Economic Theory Essay

Two of the primary tasks in the world of Economics are prediction and evaluation. This assignment illustrates, at a rudimentary level, how models, techniques and methods constructed or borrowed from Economic Theory or other Sciences respectively are used to help accomplish these tasks. To do so, we consider a standard theoretical model of consumer choices in an economy in which the only activity is the exchange of goods. Due to the above-mentioned we can say that the most powerful technique used to predict the consequences of policies or future trends is modeling. A model is an abstraction intended to convey the essence of some particular aspect of the real world. Most economic models assume the existence of adequate information, yet information is a costly and scarce resource. Good models predict well enough to increase our understanding of certain situations, even though they may not predict them perfectly and there may be related situations in which the same models do not predict as well as expected. Last but not least there are models that constructed without using any numerical data; these are based entirely on economic theory. We shall begin by looking at some of the ways in which forecasting techniques can help us to predict future trends. Most business and economic decisions rest upon forecasts of future conditions. Methods of forecasting may be roughly categorized as follows: * Opinion polling * Mechanical extrapolations * Barometric techniques * Statistical and econometric methods Finally, forecasting techniques vary widely in their accuracy and sophistication. The most accurate technique is to be preferred, subject to the availability of data, expertise and finance and to the nature of the  forecast required. OPINION POLLING The assumption here is that by asking people who are likely to be directly involved, such as consumers or the sales force, attitudes and opinions which affect economic decisions can be assessed and predicted in advance. Opinion polling is a subjective method of forecasting made up largely of a weighted or unweighted averaging of expectations and attitudes. This general idea of developing informed and deliberated polling opinion has had a relatively length history successful experimentation beginning roughly during the 1970s in the U.S.A. In statistics polling is about probability sampling. A good poll: locates people who fairly represent the population we’re interested in; asks them fair, comprehensible and useful questions; calculates results fairly, without reaching beyond the data; and  is reported so people can understand where it does and does not apply. The importance of opinion polling and the way it can be done is shown in the below Figure: Opinion polling is a very powerful technique used to predict future trends. Based upon probability sampling it can give people many answers upon many problems in the society. Depending on the size of the sample, the results are relatively accurate, scientific representation of the entire public’s considered opinion on perplexing issues. Today there are a lot of companies which provide a wide variety of consultancy services and offer top quality research based solutions to their clients’ problems. They also provide full service market research process, from defining research objectives through analysis and presentation of data. To achieve their goals they use research methodologies, advanced statistical analysis and strategic relevant and decision reports. Their credibility and reputation is reflected in the fact that their publicly released findings are regularly quoted by the media (press, radio and television). Additionally, these companies are leading agencies in Socio-Political public opinion polls and Political Candidate Evaluation research. Another aspect of opinion polling is exit-poll. For example scientists use exit-poll method to predict who is going to win in elections. The exit-poll method is not 100% accurate, but the error between the real results and the one’s from exit-poll is very-very small. Asking a small sample of population inside a society it can predict whether the conservative of socialist party is going to be elected. Finally, opinion polling is also used by companies to know which product of theirs is more consumed by people. Asking a small sample of people using questionnaires (more often) they can realize which product of theirs is more consumed by people, which product are less consumed and tries to find means of improvement for others. MECHANICAL EXTRAPOLATIONS This is probably the most frequently adopted method of forecasting. It involves the basic assumption that past patterns of economic behavior continues to the extent that past behavior can be used to predict the future. It has the attraction of also being relatively cheap in that the company is likely to posses most of the relevant historical information. Last but not least, the mechanical methods of forecasting rely on future conditions being an extent of past ones. Also, this method might consist of taking a time series of historical sales figures, and fitting a trend line to it by eye as shown in the figure below: This can then be used to read off sales predictions for the required future dates. To produce this line between the dependent and independent variables of data, as shown in the above figure, the ordinary least-squares (OLS) technique uses a mathematical formula to illustrate this line. However, the technique also produces a measure of the explanatory power of the relationship on the basis of the relationships observed in the original data. A mathematical formula for producing this line is: Where a and b in this equation have been estimated using regression analysis (a set of statistical techniques used to quantify the relationship between two or more variables). BAROMETRIC TECHNIQUES In addition with mechanical extrapolations, barometric techniques assume that present happenings can give an indication of future events. Also, this technique is based on the observation that there are lagged relationships between many economic time series. Moreover, to give an indication of future events, there are three types of indicators as far as economic activity. Leading indicators are those which tend to herald future changes in the course of business activity. Coincident indicators move in step with the cycle; examples of these might include aggregate levels of sales, employment and industrial production. Finally, there are lagging indicators, which trail behind the level of economic activity. Although it is possible to isolate various leading indicators the direction of movements in each does not presage movements in economic activity with complete accuracy. The reason is that the lead-time between their behavior and the ensuing change in economic activity is not likely to be constant. Nowadays, many companies who want to see which of their product is more consumed by people, they make a statistical figure in order to calculate this. Using barometric techniques they can find which product of theirs is more consumed by people, which is not going too well and try to give improvements for others. So, they can indicate from present happenings, how a product can be in the future. STATISTICAL AND ECONOMETRIC METHODS Science is given as â€Å"truth ascertained by observation, experiment, and induction†. The purpose of science known as â€Å"statistics† is to provide the means for measuring the amount of subjectivity that goes into the scientists’ conclusions and thus to separate â€Å"science† from â€Å"opinion†. Hence, statistical and econometric methods, similar to those used in time series regression can be used to analyze the economic relationships between variables. Many of the firms forecasting problems can be solved with a single equation econometric model. Laws of probability are applied to this model in order to determine what â€Å"chances† are for the various possible outcomes of the experiment. The first step in the construction of such a model is to specify the hypotheses, which purport to explain the relationships between the variables. Hypothesis testing is the process of inferring from a sample (a collection of some elements of a population) whether or not to accept a certain statement about the population. The statement itself is called the hypothesis. When the model is constructed it gives the businessman the opportunity of experimenting to test the predicted results of various strategies. There is a vast variety of companies offering a full-service market  research which means the capability to successfully undertake any research project from the conceptual stage through the design, data collection, tabulation, analysis, interpretation of findings, recommendations, and presentation. The projects they undertake span a broad array of industries, types of studies, experimental designs and analytical statistical techniques. They are skilled in the wide variety of quantitative and qualitative techniques, providing their clients with a seamless connection between all phases of the research program. Their full range of custom research for Consumer and Business to Business research includes the following: * Tracking studies * Product testing * Taste testing * Home-use tests * Advertising research * Strategic research * Product Positioning research * Concept tests * Customer satisfaction tests * Etc.

