External Factors and the Real Estate Free Essays

Assignment 1. 3 External Factors and the Real Estate Industry By Karen Chapman 11 November 2012 Assignment 1. 3 Index: 1. We will write a custom essay sample on External Factors and the Real Estate or any similar topic only for you Order Now The demographic environment: 1. 1Cultural diversity trends and developmentsPage 3 1. 2Demographics of own area, vs. national demographics and trendsPage 3 2. The economic environment: 2. 1 The current economic environmentPage 3 2. 2 Socio-economic factorsPage 4 3. The political environmentPage 4 4. The technological environmentPage 5 5. The competitive environmentPage 5 6. The legal environment: 6. 1 Regulations pertaining to property ownershipPage 5 . 2 Regulations pertaining to land use controlsPage 6 6. 3 Other rules and regulationsPage 6 ConclusionPage 6 ReferencesPage 6 Assignment 1. 3 Introduction: The real estate industry is hugely affected by external factors, which have the effect of either having a positive or negative impact on us as real estate agents. When the economy is good houses sell and buyers are able to qualify for bonds. When the economy is in a downturn then houses stay on the market for a lot longer. Buyers are more reluctant to take the plunge and buy propert y. Repossessions increase and banks often become more reluctant to grant bonds. 1. The demographic environment 1. 1Prior to the repealing of the Group Areas Act the residential housing market was segmented by race. Each race group was legally only allowed to stay in certain areas and neighbourhoods. After the repealing of the Group Areas Act and the democratisation of South Africa after our first free and fair elections for all races in 1994, different race groups and ethnicities started living together in the same neighbourhoods for the first time. With South Africa being welcomed back into the international community we also now have more clients from around the world. This has also resulted in a major paradigm shift for estate agents – from serving one race group previously we are now dealing with clients from every race and ethnicity from both South Africa and around the world. To be successful and effective, estate agents have had to learn to be sensitive to, and understand, different cultures and their customs. Buyers and sellers have also had to learn to be more tolerant towards the different cultures and norms of their neighbours. 1. 2The demographics of my â€Å"farm area† are representative of the national urban demographics and trends. 2. The economic environment 2. 1 The world economic crisis has also negatively impacted on the South African economy and this had had a direct negative impact on our housing market. Due to cut backs and layoffs many homeowners are finding it difficult to meet their bond commitments and as a result many homes are being repossessed by the banks. Buyers are also experiencing difficulties in obtaining bonds from banks one of the main reasons being that South African banks appear to fear further repercussions from the global credit crisis and continued job losses (up to 400 000 before the year end) House prices have continued to fall. Absa’s senior property analyst Jacques du Toit said house prices dropped further in nominal terms in June, by 4,4% year-on- Assignment 1. 3 year, while in real terms, prices were down by 11,1% year-on-year in May. But the residential market is expected to improve early in 2013 Mortgage stress has increased from 55 000 in the second quarter of 2011 to 155,000 in the second quarter of 2012. Severe mortgage stress, where bondholders are over 4 months in arrears, has almost doubled in a year and increased sharply in June to over 72 000 home owners from 55 000 in the first quarter. Despite the lower interest rates there are more sales in execution than ever before. Currently there are approximately 4 500 houses per month which are being sold forcibly through legal channels which includes sales in execution, insolvency sales and bank’s voluntary distressed sales channels. . 2 With the global economic meltdown, retrenchments and unemployment have become more and more of a reality in South Africa. With the increased unemployment levels, bondholders have become more hard-pressed to make payments and this has led to an increase in defaults and consequently repossessions. Other homeowners have tried to sell their properties as they have become more financially strapped. This has resulted in an over supply of properties on the market (a buyers market) and as a result some buyers are able to negotiate more favourable/lower prices on houses. Many buyers are also reluctant to buy because of economic uncertainty. (job loss/retrenchment). Banks stringent lending criteria have also prevented potential buyers from obtaining loans. The net result being that the property market has been severely negatively impacted. 3. The political environment: The change in the political environment in South Africa has also resulted in a change in the real estate industry. Agents had to previously deal with clients from one race group e. g. but with the repealing of the Groups Areas Act we now deal with clients we previously never dealt with i. e. ifferent race groups, ethnicities and nationalities In 20 years, South Africa has achieved many successes, including greater political stability and greater economic freedom. Research Worldwide. com has just published results of its annual survey, which showed that property investments in South Africa showed an actual total return of 15,1% last year. South African commercial real estate outperformed sixteen other major countries. The real estate boom in South Africa and low interest rates continues to encourage homeowners to feel confident and spend buying those houses for sale, farms for sale and commercial property for sale Assignment 1. 3 4. The technological environment: Technology has become an integral part of Real Estate over the past few years. Property software programs have played – and will play an increasingly important role in the future of Real Estate. To remain competitive real estate agencies need to use the latest technology to benefit their business. The real challenge is to find a software application (programme) that supports all facets of the industry, cutting out the need to duplicate day-to-day work. The world wide web enables estate agents to operate globally as properties can be viewed from anywhere in the world. An agent can create a virtual office in his car with a laptop, 3G connection and a cell phone. 5. The competitive environment: The real estate industry has often been perceived as an unprofessional industry because there have been no entry standards for those wishing to join the industry. However, this is changing as all real estate agents are now required to obtain the FETC: Real Estate Level 4 qualification to enable them to practice as agents. This has benefits for both the industry and clients – the industry will have knowledgeable and qualified/professional agents which will enable both buyers and sellers effectively. Qualified agents will be in high demand in the industry. 6. The legal environment 6. 1 Regulations pertaining to property: There are a number of acts that govern property ownership in South Africa: Sectional Titles Act 95 of 1986 Makes it possible for different persons to each own a portion of a building Companies Act 61 of 1973 Share block shares must be transferred in terms of the Companies Act Share Blocks Control Act 59 of 1980 Controls the operation of Share Block schemes Housing Development Schemes for Retired Persons Act 65 of 1988 Regulates the development and alienation (sale or lease) of accommodation in schemes which are â€Å"Housing Development Schemes† as defined by the Act The Estate Agencies Affairs Act 112 of 1976 Safeguards the interests of members of the public in their dealings with Estate Agents The Estate Agencies Affairs Board is a regulatory body established by the above Act. Alienation of Land Act 68 of 1981 How to cite External Factors and the Real Estate, Essay examples

