or tried innovation Adopting Innovations * Resembles decision-making sequence, moves stages of: Awareness, information search, evaluation, trial, and adoption * Importance depends on how much is already known ab out product as a well as cultural factors that affect people’s willingness to try new things * Not al people adopt an innovation at the same rate (some never do) * Consumers can be placed into categories based on likelihood of adopting to innovation can be related to product-life-cycle) * 1/6th of population very quick to adopt new products (innovators and early adopters), 1/6th are very slow (laggards) * 2/3rds are somewhere in the middle majority represent mainstream public * interested in new things, but do not want them to be too new, wait for technology to improve, or price to fall * Innovators – brave souls, first to try new offering (maybe innovator on one thing, laggard in another) ex. fashion, vs. recording technology, highly educated, and high income levels, and socially active * Early Adopters – share similar characteristics, but difference is – degree of concern for social acceptance (20% of pop. ), use magazines to learn about new trendsTypes of Innovations – can be categorized in terms of degree to which they demand change in behavior from adopters, three categories: * Continuous innovation – modification of existing product, set one brand apart from competitors, most products this type, evolutionary * Small changes made to position, to add line extensions, or merely alleviate consumer boredom * Dynamically continuous innovation – more pronounced change in an existing product, ex. touch-tone telephones, creating some behavior change * Discontinuous innovation – major change in the way we live, ex. airplane, car, TV Prerequisites for Successful Adoption – several factors required for new product to succeed * Compatibility – compatible with consumers’ lifestyle * Trialability – more likely to adopt of they can experiment with it prior to commitment, reduce risk, ex. ree â€Å"trial-size† samples * Complexity – should be low in complexity, easier to und erstand chosen over competitor * Observability – innovation easily observable, more likely to spread, ex. visible fanny packs * Relative Advantage – most important, should offer relative advantage over alternatives The Fashion System – consist of all those people and organization involved in creating symbolic meaning and transferring those meanings to cultural goods * Fashion affects all type of cultural phenomena, including music, art, architecture, and even science * Fashion as code/language for meanings * Terms * Fashion – process of social diffusion by which a new style is adopted by some group(s) of consumers * A fashion(style) – particular ombination of attributes * In fashion – this combination is currently positively evaluated by some reference group Cultural Categories – How we characterize the world reflects the meaning we impart to products * Culture makes distinctions between different times, leisure and work, and gender * Dominant aspects/themes of culture are reflected in design/marketing of items * Costumes of politicians, rock/movie stars * 1950s/60s: â€Å"space-age† mastery * Fashion colours for each season * Creative subsystems attempt to anticipate the tastes of the buying public * Collective selection – process in which certain symbolic alternatives are chosen over others, ex. New Wave, Danish Modern, The Western Look, Nouvelle CuisineBehavioural Science Perspectives on Fashion – major approaches to fashion * Psychological Models of Fashion – explain why people are motivated to be in fashion * Includes conformity, variety seeking, personal creativity, and sexual attention, ex. consumers seek need for uniqueness, want to be different, but not too different (conform to basic guidelines but improvise and make personal statements) * Also early theory of fashion â€Å"shifting erogenous zones accounted for fashion change, different zones become the object of interest because they reflect societal trends (pg. 536) * Economic models of Fashion – terms of supply and demand * Items limited supply have high value, while readily available are less desired (rare items command respect and prestige) * Ex. wear expensive clothing to show prosperity Though in contrast – parody display 0 which they deliberately adopt low-status or inexpensive products * Prestige-exclusivity effect – high prices create high demand * Snob effect – lower prices actually reduce demand (if its cheap it isn’t good) * Sociological Models of Fashion – focuses on initial adoption of fashion by subculture and is diffusion into society as a whole * Ex. Goth culture into mainstream or hip – hop * * Trickle-down theory – important! * States that there are two conflicting forces that drive fashion change 1. Subordinate groups try to adopt the status symbols of groups above them – try to climb the later of social mobility (thu s dominant styles originate with upper classes and trickle down) 2. Those superordinate groups are constantly looking below them on the ladder to ensure they are not imitated, they adopt newer fashions * Self-perpetuating cycle of change of fashion Harder in modern times because of new developments in mass culture * Advance in technology to make people instantly aware of latest styles and trends * Each social group has own fashion innovator, trickle-across effect – fashion diffused horizontally among members of same social group * Current fashions often originate with lower classes, trickle up- less concern with maintaining status quo, more free time to innovate, take risks A â€Å"Medical† Model of Fashion – why do style diffuse through the population so quickly? * Meme theory explains the idea, meme – idea/product that enters the consciousness of people over time – includes tunes, catchphrases, or styles like Hush Puppies * Memes spread among con sumers in a geometric progression, like a virus, starts off small and steadily infects increasing number of people until it becomes epidemic * Leap from brain to brain via processes of imitation To survive must be distinctive and memorable * Tipping point – when process reaches the moment of critical mass Cycles of Fashion Adoption * Fashion cycle – much similar to product life cycle, progresses through birth to death * Fashion acceptance cycle * Introduction stage – a song is listened to by smaller number of music innovators * Acceptance stage – song enjoys increased social visibility and accepted by large segments of population, wide airplay on Top 40 Stations * Regression stage – item reaches a state of social saturation, becomes overused, sinks into decline and new songs take its place * Different classes of fashions can be identified by considering relative ength of the fashion acceptance cycle * Classic – fashion with extremely long ac ceptance cycle, low risk * Fad – very short-lived fashion, usually adopted by relatively few people, trickles across common subculture, rarely breaks out of specific group, ex. hula hoops, snap bracelets, and pet rocks, or streaking in mid -1970s * Non-utilitarian – not performed any meaningful function * Adopted on impulse * Diffused rapidly, gains quick acceptance, and is short-lived Fad or Trend * Guidelines for long-term trends: * Fits with basic lifestyle changes * A real benefit should be evident * Can be personalized * Not a side effect or a carryover effect * Important market segments adopt change