An Analysis of Three Short Stories and Their Central Theme Essay

Throughout time, one of the most interesting social structures that is worth studying or analyzing would be the family. Needless to say, family plays a very important role in society-building since this is where all of us are able to find our respective identities. The three extraordinary works presented in this analysis will focus on the issue of family disharmony as well as the role of women in society during the earlier days of modern civilization. This particular analysis will look at three literary masterpieces crafted into perfection by three of the most distinguished women writers of our time:   Ã¢â‚¬Å"Women Hollering Creek† by Sandra Cisnerno, â€Å"Everyday Use† by Alice Walker, and â€Å"Revolt of a Mother† by Mary E. Wilkins Freeman. â€Å"Woman Hollering Creek† was first published in Sandra Cisneros’s 1991 collection of short stories, Woman Hollering Creek and Other Stories. The short story basically describes the lives of Mexicans who have crossed the border to live on †el otro lado† (376) — the other side—in the American Southwest. The main character in the story is Cleofilas, who is trapped in a constricting, culturally assigned gender role due to her linguistic isolation, violent marriage, and poverty. The author successfully weaves allusion to women in Mexican history and folklore –representing the same alienation and struggle being experienced by many women across the borders. As noted by one of the characters in the short story, Felice, there is clearly an existing domination of man over women in the culture they are in, and she goes about by noting â€Å"Did you ever notice how nothing around here is named after a woman? Really.   Unless she’s the virgin.   I guess you’re only famous if you’re a virgin†. (385) From this statement by Felice, we can see how lowly women are treated in the family structure.   Furthermore, it would appear from this statement that women are only valued that time based on certain physical qualifications (i.e. virginity) and not by their intrinsic value to the family. In this particular story, one striking point is the strong depiction of the author of a woman struggling to free herself from normal romantic expectations regarding domestic stability by choosing to leave her husband and finding herself in the process. The fact that the main character finds the strength to leave her family is a clear indication that family disharmony was very much existent in their home. The unequal treatment of women and the rigid gender structures at that time were clearly too much for the main character that she opted to break free from all these.   In fact, in one scene, Cleofilas laments the situation of women and the limited choices they have during her time saying â€Å"Tu o nadie. Somehow one ought to live one’s life like that, don’t you think?   You or no one.   Because to suffer for love is good.   The pain all sweet somehow.   In the end.† (377) In the short story â€Å"Everyday Use† by Alice Walker, the author basically tells the story of a mother’s conflicted relationship with her two daughters – a common scenario for any family, past or present. The issue of generation gap is clearly indicated in this story where the mother tries to explain to her two daughters the significance and representation of a particular quilt. What is an important piece of cloth to her is clearly nothing much to her two daughters, thus, creating family disharmony. As with many other stories by Walker, â€Å"Everyday Use† is narrated by the unrefined voice of a rural black woman, in the author’s attempt to give a voice to a traditionally disenfranchised segment of the population. Mama describes herself as a large, big-boned woman with rough, man-working hands.   â€Å"In the winter I wear flannel nightgowns to bed and overalls during the day.   I can kill and clean a hog as mercilessly as a man† (35). This description, along with her reference to a second grade education makes the reader understand that the main character takes pride in the practical aspects of her nature and that she has not spent a great deal of time contemplating abstract concepts such as heritage. However, her lack of education and refinement does not prevent her from having an inherent understanding of heritage based on her love and respect for those who came before her.   This is clear from her ability to associate pieces of fabric in two quilts with the people whose clothes they had been cut from: â€Å"In both of them were scraps of dresses Grandma Dee had worn fifty and more years ago.   Bits and pieces of Grandpa Jarrell’s Paisley shirts.   And one teeny faded blue piece, about the size of a penny matchbox, that was from Great Grandpa Ezra’s uniform that he wore in the Civil War.† (40) The quilts have a special meaning to Mama.   When she moves up to touch the quilts, she is reaching out to touch the people whom the quilts represent. One of the most important themes in ‘‘The Revolt of ‘Mother’’’ is the distinction and reversal of traditional gender roles. Sarah’s initial acceptance of Adoniram’s building of the barn, despite his 40-year-old promise of building her a house on that spot, shows the prevalent belief that her duty is to follow her husband. Though Sarah does express her feelings to her husband, when he refuses to speak about the matter, she lets the subject drop, and the barn goes up. Adoniram’s refusal to truly listen to Sarah’s concerns throughout the story are clearly shown in his last words: ‘‘Why, mother, I hadn’t no idea you was so set on’t as all this comes to.’’(12) Throughout the story, Sarah has tried to explain her feelings but, Adoniram is not accustomed to listening to his wife – as per the custom during those times. Just like the two earlier short stories, â€Å"Revolt of a Mother† by Mary E. Freeman also touches on the role of women in small New England towns during the late 19th century. In this particular story, Freeman’s emphasis lies more with the oppression and rebellion of women. She portrays the main character as insistent on receiving equal treatment from her husband –clearly conveying women’s lack of power during those times. In fine, this particular story focuses on the struggle of women everywhere to reach out and make her presence felt to the society she is living in, especially in the family where she is part of. I believe every woman would feel frustrated with the treatment being given to the protagonist in this particular story since she is practically ignored by her husband. These three short stories enable us to see how the family structure works during the periods covered in each. Unlike the structure that we have right now, it would appear that the role that each one plays in the family is dependent on two important factors: gender and seniority. Obviously, discord was evident in each of the relationships presented because of the rigidity of the family structure during this period. Women were not given much room to assert their rights and children were often expected to carry out the wishes of their parents regardless of their own beliefs or opinion. The three stories are also very noteworthy because they focus on the role of women in society. Women have always been viewed as the weaker sex, but as the three short stories prove, women are far more resilient than many male chauvinists would give credit for. In fact, the role of women has evolved over the past few centuries and gender roles have evolved quite dramatically over the past few years. Whereas the female characters in the three short stories are confined by the limitations of their gender, the modern woman now faces a myriad of opportunities waiting for her. I believe that reading stories such as the three classics mentioned above are very poignant in the sense that they allow us to see how far we have come in terms of accepting women and the very important role they play in the development of the society. As they always say, behind every successful man, is an even more successful woman.