Basic Pharmacology Management

Question: Describe about the Basic Pharmacology? Answer: A person walks into a dark room and kicks a metal chair- the first thought that comes to our mind is that the person is ought to get hurt and the second thought will be is it bleeding or not? It often happens to a person when he or she gets wounded like this the injury may bleed and if not than it may swell up (EBBERT and TANGALOS, 2009). The first and foremost thing that the person should have done is to switch on the lights, if it was not available than the person should have opened the door wide and tried to make out the obstacles from the possible light present. The person should open his eyes wide because entering in the dark room all of a sudden decreases the ability to see and it takes time for the pupil to adjust with the darkness of the room. And thus people tend to hit themselves due to this property of science (Meaney, 2012). Hitting a foot without wearing slippers may turn into severe pain and the person may feel some numbness or sensation of pain (Smith, 2013). So the person should try to sense the things that are or may be placed in the room. He or she should keep steady steps into the room to check for any obstacles. Another phenomenon may occur is a tear rolling out of his eyes. When a person gets a sudden shock tears roll out (Tate and Seeley, 2009). The person did not anticipate that he would hit a chair and thus after the situation occurred he will have some preconceived notion of the injury like if its swollen up or if there is a cut. The hit is a shock for him so he may fall into the ground. After the accident occurred the person should call out for someone who can help him to stand up (if fallen down) or can help him get out of the dark room, because he might be needing help to walk to the other room (Tortora and Grabowski, 2003). Meanwhile the person, if not finding help should continuously press his toe so that it gives comfort to an injury and swelling may be averted. First-aid should immediately arrive because keeping an injury unattended for long may get severe. The first thing that the person should do is try to move his toe to see if there is a fracture or not (Wallace, 2012). In case of fracture immediate x-ray should be done to see the extent of the injury. Ice is the foremost thing that should be applied on the injury to decrease the pain and also the swelling (Ursone, 2010). Acute inflammation may occur with severe pain because it was a metal chair that has hit his toe. After the first-aid is given to the person, he or she should be taken to the doctor nearby because if the pain persists than the area of pain may turn into black due to blood clot. This pain may create problem in future while walking. Apart from application of ice, medicines like painkillers will help to reduce the pain. If there is a cut the person might be prescribed to take a tetanus injection, because the injury was by a metal. Proper dressing should be done so that dirt and other particles do not enter the wounded area creating infection. If there is no injury and mere swell than application of hot water pad is also helpful. Proper rest is mandatory so the swell does not get worse (Kunkel and Miller, 2002). References EBBERT, J. and TANGALOS, E. (2009). Foot Orthotics for Patellofemoral Pain. Internal Medicine News, 42(4), p.32. Kunkel, M. and Miller, S. (2002). Return to work after foot and ankle injury. Foot and Ankle Clinics, 7(2), pp.421-428. Meaney, B. (2012). DIABETIC FOOT CARE: PREVENTION IS BETTER THAN CURE. Journal of Renal Care, 38, pp.90-98. Smith, M. (2013). Penetrating injuries of the foot. Equine Veterinary Education, 25(8), pp.422-431. Tate, P. and Seeley, R. (2009). Seeley's principles of anatomy physiology. Dubuque, IA: McGraw-Hill. Tortora, G. and Grabowski, S. (2003). Principles of anatomy and physiology. New York: Wiley. Ursone, R. (2010). Unique Complications of Foot and Ankle Injuries Secondary toWarfare. Foot and Ankle Clinics, 15(1), pp.201-208. Wallace, G. (2012). The FootSpecial section. The Foot, 22(3), p.111.