Defining Emotional Intelligence

Earliest roots can be traced to Darwin’s work on importance of emotional expression for survival and second adaptation. In 1900s, traditional definitions of intelligence emphasized cognitive aspects (IQ) and then later on begun to recognize the importance of non-cognitive aspects from which the term â€Å"social intelligence† was coined. Similarly it was in 1940 even David Wechsler joined in the bandwagon and argued that all emotional intelligence models will not be complete unless all the non-intellective factors could be defined. But it was in the 1970s and 80s that Emotional Intelligence as a theory was fully developed by the works and writings of Howard Gardner, Peter Salovey and Jack Mayer, however, it was the works of Daniel Goleman who published â€Å" Why It Can Matter More Than IQ† in 1995 that made the term widely popularized. Defining Emotional Intelligence The EQ concept argues that IQ, or conventional intelligence, is too narrow; that there are wider areas of Emotional Intelligence that dictate and enable how successful we are. Success requires more than IQ (Intelligence Quotient), which has tended to be the traditional measure of intelligence, ignoring essential behavioural and character elements. We've all met people who are academically brilliant and yet are socially and inter-personally inept. And we know that despite possessing a high IQ rating, success does not automatically follow. Goleman defined EQ as being a different way of being smart. It includes knowing your feelings, and using them to make good decisions, managing your feelings well, motivating yourself with zeal and persistence , maintaining hope in the face of frustration, exhibiting empathy and compassion, ability to interact smoothly at the same time managing relationships effectively. And all of these emotional skills matter immensely in marriage, families, in our careers for health and contentment. Different approaches and models have been developed to fully explain what EQ. Substantial disagreements exist in relation to both the terminologies at the same time its operationalizations. The definitions are so varied and researchers have been re-evaluating, re-defining it based on their own unique way of understanding it. So for now we would be defining it based on three main models : 1 . Ability EI Model, Mixed Model and Trait EI model, however we will be focusing our understanding to the model that made the term popular, which is the Mixed Model by Goleman. Ability EI Model Salovey and Mayer's conception of EI strives to define EI within the confines of the standard criteria for a new intelligence. Following their continuing research, their initial definition of EI was revised to â€Å"The ability to perceive emotion, integrate emotion to facilitate thought, understand emotions and to regulate emotions to promote personal growth.† The ability based model views emotions as useful sources of information that help one to make sense of and navigate the social environment.The model proposes that individuals vary in their ability to process information of an emotional nature and in their ability to relate emotional processing to a wider cognition. This ability is seen to manifest itself in certain adaptive behaviors. The model claims that EI includes four types of abilities: 1. Perceiving emotions – the ability to detect and decipher emotions in faces, pictures, voices, and cultural artifacts—including the ability to identify one's own emotions. Perceiving emotions represents a basic aspect of emotional intelligence, as it makes all other processing of emotional information possible. 2. Using emotions – the ability to harness emotions to facilitate various cognitive activities, such as thinking and problem solving. The emotionally intelligent person can capitalize fully upon his or her changing moods in order to best fit the task at hand. 3. Understanding emotions – the ability to comprehend emotion language and to appreciate complicated relationships among emotions. For example, understanding emotions encompasses the ability to be sensitive to slight variations between emotions, and the ability to recognize and describe how emotions evolve over time. 4. Managing emotions – the ability to regulate emotions in both ourse lves and in others. Therefore, the emotionally intelligent person can harness emotions, even negative ones, and manage them to achieve intended goals. The ability-based model has been criticized in the research for lacking face and predictive validity in the workplace. Trait EI Model Petrides and colleagues proposed a conceptual distinction between the ability based model and a trait based model of EI.Trait EI is â€Å"a constellation of emotional self-perceptions located at the lower levels of personality†. In lay terms, trait EI refers to an individual's self-perceptions of their emotional abilities. This definition of EI encompasses behavioral dispositions and self perceived abilities and is measured by self report, as opposed to the ability based model which refers to actual abilities, which have proven highly resistant to scientific measurement. Trait EI should be investigated within a personality framework. An alternative label for the same construct is trait emotional self-efficacy. The trait EI model is general and subsumes the Goleman and Bar-On models discussed above. The conceptualization of EI as a personality trait leads to a construct that lies outside the taxonomy of human cognitive ability. This is an important distinction in as much as it bears directly on the operationalization of the construct and the theories and hypotheses that are formulated about it. Mixed Models of EI This is the model that was introduced by Daniel Goleman and focuses on EI as a wide array of competencies and skills that drive leadership performance. Goleman outlines four domains of EI based on two types of competencies: Personal Competency and Social Competency. Personal Competency 1. Self Awareness- the ability to recognize and understand over one’s emotions as they occur 2. Self Management- One’s ability to manage internal state, impulses, and emotional reactions to situations and people Social Competency 1. Social Awareness – One’s ability to understand emotions in people, this means understanding what others are thinking and how they are feeling from one’s own 2. Relationship Management – One’s ability to arrange interaction with others effectively

