How I Learnt How to Navigate the Cyber Space Essay

How I Learnt How to Navigate the Cyber Space - Essay Example Plainly speaking the experience would be unforgettable, defining, and somewhat perplexing. This paper explores my first steps on a journey through the cyberspace. Introduction Having read and heard a lot about the internet and cyber space, and obsessed over the concept for what seemed like my whole life, I had a few things in mind I was more than anxious to try. My initial approach was an intricate mixture of curiosity, anxiety, and bewilderment. I was keen to find out if some of the things I had read about cyber space were true. To be specific, I had even come up with a list of a few things of my own with which to challenge the ingenuity of the outspoken technological phenomenon. However, I was inwardly unsettled over how the new virtual world would appear to me. Precisely, I was keen to find out whether cyber space would it be a passive unexciting computing experience. My greatest wonder was whether the web, arguably one of the best inventions of the century, would be an infinitely complex and unfathomable mass of data and material that would be utterly intolerant to my inexperience, and numbing to my bristling curiosity? Technology has always been my greatest source of marvel and intrigue for as long as I can remember. All things I found amazing about human accomplishments with regard to innovation were beginning to gather around technology and later and by extension computing. While some things would seem normal on computers and their many applications, for instance, do calculations at unimaginable speeds, some elements were especially influential to my curiosity and interest in computers. Particularly appearing improbable was the claims that it could do a multiplicity of activity including communicating with other computers with people all over the world in virtually no time. Even to a person fairly read on technology, particularly computing, this was simply extraordinary: I knew that computers had a myriad of abilities, which were beyond some of our wilde st perceptions on what is possible through human endeavour. I knew that computers could control complex systems, that computing knowledge had been critical in man’s first conquest of the moon in the outer space, could store mammoth amounts of data, do apparently complex and time-consuming manual activities at blinding speeds, and replace common technological innovations such as typewriters, and video output devices with unmatched effectiveness (Rajashekar, 22). At the time, it was only possible to read materials about the internet and the web in physical libraries. Therefore, metaphorically, I consider my first web experience occurred before I ever typed my first word on a browser search tab. What I found out about cyber space was more than I was hoping to unfold, and quite honestly, quite sobering. The moment I typed in a dictionary vocabulary, a popular name in computing, and the president’s name, my reality materialized from a haze of eccentric veneer and supressed doubts. I was sure of one thing, I was going to be part of this community, intellectually, and in many other ways a kid my age could imagine, I felt I belonged, and had means to let my imaginations run wild with a few keystrokes. The internet at the time was painfully and insufferably slow by today’

Structural conflict and consensus in Socialization

Structural conflict and consensus in Socialization Explain the relevance of socialization from both the structural conflict and the structural consensus perspectives. Discuss the efficiency and the pitfalls of each approach in relation to youth work. Both structural conflict and structural consensus theories approach the study of social life from a macro perspective, that is, both are concerned with the study of large-scale social structures, such as ideas and belief systems, and institutions, such as the family and education, in their attempts to examine and explain social life (Bilton et al. 1994: p. 10). From this perspective, a better understanding of a given society, and the relationships within it, can be gained through examining the function of social institutions and organizations in terms of the part they play in maintaining social structures within society. An example of this is the study of institutions which are agencies of socialization for example the family and the media to explore the part they play in the production and reproduction of social roles and values (Bilton et al. 1994: p. 12). Socialization, then, is the process through which individuals learn the ways of thought and behaviour considered appropriate in [their] society (Bilton et al. 1994: p. 12), and agencies of socialization function in both formal and informal ways to pass on to the next generation such norms of thought and behaviour. Much early socialization within the family is informal; children learn through observation and interactive experiences with siblings and adults around them the behaviour expected of themselves and others (Ibid). While there is also a degree of formal education within the family, it is within institutions such as schools that children gain much of their formal instruction of the roles and types of behaviour expected of young people in society. The concept of socialization is a useful one and relevant to those working in a range of professional fields, and in particular to those working with young people. This will become more apparent as we now look in more detail at the differences between the structural consensus and the structural conflict approaches. The key difference between structural consensus and structural conflict theories is that, broadly speaking, for consensus theories the values and norms of society that people learn through the process of socialization are shared by all members of society; that is, there is an agreement, or a consensus about, and commitment to, the ideas and beliefs prevalent in society among individuals (Fulcher and Scott 1999: p. 49). Conflict theories, however, argue that, rather than there being a consensus about ideas and beliefs in society, social life is fraught with conflict among different members and groups in society as they struggle with one another to attain or maintain power and control (Ibid: p. 61). This is obviously a simplistic outline of the core tenets of both approaches; however, it may begin to be apparent from this that both perspectives theories of socialization have potential relevance to individuals working with young people. A comparative analysis of both perspectives even at this stage reveals some of the issues encountered by formal and informal educators in this area. In relation to youth work, for example, a key issue for workers, it could be argued, is that of purpose. Is the proper purpose of youth work, as Mark Smith (1988: p. 106) has questioned, to promote the welfare of individuals, serve to secure the reproduction of the means of production and existing power relations, promote community or what? Conflict theorists