Brand Extension Marketing Plan Essay

1. Executive Summary The following marketing plan forms the basis for the introduction of an innovative new product by Snyder’s-Lance Inc. This analysis allows me to outline the best strategies to follow for the achievement of the company’s strategic goals. â€Å"Pretzel Abobodas† will be marketed as a unique flavored pretzel that targets the Hispanic consumer, while striving to reinforce the company’s focus on wanting to penetrate the Hispanic market. The marketing strategies will hopefully enable our company to reach a market size of an estimated 2,000,000 Hispanic Consumers (targeted) with forecasted sales growth prospects of 5% over the next 3 years ($450,000 profits), while satisfying the needs if the unserved market of consumers. Success will be reflected by a sizeable capture of market shares within this market, while strategically positioning the company as a market leader in the salty snacks segments of the industry. Company Description Snyder’s-Lance manufactures and markets snack foods throughout the United States and internationally. The Company’s products include pretzels, sandwich crackers, potato chips, cookies, tortilla chips, restaurant style crackers, nuts and other snacks. Snyder’s-Lance has manufacturing facilities in North Carolina, Pennsylvania, Iowa, Indiana, Georgia, Arizona, Massachusetts, Texas, Florida, Ohio, and Ontario, Canada. Products are sold under the Snyder’s of Hanover, Lance, Krunchers!, Cape Cod, Jays, Grande, Tom’s, EatSmart Naturals, Archway, O-Ke-Doke, Padrinos, and Stella D’oro brand names along with a number of private label and third party brands. Products are distributed widely through grocery and mass merchandisers, convenience stores, club stores, food service outlets and other channels. Pretzel Abobodas will bring an entirely unique salty snack experience to its consumers. It will present itself as a healthier snacking alternative to consumers while providing the great taste of authentic Abobodas, which is a top Hispanic flavor preference. The strategic role of Pretzel Abobodas is centered on three objectives: * To be the market leader in innovative product introductions and successful product launches * To strengthen and satisfy the needs of Hispanic consumers and families * To become the market leader in the functional salty snacks category with increased market shares Situational Analysis The U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred in the most populous states and is beginning to occur among the U.S. baby population. The future U.S. economy will depend on Hispanics by virtue of demographic change and the social and cultural shifts expected to accompany their continued growth. Hispanics exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market. In forecasts of future consumption growth, the Hispanic share is significantly greater than that of non-Hispanics. The evidence for the distinctiveness and sustainability of Hispanic culture is convincing and implies a future American culture with a strong Hispanic flavor preference. Snyder’s Of Hanover Pretzels provide a healthy snacking option for consumers. There are many varieties and flavors of pretzels across the U.S. market but there have been no flavors produce d for the Hispanic Market. 2.1 Market Summary My target customer group is the Hispanic Market. The Snyder’s of Hanover Brand is a nationally recognized brand among American Households. Snyder’s Pretzels dominate market share and the numbers continue to grow. While the numbers do continue to grow, the Hispanic Market has some great potential because we have not been able to penetrate the market enough to move the needle on share. Our brands have just really started to appear in the Houston Hispanic Market in stores such as Fiesta, and Food Town. Although we do have a little bit of presence in these markets, there is not a single item flavor wise that is targeted for this market. 2.1.1 Market Demographics Geographic The geographic target area that I am choosing is the Houston Hispanic Market Area, San Antonio Area, Corpus Christi, and a few more highly populated Hispanic areas. Demographic The demographic profile of my target market is going to be Hispanic Family Households with children 18 years and under Behavioral Factors * Hispanics constitute one of the fastest-growing racial/ethnic groups in the United States * Family Gathers are traditional for birthday, holidays, weekends, etc. * Hispanics, African Americans and Asians consume more beer than any other race which is a great tie in with pretzels 2.1.2 Market Needs The product will cater to both Physiological needs (nutritional value) and Social needs (perception of a social, healthy snack) and strive to provide the following benefits to Hispanic Consumers: * Healthy Snacking Alternative for Parties and family gatherings. * Price * Top Brand Product * Items that will last stretch in the household * Great tasting product 2.1.3 Market Trends The current trends include a shift away from junk foods, a growing interest in healthier/beneficial products, and the trend for personalization through customization or seeking in a wide introduction of flavors. Trends that will influence how customers will perceive our product include: * The importance to the customer- The phrase â€Å"customer-centric† has never been more important than it is today. With the arrival of the â€Å"information age†, consumers world-wide know what is available, what everyone else is buying and how to find it online at the lowest cost. With this power has come the ability to shape markets, and define the products that they want. Manufacturers no longer have the power to define a market in their own closed space. The phrase â€Å"build it and they will come† no longer applies – you must know what the customer wants in advance if you want any chance of survival. And once you have delivered what the customer wants, your product and your customer support must both be perfect, because in this age, word-of-mouth doesn’t just reach family and friends, it reaches the world. Place the customer first. Listen to them before you build your product and they’ll tell you what to make. Listen to them after they buy your product and they’ll tell you how to keep them as repeat customers (and brand advocates). * The globalization of brands, and the ability of consumer demand to occur on a world-wide scale, is tipping the balance of power * The globalization of the message†¦Today, that world is gone. With the rise of the Internet and a population that increasingly views world travel as just another part of life, messages and brand images no longer stay where you put them. Instead, they go viral. They get picked up on YouTube. They’re seen by travelers. They’re found on the Internet (occasionally in a blog with a title like â€Å"the 10 worst marketing translations†). They are everywhere. Moving forward, the â€Å"message† that a corporation presents must be global in nature, or at the least, local and regional messages must be cultivated in such a way as to work on a global scale. From a business perspective, this isn’t a bad thing at all. In fact, get creative with your international message and perhaps you’ll get lucky and it will go viral. * The Power of the â€Å"Same†-Not only can you buy the same thing anywhere, people have grown to expect the same thing everywhere! While we still pride ourselves in finding that unique place or product, the reality is that the world is becoming one giant franchise. The â€Å"bland effect† (the ability to eat at a McDonald’s or Burger King in just about every country in the world) has moved into most major industries, from automotive to online, and shows no signs of slowing. 2.1.4 Market Growth The U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred in the most populous states and is beginning to occur among the U.S. baby population. Hispanics already account for an important share of consumer expenditures and given their youth, educational advances, and increasing spending capacity, Hispanics are fast becoming preeminent drivers of growth and likely trend setters in the marketplace. Marketers will need to understand the what, where, how and why of their role in tomorrow’s consumption space. In forecasts of future consumption growth, the Hispanic share is significantly greater than that of non-Hispanics. The evidence for the distinctiveness and sustainability of Hispanic culture is convincing and implies a future American culture with a strong Hispanic flavor. 2.2 SWOT Analysis The following SWOT analysis summarizes the key strengths and weaknesses that Snyder’s-Lance faces, as well as the opportunities and threats to be considered. 2.2.1 Strengths -Snyder’s Pretzels are nationally recognized and consumed brands -Snyder’s Pretzels hold the largest share in the U.S. in its category -Snyder’s Pretzels are becoming the healthy snacking option among children and adults 2.2.2 Weaknesses -Snyder’s Pretzels are not sought after in the Hispanic Community -Snyder’s Pretzels have not produced any Hispanic or Regional Flavors -The Flavor Preference that I will be producing is not a global product so it will be hard for Hispanics to adopt this product 2.2.3 Opportunities -Product Flavor is not in any market -Test market areas are pretty complex -Niche Market item 2.2.4 Threats -The Bigger Salty Snack Companies will try to introduce the same product at a lower cost, different packaging (Predatory Pricing could take place) -There is no brand equity in this product -Lack of Immediate Competition for comparison 2.3 Competition The competition is few and far in between. There are a lot of salty snack companies that produce Pretzels, but they are not the main brand. Also, the other Pretzel companies are not DSD companies, meaning they send product straight to store ware houses. Frito Lay is the largest Salty Snack Company in the World. Rold Gold is their pretzel brand, but not their main brand. They do not hold the amount of market share that Snyder’s Brand. Their main brands are Lays, Doritos and Tostitos. The other company is UTZ. UTZ is a pretzel company that distributes products via warehouses. They make and sell pretzels, but they do not have a flavored pretzel line. There are many more company that product pretzels but they do not offer the full variety and are not nationally recognized for this product. 2.4 Product Offering When you grab a handful of pretzels, you’re getting a snack that comes with fiber, iron, zinc and folate. And besides these nutrients, pretzels are low in fat. Hold up, though; this snack can come at the price of too much salt, because some brands of pretzels have nearly a day’s supply of sodium in one serving. Like most foods, the pros and cons vary from one product to the next. Low Fat Pretzels are one of best snacks when it comes to fat content. A 100-gram serving of hard pretzels, or about 16 pretzels depending on their size, has just three grams of total fat and no cholesterol. A significant amount of the fat — 88 percent — consists of healthy unsaturated fats that help lower cholesterol. (See Reference 1) The same portion of potato chips has 36 grams and tortilla chips have 23 grams of fat. Fiber Enjoying a snack of hard pretzels adds to your daily fiber intake. A 100-gram serving has three grams of fiber. That may not sound like much, but it’s eight percent of the recommended daily intake for men and 12 percent for women. Potato and tortilla chips have a little more fiber — four to five grams — but if you choose whole wheat pretzels, the amount goes up to eight grams. Calories Pretzels have fewer calories than potato or tortilla chips; but like many snacks, they’re not exactly low in calories. You’ll get 380 calories from a 100-gram serving of hard pretzels. (See Reference 4) The same serving of potato chips has 542 calories. Tortilla chips range from 489 to 514, depending on flavorings. Minerals Hard pretzels have seven to 10 percent of the daily intake of seven minerals, but they’re especially high in iron and zinc. (See Reference 9) In addition to carrying oxygen through the blood, iron provides short-term storage of oxygen in your muscles so that you have enough to meet the demands of increased