Ethics Paper Essay Example | Topics and Well Written Essays - 1250 words - 1

Ethics Paper - Essay Example This is obviously the wrong direction that the prison system is taking and represents an unethical way in which the offenders are being treated. Although the conditions in these prisons meet federal and local standards, the overall issue of human rights and equality is fundamentally flawed due to the fact that the people who are being locked away are not viewed with respect to how they should be punished or reformed; rather, they are only viewed with respect to the overall level of profitability that can be extracted from the state, regional, or federal government for their tenure in the penal system. The following analysis will discuss this to some length and highlight the unethical nature as well as some prescriptions for change that could be instituted in order to have a positive impact upon the current criminal justice system. The ethical issue that exists is the fact that the prisons and penal institutions within the United States are supposed to be interested only in punishing and rehabilitating the criminal. Instead, what is taking place throughout the country is a situation in which the prison complex itself is making a massive amount of money based upon the individuals that it incarcerates. As one might expect, this means that there will be little if any focus upon seeking to rehabilitate the criminal; instead, the focus is upon only trying to expand the size of the prisons so that a further and further level of profitability is made. There have of course been people complaining about the criminal justice system in the United States for many years; however, the fact of the matter is that the current â€Å"for profit† criminal justice system is one that does not champion the improvement of society or the reintegration of the offender. As such, the primary ethical/moral issue that one must consider relates to the issue that has evolved from what this author will deem â€Å"incarceration for profit†. Although few individuals in the United St ates are aware of this practice, the fact of the matter is that it has grown from an isolated incidence to a multi-million dollar a year industry. The central issue can be explained as a system whereby overburdened municipalities cannot immediately afford the massive expense that is called for in order to build a new penitentiary system. As a way to bridge this gap while making a substantial profit, private firms enter into the equation and offer the municipality a joint venture which is oftentimes hard to resist. These firms offer to front the necessary capital to build the facility as well as staff it with private contracting security firms. The catch then comes as the municipality agrees to an extended lease of the facility. Although at face value this may seem an ingenious way for a private firm to work to alleviate the strains that a municipality may have with relation to prison overcrowding, it is however slightly more sinister than one would at first presume. Due to the fact that a private firm now has stake in the criminal justice system, a system that arguably the state and the state alone should have prevue over, the interests of rehabilitation and reform are placed as secondary to overall profit (Brickner et al. 11). Such a situation is counter to the very foundations of what the criminal justice system is supposed to provide to society. In this way, incarceration has become the primary focus of policy makers and local leaders whereas the needs of those incarcerated

What contribution has behavioural finance make to the explaination of Essay

What contribution has behavioural finance make to the explaination of stock markets bubbles and crashes - Essay Example Human behaviour and personal investment decision making can influence the trading results of a stock market and therefore, it is relevant to discuss the role of behavioural finance in the investment decisions at stock market. With this background, this paper attempts to discuss the influence of behavioural finance on the stock market performance in general and on the market bubbles and crashes in particular. The essay takes a descriptive approach wherein the present literature on these issues is mainly covered and an attempt is made to incorporate the relevant theories of behavioural finance. Behavioural finance is one of the fast developing areas in the field of financial literature. This field of knowledge has developed a number of theories and theoretical models to explain the behavioural aspects of investment decision making. Most of the theories and models have been developed by borrowing insights from other branches such as psychology, sociology, and other behavioural sciences to analyze the behavioural aspects of investors and its influence on stock market performance. A good number of studies have been undertaken across the world to evolve behavioural theories and models so as to explain the association between the investor psychology and stock market performance. This area of knowledge tries to answer the influence of individual and collective behaviour exhibited by investors on the market prices. The rational finance which stems from neoclassical economics postulates that the economic decisions of investors are determined by the principles of perfect self-inter est, perfect rationality, and perfect information (Ware2000). This is not going to be a logical view point as described by behavioural finance. Behavioural finance states that people are neither perfectly rational nor perfectly irrational; they possess diverse combinations of rational

Hospitality Management internship Essay Example | Topics and Well Written Essays - 500 words

Hospitality Management internship - Essay Example The following paragraphs state the pros and cons of the democratic management skill to this particular organization. This type of management skill will in one way or another lift the employee’s morale because they feel important and treasured in the development of the particular organization. The uplift of an employee’s morale3 will hence increase the output of the employee towards the increase of the particular organizations .on the other hand the consultation of the employees before making of any decisions will lead to the employer identifying miss ups in the organization. This will then lead the organization growing at very fast rate with minimal mistakes to bring down the organization. In other cases, this type if management may lead to the employees losing their trust on the management and decision making skills of the particular management. Sometimes the employees may want the management to make decisions for them. Through the democratic form in the organization, the culture of the organization is kept alive hence making the team building of the organization much easier. Due to the ongoing culture of the organization, the management is able to help the employees of the organization grow in skill in the particular posts posted in. Through the method the employees consult each other and correct their weaknesses together hence making the organization much stronger as a team. This will then make the cohesiveness of the employees much stronger hence facilitating the management and the running of the organization. Each employee is unique and has his or her own strength and weaknesses hence the employer is able to pick out the specific employees with the same strengths in the organization and put them together. This will be able to make the organization strong in every aspect because many of its members are4 working on the same part of the organization hence making of mistakes is pretty hard for the members working as one

MBA Operation Management Problemsolving Essay Example | Topics and Well Written Essays - 1500 words