would argue that socialization of young people in areas such as youth work serves to secure existing power relations; consensus theorists would argue that it serves to promote the welfare of individuals and society as a whole. Smith later concludes that informal educators should be committed [in their work practice] to that which is right rather than that which is correct. However, without a good understanding of conflict and consensus theories, it would be difficult to make judgements regarding the difference in practice between that which is right or correct. It will be argued later that there are, of course, limitations to the extent to which such knowledge is useful in practice, however, this essay will argue that a good understanding of the theories of socialization from the consensus and conflict perspectives can not only give us insight into issues faced by workers in this area, but also help our understanding of our own and our clients feelings and motivations, as well as the agendas and motivations of official institutions and agencies. The questions of purpose and motivation are, it can be argued, very important ones, and are questions into which a study of socialization from consensus and conflict perspectives can give us good insight. In the area of youth work, knowledge and understanding of the above perspectives can lead to healthy questioning of government purpose and motivation when, for example, reviewing official documents such as the DfEE 2001 consultative paper on English youth work. This paper details the governments key priority to help keep young people in good shape (DfEE: 2001: p. 13). Much of what is written in terms of this priority appears to make good sense; for example ensuring young people have access to a rich variety of personal growth experiences and helping them to make informed choices [and] expand their potential (Ibid: pp. 13-14). However, as we shall see, closer analysis of elements of this, and indeed other, official documents and government policies reveal, when studied with knowledge of conflict and consensus theories, underlying official issues and agendas. According to consensus theories, socialization into the cultural values and social norms of society is essential to the stability and cohesion of social structures (Fulcher and Scott 1999: p. 48). From this perspective, all individuals in society share a commitment to societys values, ideas and beliefs. In general we all want the same things and agree that they are the right things to want, for example to secure good employment, achieve our potential, and to contribute to the community. While we may be socialized into such norms and values through formal and informal means, we nevertheless agree that they are right and just. The priorities set out in the DfEE consultative document fit closely with such generally agreed aspirations. The documents authors assert the need to develop preventative strategies and actions which enable [young people] to make informed choices about a range of issues which include avoiding crime, protection from drug or alcohol related dangers, preventing teen age pregnancies and others (DfEE 2001: p. 14). In order to make informed choices about such issues, young people will be able to discuss them with youth workers who have a key role in keeping young people in good shape (Ibid) From a consensus perspective, the socialization of young people regarding these issues is unproblematic; society as a whole can only function effectively if all individuals are properly socialized into the agreed norms and values of society. From a conflict perspective, however, such strategies are not as unproblematic as they may at first appear. While consensus theory sees society as being held together informally by norms, values and a common morality (Ritzer 1996: p. 266) conflict theories argue that order in society stems from the coercion of some members by those at the top (Ibid). As stated earlier, analysis of perspectives such as conflict theories can lead us to question the motivations behind official agenda setting, as well as those behind our own actions and those of others, and here, examining documents such as the DfEE paper, we may begin to question the motivation behind such apparently worthy intervention strategies. The question we may begin to ask, when viewing the world from a conflict perspective, is, in whose interests are the implementation of such policies and strategies? Youth workers and others working with young people do of course want to help young people to live happy and fulfilling lives, and help them to stay safe and well, however, questions can be raised as to whose primary interests some inter vention strategies serve. While the majority may well agree that a state of disorder in society is in no ones particular interest, it is clear that it is certainly in the interests of those in positions of power and advantage to maintain order through effective socialization of individuals into the values and norms of society, in particular the values and norms of society that best suit their own interests. It is, to take what may be considered a more extreme view from the conflict perspective, far better to have good, hard-working, honest citizens paying taxes and refraining from crime, in particular property crime from persons with abundant wealth, than to have gangs of disaffected young people stealing money for drugs and falling pregnant in order to secure valuable government housing. It may now be apparent, then, that comparative analyses of theories of socialization from the conflict and consensus perspective help give us insight and understanding when approaching issues affecting work with young people. The examples above hopefully show the efficiency of this analysis in relation to official agenda setting and policy, however, as mentioned earlier, knowledge and understanding of theories of socialization can also help workers in this area better understand issues facing themselves and their clients. An awareness of whose interests are being served in relation to practice performed by workers with their clients can only work to ensure continued practice evaluation. An understanding of the conflicts in values and norms which many young people may encounter can help workers when making judgements within their own practice with regards to what is right as opposed to correct. One example of the above could be the possible conflict experienced by young people between the values and goals seen by individuals around them, and perhaps by the young people themselves, as fair and just, and the means available to them to embrace such values or achieve such goals. Sociologist R. K. Mertons (1938) theory of anomie addresses this experience of conflict, and suggests that if a society places great emphasis on achieving goals, and less on the appropriate means to obtain them, then an individuals commitment to approved means and thereforeconformity to social norms may be eroded (Fulcher and Scott 1999: p.49). Merton argues that the rift between culturally