activity. (See Reference 2) Zinc has many roles, from metabolism to the production of DNA and new cells. You also need zinc to support the immune system’s ability to fight bacteria. (See Reference 3) A 100-gram serving of hard pretzels gives men 62 percent of their daily intake of iron and 13 percent of zinc. Women get 28 percent of their daily iron and 18 percent of zinc. 2.5 Keys to Success There are many keys to the successful launch and implementation of this brand extension. Below are several critical success factors that we must leverage to be successful. * The product must meet a market’s needs better than the competition and customer alternatives (my product strategy has to be right) * The product must be taken to market through high-volume, competitive routes to market (I need a viable, volume go-to-market strategy and ability to execute in a way that drives sales growth fast) * The product must be rock-solid, high-quality and actually deliver the value promised so customers actually get the benefits they’re seeking (and that we’re selling to them). This is critical and must actually be verified with early customer testing and validation (and the product doesn’t ship until it’s actually ready, regardless of the â€Å"schedule†). * The pre-launch market conditioning must create enough awareness and â€Å"buzz† with both prospective customers and sales channels that this new product is coming to enable the product to gain enough early mindshare and traction that leads to both actual â€Å"proof† and â€Å"social proof† that the product is ready for the market. To grow beyond the initial launch, the product must be proven to meet mainstream customer needs (mainstream customers are notoriously risk-averse, so they want to see other companies like them have already taken the risk and proven the product in their environment before using it). * The go-to-market engine must buy into the product early and allocate resources to it (e.g., sales force for directly sold product, resellers/affiliates for indirect sales must choose to invest) †¦ and sales absolutely must have early success at selling the product. If the product isn’t really ready for prime time – it’s dead (the sales force probably won’t touch it again for a long time, if ever, and bad news travels fast). And get this, because it’s super-critical. If the product doesn’t convert better than what the reseller/affiliate is already selling today, it’s also dead (they won’t waste any more of their precious time on your new thingy, and will go right back to selling what already works for them and makes them the most money today). Sales people are â€Å"coin operated† and their behavior and decision-making responds directly to what makes them the most money the quickest. 3.1 Mission The objective is to introduce the Pretzels Abobodas to the Hispanic Community. There has not been a pretzel introduced to this niche market of consumers. It is my hope that this is will be the number #1 household penetrated pretzel in its category. 3.2 Marketing Objectives Ultimately the marketing objective for this initiative is to penetrate Hispanic consumers with a healthy snacking alternative with their flavor of preference in which they can serve during their family gatherings and make it a part of their daily consumption. The objectives of the marketing plan are strategically centered around 3 criteria: to create a strong consumer awareness towards a completely new flavored pretzel product to establish a wide brand recognition through the capture of market shares in the functional salty snack category, and to become the top market leader in that particular segment within the forecasted sales figures * Increase sales by 5% during the next fiscal year of this item being in the market * Improve product awareness for both the core and line extension brands * Brand Management: This new item should be recognized nationally after its successful launch in the Texas Hispanic Markets 3.4 Target Markets My target customer group obviously is the Hispanic Market. The Snyder’s of Hanover Brand is a nationally recognized brand among American Households. Snyder’s Pretzels dominate market share and the numbers continue to grow. While the numbers do continue to grow, the Hispanic Market has some great potential because we have not been able to penetrate the market enough to move the needle on share. Our brands have just really started to appear in the Houston Hispanic Market in stores such as Fiesta, and Food Town. Although we do have a little bit of presence in these markets, there is not a single item flavor wise that is targeted for this market Geographic’s: The geographic target area that I am choosing is the Houston Hispanic Market Area, San Antonio Area, Corpus Christi, and a few more highly populated Hispanic areas. Demographics: The demographic profile of my target market is going to be Hispanic Family Households with children 18 years and under Psychographics: Hispanics are very brand loyal and they use nationally advertised brands Hispanic families are close knit Familia includes parents, children, and extended family†¦the father is the head of the family and the mother is responsible for the home Individuals have a moral responsibility to take care of family members experiencing health issues, financial problem unemployment and other life issues Behavior: Hispanics constitute one of the fastest-growing racial/ethnic groups in the United States Family Gathers are traditional for birthday, holidays, weekends, etc Hispanics, African Americans and Asians consume more beer than any other race with is a great tie in with pretzels 3.5 Positioning Snyders of Hanover Pretzels is the #1 Pretzel in the category. This new flavor extension, the Pretzel Abobodas, provides a Healthy Snacking Alternative for Parties and family gatherings in the Hispanic Community. This product has price leadership in the market, making it very affordable to consumers, and a product that will last/stretch in any household. There are many varieties and flavors of pretzels across the U.S. market but there have been no flavors produced for the Hispanic Market. The most distinguishing feature for this new product is that it will provide Hispanics with one of their #1 flavor preferences on a pretzel which is the Abobodas seasoning. 3.7 Marketing Mix/Program The competition is few and far in between. There are a lot of salty snack companies that produce Pretzels, but they are not the main brand. Also, the other Pretzel companies are not DSD companies, meaning they send product straight to store ware houses. Frito Lay is the largest Salty Snack Company in the World. Rold Gold is their pretzel brand, but not their main brand. They do not hold the amount of market share that Snyder’s Brand. Their main brands are Lays, Doritos and Tostitos. The other company is UTZ. UTZ is a pretzel company that distributes products via warehouses. They make and sell pretzels, but they do not have a flavored pretzel line. There are many more company that product pretzels but they do not offer the full variety and are not nationally recognized for this product. The #1 thing that gives the Pretzel Abobodas more value than the competition is the fact that there are no other companies offering or producing this product or advertising to this niche market of consumers. Price To determine pricing for this niche product, I will follow a very detailed process which is shown below. 1. Review research and development costs, unit costs for manufacturing and shipping, and advertising costs to determine the overall cost to produce and sell the new product. Determine a bottom line sales price needed to break even in the marketplace from this information. 2. Review market analysis and trend reports, target market profiles, customer surveys, and past performance reports on other company products to determine the value of your product in the marketplace. Unique products, products that satisfy consumer needs, or those that make significant changes to work processes or in the lives of consumer are considered the most valuable. 3. Research your competition in target marketplaces to determine if your product meets, exceeds or falls below available products. Visit competitor websites and stores, and read reviews of competitor products to determine how your product measures up and how it may be received by consumers. 4. Create a price range using all the manufacturing, marketing, consumer and competition information available. Include a bottom line sales price and a ceiling price, which is the most you can sell the new product for and realistically generate consistent profits. Create mid-range pricing based on competition and market saturation. 5. Set a price for your new product. Review pricing options, market interest and how much you want to earn from sales to determine a price. To determine what the Pretzel Abododas is worth, I will focus on the following areas below: 1. Cost: Focus on current and future costs (vs. historical ones). 2. Sensitivity to price: Every buyer’s priorities change, based on unlimited factors. I will have to be ready to adjust quickly. 3. Competitors: I will pay attention to competitors’ pricing strategies, but I will not follow too closely. They may be â€Å"winging it,† and I might get burned. 4. Product Lifecycle: The price(s) of myofferings will often change throughout the product/service lifecycle. To set the product apart from the competition, I will do the following: * Reinforce your brand. If the Pretzel Abododas is on the market and there is no reinforcement, it will become stagnant and lose ground. It is important continue to build this brand by communicating with the market regularly.   Consistent communication will ensure that this new brand extension appeals to consumers on an emotional level, and increase their awareness of it. * Position your brand: Positioning is all about putting your brand in the right place, in the market, so that it gains the attraction of the right audience. I will decide the best position after careful analysis of the market and competitors. * Integrate community interest in your brand: This can be a great tool to help spread word about the brand. On one level, the brand must establish a link with the local community. By including their interests, they will be attracted to the brand, and help to tell others about it. * Create an online Brand Community. Social media sites such as Facebook and Twitter, will move the brand into the global sphere. The creation of an online brand community, will raise brand awareness, as people tell the story of the brand and propel visibility to a global audience. Whether they exist on the local or online level, community members are committed to the brand, and can prove instrumental in increasing awareness, and moving the brand forward. * Special Promotions – Attract customers by giving away free items. There is no greater pull for consumers than getting something for nothing. It will improve the status of the brand in their eyes, and with the right promotions, I will be able to gain valuable attention for the brand Place This niche item is all about where it is placed. I plan to distribute this new item via the Snyder’s-Lance Inc Independent Operator Direct Store Delivery System. Since this product is a brand extension, a new line for this item will be carried in all warehouses in this specific market. Snyder’s-Lance will take responsibility for distribution in the areas where we have Independent Operators, such as Houston, San Antonio, and Corpus. In the more rural areas, we will outsource to an outside distributor. References Kahn, B.E. and T.A. Louie, â€Å"Effects of Retraction of Price Promotion on Brand Choice Behavior for Variety Seeking and Last-purchase-loyal Consumers,†Journal of Marketing Research, Vol. 27, August, pp. 279-289, 1990. Minor, Micheal, â€Å"Comparing the Hispanic and Non-Hispanic Markets: How Different Are They?† Journal of Services Marketing, Vol. 6, No. 2, pp. 29-32 1992. U.S Census Bureau, Census 2000. Retrieved December 4, 2012. Webster, Cynthia, â€Å"Attitudes towards Marketing Practices: The Effects of Ethnic Identification,† Journal of Applied Business Research, Vol. 7, No. 2, pp. 107-116, 1991.