MBA Operation Management Problemsolving - Essay Example b) The lower capital intensity of the mentioned type of firms is explained by the stability of working processes when serving a focus customer. Crews do not need retraining because they do the same thing, for the same customer, all of the time. The machinery factor is also to be regarded: for example, the folding and gluing machine at Focus Packaging handles only one size box, so it never has to be reset. The press stops only to install a new roll of the thin cardboard on which it prints [12]. a) The necessity of the firms with a product focus to plan production and inventory levels further into the future is explained by the vitality of the production plan and inventories for successful supply chain management. It is necessary to plan thoroughly the production basing on the demand forecasts and according to this to make up the corresponding inventories. For the firms with focused production it is especially essential, because their performance depends on demands of particular customers, or one major customer [12]. b) All the above mentioned relates also to the necessity to have more formalized supplier relationships. ... b) All the above mentioned relates also to the necessity to have more formalized supplier relationships. In order for the firm to secure the manufactured product's future sale it is essential to develop clear terms of supplier/customer relationship and validate it formally. c) The low level of inventory accumulation at the work-in-process stage is explained by the simplified scheme of supply chain affording to avoid the overloading of the warehouses by unsold goods (the firm knows more or less precisely what number of goods it should produce). Describe four multi-plant location strategies The four principal location approaches are as follows: Land Use - optimal agricultural land uses based on transport costs to market; optimal distances of residential and commercial land uses from CBD; Industrial Location / Production Orientation - transport-cost minimizing location, profit maximization, optimal combination of inputs & optimal level of production at optimal location (allowing for scale economies and substitutability at any one level of production); Central Places / Market Areas - optimal market areas choosing; Spatial Competition - optimal response in the face of locational competition [11]. Why Colgate Palmolive, and not Campbell Soup be concerned about NAFTA The North American Free Trade Agreement, known usually as NAFTA, is a free trade agreement among Canada, the United States, and Mexico [7]. Colgate-Palmolive Company (NYSE: CL) is a multinational corporation in the business of the provision of products such as soaps, detergents, and oral hygiene products such as toothpaste and toothbrushes. Under its "Hill's" brand, it is also a manufacturer of veterinary products [3]. Campbell Soup Company

Oscilloscope Essay Example | Topics and Well Written Essays - 3000 words

Oscilloscope - Essay Example Therefore, these explanations were added. The detailed users’ feedbacks are not required, nevertheless, the key aspects of improving the guide are as follows: 1. The detailed explanations of the basic experiments will help to maximize the educational aspect of the document. Therefore, it should be stated that the actual importance of the feedbacks is explained by the necessity of adding self-descriptiveness for the guide. 2. The guide needs to pay more attention to safety. Since it is not a household device, and it may be used for measuring and analysing high voltage currents, the safety of a user is a cornerstone of the effective research. 3. The guide should be offered in hard- and soft-copies, and an extended remote assistance should be provided. It will help to gather feedbacks, and improve the device itself, as well as the guide. The results of the research involve the proper analysis of the functions and options offered by the oscilloscope, however, the experiments held are of the educational nature mainly.

PC, MPC, consumption function nd th siz of multiplir Essay

PC, MPC, consumption function nd th siz of multiplir - Essay Example It is clcultd s th chng in consumption xpnditur, DC, dividd by th chng in disposbl incom, DYD, tht brought it bout. In othr words, th mrginl propnsity to consum is msurd s th rtio of th chng in consumption to th chng in incom, thus giving us figur btwn 0 nd 1. Th MPC cn b mor thn on if th subjct borrowd mony to finnc xpnditurs highr thn thir incom. On minus th MPC quls th mrginl propnsity to sv. It is ffctd by fctors such s th prviling intrst rt nd th gnrl lvl of consumr surplus tht cn b drivd from purchsing.1 Totling, conomists oftn spk of th mrginl propnsity to sv (MPS), which is th frction of xtr incom tht popl sv. Givn tht popl ithr sv or consum dditionl incom, th sum of th mrginl propnsity to sv nd th mrginl propnsity to consum should qul on. Th vlu of th mrginl propnsity to consum should b grtr thn zro nd lss thn on. vlu of zro would indict tht non of dditionl incom would b spnt; ll would b svd. vlu grtr thn on would mn tht if incom incrsd by $1.00, consumption would go up by mor thn dollr, which would b unusul bhvior. For som popl MPC of 1 is rsonbl, mning tht thy spnd vry dditionl dollr thy gt, but this is not tru for ll popl, so if w wnt consumption function tht tlls us wht popl on th vrg do, vlu lss thn on is rsonbl. vrg Propnsity to consum is th... Shift in th Consumption Function Th consumption - incom rltionship chngs whn othr fctors thn incom chng - for xmpl ris in intrst rts or fll in consumr confidnc might ld to fll in consumption spnding t ch lvl of incom. ris in houshold wlth or ris in consumr's xpcttions might ld to n incrsd lvl of consumr dmnd t ch incom lvl (n upwrd shift in th consumption curv). Th min diffrnc btwn PC nd MPC lis in th fct tht PC is th vrg consumption t ch lvl of incom, mnwhil, MPC is th chng in consumption rsulting from chng in incom. Th multiplir is th mount by which chng in utonomous xpnditur is mgnifid or multiplid to dtrmin th chng in quilibrium xpnditur. Th multiplir quls 1/(1 - MPC) or, ltrntivly, 1/MPS. Th siz of th multiplir dpnds on th mrginl propnsity to consum: th highr th mrginl propnsity to consum, th highr th multiplir. highr mrginl propnsity to consum mns tht lrgr shr of ny incrs in incoms is thn spnt on consumption. highr mrginl propnsity to consum mns tht th ggrgt dmnd lin--th lin rprsnting totl spnding s function of incom--is stpr. Th MPC is dirctly (positivly) rltd to th siz of th multiplir. Th MPS is invrsly (ngtivly) rltd to th siz of th multiplir. stpr ggrgt dmnd lin mns tht vn smll upwrd (or downwrd) shift in it will hv lrg ffct on whr it crosss th 45 dgr incom-xpnditur lin, nd thus lrg ffct on ntionl incom. This is wht is clld lrg vlu of th multiplir. Th xggrtd chng tks plc bcus chng in production (such s wht occurs whn invstmnt xpnditurs purchs cpitl goods) gnrts incom, which thn inducs consumption. Howvr, th rsulting consumption is lso n xpnditur on production, which gnrts mor incom, which inducs mor consumption. Th nxt round of consumption lso triggrs n ltr in production, which gnrts vn mor incom, nd