approved ends, and the means of attaining them, which he refers to as a situation of anomie, can result in individuals resorting to inappropriate means to achieve goals which they, along with the rest of society, agree are worthy. Here individuals have been effectively socialised into the norms and values of approp riate goal attainment, but not so successfully into the appropriate means by which to obtain them. From a conflict perspective, however, it could be argued that the social values placed on goal attainment, and passed on through socialization, do not necessarily serve the best interests of all members of society in the first place. The goal, for example, of buying a large house in an expensive neighbourhood will simply put more revenue the governments way in terms of council tax than will a smaller property, as well as more revenue to mortgage companies, power suppliers and so on. This essay has hopefully shown the relevance, and in the areas discussed, the efficiency of structural conflict and structural consensus perspectives in relation to youth work, however, as stated earlier there are obvious limitations to the extent to which such theories are of use in practice, not least because theories, while helpful, are more usefully conceptualised as tools to stimulate thought and discussion relating to policy and good practice. Finally, all theory is limited because the number of variables present in any given situation means that no theory can simply be taken as a model and then applied. Bibliography Bilton, T. et al., 1994. Introductory Sociology. 2nd edn. London: Macmillan. DfEE, 2001. Transforming Youth Work. London: Department for Education and Employment/Connexions. Also available from: Smith, M. K. (2001) Good Purpose [online] Introduction. Available from: http://www.infed.org/archives/developing_youth_work/dyw6.htm

Physiological Effects of MDMA Use :: Health Drugs Essays

Physiological Effects of MDMA Use MDMA has significant cardiovascular effects. This is consistent with its norepinephrine releasing (Johnson et al. 1991; Rothman et al. 2001) and  £\_2 adrenergic agonist (Lavelle et al. 1999) properties. MDMA dose dependently produces robust increases in heart rate and blood pressure (de la Torre et al. 2000a; de la Torre et al. 2000b; Grob et al.). Peak cardiovascular effects occur between 1 and 2 hours after MDMA administration and largely subside within 6 hours of drug administration. A study suggested that the relationship between MDMA dose and cardiovascular effects was supralinear by de la Torre et al. (2000a) who reported unexpectedly high drug exposures (measured as AUCplasma for MDMA) and diastolic blood pressure increases in two volunteers given 150 mg MDMA. While pharmacokinetic data suggest MDMA has nonlinear kinetics, there is no clear evidence of supralinear relationships between dose and blood pressure or heart rate. In fact, there may be less increase in heart rate after higher doses. The tendency toward less heart rate increase with higher dose is consistent with a study using both conscious and anesthetized rats (O'Cain et al. 2000). In this rat study, 3 mg/kg IV MDMA decreased heart rate, while lower doses tended to increase it or leave it unchanged. Studies monitoring blood pressure found significant relationships between MDMA use and blood pressure. In one study, (Vollenweider et al. 1998) involving subjects without a history of MDMA use, one subject experienced hypertensive crisis from a dose typical of recreational use. The correlation of blood pressure is described, "A two way ANOVA for systolic blood pressure revealed a significant main effect of drug [F(1,2) = 41.09; p < 02] and a significant drug x time interaction [F(3,6) = 11.31; p < 007]. Significant changes occurred in the 0 to 75 minutes and 75 to 150 minutes interval (one way ANOVAs). Two way ANOVA for diastolic blood pressure was not significant, but one way ANOVAs showed significant changes in the 75 to 150 minutes and the 150 to 300 minutes interval. Increases were in the range of 10 to 30 mm Hg for systolic blood pressure and 5 to 10 mm Hg for diastolic blood pressure." (Vollenweider et al. 1998 pp.245_246) This study shows a similarity in changes in systolic blood pressure, and a lesser similarity in changes in diastolic blood pressure. The occurrence of hypertensive crisis suggests caution in potential use and study.

Compare the relationships of the two sets of sisters from Howard’s End by E.M Foster and Sense and Sensibility by Jane Austen

In the books Howard's End and Sense and Sensibility there are two different sets of sisters. I will be looking at the older sisters in each of the books. In Howard's End there are just two sisters, they are very close in age and very alike in the ways in which they show their feelings. In Sense and Sensibility there are three sisters the elder two of the three are very close in age and the youngest is a lot younger than the middle sister. All three have similar qualities and different views on their livelihood. One of the families is the Wilcoxes who are high in the society and well known through out Britain. The mother of the family Ruth becomes very attached to Margaret as she shows concern and friendship towards her in her last few months of her life. Ruth is gentle, selfless, loving and in a way strangely omniscient. Ruth dies in the first half of the novel leaving her husband Henry a widow. Henry is a prominent businessman in London. He is Stuffy, conventional and very chauvinistic, as he points out that woman are in the world to look after the family and bring up children, but also makes sure the Wilcoxes are not seen badly in anyone's eye. Henry then marries Margaret not long after Ruth's death. Also read The Story of an Eyewitness Essay Analysis Henry and Ruth had three children. Charles, Paul and Evie. Charles is the eldest son – self-centred, aggressive man who has many morals that he intends to keep. He represents all the negative sides of the Wilcoxes that they would like to keep hidden away in the cupboard. Charles marries Dolly and she gives birth to a boy who they name Tom. At the end of the novel Charles gets sent to prison for 3 years from killing Leonard Bast. Their second child is Paul the youngest son, who travels to Nigeria to make his fortune after he shares a passionate kiss and brief romance with Helen Schlegel. The youngest of the three children is Evie who is a self centred, petulant girl. Evie marries to Charles uncle in law at the young age of 18. The second family in the novel is the Schlegels. The Mother and the Father of Margaret, Helen and Theobald (Tibby) Schlegel are both dead in the novel right from the beginning. Margaret is the chief protagonist of the story as she encounters many problems and joys. She is a 29-year-old and has English and German heritage like the rest of her family. Margaret is imaginative and committed to relations in the family. She organises most trips and dictates to the others what's happening. Her practical abilities, inner strength and emotional perceptiveness enable