Carbon Steel 1040 Essay Example | Topics and Well Written Essays - 500 words

Carbon Steel 1040 - Essay Example The delivery times taken by the mills ranges between 10 and 50 weeks after the placement of order depending upon the form and size of steel required. Carbon Steels 1040 is primarily stocked by 12 distributors in Bar Products, though it is also, to some extent, available in tubular products, wire products, fasteners, forging products, and flat rolled products. The principle design feature of Carbon Steels 1040 includes its higher carbon content i.e. 0.4 per cent that lends it more strength as compared to the lower alloys of carbon (â€Å"Carbon Steels 1040†). Carbon Steels 1040 are given heat treatment to make them hard. They are quenched and tempered so that a tensile strength from 150 ksi to 250 ksi can be developed in them (â€Å"Carbon Steels 1040†). It has good machinability since it is rated at 60 per cent machinability given by the 1112 alloy that is employed as 100 per cent rated steel for machining (â€Å"Carbon Steels 1040†). Carbon Steels 1040 forming gets quickly accomplished in the annealed condition. It can be welded using any method of welding. However, its higher content of carbon imparts the need to use pre-heat and post-heat practice at 300 to 500 F and 1100 to 1200 F respectively according to a verified procedure of welding. Carbon Steels 1040 show good response to the hardening at 1550 to 1650 F achieved by heat treatment when the heating is followed by water quench as well as tempering (â€Å"Carbon Steels 1040†). This helps attain the desired level of strength in the steel. One problem with Carbon Steels 1040 is that the higher carbon content makes it very brittle and hard. Increased carbon affects the temperature where the forming of martensite commences (see fig.1.). At lower temperature, steel is less plastic and not very capable of accommodating the changes in volume linked with the changing to martensite. Increased brittleness in the steel subjects it to cracking and distortion. However, increased concentration on the materials that

Management of Change Essay Example | Topics and Well Written Essays - 500 words

Management of Change - Essay Example However, several environmental changes such as global climate change and demographic changes pose greater risks to the effectiveness of Victoria State Emergency Service. There is an increasing shortage of volunteers. Increased demand for work, increasing costs of labor and diversification of the emergency management services. Victoria State Emergency Service will have to undergo change in order to attain comprehensive, coordinated and integrated emergency management capabilities. The agency must use innovative, professional and progressive approach to emergency management by ensuring high preparedness and excellent disaster mitigation services especially in the response and recovery cycle. The critical factors that have triggered change at the agency include the external environment that requires a change in the mission, leadership, operational strategies and culture of the emergency management agency. The current scenario at the organization has the likelihood of causing a decline i n overall performance, poor emergency services and conflict in the organization. Burke-Litwin Model of organizational performance and change can be used in diagnosing the need for change and making essential recommendations for the change at Victoria State Emergency Service. The model contains 12 organizational dimensions that determine how the performance of an organization is influence by the external and internal factors. The 12 dimensions include the external environment, mission and strategy, leadership, organizational culture, structure, systems, management practices, work unit climate, tasks and individual skills, individuals’ needs and values, motivation and finally individual and overall organizational performance (Burke, 2008). Some external drivers of change in the external environment include the changes in demography, technological changes, economic changes and climate change. Apart from the vision,

Russian Revolution and Europe in 1920-1930's Essay

Russian Revolution and Europe in 1920-1930's - Essay Example This leaded to the foundation of the new government for the development of the country. There were economic and social changes in the country due to this revolution. The social structure was changed in Russia. Even the British Ambassador Sir George Buchanan advised Tsar Nichols II to "break down the barrier that separates you from your people to regain their confidence" (Russian Revolution of 1917 page1). The impact of the revolution leaded to change in economical condition. The cities and the industries had grown after the revolution. The villagers also migrated to industrial works to strengthen their economic condition. The middle class also made a growth. The new class of capitalist was forming in the Russia. The social changes were also occurred. As the economic condition was strengthen due to urbanization the thinking was also changed in people about the society. Now the people were thinking for changing their social status by contributing to the government. Even they are looking forward for solving their problem like sanitary problem, low wages problem by meetings and dialogues. After the end of World War-I various treaties were signed by the European countries which destabilized their economic condition... There was a demand for paying the compensation. There were many restrictions imposed on the Germany. There were many other consequences of the World War-I., new countries like Austria, Hungary were born as a result of the war. Many parts of the Europe like Galicia; Trieste etc. were given allotted to countries like Poland, Italy etc. respectively. These transformations of region were due to many treaties like Treaty of Saint-German on 10 September, 1919 and Treaty of Trianon on June 4, 1920 (Wikipedia Page1). Many governments and empires had fallen due to this war like end of Ottoman Empire. The Treaty of Svres was signed for this on August 10, 1920. Thus the political structure was de-stabilized by all these outcomes of war in Europe. The major blow was to the governments of Germany, Turkey kingdom etc. The economic status of the loser countries in the Europe was damaged. The structural blow was also there as the many cities were extinguished as a result of the war. Thus the people also failed in believing their governments. Thus the political situation in many countries was changed due to the war and treaties signed after the war in compromise by the loser countries. The Adolf Hitler was the chancellor of Germany from1933. He remained the leader of Germany up to his death from 1933. He was the leader of his Nationalist Socialist German Party. He was the leader in Germany who asked the people to enter in World War. He founded the Nazism. Mussolini was the

Discussion Board 5 Essay Example | Topics and Well Written Essays - 750 words

Discussion Board 5 - Essay Example The Washington Times, p. 1. Retrieved July 7, 2006, from Questia database: http://www.questia.com/PM.qst?a=o&d=5001572892 sexually assaulted her, and the woman offered evidence in the way of a bite mark and DNA from certain articles of clothing. Because of Mr. Albert’s celebrity status, the case was closely followed by the public and much attention was given to the use of the forensic evidence, especially the bite mark left on the victim. Cases involving celebrities are often sensationalized by the media, perhaps giving more credibility to certain forensic evidence than is warranted, when in actuality forensic evidence such as bite marks, fingerprints, palm prints and lip prints should not alone be evidence enough to convict a person of a serious crime, especially a crime involving the death penalty. An article by Molly Burton and Donna Lyons, appearing in State Legislatures (2001), stated â€Å"Back in the 1970s, the Law Enforcement Assistance Administration (LEAA) did proficiency tests of crime lab hair comparisons, bite marks, serology, these types of things. They knew they were getting it wrong like fifty percent of the time. It was terrible. And then that sort of analysis disappeared with the LEAA (p. 1).† What Burton and Lyons are suggesting, is that each of these sources of evidence are, first, subject to lab error and one should not infer from the results of a test using these sources that the information stemming from the tests is infallible. Alone these sources of evidence should not be enough to cause a person to be convicted of a major crime, especially one that carries the penalty of death. â€Å"Fraudulent and junk science is a critical, critical area,† write Burton and Lyons, â€Å"Forensic science has not always been the discipline that the best pe ople in the profession want it to be (p. 1).† One case that brought attention to the infallibility of fingerprint evidence was an