Job Security in Relation to Japan and India Assignment - 1

Job Security in Relation to Japan and India - Assignment Example The loyalty and commitment from the employees are widely dependent on the job security offered by the organizations of the country. To cope with the situations and a more stable relationship between the employees and the employer Japanese companies are constantly changing their pattern of employment which is needed to be implemented by the Government of India and the organization at India for a more stable and strong relationship building for building an employee base with high commitment and loyalty instead of being rigid to the rules of the Government. Flexibility at work plays a vital role in building trust amongst the employees and satisfies with job security for the employees (Zechariah, â€Å"Comparative Industrial Relations in Japan and India†). With the initialization of industrialization in Japan, the Japanese Industrial Relations System is a perfect blending of continuity and change in the characteristics of the employees. The first industrial enterprise of Japan was founded by the Japan government in the year 1890. This was first handled by powerful industrial families of the country but later with the transition from the agrarian society to the industrial nation demands relationship between the employees and the employers with the changing business model. With the influence of the western culture into the workplace, the organization are influenced to change their work structure. Various reforms came into play with the introduction of lifetime employment as a form of linkage between the employer and the employees to build the strong relationship. With the development of industrial relations, the workers are needed to possess’ special skills to retain their jobs in the competitive environment. The emergence of the lifetime employment and remuneration pattern was designed keeping in mind the future trend in the industry. The regular employees are who enjoys lifetime employment schemes and are paid according to the length of their services in the system.     

Why a Firms Market Value Differs From Its Book Value Essay

Why a Firms Market Value Differs From Its Book Value - Essay Example This paper illustrates that the role of book values of companies is losing its importance as it tends to be usually lower than market value. The approach taken for accounting is past-oriented from the market value which denotes mostly the companies earnings and hence the difference. This occurs because for evaluation of the real value of a company it takes into consideration its earnings measured in money as well as other intangible and tangible assets etc., also unlike the market valuation. There are many evaluation methods followed and the most relevant of them are the evaluation based on the Economic Value Added (EVA) which is Net Operating Profit Minus Adjusted Taxes reduced by (Invested Capital*Cost of Capital). This method takes into account the opportunity costs of capital. EVA too suffers from the drawbacks as from accounting. Another theory, Shareholder value theory suggests that through the interests of the stakeholders, the shareholder value can be reaped. This is for ensu ring return satisfaction to all the interested parties in the long run. The stakeholder theory aims at a collective interest of all stakeholders or sees the realization of their goals as the ultimate objective. Double value creation system is also followed where a company increases its customer value through its operations as well as creates its shareholder value through the sale of its product. Thus, it could be noted that the company value could be increased only if both the shareholders and stakeholders interest are considered simultaneously while doing the performance evaluation. This results in the distortions or disparity between the MVE and the CSE (market value and book value) and the conditions for this are (i) Economic rents (unbiased accounting) (ii) Accounting distortions (Perfectly competitive equilibrium) Thus, the information bearing upon the performance evaluation of a company helps in explaining the reason for the difference between the market value and the book val ue. Ideally, it could be inferred that the most important things to be considered in value creation processes are: 1) The Performance evaluation should be able to provide information for proper decision-making and ensure feedback. 2) The kind and nature of the information collected and the source from which the information is collected for valuations are therefore significant. The source, its nature, the methods used for valuation, the coherency, the adaptability with the strategic objectives etc serve as crucial indicators.