her to appreciate the Wilcoxes and strive for a finer life. Helen the second oldest is 21. She is passionate and a very fickle girl she lives for art, literature and human relations like any other upper class woman in the early 20th century. Helen represents the idealistic, intellectual and cultured side to the Schlegel family. Helen is prettier than Margaret is and more prone to excessive and dramatic behaviour as she tends to do before she thinks. In the novel she ends up pregnant with Leonard Bast's child. Lastly there is Theobald nicknamed Tibby who is relatively younger and more intellectual than the girls and only 16. In the book he grows up and ends up going to Oxford. He likes to indulge in luxury and is extremely lazy. Mageret and Helen will be one set of sisters I will be looking at. They are both caring and look after each other by making sure they are truly happy and that the wont marry into the wrong family. The Schlegels are well respected in their town and are in the middle of the middle class in society. Read also Intro to Public Relations Notes They have a lot of money and are wise with all their actions. The Schlegels are also a very conventional family as they do attend social gatherings this is shown when they are returning from a performance of Beethoven's 5th symphony at the beginning of the book. Finally there is one more set of people in the story, the Bast's. These people prove to give the story an unexpected twist, light humour and more depth. Jacky Bast is an extrovert with a sense of people around her. As a former prostitute she had had an affair with Henry Wilcox 10 years ago in Cyprus. Leonard is a poor insurance clerk he has little money – barely enough to live on. He is obsessed with improving himself and reads books constantly to try and improve his education and get a better job. Leonard wants to do a lot better with his life. He has learnt to appreciate that he is alive and to try and get the most out of it he is trying to improve himself so he will be higher and more renowned in society. Sense and Sensibility written by Jane Austen also shows us a strong and well-built relationship between the sisters – Marianne and Margaret Dashwood. Again in this story there are many important characters. It too is set around families and brings and joins them all together in the last few chapters of the book, giving it a wonderful and unpredictable ending. The main family in the novel is the Dashwoods. They are introduced right at the beginning of the novel and the whole story follows the sisters Marianne, Elinor and Margaret. Mrs. Dashwood the kind and loving mother of the three young girls becomes a widower at the beginning of the novel when her husband Henry dies. Mrs. Dashwood inherits nothing from her late husband except the un-known wish from her husband to John that he is to make sure her and her children are looked after and will live well. Mrs. Dashwood only wants what is best for her daughters and goes out of her way to accomplish this for them; she also has a romantic side to her and enjoys her daughters being whisked off their feet by romantic callers. Her eldest child Elinor is 19 years old and the heroine in the story, going through many difficulties and trivia's. Elinor is very composed and affectionate to all living things, when she falls in love with the Mr. Edward Ferrars she loses all these traits as she falls in love. She comforts and supports her sister Marianne when she is let down by Willoughby. Marianne is 17 and shines out with her spontaneity and great sense of life. Her romantic idealism leads her to fall in love with John Willoughby even when he disappears and leaves her high and dry. After this change of heart she marries her admirer – for many years – Colonel Brandon. The youngest of the Dashwood daughters is Margaret, she has a great sense of humour and at 13 she already shares her sister's great passion for romance and is stunned by Willoughby's romantic ways. The Dashwoods are a very close family and tell each other everything about relationships and daily walks. They depend on each other to fall back on and are all very well mannered. Throughout the novel the young and beautiful Dashwoods fall in love with many people. The most famous and most loved of all being Edward Ferrars particularly admired by Margaret. Edward is sensible and the older brother in his family. He falls in love instantly with Elinor but escapes from her for a while and is involved in a four year secret engagement to Lucy Steele but in the end turns up and marries Elinor as he as always wanted. His younger brother Robert manages to be the escape route for Edward to get back to his only one true love Elinor, as Lucy falls slowly in love with Robert and ends up marrying him instead. Marianne's first love in the novel is John Willoughby. He is an attractive young man but who deceits Marianne's heart by greedily leaving her for the wealthy Miss Sophia Grey leaving her traumatically distraught. The unexpected Colonel Brandon finally gets his wish when Marianne returns his unrequited love. Colonel Brandon is a retired officer who falls in love with Marianne when he first lays eyes on her. He constantly tries to impress her but is always beaten away by Willoughby. He acts kindly, honorably and graciously towards the whole family throughout the novel, making the family more than glad that Marianne marries him in the end. In Howard's End you notice from the beginning the very strong relationship between Margaret and Helen. In their relationship Margaret takes on the stereotypical role of being the mother because she is the oldest out of the pair. This seems natural to Margaret as her mum and dad have died leaving her and her aunt Juley to look after Helen and Tibby. Margaret feels it is her duty to protect Helen from any pain or embarrassment on her part. We can see this when Margaret and Ruth meet for the 1st time since they meet in Germany. Both the Adults agree it is better that Helen and Paul do not meet, and that it is good that they have no chance of meeting at the moment as Helen is in Germany unaware that Paul is in Nigeria. As they meet Margaret is happy that they both feel the motherly love for the two love lost â€Å"children†. ‘†You've been worrying too! † exclaimed Margaret, getting more and more excited, and taking a chair without invitation. † How perfectly extraordinary! I can see that you have. You felt as I do: Helen mustn't meet him again†Ã¢â‚¬Ëœ In Sense and Sensibility Elinor also take the role of being the more organised and the mother of the sisters. She two looks after her younger sibling Marianne, thinking that she knows best and tries to do everything for her. When Mrs. Dashwood exclaims that it may be months before they hear anything of Willoughby again Marianne is angry and says that it is more like a matter of weeks. This pleases Elinor because although Marianne is angry at the thought. Marianne has spoken and that means she is on her way to being mended ‘ Mrs. Dashwood was sorry for what she had said, but it gave Elinor pleasure, as