Childhood obesity what are the parents challanges Research Proposal

Childhood obesity what are the parents challanges - Research Proposal Example Moreover, the body of the paper also provides information on the method of data collection, sample strategy and method of analysis of the proposed research. The conclusion summarizes the research findings. One of the major threats to the health of American children is childhood obesity. In accordance with the statistical data of 2003, the prevalence of obesity in children between the ages of 6 and 7 was estimated to be 11% of the reference population and with a BMI of less than 95th percentile. Moreover, 14% of the children were overweight with a BMI of between 85th and 95th percentile. The prevalence of obesity in children has shown an alarming rise since 2003. Despite the rise in the percentage of obese children, the management of childhood obesity is considered the sole responsibility of the individual children and their parents. On the other hand, the societal stigmatization of childhood obesity has further aggravated the problem by exerting a negative pressure on the parents. Furthermore, the powerful environmental inducements forcing the children to eat nutritionally unhealthy foods such as candies and burgers have posed an additional challenge for parents in preventing obesity. (M. B. Schwartz et al 2003). This paper utilizes a number of scholarly resources to pile together some of the major challenges faced by parents and their children in the treatment and prevention of obesity. The alarming rise in the percentage of obesity in children over the past few decades mirrors the failure of the Public Health Ministries and economic strategies aimed directly at preventing obesity amongst youngsters. For instance, the events following the suggestion of taxation on high fat foods by Brownell in 1998 portrays the lack of government interests in promoting health issues. Brownell was accused of being a â€Å"food fascist† and he was awarded with a â€Å"Nanny of the Year† title

Renaissance Comparison Essay Example | Topics and Well Written Essays - 500 words

Renaissance Comparison - Essay Example Although the very term renascence was brought into currency in the 19th century by the Swiss historian Jacob Burckhardt, the origins of this movement could be traced as earlier as the beginning of the 14th century. Actually the European Renaissance began in Central Italy, namely in Tuscany centering in the cities of Siena and Florence. This movement had further a considerable impact in the city of Venice where the remains of ancient Roman and Greek cultures had been brought together and provided Renaissance humanist scholars with new texts. Consequently the Renaissance had a significant impact on Rome, which was decorated with numerous structures in the new mode of all’antico, later was rebuilt by sixteenth-century humanist popes. The Italian Renaissance reached its peak in the mid-16th century as the country began to be permanently invaded by various foreign armies. Nevertheless, the ideals and ideas of the Italian Renaissance survived these calamities and even spread into th e rest of European countries, initiating the English Renaissance and Northern Renaissance as a whole. To define the Renaissance in the northern part of the continent the term Northern Renaissance is used. Furthermore this term often refers to the Renaissance in the countries of Old World outside Italy.

Website Review and Summary Essay Example | Topics and Well Written Essays - 750 words

Website Review and Summary - Essay Example The Rockingham website is to represent a local website on substance abuse. All the websites address the challenges the nation as a whole faces as a whole due. The websites have been developed to control the addiction. Drugs have been developed to use medications to cure the various illnesses that the human race faces. The drugs, however, can be abused. People can take drugs for reasons, which they are not meant. Taking the drugs over a long period leads to addiction. The focus is not on the amount of drugs, or the number of drugs is taken. The negative consequences that come as a result of the drug addiction are the main idea of focus. Drugs can be taken in small amounts and not very frequently, but lead to problems. It is considered as drug abuse. According to Edelfield & Moosa (2012) drug abuse can start as a result of an illness, wanting to find relaxation or wanting to fit in since their friends are doing it. Drug abuse does not automatically start to cause problems after they are taken. It is a process that takes time (Doughty, 2012). The individual has overdependence on the drugs. They cannot function without taking the drugs. The drugs then cause problems in the health or social relations. Some of the disadvantages cited in the websites include the following. There have been a significant number of teenagers that have dropped out of school as a result of drug addiction. The teenagers get introduced and eventually hooked to taking the drugs. Drugs can also cause depression. There are drugs that are meant to relax the mind and prevent anxiety. However, over-reliance on the drugs can lead to depression (Roleff, 2005). Drugs are chemical substances. They introduce certain synthetic chemicals in the body with the aim of controlling something in particular. When the chemicals get introduced into the body in large amounts they can alter the body normal functions. This may eventually lead to serious health complications

A Study into the Relationship between the Government and Corporations Research Paper

A Study into the Relationship between the Government and Corporations - Research Paper Example The relationship of Government with Corporation used to be of lasses faire or socialist nature. However, today things have changed and the nature of relationship between Government and Corporation has evolved. According to (Alfredo,1999)â€Å"Today's relationship between government and business is thus neither laissez faire nor socialist, but rather a combination of both, essentially what is called a "mixed economy†. It is a fact that the businesses which deal with international business have to deal with two national governments. This procedure where business with two countries are involved, there can arise congruence of conflict between two governments. Here we can study the relationship dimensions of a corporation with that of a government in a brief manner. The Structure of government of America In order to understand the relationship of Government and Corporation, a brief look into the American governmental structure is essential. In the American Government , the executiv e position is held by the President of America and he also act as the head of the state and deal with diplomatic activities and hold the position of commander in chief branches of the armed forces. America also allows the vice president to hold the post in an Executive branch .Now it is the legislative branch which explains about the laws pertaining to the society and community of America. As per (Longley,2012) Every society needs laws. In the United States, the power to make laws is given to Congress, which represents the legislative branch of government. The laws of judicial branch of America are often confusing and vague and it is the federal judicial system which figure out what is constitution part of the law. Then there is the federalism which allows the sharing of power between different branches of the Government. Also it is the federal Government which is regulating the day to day functions of huge and small corporate in America. In Concise it can also be said that the pres ent day American Corporations are regulated by the Federal Reserve System of the country. The Federal Reserve is the body of American Government which governs and controls all financial matters of the country.As per (bare foot) â€Å"The Federal Reserve is at the root of most of our present statutory regulations, "laws", in the control and regulation of virtually all aspects of human activity in the United States†. Different types of corporations in U.S. In America there are different types of corporations that are registered under the state law and pose as a single entity with specific privilege and liabilities. In the website (Wise Geek, 2003) writes that, â€Å"In general sense, a corporation is a business entity that is given many of the same legal rights as an actual person†. The corporations can be classified into different forms according to their nature and business motive. This includes public and private corporations whose nature, motive and structure may be different and varied. Although most of the bodies are formulated for business motives, we can also find charitable organization, public bodies and clubs included in this category of corporations. Even though the corporations are impersonal entities, Government has imposed rights and responsibilities like person to these

City Life Beats the Small Town Essay Example for Free

City Life Beats the Small Town Essay 1. This essay is an essay of both comparison and contrast because the author points out the similarities while examining the differences. For example, having a cinema in both small town and big city is a similarity, but one cinema in small town showing three different movies at any one time, and a big city having more than one cinema, showing hundred different movies at once is a difference. 2. The writer uses the point-by-point method in writing this essay. 3. The writer provides an equal number of details that relate to the small town and big city in order to give to the readers a proper understanding of differences between the two life-styles. 4. The numerous resources and options available in the city, for the people coming from different parts of the world, to find a group or community similar to their own origin makes life little easier and comfortable for them, as well as they get the opportunity to learn about various cultures and ethnicities, which is the superior nature of the big city. 5. The thesis of the essay is, â€Å"Life is better in the big city, and it all comes down to one general reason: more choice†. 6. The topic sentence of paragraph #2 is, â€Å"One of the areas in which having choice can be extremely valuable is that of friends†. 7. I agree with the author because of my own experience of coming to the city of Toronto as an Immigrant. The resources, opportunities and comfort that a big city can provide in terms of education, work, health, or entertainment are very difficult to find in a small town.