How Social Media Influences Your Shopping Essay Example for Free

How Social Media Influences Your Shopping Essay At the present time social media is the one of the most powerful ways to shop and advertise online via the use of web-based and mobile technologies; it transforms online communication into an interactive dialogue. Quester, Pettigrew and Hawkins (2011) defined social media as â€Å"media for social interaction, using highly accessible and scalable communication techniques.† According to Vithoulkas, social media is more than just the hardware or software which enables it, instead he argues that it is more of a philosophy of communication where honest and transparency is required and information is shared and has the potential to â€Å"spread virally very quickly†. For the consumer, social media can be a continual bombardment of advertising and promotion every time we use communication modes, such as the internet or mobile, which may be infuriating for the consumer but increases the market exposure for the seller. This report intends to analyse the effectiveness of social media in influencing the general population to purchase more than presently before. When large companies, such as Pepsi, invest 50% of their annual advertising budget into Social Media it is obviously a worthy idea for the discussion of marketing professionals worldwide. The buyer behaviour system has been challenged in ranges of high involvement and low involvement alike. Consumer control is now the focus of consumption, when before it was heavily regulated institutionally. Although social media is an inescapable part of every day life it cannot be assumed that it will replace other forms of communication. A great number of people of all ages use social networking sites before purchasing a product, especially in high involvement purchases. Seidma (2010, p11) has demonstrated that the large majority of people are engaged in some form of social media, showing its considerable societal acceptance; Marketing magazine online tells us that â€Å"Facebook has more than 400 million active users. Every minute, 24 hours of video is uploaded to YouTube. An estimated 5–10 thousand Twitter accounts are opened per day,† showing that when information is directly found by a population 20 times that of Australia there is serious product awareness to gain . Quester et al. (2011) stated that there are fives stages of decisions making processes prior to making the choice in buying a product or service. These include problem recognition, information search, evaluation and selection, store choice and purchase and post purchase processes. When consumers’ recognise a need or identify a problem which may exist, they then undertake an information search on the product or service with their behaviour influenced by internal and external factors, Consumers evaluate the various alternatives after they have gathered all information, and afterwards they make a selection of retail outlets for the actual purchase of the good or service. Lastly, the consumer compares the product performance against their expectations and decide whether they satisfied or dissatisfied with it. In last few decades, traditional media such as television, radio, newspaper has been the only way to promote and communicate with the target market, but now it appears that the trend has changed. As seen in diagram one (below) consumer control is now the driver in the marketing segment. As seen in chart one (below), it can be seen that on average people spend more time when choosing and product and general spend more money, suggesting that when purchasing online the products will be a high involvement purchase. Marketing Magazine online tell us â€Å"For 35% of shoppers, the process starts with online search; 30% of consumers read user reviews on retailer websites as a part of the shopping process.† In the U.S.A. alone there are 95 million people who admit to frequently using social-media in their purchase decisions. Hub Magazine found that more than 40% of American adults currently use social media as part of their shopping experiences, with further data showing most consumers increased in use of social media for shopping within an annual period. Hub magazine also found that 39% have strongly agreed with the statement that ‘they can learn a lot more about a brand by seeing what everyday people are saying about it online’ in comparison with only 22% percent of non-social media shoppers agreeing with the statement. This clealy shows us that Social Media can obviously affect buying habits. However, social media may not be the first choice for every business or organisation for their marketing strategy. In December 2009, COM Score released a report of their customer survey that showed peoples views on social media in comparison to traditional forms of media. Overall, they found that 28% of respondents were likely to notice advertising on social media and less than that 23% are likely to trust the advertisements they notice. Those numbers put social media websites at #5 on the list behind television, print, news and corporate websites. In the same findings it also showed that only 28% of those who had began their holiday shopping this season indicated that social media has influenced their purchases specifically consumers said their influences were: †¢ Reading a consumer-generated product review (13% of respondents) †¢ Reading an expert product review (11 %)  Ã¢â‚¬ ¢ Following a fan page on Face book to take advantage of special offers and deals (7%) †¢ Influence by a friend’s Face book status update referring to a particular product (6%) †¢ Following a company on Twitter to take advantage of special offers and deals (5%) †¢ A friend’s â€Å"tweet† about a product influenced their purchase behaviour (3%) Given the exposure to the internet that we in the western world undergo every day versus time spend watching television, it is odd that only 13% saw the high consumer involvement in reading reviews of products. What is even stranger is that these consumers have shifted from trusting expert reviews to peer reviews. In traditional media reputable sources were usually quoted to give weight to a certain product. It seems in the days of social media, peer influence has replaced the trustworthiness of reputable sources. Thus changing the buyer behaviour process. Social Media may influence and change the buyer behaviour process but it is not necessarily a replacement for tradition media. Although it is a change to the normal standards of media, it will never replace traditional media given the system of interaction in our society. The interesting thing, as discussed in this essay, is the change in the high involvement purchase process and the consumer control over purchases. It is effective to some degree, given the right target audience and consumer group, but in our society with the lack of general literacy (21.1% of the world are internet literate) and dramatic choices for consumers it is not the answer to the change of the consumer buyer process.