it produced a reply from Marianne so expressive of confidence in Willoughby and knowledge of his intentions'. The quote also tells us that Elinor is not only glad that she had finally spoken, she is also glad that she is able to speak of her and still has faith in him in returning – making that whole family believe that he will return and make her happy and well again. Helen and Margaret are very alike in the way that they are both representing the Schlegel family and household, which represents the intellectual aspect of middle class citizens. When Margaret first excepts the marriage proposal from Henry she presses on him whenever they are in the company of Helen to go and talk to her and make friends. She is determined that they should be friends as they will be in the same family but is very anxious for them to like each other as they are the most important people in her life. If they weren't friends she couldn't see how she could deal with it. She likes Helen so much she can't see why Henry wouldn't. Helen is also very passionate about her relationship with Margaret. When Helen turns up at Evie's wedding she annoyed with Henry for giving them wrong advice. When she is saying this to him she is expecting Margaret to take her side but instead Margaret doesn't have much input. When the Argument had calmed down a little Margaret says to Helen ‘ I am to marry Henry I must take his side' this is the last time they speak until Margaret sees Helen pregnant. Helen is very upset with this because Margaret is he sister she feels like Henry is taking her and their friendship away from her. She feels lonely and befriended and this is why she doesn't contact her because she feels that she is no longer needed as Margaret has someone else now, Margaret as a husband. When Helen leaves for Germany for the second time Margaret is unaware of their fight being so big to her. After not really hearing from Helen for a while apart from in telegrams and postcards she realises something must be wrong. To her it doesn't seem like it is Helen writing. When they meet Helen feels that Margaret can get her anything. This is natural as you expect the mother figure able to get you what you want and need. She asks by saying at Howard's End ‘But it would give me great pleasure to have one night her with you'. Margaret sets out and risks her marriage to get her dear sister this. Their love for each other is so great they will risk anything to keep their friendship from ending. In Sense and Sensibility, Edward comes back to Barton Cottage when Lucy marries his brother instead realising that he has always been in love with Elinor without admitting or realising it. When he lets it be known to the family that he is not married to Lucy and they have all been mistaking, Elinor acts out with joy ‘She almost ran out of the room, and as soon as the door was closed, burst into tears of joy, which at first she thought she would never cease'. Marianne is very happy that her sister has finally found happiness as it means there will be no more worry in the family for her. Marianne could only speak her happiness only be tears. Comparisons would occur – regrets would rise – and her joy, though sincere as her love for her sister, was of a kind to give her neither spirits nor language'. Meaning that she could not speak of her love for her sister as it was too great and too meaningful that there are no words too describe it. In both the novels it ends up that there love for each other finds ways to make them stay together throughout and both sets of sister's end up living near each other. In Sense and Sensibility the novel ends with the sisters being reunited at the colonel Brandon land. With Elinor and Edward working for him in the parsonage that had been promised to Edward months before. After pursuing and courting Marianne she finally recognised his kindness and agreed to marry him. They moved to his estate and once again by fate the sisters were brought together. The two sets of new families brought happiness to Mrs. Dashwood knowing that the sisters were within walking distance of each other, so they could look out for each other as they always had. ‘Between Barton and Delaford, there was that constant communication which strong family affection would naturally dictate †¦ hat though sisters and living almost within sight of each other, they could live without disagreement between themselves, or producing coolness between their husbands'. This means that they can now live practically together without getting into any fights or disagreements because their relationship is so strong. With it being so strong it means that their husbands have become friends and everyone has put all the trivia's of the past behind them and now look forward to enjoying time with each other in the future. In Howard's End it ends with Helen having her baby at Howard's End with Henry and Margaret. They all live together looking after each other. ‘Helen rushed into the gloom, holding Tom by one hand and carrying her baby on the other' This shows that the families are united together as Helen has her baby as well as taking care of Henry's only grandson. This is showing that she has been trusted with their family in her hands. The book ends with Helen saying that the field has been cut and the crop of hay will be the best ever ‘ We've seen to the very end, and it'll be such a crop of hay as never! This could be a metaphor for their life, the sisters have been together throughout all their problems and now they are going to have the best time ever. The relationships between the sisters are strong. The older sisters Elinor and Margaret have very much in common they both look out for their younger siblings taking on the stereotypical role of being the mother figure. The Dashwoods and the Schlegels are very similar as they both at the end put all there differences behind them and love and learn from the past and each other. Throughout the novels they have fights and instances which make them hate each other. One of the differences between the Dashwoods and the Schlegel sisters is that the Dashwoods encounter many relationships and support each other in relationships and urge them to go ahead and comfort each other when they fail. The Schlegels keep by their thoughts and Helen despises Henry for taking Margaret from her and is jealous of there relationship where as in Sense and Sensibility Marianne urges Elinor to go ahead with the relationship as she wants to see her happy more than be happy her self. When they are in relationships the other sister can sense when it is right or wrong to intervene sowing how close the families are. In Sense and Sensibility when Willoughby leaves Elinor knows best not to jump in right away and leaves Marianne so she can have some time to herself. You get the same feeling from Howard's end when Helen becomes pregnant Margaret stands back and allows Helen to make up her own decision on what to do, but when Helen decides to stay with Margaret she is only to happy to have her to stay and welcomes her with open arms.