Importance of Choice in the Strategy Formulation

Importance of Choice in the Strategy Formulation In recent years, international hospitality industry, like any other industry, has been affected by the effects of globalization, the information technology revolution, and the consumer demand. Hence, the targets in tourism have suffered considerable alterations and forced hospitality managers to re- examine their decision-making plans. Hospitality is difficult to manage and assess as long as it deals with a new awareness and addresses to new demands. Its level can be given through the customer feedback. For tourism to be considered an industry it must have a production process and a generic product mutually and inseparably related. The purpose of this chapter is to focus attention upon the theoretic aspects regarding the strategic choices in this field, the way they are elaborated, implemented, used, and put into practice. To be more precise, the chapter looks at the strategic choices used be Romania and Bulgaria on the sea side tourism. 2.2. STRATEGIC CHOICE 2.2.1. IMPORTANCE OF CHOICE IN THE STRATEGY FORMULATION PROCESS Ranking the elements in a strategy formulation process, strategic choice comes third. When there are no choices, there can be little value in considering strategy at all. To be better understood, a definition of strategy is necessary to mention. According to Michael Baker, Marketing strategy is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.(See Baker, MICHAEL, The Strategic Marketing Plan Audit, 2008, ISBN,p.3 ). According to the above definition, any strategy must have a pre established plan which establishes goals, identifies alternatives, and makes use of intuition and experience. In other words, it includes basic activities on a long term, as well as objectives. In general, small companies are limited by their resources, whereas large ones find it difficult to change quickly. Even when managers seem free to make strategic choices, the results may depend in the same measure on chance and opportunity, as on the managers deliberate choices. It is proven fact that events, and especially unexpected events, can play a major part in determining results. Any process of choice could be divided into four steps: Identifying options Evaluating the options against preference criteria Selecting the best option Taking action In practice, it may be difficult to identify all possible actions at the same time. Sometimes, unexpected events create new opportunities, destroy the foreseen ones, or alter the balance of advantage between opportunities. For these reasons, good strategic choices have to be challenging enough and achievable. And here comes analysis, judgment and skills, elements which make the difference in defining strategies. 2.2.2 STRUCTURE OF STRATEGIC CHOICE The Figure 1.1 shows how the three logical elements of strategy formulation process interact. The shaded background is a reminder of the importance of context in determining the aspects to be solved by strategic choice. Figure 1.2 expands the detail so that to illustrate the significance of the overlaps. The common ground between any two circles is of some interest, but it is only where all three circles overlap that viable options exist. Thus, the chosen strategy is a viable option because it is here where intent and assessment fully meet. Of interest are also the areas where any two circles overlap. So, the criteria for choice derive from intent and assessment. In practice, the process for choosing a strategy may be structured like in Figure 1.3. It starts by identifying available options. Any chosen strategy will have to answer the questions what , how , why , who , and when in order to provide answers to each of these questions. There are likely to be different kinds of options. Figure 1.3 shows three types: products/ services / markets, resources/ capabilities, and methods of progress. They are typical but not necessarily exhaustive. 2.2.3 OPTIONS FOR MARKETS AND PRODUCTS / SERVICES The tourism industry is a constellation of businesses, agencies, and non-profit organizations which work together to create products. Thus, the type of option relates to which products or services to offer in which markets. The diagram in Figure 1.4 structures a certain decision, as it was suggested for the first time by Igor Ansoff .The axes of the diagram represent the product, market needs, and market geography. The last is defined by four cells. The possible choices about products and markets can be represented as movements within or away from these cells. One set of choices is possible within the existing product / market set. Do nothing choice means continuing the present strategy. This strategy compares any proposed change with the do nothing option as a baseline. This option, however, is not often viable for the long term as competitors will be likely to gradually take the market by improving their product, processes, relationships. Withdraw choice is leaving the market by closing down or selling out .This may seem a negative option but necessary to focus available resources into areas of greater strength. It mainly occurs in declining markets. Consolidate choice refers to attempting to hold market share in existing markets. This is a defensive option which involves cutting costs and prices. It mostly occurs in mature markets or ones beginning to decline. Market Penetration choice means increasing market share within the same market. This is a more aggressive option and involves investing in product improvement, advertising, or channel development. Other possible options are Product Development that is developing and acquiring new products and Market Development, an option which addresses to new market needs. Diversification is another type of option having to do with new products. It may be of two kinds: related and unrelated. Related diversification, in its turn, divides into: backward, forward, and horizontal integration. Any management choice has to focus on the relative attractiveness of available options. Whether the present position is bad enough, even risky alternatives are preferable to doing nothing. 2.2.4 OPTIONS IN METHODS OF IMPLEMENTATION Options are likely to occur in methods of implementation as well. There are four main methods to make companies grow their capabilities: internal development, acquisition, contractual arrangements, and strategic alliances. Internal development is the most obvious approach to growth. It involves developing the necessary skills among the existing staff and acquiring the necessary production capacity. This method has one disadvantage: it takes time for the competitors to move faster, otherwise opportunities may be lost. Acquisition is a very common implementation option, used by such countries as the UK and USA. Take overs and mergers are dominant for this method of implementation. The disadvantage for mergers is that they can cause operational and psychological disorder which distracts the people. Competitors can use this turmoil in their benefit as they are free to concentrate on customers rather than on internal changes. Many acquisitions may be beneficial at the right price, but may also destroy shareholder value at a too high price. Contract arrangements, regardless of their type, have in common the need for a written contract which binds two or more parties into a clear agreement as to who will do what and pay what. When disputes happen they can be handled in courts by agreed arbitration procedures, or by not renewing the present contract at the expiry. The contract arrangements come in different forms: Consortia are groups of companies that form a joint entity for a specific purpose. When this purpose is achieved, the consortium breaks up and the separate partners may find themselves competing in different consortia for a new project. Franchising is common in retailing. The franchisee pays the franchiser a fee for services and royalties. The franchisee is halfway between an employee and an independent entrepreneur. His risk is limited by the previous success of the brand name and the support and advice given by the franchiser. Licensing allows a small inventive company to license its product to be manufactured and marketed by others. This can determine quick growth by avoiding the need to build manufacturing or distribution capability. Agents imply doing business in foreign countries or specialized markets where the volume of business is too low to justify a permanent presence. The agent must be familiar with local requirements and calls for additional support from the principal when opportunities arise. There are conflicts among agents which include conflicts of interest. Strategic alliances and partnerships have come into fashion over the last decade .When there are contracts between the parties, there is a wider intention to cooperate at a strategic level in order to share information and to work together in a way that goes beyond a clear contractual arrangement. It is considered that for a rapidly changing world, strategic alliances are the only way to achieve speed of response and global spread. 2.2.5. GROUPING OPTIONS INTO STRATEGIC OPTIONS Possible options about product / markets, resources / capabilities, and the method of implementation must be combined into a smaller number of strategic options. This may be an up or down process. The bottom -up approach implies linking what might be done in detail into strategies. The top- down approach means testing general ideas of future direction against detailed options. 2.2.6. GENERAL TESTS OF STRATEGIC OPTIONS The tests, important otherwise, cannot be totally objective. Each strategic option has to pass two tests as shown in Figures 1.2 and 1.3 .These tests must be: Aligned in that it conforms to the strategic intent. This test answers the question: Does this option take us where we want to? Feasible in that the capabilities and resources needed to get success can be made available. The test answers the following question: Will it work? Acceptance is a third test, related to the two mentioned above, asking the question: Will this option be acceptable? Acceptable means to win the approval of two groups: those who will have to approve it and those who will have to implement it. Any strategic option has to pass all these three tests. In the case when more than one strategic option passes these tests, they have to be compared with each other to find the best solution, at that particular moment. It is also important to take into account such situations as risks. 2.2.7. THEORETICAL FRAMEWORKS FOR ASSISTING STRATEGIC CHOICE There have been several attempts to provide theoretical frameworks for making strategic choices .One highly influential, was the concept of Generic Strategies, devised in 1985 by Porter. He mentioned that the most important choices dealing with any business are the scope of the markets. It is about how to serve and how to compete in the chosen markets. The scope can be broad- tackling the whole market , or narrow tackling one particular part of the market. Companies achieve competitive advantage either by having the lowest product cost or by having products which are different in ways valued by customers. The axes of Figure 1.5 are the scope of the chosen market and chosen basis of competition. The four quadrants in the same figure suggest four possible strategies. When the scope is narrow, the distinction between cost and differentiation becomes unimportant so Porter mentions only three generic strategies : coast leadership, differentiation, focus. While differentiation implies a difference in the perception of the product by clients, focus implies a difference in target market. According to Porter, the weakest strategy is b being stuck in the middle . Managers were enthusiastic about generic strategies when first published. Gradually, the reality showed a distinction between differentiation and cost. Few companies afford to ignore cost however different their product may be. On the other side, there are very few companies to admit that their product is the same as all the others. Porters Generic Strategy Model has been extended into the Strategy Clock (Figure 1.6) The important addition is the hybrid strategy, an optional balance between price and the added value perceived by the customer. The offerings may often fall into three categories. There are cheap offerings for those customers to whom the price is the most important aspect. At the other end are the luxury offerings with high quality and appeal to those customers who want the best and most differentiated. In the middle, are the good valued offerings which compromise between the other two and offer a good trade off between price and value. 2.3 STRATEGIC CHOICES USED BY ROMANIA AND BULGARIA When discussing this issue, it is important to focus upon the targets in tourism, targets that have changed in accordance with the new demands. Among these targets, here are some: Increasing visitor satisfaction Increasing the amount visitor spend for services Delivering the best prices Reducing seasonality Involving the local authorities to create community In terms of hotel industry, Romania has inherited a great tourist accommodation capacity from the communist period. Since the 1960s Romania had developed many accommodation facilities, mainly on the sea- side coast of the Black Sea. The low ranked hotels from this area are convenient for a mass tourism demand. After the 1990s the main tourism indicators have pointed out two distinctive periods on the Romanian market. These are characterized by severe government instability and lack of policies and strategies regarding the tourism industry. During 1990 2000 there was a slow intensity of the privatization process, only 55, 3 % of the accommodation facilities were private owned. After 2001 , Romanian tourism industry has followed and increasing trend due to an accelerated privatization , 92 % of the accommodation facilities have been transformed from state owned to private owned .Lots of investments have occurred in modernizing the accommodation structures and increasing the volume of the green field investments. Elaborating and applying strategies in Romanian tourism companies is a complex process, alive, and in continuing expansion. Meanwhile, Bulgaria has come in with a dynamic and harsh competition .This has determined the need to change this industry by elaborating new strategies which focus on perspective , positioning , plan , and pattern. The differentiation strategy, suggested by Porter, is the strategy that the Romanian hotels are following. The Romanian hotel market considers that differentiation can be the result of a strong marketing campaign meant to strengthen the unique characteristics of the product / services within the mentality of the customers. The hotels in Romanian market are pursuing a focus differentiation strategy. They are producing products and services for the high price market segments. Another strategy used by Romania is the training strategy. Within the service sector, it is of great importance to exist an interaction client employee. The customers satisfaction is given by the behavior of the employees. The hybrid strategy is pursued by those hotels which envision a decrease f the distribution costs and those that renounce to the unprofitable clients. These hotels attempt to sustain their strategy by the use of the Internet and E- commerce. The tourism industry in Bulgaria plays an important part in the countrys economy. Accession to the UE has had a great impact on its market, as the seaside summer resorts on the Black Sea Coast are the main attraction. One of the strategies used by Bulgarian hoteliers is to base their prices on the products perceived value .Value based pricing means that the marketer cannot design a product and a marketing program and then fix the price. Price is a worth value to consider .The company uses the non- prices variables to build in the buyers minds a perceived value by setting prices to match the perceived value. ( Kotler , 2003 ).To simplify, hoteliers are aware that consumers must feel as if they get a good deal for their money. Perceived value is the key of any good pricing strategy. Bulgarians also use the differentiating strategy. Their purpose is to offer unique products and services so as to obtain a price premium. In other words, by implementing differentiated services or personalized services , a company can build its customer loyalty when substitute products or services are not available in the market. In this way, they charge their customers a higher price than their rivals based on the cost of the delivery system and service quality. The coast- leadership strategy has made the Bulgarian hospitality a name. Researchers in the fields of marketing and strategic management have suggested numerous approaches to help firms achieve cost leadership. Some of these are using mass production techniques, achieving economies of scale, adopting a new technology, achieving mass -distribution, reducing input costs , achieving resource, and improving access to raw materials. 2.4 SUMMARY Strategic choice is the third logical element of the strategy process, playing a central role. The process of choice is deciding between different options. There are likely to be possible options about a product and services and about market segments defined by both customer need and geography. Indicators between what is possible and what is required may follow from the results of a strategic assessment. The various options may inter-relate so it is necessary to identify a small number of strategic options made up of appropriately related options. Strategic options have to be aligned, acceptable, and feasible. If here is more than one strategic option, that meets these tests, they need to be compared both logically and politically in order to take a final decision.

