Business Environment Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Environment - Essay Example This paper approves that the PMT brand of organic products is also part of a monopolistically competitive industry, but a recent visit to their business advisor informed them that the Price Elasticity of Demand for their products is inelastic. But being in the monopolistically competitive industry, the stiff competition from rival businesses does not affect the profit margins of PMT. There is a niche market for the PMT products, which are unique in their own way and add to the variety of organic cosmetics, soaps and perfumes. People who buy such products will prefer to have variety, and so a good number of buyers will regularly come back to the PMT brand, though they test out other brands in the mean time. The factors that would affect this demand curve and hence the PED include the variety of substitutes available for buyers to try around, the proportion of income required for the item and degree of necessity or luxury. This essay makes a conclusion that disposable income is the amount of income a person or an organization has, after the taxes have been deducted from the total amount. It is being assumed that disposable incomes are going to fall in the next two years. With the decrease in the people’s income, the Income Elasticity Demand for the organic products would turn positive or high positive and the niche market catered to would reduce. The organic perfumes, soaps and cosmetics would thus, come under the category of luxury goods.But the fall in disposable income is not likely to affect the services offered by the salon, since people would still be catering to their basic needs. The income elasticity demand for the services is likely to fall between one and zero.

Data Analysis Report Essay Example | Topics and Well Written Essays - 2000 words

Data Analysis Report - Essay Example Subjective norms refer to the beliefs about how other individuals in the society will perceive the particular behaviour whereas perceived behavioural control is characterized by the person’s perceptions with regards to their own ability in performing the specific behaviour. It has been considered that a more positive attitude and subjective norm along with a stronger behavioural control can significantly increase the person’s intentions of carrying out the behaviour (Fishbein and Ajzen, 1975). The application of the theory of reasoned action in various studies has shown the relevance of each of the variables as explained by the model. The findings of Ryu and SooCheong (2006) showed how subjective norms were insignificantly related to tourist intentions with regards to local cuisine whereas customer attitudes had a significant impact on behavioural intentions. Personal beliefs also had a positive impact on the intentions of customers. Therefore, it is of great importance that efficient strategies in marketing should be carried out, especially in yielding positive outcomes on tourist attitudes towards local cuisine. Bellman et al (2009) also found out that, among female shoppers, their attitudes along with subjective norms helped influence behavioural intentions when purchasing products. ... In order to measure the perceptions of customers regarding the quality of services, their expectations can be compared with the actual delivery of services. Five dimensions were proposed- reliability that refers to the employees’ ability of delivering consistent services; responsiveness that refers to the employees’ ability to provide timely assistance to their customers; empathy which is demonstrated through special care and attention for customers; assurance which is the ability of employees to establish trust and confidence among customers; and tangibles that refer to the physical surroundings and resources. It has been asserted that when customers are satisfied with services, they may perceive these to have high quality (Parasuraman et al 1985) or vice versa. Other researchers such as Bolton and Drew (1991) had been in agreement with this notion and asserted that customer satisfaction is associated with service quality, although there have been dissimilar views on t he relationship between these two concepts. Thus, it is of great importance that organisations and researchers alike be able to effectively identify the relationship between customer satisfaction and the dimensions of service quality. Customer loyalty has also been shown to be related to perceived service quality; this form of loyalty is characterized by the attitudes demonstrated by the customers regarding repeat purchases and patronization of product. Several service quality dimensions, such as empathy, responsiveness, and reliability have all been proven to influence loyalty among customers (Caruana, 2002; Ehigie, 2006; Ndubisi, 2006; Nguyen and LeBlanc, 2001). Yu Sum and Hui (2007) also concluded that perceptions of service quality can further be influenced by the price