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

Supply and Demand Essays

Supply and Demand Essays Supply and Demand Essay Supply and Demand Essay chapter: 3 Supply and Demand Krugman/Wells Economics  ©2009 ? Worth Publishers WHAT YOU WILL LEARN IN THIS CHAPTER ? ? ? ? ? What a competitive market is and how it is described by the supply and demand model What the demand curve and supply curve are The difference between movements along a curve and shifts of a curve How the supply and demand curves determine a market’s equilibrium price and equilibrium quantity In the case of a shortage or surplus, how price moves the market back to equilibrium 2 of 42 Supply and Demand ? A competitive market: ? ? Many buyers and sellers Same good or service ? ? The supply and demand model is a model of how a competitive market works. Five key elements: ? ? ? ? ? Demand curve Supply curve Demand and supply curve shifts Market equilibrium Changes in the market equilibrium 3 of 42 Demand Schedule ? A demand schedule shows how much of a good or service consumers will want to buy at different prices. Demand Schedule for Coffee Beans Price of coffee beans (per pound) Quantity of coffee beans demanded (billions of pounds) $2. 00 1. 75 7. 1 7. 5 1. 50 1. 25 1. 00 0. 75 0. 50 8. 1 8. 9 10. 0 11. 5 14. 2 of 42 Demand Curve Price of coffee bean (per gallon) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 A demand curve is the graphical representation of the demand schedule; it shows how much of a good or service consumers want to buy at any given price. As price rises, the quantity demanded falls Demand curve, D 0 7 9 11 13 15 17 Quantity of coffee beans (billions of pounds) 5 of 42 GLOBAL COMPARISON Pay Mor e, Pump Less†¦ ? Price of gasoline (per gallon) Germany Because of high taxes, gasoline and diesel fuel are more than twice as expensive in most European countries as in the United States. According to the law of demand, Europeans should buy less gasoline than Americans, and they do: Europeans consume less than half as much fuel as Americans, mainly because they drive smaller cars with better mileage. $8 7 6 United Kingdom Italy France Spain ? 5 4 3 Japan Canada United States 0. 2 0. 6 1. 0 1. 4 0 Consumption of gasoline (gallons per day per capita) 6 of 42 An Increase in Demand ? ? An increase in the population and other factors generate an increase in demand – a rise in the quantity demanded at any given price. This is represented by the two demand schedules one showing demand in 2002, before the rise in population, the other showing demand in 2006, after the rise in population. Demand Schedules for Coffee Beans Quantity of coffee beans demanded (billions of pounds) Price of coffee beans (per pound) in 2002 in 2006 $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 7. 1 7. 5 8. 1 8. 9 10. 0 11. 5 14. 2 8. 5 9. 0 9. 7 10. 7 12. 0 13. 8 17. 0 7 of 42 An Increase in Demand Price of coffee beans (per gallon) $2. 00 Increase in population ? more coffee drinkers 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 Demand curve in 2006 Demand curve in 2002 7 9 11 13 D 1 D 17 2 15 Quantity of coffee beans (billions of pounds) A shift of the demand curve is a change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve. 8 of 42 Movement Along the Demand Curve Price of coffee beans (per gallon) $2. 00 1. 75 1. 50 1. 25 A C †¦ is not the same thing as a movement along the demand curve B A shift of the demand curve†¦ A movement along the demand curve is a change in the quantity demanded of a good that is the result of a change in that good’s price. 1. 00 0. 75 . 50 D 7 8. 1 9. 7 10 13 1 D 17 2 0 15 Quantity of coffee beans (billions of pounds) 9 of 42 Shifts of the Demand Curve Price Increase in demand An â€Å"increase in demand† A â€Å"decrease in demand†, means a leftward shift of rightward shift of the demand curve: at any given price, consumers demand a smaller quantity larger quantity than before. (D1? D3) (D1? D2) Decrease in demand D 3 D 1 D 2 Quantity 10 of 42 What Causes a Demand Curve to Shift? ? Changes in the Prices of Related Goods ? Substitutes: Two goods are substitutes if a fall in the price of one of the goods makes consumers less willing to buy the other good. Complements: Two goods are complements if a fall in the price of one good makes people more willing to buy the other good. ? 11 of 42 What Causes a Demand Curve to Shift? ? Changes in Income ? ? Normal Goods: When a rise in income increases the demand for a good the normal case we say that the good is a normal good. Inferior Goods: When a rise in income decreases the demand for a good, it is an inferior good. ? ? Changes in Tastes Changes in Expectations 12 of 42 Individual Demand Curve and the Market Demand Curve The market demand curve is the horizontal sum of the individual demand curves of all consumers in that market. (a) (b) (c) Darla’s Individual Demand Curve Price of coffee beans (per pound) Price of coffee beans (per pound) Dino’s Individual Demand Curve Price of coffee beans (per pound) Market Demand Curve $2 $2 $2 DMarket 1 1 1 DDarla DDino 0 20 30 Quantity of coffee beans (pounds) 0 10 20 Quantity of coffee beans (pounds) 0 30 40 50 Quantity of coffee beans (pounds) 13 of 42 Supply Schedule ? A supply schedule shows how much of a good or service would be supplied at different prices. Supply Schedule for Coffee Beans Price of coffee beans (per pound) Quantity of coffee beans supplied (billions of pounds) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 11. 6 11. 5 11. 2 10. 7 10. 0 9. 1 8. 0 14 of 42 Supply Curve Price of coffee beans (per pound) Supply curve, S $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 9 11 13 A supply curve shows graphically how much of a good or service people are willing to sell at any given price. As price rises, the quantity supplied rises. 15 17 Quantity of coffee beans (billions of pounds) 15 of 42 An Increase in Supply ? ? The entry of Vietnam Supply Schedule for Coffee Beans into the coffee bean Quantity of beans supplied Price of business generated coffee beans (billions of pounds) an increase in (per pound) Before entry After entry supply- a rise in the quantity supplied at $2. 