Industrial Separation of a Mixture: Fractional Distillation

Industrial Separation of a Mixture: Fractional Distillation What sphere is the mixture found in? Crude oil also known as petroleum is an unrefined oil extracted manly to produce petrol, paraffin and diesel oil. The oil is comprised of hydrocarbons, a number of organic compounds and small pieces of metal. The formation of this liquid dates back to millions of years ago from ancient marine life. This substance is located in the lithosphere inside rocks well stuck into the ground. To combat this, mining companies use the normal extraction of drilling to crack open the rocks and withdrawal the oil. Petroleum has had a significant contribution towards the world as it powers all transport vehicles, chemicals, plastics, heat and electricity. Identify physical property used during separation One of the physical properties used when petroleum is being fractionally distilled remains heating to its boiling point. This method is used in order to extract oil from the rest of mixture and make into a pure substance. This is very important due to that fact that the substance must be pure in order to sell or work as petrol or diesel. If these requirements are not met the oil will not work properly and quality will suffer. Description of Process Since petroleum is a mixture there is a numerous ways to separate it such as physical or mechanically but the most common method used throughout the world is the process of fractional distillation. This method is mainly used in most companies because different substances in the mixture have different boiling points and allows it to condense, re-evaporate then condense that permits the separation of the oil from the mixture to become easier. Here is how the oil is separated using fractional distillation: The petroleum mixture is containing different boiling points is heated to a high temperature as it has more than two substances present in it.   Then heat is normally about 400-600 degrees Celsius. This makes the mixture boil and become a vapour Following this, the vapour travels down towards the bottom of the fractional distillation column that is filled with a number of trays or plates. Next, the vapour rises where the column contains various different height sections where its boiling point is similar to the sections that are heated up from hottest (350 degrees) to lowest (30 degrees) starting from the bottom in order to produce different products. Products include jet fuel, gasoline, diesel oil, residue, refinery gas and bottled gas. After that, the trays collect the numerous liquid fractions from each section. Finally, the trays pass through condensers which cool them down and then procced into storage tanks or a used in extended chemical processing. Products of the Separation and their uses The fractional distillation of petroleum has produced several products that have a significant impact towards the modern world.   These products include gasoline, diesel, jet fuel, heavy fuel oil, residue containing bitumen and many more. Gasoline is one of the most important   substances used in in   cars   as it contains flammable liquid hydrocarbons that react with   internal combustion engines to cause a spark that causes a mini explosion. Moreover, the fuel burns immediately and powers the vehicles crankshaft. Residue containing   Bitumen is also important substance as it plays a significant role in the construction of roads. The product is mainly used in roads as the glue or binder mixed with combined particles to create asphalt concrete. Furthermore, the oils main other uses include waterproofing products, including sealing flat roofs and the production of roof felts. The following table expands this more. Products of crude oil % of Crude oil   present Uses Refinery Gas   (350 degrees) 40-50 Roads construction Roofing Waste Management Issues: There are two issues present in cleaning up petroleum. Toxicity The toxicity of the substance is very dangerous to almost all living things. The cleaning up of crude oil tends to be great issue cause of the toxicity and so the cleaners must be very careful to not be exposed or contaminate other living things. They also have to be fast with the clean up because it can dig and leech onto underground water system that links to human residential areas and pose a serious threat onto local communities. Thickness The cleaning up of crude oil also tends to be a great issue because its thick and heavy and so it takes the cleaners many days to clean it insuring that its hasnt contaminated anything else. This is because of the temperature the oil was heated during the process in order to work properly. Therefore, to a high extent the issue of toxicity and the oils thickness is a major issue during its clean up. The Impact of the separation process on Chemistry The fractional distillation of crude oil has progressively changed over the past century. This is mainly due to the advancement of technology and knowledge through the oil refining industry. Most of the oil companies used vacuum distillation to refine crude oil whereby the pressure above the liquid mixture is distilled and reduced to less than its vapour pressure causing evaporation of the oil with the lowest boiling points. However, as the mixture contained different substances that all have different boiling points this made the oil much harder to refine. Moreover, this method was then replaced by fractional distillation as it made it much easier to refine due it being able to separate a mixture with different boiling points better. Fractional distillation has had a high impact towards other fields in chemistry where its used in petrochemical, chemical plants, natural gas processing and cryogenic air separation plants. This process has allowed scientists to produce products in mode rn society and help understand more about the natural world. Evaluate one of your sources One of my sources was published by the BBC but does not present an author in the article (http://www.bbc.co.uk/schools/gcsebitesize/science/aqapre2011/rocks/fuelsrev3.shtml). This company is British commercial company known its for news, documentaries and education articles. The company was formed back in 1922 by British and American electrician companies and is known to be one of the most famous companies in the world. Articles presented on their website nearly always right and used by some schools for education purposes. To make this article more academic BBC should have identified the author to inform the validity of the source. Bibliography Reference Bbc.co.uk. (2011). BBC GCSE Bitesize: Fractional distillation. [online] Available at: http://www.bbc.co.uk/schools/gcsebitesize/science/aqa_pre_2011/rocks/fuelsrev3.shtml [Accessed 27 Mar. 2017]. Freudenrich, C. (2001). How Oil Refining Works. [online] HowStuffWorks. Available at: http://science.howstuffworks.com/environmental/energy/oil-refining4.htm [Accessed 26 Mar. 2017]. OilPrice.com. (2009). What is Crude Oil? A Detailed Explanation on this Essential Fossil Fuel | OilPrice.com. [online] Available at: http://oilprice.com/Energy/Crude-Oil/What-Is-Crude-Oil-A-Detailed-Explanation-On-This-Essential-Fossil-Fuel.html [Accessed 26 Mar. 2017]. Pollutionissues.com.(Petroleum water, effects, environmental, disasters, pollutants, United States, history, causes, impact, EPA, soil, chemicals, industrial, liquid, wells, toxic, world, human, power. [online] Available at: http://www.pollutionissues.com/Na-Ph/Petroleum.html [Accessed 27 Mar. 2017].