Purchase decision of apartments in metropolitan India

Purchase decision of apartments in metropolitan India Factors affecting the purchase decision of apartments in metropolitan India Abstract Purpose The purpose of this paper is to provide an insight into the motivation behind Indian buyers when looking to purchase an apartment. The factors driving demand preferences for apartments are not well established and are difficult to measure, and often builders may not have an insight into what buyers are looking for. Design/methodology/approach The research in this paper is based on telephonic interviews and internet based survey with recent purchasers, who bought a home in the past 1 year and prospective purchasers looking to buy an apartment in the coming one year. They belonged to number of locations across all metropolitan cities of India Delhi, Mumbai, Bangalore, Kolkata and Chennai. The data were analysed using factor analysis to identify the criteria in an apartment that buyers value the most. This research was done across all ages and irrespective of their intention of why they bought or if this was their first purchase. Further, Cluster analyses was used to determine clusters and one way Anova was used to determine the factors that hold different value to different clusters of people. Discriminant Analysis was used to determine any difference in behaviour of first time purchasers with others. Findings The findings in this paper revealed that issues signifying â€Å"affluence† accounted for approximately 27 percent of the choice of housing by Indian buyers to purchase apartments in metropolitan India. Also, Cluster Analysis revealed that demographically different set of buyers differ significantly in their attitude towards â€Å"Financial† factors. Discriminant analysis revealed that first time buyers give significantly more importance to â€Å"Financial† factors like â€Å"House price†, â€Å"Income† where they give much lesser importance to â€Å"Builder reputation† and â€Å"Status of neighbourhood†. Research limitations/implications The research in this paper is aimed specifically at Indians living in metropolitan cities only which may be very different from the rest of India. The majority of the respondents belong to Delhi, which may also bias the results. The majority of the data has been collected from an online survey which may reduce the validity of the findings. Practical implications If due consideration is given to the factors that buyers are most concerned about, builders of new apartment housing would be better equipped to meet this demand and maximise their profits. Builders will also be able to target buyers better by knowing the difference in preference of first time buyers to others. Originality/value This paper provides an invaluable insight into Indians concept of a suitable apartment in metropolitans. While important decision factors were determined for the entire population, further analysis was done to determine difference in issues felt important to first time buyers. Also, the most important factors were determined for different demographic clusters. Thus in this way, the transaction of purchasing an apartment was analyzed from several points of view. Keywords Consumer behaviour, Purchase, Apartment, India Paper type Research paper INTRODUCTION The Real Estate sector is important to the Indian economy. In terms of employment generation, it is second only to the agricultural sector. The housing sector contributes nearly 5% to Indias GDP. It is expected to rise to 6 per cent in the next five years. Property markets in India are recovering faster than those in the US and the UK. The sector is expected to attract around US$ 12.11 billion of investments in the next five years. Residential space comprises almost 80% of the real estate developed in the country. There is a shortage of 22.4 million dwelling units according to the Tenth Five Year Plan. 80 to 90 million housing units will have to be constructed over the next 10 to 15 years to rectify this, with the majority of them for the middle- and lower-income groups. It is for this reason that residential properties in India, particularly in Mumbai and Delhi, are viewed as very good investments as per a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute. In the 2009-10 budget, a tax holiday on profits was granted to developers of affordable housing (units of 1,000-1,500 sq ft). This exemption was instituted for projects that started from 2007-08 onwards with a deadline of completion of March 1, 2012. US$ 207 million was also allocated to grant a 1% interest subsidy on home loans up to US$ 20,691 with the caveat that the cost of the home should not be more than US$ 41,382. This was expected to further help the housing sector. An apartment is a residential unit that forms a division of a building. It can be either owned or rented. Some people own their apartments together where each owns a part of the corporation which owns the flat. In condominiums, dwellers own the individual apartments and share the public environment. Living in apartments is gaining popularity in India. 217 townships across India are in the building plans for the Sahara Group. Their allure lies in the convenience that they offer in terms of safety and security and maintenance of utilities like electricity and water. A central maintenance system obviates the need for hiring outside help for minor problems like leaking taps or electric short circuits. Stand-alone homes also require incurring additional costs like buying/leasing land, licensing, duties, etc. Apartments enable maximization of space utilization and reduce demand on public resources. People are also able to avail of additional amenities like gymnasiums, swimming pools, etc. at affordable prices. There is a gap in the literature, however, with regard to the value drivers that dictate purchase decisions of residential property in the country. Similar studies exist for other countries but were found wanting in the Indian context, especially when it comes to apartments. Through this paper, we aim to do the very same, i.e. establish which factors dictate purchase decision and to what extent. We will also correlate these preferences with the demographic profiles and characteristics of our respondents and hence arrive at a greater and much deeper understanding of these issues. We see immense utility for our paper, especially for builders and property dealers who can use our findings in structuring their own business activities. RESEARCH BACKGROUND AND HYPOTHESIS Even though consumer behaviour is generally assumed to be an important part of real estate valuation, buyer preferences are generally not considered during the valuation process. It is basically reduced to the confirmation of a bid price which may or may not be met by the buyer. Efforts are being made to address this fault and many papers have been written on the analysis of motivations of residential property purchasers, attempting to explain them using models such as bounded rationality and hedonic pricing. Hedonic Pricing, or Hedonic Demand Theory as it is also known, decomposes the item of interest into constituents and evaluates the importance of each of them and their contribution to the overall valuation. These factors can be both internal characteristics of the good or service and external factors. In the case of real estate valuation, internal characteristics include layout, structure, etc of the property while status of neighbourhood, proximity to schools, etc are the exter nal factors. Factor Analysis enables us to do just that. It is a statistical method that reduces the number of variables by grouping two or more of them into unknown or hidden variables known as factors. Further analysis is then conducted by looking at the variation among these factors and evaluating their relative performance. These factors are taken to be linear combinations of the original variables plus error terms (Richard L. Gorsuch, 1983). â€Å"Factor analysis seeks to do precisely what humans have been engaged in doing throughout history that is to make order of the apparent chaos of the environment† (Child, 1990). It has great use in evaluating consumer behaviour. Charles Spearman is credited with its invention. He used it in the formulation of the ‘g Theory as part of his research on human intelligence (Williams, Zimmerman, Zumbo Ross, 2003). Over the years it has found uses in fields as diverse as psychometrics, marketing, physical sciences and economics. It can be used to segment consumers on the basis of what benefits they want from the product/service (Minhas Jacobs, 1996). It has evolved as a technique over the years, with many researchers working on fine-tuning and improving the analytical process. Bai Ng (2002) developed an econometric theory for factor models of large dimensions. It focused on the determination of the number of factors that should be included in the model. The basic premise of the authors was that a large number of variables can be modeled by a small number of reference variables. Marketing strategies based on customer preferences and behaviour often make use of this technique during the market research phase (Ali, Kapoor Moorthy, 2010) and while devising and changing the marketing mix (Ivy, 2008). Factor Analysis has also been used in ground water management to relate spatial distribution of various chemical parameters to different sources (Love, Hallbauer, Amos Hranova, 2004). The facility of segmentation that factor analysis offers has been extended to the real estate sector and all studies thereof. Regression analyses are subject to aggregation biases and segmented market models yield better results. This segmentation is done using factor analysis Watkins, 1999). Property researchers have also dedicated a lot of attention to researching the preferences of property buyers and identifying the drivers of property value. A study in Melbourne, Australia (Reid Mills, 2004) analyzed the purchase decisions of first time buyers and tried to determine the most influential attributes that affect the purchase decision using factor analysis. The research findings of the paper indicated that financial issues explain about 30% of the variance in the purchase decisions of first time house-owners. This related to timing, the choice of housing, and the decision to buy new housing. Apart from that the choice of housing is dependent on Site Specific factors (Location) and the decision to buy new housing is dependent on Lifecycle factors, such as family formation, marital status or the size of the existing house. Another study determined that brand, beauty and utility play a defining role in property value (Roulac, 2007). The findings of the paper explain why certain properties command premium prices, relative to other properties. It came to the conclusion that for value determination of high priced properties the overall perception of the brand is the most important factor followed by utility and beauty. Brand names are also very important especially in metropolitan markets as they add to the appeal, distinctiveness of the property. Another way to attract buyers attention is through the mix of neighborhood amenities offered (Benefield, 2009). Neighborhood amenities like tennis courts, clubhouses, golf courses, swimming pool, play park and boating facilities significantly impact property values. Xu (2008) used a hedonic pricing model to study the hous ing market of Shenzhen, China. He operated under the assumption that buyers consider property specifics and location attributes separately when they buy a home. The findings suggest that the marginal prices of attributes are not constant. Instead, they vary with the household profile and location. Cluster analysis involves the grouping of similar objects into distinct, mutually exclusive subsets known as clusters. The objective is to group either the data units or the variables into clusters such that the elements within a cluster have a high degree of natural association among themselves while the clusters remain relatively distinct from one another. Mulvey and Crowder (1979) presented and tested an effective optimization algorithm for clustering homogenous data. Punj and Stewart (1983) reviewed the applications of cluster analysis to marketing problems. They presented alternative methods of cluster analysis to evaluate their performance characteristics. They also discussed the issues and problems related to use and validation of cluster analysis methods. Ketchen and Shook (1996) chronicled the application of cluster analysis in strategic management research. They analyzed 45 published strategy studies and offered suggestions for improving the application of cluster analysis in future inquiries. They believed that cluster analysis is a useful tool but the technique must be applied prudently in order to ensure the validity of the insights it provides. Since Marketing researchers were introduced to discriminant analysis half a century ago, it has become a widely used analytical tool since they are frequently concerned with the nature and strength of the relationship between group memberships. It is especially useful in profiling characteristics of groups that are the most dominant in terms of discrimination. Morrison (1969) explained how discriminant analysis should be conducted using canned applications and how the effect of independent variables should be determined. However, care must be taken when applying discriminant analysis. The potential for bias in discriminant analysis has long been realized in marketing literature. Frank, Massy and Morrison (1965) showed that sample estimates of predictive power in n-way discriminant analysis are likely to be subject to an upward bias. This bias happens because the discriminant analysis technique tends to fit the sample data in ways that are systematically better than would be expected by chance. Crask and Perreault (1977) looked at the validation problems in small-sample discriminant analysis. Various research papers have studied the features that are evaluated while purchasing a home, how these features factor in terms of pricing the residences and how the home owners rate the various scales on importance. Such studies, however, were found lacking in the Indian context. This paper aims to understand the value drivers of apartments in Indian metros using factor analysis. The initial variables that we have considered are as follows Ø House Price This refers to the price/rent that is being charged for the apartment. The real estate market is often segmented using this variable. Ø Availability of Gymnasium, Swimming Pool and other sports facilities Many apartment complexes and housing societies offer recreational facilities to the residents to service their lifestyle needs. Ø Traffic This variable refers to the density of vehicular movement in the location in which the apartment is located. Ø Size of Individual Rooms The size of the rooms within the apartment is also an important factor. Some buyers prefer big, airy rooms while others might want smaller rooms. Ø Proximity to City This refers to the location of the apartment relative to the city boundaries, i.e. whether it is within the city proper or on the outskirts. Ø Ability to obtain Loans This variable stands for the ease with which the buyers can get loans, either through the builder or on their own. Ø Parking Space The availability of parking space is considered important by some consumers. Ø Exterior Look of the Apartment This refers to the faà §ade of the apartment, i.e. whether its attractiveness is a strong enough motivation. Ø Household Income The total income of the household often dictates the purchase decision of families. Ø Perceived Safety of Locality This is a big concern for some customers, especially single women and old people and may significantly influence the purchase decision. Ø Branded Building Components Some consumers may value an apartment more if it has branded fittings, furnishings, etc. Ø View from the apartment This can be an important variable for some customers. Ø Preference for Ground Floor This variable refers to the customers preference for the ground floor relative to other floors. Ø Water Supply This variable means to measure how important it is for the consumers that there is continuous, guaranteed and good quality water supply. Ø Structure This refers to the layout of the apartment whether it is a 2BHK or 3BHK, etc. Ø Status of Neighbourhood For some consumers, the reputation and social standing of the locality that they live is very important. Ø Proximity to Shops and Parks This seeks to measure whether proximity to these places is an important criterion for buyers or not. Ø Interior Design This refers to interior features of the apartment like flooring, lighting, balcony, etc. Ø Availability of Domestic Help This can be important consideration, especially for working couples. Ø Proximity to Schools and Offices This seeks to ask how important such proximity is to the buyer. Ø Builder Reputation Many buyers are heavily influenced by the brand name and reputation of the builder. Ø Monthly Living Costs Certain average monthly expenditure is incurred as living expenses. We seek to gauge the relative value of this variable. Ø Proximity to Public Transport, Major Roads, etc This refers to the accessibility of the apartment with regard to public transport and roads. Ø Power Backup Full power backup in case of power outages is frequently advertised by builders. Whether this actually influences buying behavior needs to be examined. Ø Proximity to friends/relatives homes This can be a big variable that dictates consumers in their decision-making process. Methods Sample The questionnaire was sent to people residing in Indian metropolitan cities. Out of the 172 responses received, 13 were rejected since the respondents had not purchased a property in a metropolitan city. Another 13 were rejected because either the respondents had not purchased the apartment in the last one year or were undecided as to when to purchase the property. Finally out of all the respondents 146 (84.9%) were identified. Measures The 25 variables were measured by a Likert scale with responses ranging from 1 (Very Low Importance) to 5 (Very High Importance). Analysis This study uses four tests to analyze the factors involved in purchase of an apartment. The first test conducted is the factor analysis which is used to club the variables in order to determine the purchase criteria of apartments. Thus, in this analysis the broad set of variables will be constricted to determine the smaller set of factors that can explain what home owners look for when purchasing an apartment. After this, a cluster analysis was conducted to determine the various clusters (groups) that exist within the demographic population. On the above said factor analysis and cluster analysis, a one way ANOVA was conducted in order to determine the order of preferences of each factors amongst such clusters. Finally, a discriminant analysis was conducted to identify factors that best differentiate the first time purchasers with others. Results The first test conducted was the factor analysis. Under this test, we followed the Principal Component Analysis method on the 25 variables to combine the correlated variables into factors. The KMO value calculated is 0.799 is above the suggested value of 0.5 which indicates that it is good idea to proceed with Factor Analysis. On the basis of the computations as represented in the Rotated Component Matrix (Table 1), the following factors were received: Affluence, Financial, location, lifestyle, Site-Specific. The variables were classified into a factor if their loading for the respective factor was greater than 0.4. Also, two other unnamed factors were received which remained so due to the fact that no factor can be formed between two variables. We have followed the Kaiser criterion (1960) of retaining only those factors that are greater than one. The initial research on 25 variables was reduced as the variables on domestic help, floor and proximity to friends/relatives was removed a fter the factor analysis was done. Domestic help was removed because it loaded on three factors (Financial, Location and Lifestyle) equally. Preference of Ground Floor was removed from the analysis as it showed a positive loading and negative loading on each of two factors which means that while some considered ground floor to be in consideration other considered the penthouse to be better. Proximity to friends/relatives was removed as it was the only variable in factor 6 (unnamed) and thus no factor can be made by one variable. The results of the Factor Analysis are as under: Rotated Component Matrix Variable Name Affluence Financial Location Lifestyle Site-Specific Unnamed Unnamed Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7 Traffic 0.768 Gym/Pool/Sports Facility 0.755 View from Apartment 0.721 Builder Reputation 0.644 Parking Space 0.568 Status 0.513 Monthly Cost of Living 0.764 Household Income 0.735 Availability of Loan 0.691 Availability of Domestic Help 0.498 0.414 0.435 Proximity to Schools/Office 0.778 Proximity to Transport 0.607 Proximity to City 0.575 0.424 -0.401 Proximity to Shops/Parks 0.546 Interior Design 0.768 Branded Components 0.712 Power Backup 0.594 Structure 0.741 Size 0.580 0.598 Safety 0.549 Preference of Ground Floor -0.415 0.423 Proximity to Friends/Relatives 0.845 Water Supply 0.410 0.652 House Price 0.405 0.508 Exterior Look 0.426 0.405 -0.464 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 21 iterations. Table 1 Factor Loadings- Purchase of an Apartment Table 2 Factor Analysis Factor No. Factor Name Eigen Values Total Variance (%) Cumulative Variance (%) 1 Affluence 6.826 27.306 27.306 2 Financial 2.9 11.600 38.906 3 Location 1.835 7.342 46.248 4 Lifestyle 1.504 6.016 52.264 5 Site-Specific 1.447 5.788 58.052 6 1.129 4.516 62.568 7 1.059 4.236 66.804 The second test that was conducted was the Cluster analysis and has done to segment the respondents on demographic variables of Age, Gender, City and Number of members in the family. Squared Euclidean distance and average linkage hierarchical clustering method was used. At fusion coefficient value of 1.0, two distinct clusters were evident. On conducting a One way ANOVA to compare means with the demographic variables we observe that the two clusters are differ on the mean age with a significance of 0%. The first cluster consists of a younger population with an average age of 37 approximately and the s