00 11. 6 13. 9 any given price. 1. 75 11. 5 13. 8 This event is 1. 50 11. 2 13. 4 represented by the 1. 25 10. 7 12. 8 two supply schedules- one 1. 00 10. 0 12. 0 showing supply before 0. 75 9. 1 10. 9 Vietnam’s entry, the 0. 50 8. 0 9. 6 other showing supply after Vietnam came in. 16 of 42 An Increase in Supply Price of coffee beans (per pound) S $2. 0 1 S 2 Vietnam enters coffee bean business ? more coffee producers 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 A movement along the supply curve†¦ †¦ is not the same thing as a shift of the supply curve 9 11 13 15 17 Quantity of coffee beans (billions of pounds) A shift of the supply curve is a change in the quantity supplied of a good at any given price. 17 of 42 Movement Along the Supply Curve Price of coffee beans (per pound) $2. 00 1. 75 1. 50 1. 25 1. 00 0. 75 0. 50 0 7 10 11. 2 12 A C †¦ is not the same thing as a shift of the supply curve 15 17 A movement along the supply curve†¦ S 1 S 2 B Quantity of coffee beans (billions of pounds) A movement along the supply curve is a change in the quantity supplied of a good that is the result of a change in that good’s price. 18 of 42 Shifts of the Supply Curve Price S 3 S 1 S 2 Increase in supply Any â€Å"increase in â€Å"decrease in supply† means a leftward shift of the rightward shift of the supply curve: at any given price, there is an a decrease in the increase in the quantity supplied. (S1? S2) S3) Decrease in supply Quantity 19 of 42 What Causes a Supply Curve to Shift? ? ? ? ? ? Changes in input prices ? An input is a good that is used to produce another good. Changes in the prices of related goods and services Changes in technology Changes in expectations Changes in the number of producers 20 of 42 Individual Supply Curve and the Market Supply Curve The market supply curve is the horizontal sum of the individual supply curves of all firms in that market. (a) Price of coffee beans (per pound) (b) Price of coffee beans (per pound) (c) Market Supply Curve Price of coffee beans (per pound) Mr. Figueroa’s Individual Supply Curve SFigueroa Mr. Bien Pho’s Individual Supply Curve S Pho Bien $2 $2 $2 S Market 1 1 1 0 1 2 3 0 1 2 Quantity of coffee beans (pounds) 0 1 2 3 4 5 Quantity of coffee beans (pounds) Quantity of coffee beans (pounds) 21 of 42 Supply, Demand and Equilibrium ? Equilibrium in a competitive market: when the quantity demanded of a good equals the quantity supplied of that good. The price at which this takes place is the equilibrium price (a. k. a. market-clearing price): ? ? Every buyer finds a seller and vice versa. The quantity of the good bought and sold at that price is the equilibrium quantity. ? 22 of 42 Market Equilibrium Price of coffee beans (per pound) Supply 2. 00 1. 75 1. 50 1. 25 Market equilibrium occurs at point E, where the supply curve and the demand curve intersect. Equilibrium price 1. 00 0. 75 E Equilibrium 0. 50 0 7 10 Equilibrium quantity 13 Demand 15 17 Quantity of coffee beans (billions of pounds) 23 of 42 Surplus Price of coffee beans (per pound) Supply $2. 00 1. 75 Surplus 1. 50 1. 25 1. 00 0. 75 E There is a surplus of a good when the quantity supplied exceeds the quantity demanded. Surpluses occur when the price is above its equilibrium level. 0. 50 0 7 8. 1 10 11. 2 13 Demand 15 17 Quantity of coffee beans (billions of pounds) Quantity demanded Quantity supplied 24 of 42 Shortage Price of coffee beans (per pound) $2. 00 1. 75 Supply 1. 50 1. 25 There is a shortage of a good when the quantity demanded exceeds the quantity supplied. Shortages occur when the price is below its equilibrium level. 1. 00 0. 75 E 0. 50 0 7 9. 1 Shortage Demand 13 15 17 Quantity of coffee beans (billions of pounds) 10 11. 5 Quantity supplied Quantity demanded 25 of 42 >ECONOMICS IN ACTION The Price of Admission: Compare the box office price for a recent Justin Timberlake concert in Miami, Florida, to the StubHub. com price for seats in the same location: $88. 0 versus $155. Why is there such a big difference in prices? For major events, buying tickets from the box office means waiting in very long lines. Ticket buyers who use Internet resellers have decided that the opportunity cost of their time is too high to spend waiting in line. For those major events with online box offices selling tickets at face value, tickets often sell out within minutes. In this case, some people who want to go to the concert badly but have missed out on the opportunity to buy cheaper tickets from the online box office are willing to pay the higher Internet reseller price. 6 of 42 Equilibrium and Shifts of the Demand Curve Price of coffee beans An increase in demand†¦ Supply E P 2 2 Price rises E P 1 1 †¦ leads to a movement along the supply curve due to a higher equilibrium price and higher equilibrium quantity D 2 D 1 Q 1 Q 2 Quantity of coffee beans Quantity rises 27 of 42 Equilibrium and Shifts of the Supply Curve Price of coffee beans S 2 S 1 A decrease in supply†¦ P Price rises E 2 2 †¦ leads to a movement along the demand curve due to a higher equilibrium price and lower equilibrium quantity P 1 E1 Demand Q 2 Q 1 Quantity of coffee beans Quantity falls 28 of 42 Technology Shifts of the Supply Curve Price An increase in supply †¦ S1 S2 †¦ leads to a movement along the demand curve to a lower equilibrium price and higher equilibrium quantity. E1 Price falls P1 P2 E2 Technological innovation: In the early 1970s, engineers learned how to put microscopic electronic components onto a silicon chip; progress in the technique has allowed ever more components to be put on each chip. Demand Q 1 Q 2 Quantity Quantity increases 29 of 42 Simultaneous Shifts of Supply and Demand (a) One possible outcome: Price Rises, Quantity Rises Price of coffee Small decrease in supply S 2 S 1 E P 2 2 The opposing forces Two increase in demand dominates the determining the decrease