History, Structure and Function of the Nucleus

History, Structure and Function of the Nucleus STRUCTURE AND FUNCTION OF THE NUCLEUS The nucleus was the first organelle to be discovered in 1632 by Antonie Van Leeuwenhoek who was a microscopist. He observed the nucleus in red blood cells of salmon. Furthermore nucleus is the most prominent organelle in the cell as it houses the cell`s chromosomes and is the place where all deoxyribose nucleic acid (DNA) replication and Ribose nucleic acid (RNA) synthesis occur. According to Solomon et al (2008) the nucleus averages 5 micrometers (ÂÂ µm) in diameter. The nucleus can be classified as the control centre of the cell as it helps in maintaining the integrity of the genes and by controlling the activities of the cell by gene expression. Moreover the nucleus is spheroid in shape and separated from the cytoplasm by a membrane called nuclear envelope. The nucleus consists of 4 inner parts as shown in the picture below. It consists of the nuclear envelope, nucleolus, nucleoplasm and chromatin. Pictures adapted from: http://www.agen.ufl.edu/~chyn/age2062/OnLineBiology/OLBB/www.emc.maricopa.edu/faculty/farabee/BIOBK/nucleus_1.gif last accessed on Wednesday 20.1.10 The nuclear envelope consists of two concentric membranes that separate the nuclear contents from the surrounding cytoplasm. Becker et al. (2005) illustrated that these membranes are separated by about 20 to 40 nanometres (nm).At intervals these membranes come together to form nuclear pores which consist of protein complexes. Nuclear pores control the course of materials between the nucleoplasm and cytoplasm. According to Lamb et al. (2006) the nuclear pores is approximately 80 nm in diameter. The nuclear pore complex (NPC) is formed by union of the inner and outer nuclear membranes. Therefore it facilitates the movement of certain molecules in both ways between the nucleus and the cytoplasm by the use of a 9 nm channel opening. Solomon et al. (2008) stated that the nuclear pore complex is composed of nearly 100 proteins also it consists of the cytoplasmic ring nucleoplasmic ring and the middle ring. Palgrave et al. (2007) further noticed that the nucleoplasmic side of the pore consi sts of a nuclear basket whereas the cytoplasmic side exhibits fibres extending into the cytoplasm. As the transporter protein is situated in the inner core it is responsible for transferring proteins into and out of the nucleus via receptor-mediated transport. The nucleolus is a secondary organelle that can change its size basing in ribosomal requirements. For instance if a cell produces huge amounts of protein t it definitely requires big amounts of ribosomes thus the nucleolus will increase its size to provide accommodation for the production of the proteins. Palgrave et al. (2007) stated that most of the cell`s ribosomal RNA is synthesised in the nucleolus. Moreover the nucleolus is the site mainly responsible for the assembly of ribosomes. The nucleolus consists of four components such as fibrilla centres, Pars fibrosa, Pars granulosa and nuclear matrix. The picture shown below illustrates the purpose of the nucleolus in ribosome and other ribonucleoprotein synthesis. Picture adapted from: http://www.ncbi.nlm.nih.gov/bookshelf/br.fcgi?book=mboc4part=A972rendertype=figureid=A1047 last accessed on Wednesday 20.1.10 The fibrilla centres are composed of inactive DNA where minimal synthesis of DNA and RNA takes place. The Pars fibrosa is consisted of 5 nm fibrils surrounding the fibrillar centres which contain transcriptional active DNA and the rRNA precursors are being transcribed. According to Palgrave et al. (2007) the Pars granulosa are composed of 15 nm maturing ribosomal precursor particles and the nucleolar matrix is a fibre network which participates in the organisation of the nucleolus. In addition to that the nucleoplasm is a highly viscous liquid that surrounds the chromosomes. Many substances such as the nucleotides which are necessary for replication of DNA and enzyme which direct activities that occurs in the nucleus are dissolved in the nucleoplasm. The nucleoplasm is the protoplasm within the nuclear envelope and it contains a nuclear matrix. The matrix acts as a scaffold that helps in organising the nucleoplasm. Lamb et al. (2006) noted that it contains other components such as th e structural components and functional components. The structural components include fibrillar elements, nuclear pore, nuclear lamina complex, residual nucleoli, and a residual ribonucleoprotein (RNP) network whereas the functional components are involved in the transcription and processing of mRNA and rRNA, steroid receptor binding sites, carcinogen binding sites, heat-shock proteins and viral proteins (1st antigen). DNA replication occurs when the genetic code is copied exactly before the cell division. In RNA transcription and splicing, genes are copied and adapted to form complementary strands of messenger mRNA (mRNA) which can then be translated into proteins. Lamb et al. (2006) noted that chromosomes are long strands of DNA that carry the genetic code. In eukaryotes DNA is complexed with histone and non histone proteins to form chromatin.Histones are DNA binding proteins that are important for DNA packaging and other DNA associated proteins function as enzymes for replication and transcription. Lamb et al. (2006) further noted that the nucleoli are dense staining areas within the nucleus where ribosomal RNA (rRNA) is made. Clegg et al. (1994) described chromatin as the composite combination of DNA and protein that formulate chromosomes. Chromosomes are separated between heterochromatin (condensed) and euchromatin (extended) forms. The euchromatin is the transcriptionally active form of chrom atin that appears in the electron light microscope as a lightly stained region of the nucleus. The major components of chromatin are DNA and histone proteins. The main functions of the chromatin are to package DNA into a smaller size ratio to fit into the cell to strengthen DNA thus allowing mitosis and meiosis to occur. It also acts as a system to control expression and DNA replication. Smith et al. (1992) noted that alterations in chromatin structure are influenced by chemical modifications of histone proteins such as methylation (DNA and proteins) and acetylation (proteins) and by non-histone DNA- binding proteins. Finally it can be concluded that the nucleus is one of the most important organelles in the cell because inside of it holds the nucleic acids (DNA and RNA) which makes possible to reproduce. In addition to that it also holds chromatin which forms chromosomes which are the ones in charge of the hereditary information. DNA replication processes take place inside the nucleus and it stores all the information that is to be transferred to the next generation. The information generated by nucleus governs the formation of enzymes and other proteins that carry out all the processes of body. Lamb et al. (2006) elaborated that the nucleus is indeed the most prominent organelle in the cell as it sequesters and replicates DNA, transcribes and splices RNA which allows facilitated selective exchange of molecules such as transfer RNA (tRNA) within the cytoplasm. REFERENCES Becker, Wayne M. The world of the cell / Wayne M. Becker, Lewis J. Kleinsmith, Jeff Hardin. 6th edition. New York : Pearson/Benjamin Cummings, 2005 pg 82,83 Cell biology / [edited by] Smith and Wood. London : Chapman and Hall, 1992 Clegg, C. J. (Christopher James), 1938- Advanced biology: principles applications / C.J. Clegg with D.G. Mackean. London : John Murray 1994 pg 155,156 http://www.agen.ufl.edu/~chyn/age2062/OnLineBiology/OLBB/www.emc.maricopa.edu/faculty/farabee/BIOBK/nucleus_1.gif Nucleus picture last accessed on Wednesday 20.1.10 http://www.ncbi.nlm.nih.gov/bookshelf/br.fcgi?book=mboc4part=A972rendertype=figureid=A1047 nucleolus last accessed on Wednesday 20.1.10 Lamb, Neil Cell biology and genetics / Neil Lamb. Edinburgh : Elsevier Mosby, 2006 pg 6,7 Molecular cell biology. 6th ed. -Basingstoke : Palgrave Macmillan, 2007 pg 378 Solomon, Eldra Pearl Biology / Eldra Pearl Solomon, Linda R. Berg, Diana W. Martin. 8th ed. (International). New York : Brooks Cole, 2008 pg 84,85