However, in the case of Oscar’s intention to change the method of calculating the amortization expense for the relevant financial period, it can be said that this remedy is not critically conflicting with the betterment of the company. His action of change is actually desirable because it may increase net income, which is good for the business. However, the ethical dillema only starts because of the inclusion of his personal motives and interests that blurs professionalism and ethical decision making for the company. In the end, Oscar does not need to isolate himself with this case. He can always consult the higher team, without the need to divulge his personal interest.
2.3.2 Sales Promotion and its Relationship with Consumer Brand Preference It has been acknowledged that consumer and trade promotions can be a very effective tool for generating short-term increases in sales, and many brand managers would rather use a promotion to produce immediate sales than invest in advertising to build the brand’s image over time (Belch & Belch, 2003). They, however, caution that overuse of sales promotion can be detrimental to a brand in several ways. The first is that a brand that is constantly promoted may lose perceived value. This is in line with Teunter (2002) and Jha-Dang’s (2004) assertion that the presence of a promotion will lead consumers to attribute lower quality to the brand owing to the fact that it is on
They discussed that price discounts create transaction utility or smart shopper feelings, which may increase hedonic value. In addition, price discounts could create utilitarian value by facilitating an efficient end to the product-acquisition task. Consistent with this reasoning, they found that consumer bargain perceptions relate significantly to both hedonic value and utilitarian value. They suggested that if substantiated by future studies of price discounts and shopping value, these findings may indicate that the subjective emotional component of price promotions is at least as important as the more tangible component. However, Lee et al.
By changing product strategy, it needs to increase prices or lessen the range of products offered whereas, if company chooses to change strategic capabilities, it will need to have continuous improvement of value chain or improve product design. Sadly, adapting competitive pressure is simpler than changing strategic capability. An important lesson to be learnt from continuous process improvement is that changing product strategy competitive pressure is a short-term solution. This is because company has the decision to give up markets or increase prices so it may benefit in the short-run, but, majority of a company’s strength lies in a superior ability to contribute value to customers which is due to company’s consistency in improving strategic capabilities. Therefore, increasing strategic capabilities through continuous improvements is through activities that will decrease or eliminate batch-level activities, lessen batch-sizes and reducing non-functional differences between products.
2001), proposing that the availability of expendable resources mitigates loss aversion. Carmon and Ariely (2000) suggest that the different perceptions of buyers and sellers underlie loss aversion; they find that directing buyers on the benefits of the object and sellers on alternative uses of money attenuates the endowment effect. Some research has even did away with loss aversion, either by centering on certain goods (e.g., exchange goods of fixed value show no loss aversion; Van Dijk and Van Knippenberg 1996) or by inducing emotions just before the value elicitation. For
Once this is done , companies would start earning profit . Therefore , the most successful and effective marketing strategy is not to ponder on how to maximize profit . A marketing strategy can be a success when effort is placed on how to fulfil customer’s needs and increase their loyalty to the brand.
The recent attempts to align executive interests with that of the shareholders have been important stepping stones in the ultimate goal of assuring ethical behaviour. A survey by KPMG in 2005 found that bonus payments to executives had risen faster, but were hardly ever linked to long term strategy of the company and shareholder value. There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. No director should be involved in deciding his or her own remuneration, albeit remuneration committee as formed by Megatron directors. Businesses today need to be ethical in the way they operate.
There is always something more we can do and that’s how Achor explained “happiness gets pushed over the horizon.” Scientific studies confirmed that “positive brains make us more motivated, efficient, resilient, creative, and productive, which drives performance upward.” In other words, happiness can improve our work. D. Stress as a challenge We should not see stress as bad thing but instead as challenge. Stress is always a part of work process despite our effort to be as relaxed as possible. However, everyone is controlled by stress differently. Achor states that “in today’s world, we ironically sacrifice happiness for success only to lower our brains’ success rates.
Project Management is an area of study that has many relevant applications within the marketing industry yet there is very little emphasis placed on it. If Project Management were to be applied to marketing Metrics would soar and timelines would shorten. Teams would deliver newer and better campaigns with increased efficiency and less hassle. This would go a great way towards increasing the competitive advantage of any marketing initiatives. This way a company could achieve more deliverables from their marketing teams without having to hire additional talent.
The authors comment that franchising might lead to a higher customer satisfaction level irrespective of the metric and the reason being that franchisor usually has better control of the day to day operations in a franchisee. Any deviance from the normal and accepted service level is dutifully noted and corrective actions are taken. The business psyche sees a franchise owner as a vital part of the organization and rather an extension of the organization. On the other hand, licensing of IPRs usually makes for a not so up to the mark customer experience. The reason is that licensors and licensees lack interaction to improvise and augment the customer experience.