in supply. equilibrium quantity. E P 1 1 D D 1 Large increase in demand Q 1 Q2 2 Quantity of coffee 30 of 42 Simultaneous Shifts of Supply and Demand (b) Another Possibility Outcome: Price Rises, Quantity Falls Price of coffee Large decrease in supply S 2 S 1 E P 2 2 Two opposing forces determining the equilibrium quantity. E P 1 1 Small increase in demand D D 2 1 Q 2 Q 1 Quantity of coffee 31 of 42 Simultaneous Shifts of Supply and Demand We can make the following predictions about the outcome when the supply and demand curves shift simultaneously: Simultaneous Shifts of Supply and Demand Demand Increases Demand Decreases Supply Increases Supply Decreases Price: ambiguous Quantity: up Price: up Quantity: ambiguous Price: down Price: ambiguous Quantity: ambiguous Quantity: down 32 of 42 FOR INQUIRING MINDS Your Turn on the Runway: An Exercise of Supply, Demand and Supermodels ? The ease of transmitting photos over the Internet and the relatively low cost of international travel ? beautiful young women from all over the world, eagerly trying to make it as models = influx of aspiring models from around the world In addition the tastes of many of those who hire models have changed ? hey prefer celebrities What happened to the equilibrium price of a young (not a celebrity) fashion model? Use your supply and demand curves to determine the salaries of â€Å"America’s Next Best Models†Ã¢â‚¬ ¦ 33 of 42 ? ? FOR INQUIRING MINDS Another Example: Supply, Demand and Controlled Substances Price S2 S1 E2 P2 Price rises P1 E1 Howe ver, we can see The equilibrium by comparing the price has risen from original equilibrium E1 P1 to P2, and this with â€Å"war on The the new drugs† induces suppliers to equilibrium E2 that the provide drugs shifts the supply actual reduction in the despite the left. curve tothe risks. uantity of drugs supplied is much smaller than the shift of the supply curve. Demand Q2 Q1 Quantity Quantity falls 34 of 42 >ECONOMICS IN ACTION The Great Tortilla Crises: A sharp rise in the price of tortillas, a staple food of Mexico’s poor, which had gone from 25 cents a pound to between 35 and 45 cents a pound in just a few months in early 2007. Why were tortilla prices soaring? It was a classic example of what happens to equilibrium prices when supply falls. Tortillas are made from corn; much of Mexico’s corn is imported from the United States, with the price of corn in both countries basically set in the U. S. corn market. And U. S. corn prices were rising rapidly thanks to surging demand in a new market: the market for ethanol. 35 of 42 Demand and Supply Shifts at Work in the Global Economy ? A recent drought in Australia reduced the amount of grass on which Australian dairy cows could feed, thus limiting the amount of milk these cows produced for export. At the same time, a new tax levied by the government of Argentina raised the price of the milk the country exported, thereby decreasing Argentine milk sales worldwide. These two developments produced a supply shortage in the world market, which dairy farmers in Europe couldn’t fill because of strict production quotas set by the European Union. ? ? 36 of 42 Demand and Supply Shifts at Work in the Global Economy ? In China, meanwhile, demand for milk and milk products increased, as rising income levels drove higher per-capita consumption. All these occurrences resulted in a strong upward pressure on the price of milk everywhere in 2007. ? 37 of 42 SUMMARY 1. The supply and demand model illustrates how a competitive market works. 2. The demand schedule shows the quantity demanded at each price and is represented graphically by a demand curve. The law of demand says that demand curves slope downward. 3. A movement along the demand curve occurs when a price change leads to a change in the quantity demanded. When economists talk of increasing or decreasing demand, they mean shifts of the demand curve- a change in the quantity demanded at any given price. 38 of 42 SUMMARY 4. There are five main factors that shift the demand curve: A change in the prices of related goods or services A change in income A hange in tastes A change in expectations A change in the number of consumers 5. The market demand curve for a good or service is the horizontal sum of the individual demand curves of all consumers in the market. 6. The supply schedule shows the quantity supplied at each price and is represented graphically by a supply curve. Supply curves usually slope upward. 39 of 42 SUMMARY 7. A movement along the supply curve occurs when a price change leads to a change in the quantity supplied. When economists talk of increasing or decreasing supply, they mean shifts of the supply curve- a change in the quantity supplied at any given price. 8. There are five main factors that shift the supply curve: A change in input prices A change in the prices of related goods and services A change in technology A change in expectations A change in the number of producers 9. The market supply curve for a good or service is the horizontal sum of the individual supply curves of all producers in the market. 40 of 42 SUMMARY 10. The supply and demand model is based on the principle that the price in a market moves to its equilibrium price, or market-clearing price, the price at which the quantity demanded is equal to the quantity supplied. This quantity is the equilibrium quantity. When the price is above its market-clearing level, there is a surplus that pushes the price down. When the price is below its market-clearing level, there is a shortage that pushes the price up. 11. An increase in demand increases both the equilibrium price and the equilibrium quantity; a decrease in demand has the opposite effect. An increase in supply reduces the equilibrium price and increases the equilibrium quantity; a decrease in supply has the opposite effect. 12. Shifts of the demand curve and the supply curve can happen simultaneously. 41 of 42 The End of Chapter 3 Coming attraction Chapter 4: The Market Strikes Back 42 of 42