Pressure Essays - State Functions, Thermodynamic Properties

Pressure Aim: To find out the effect of temperature on the pressure of air. Apparatus: 400ml beaker Bunsen burner Data Logger Pressure sensor Temperature probe Round bottom flask Connecting leads Tripod Gauze Plastic tubing Clamp stand Heatproof mat Water Diagram: Method: 1. Set up the apparatus as shown in the diagram. 1. Next, take the readings of the pressure and temperature at intervals of 5C, ending the experiment at 90C. 3. Repeat the experiment three times for a good average. 4. Record all results in the data logger and transfer them to a computer. Safety: Wear goggles Tie hair back Tie all loose clothing Handle all glass with care Avoid putting wires near the flames Do not spill water; this will make the surface slippery Fair Test: Use the same equipment for each trial Have the same time interval in each trial Make sure the same amount of water is used in each trial Make sure the flask is put into the beaker at the same depth Use the same size beaker in each trial Try to keep the flame the same in each trial Prediction: Particles of air are constantly moving around at different speeds. If the air is trapped inside a container, (e.g. a flask like the one used in this experiment) then the particles will hit the inside walls of the container with enough force to create pressure. Sometimes the particles move around fast. This means they have more kinetic energy. They may have more kinetic energy, because the air may be being heated or perhaps the air is more concentrated. However, if the air particles have more kinetic energy, they will hit the container walls with a larger, stronger force. This then creates more pressure, which is detected by the pressure sensor. (Physics, Tom Duncan, Pages 158-159) When the air contained in the flask, is heated, the temperature rises and the molecules gain more kinetic energy. This means the particles move around faster, causing the average pressure to increase. (GCSE Physics, Foulds, Page 158) In this experiment, we kept the volume of air constant, while the temperature is changed. The three pressure laws, one of which states that the pressure of a gas is directly proportional to its temperature. Can be written as P T Where P is Pressure in KPascals and T is Temperature in Kelvins. This must mean that if the temperature is doubled, the pressure will also double. If the temperature is halved, the pressure will also be halved. The reason why this happens is because at a higher temperature the gas particles have more kinetic energy and hit the container walls harder which results in more pressure. Example: If the temperature is 25C (298K) and the pressure is 1.0 KPa, then doubling the temperature to 50C (323K) should double the pressure to 2.0 KPa. If the temperature is 25C (298K) and the pressure is 1.0 KPa, then trebling the temperature to 75C (348K) should treble the pressure to 3.0 KPa. If this knowledge is put into a graph, where the average pressure in KPascals is plotted against the Temperature in Kelvins, I should get a graph which looks like this: - The graph shows the directly proportional relationship between pressure (KPa) and temperature (Kelvins). With my results from the experiment, I will draw and plot an accurate graph like the one above. Results: Tempe-rature (C) Pressure (KPa) Average Temperatur-e in Kelvins Average pressure in KPa (2d.p) Trial One Trial Two Trial Three 25 0.4 0.7 2.0 298 0.4+0.7+2.0 3 30 1.9 2.2 5.4 303 3.2 35 4.1 4.0 8.1 308 5.4 40 5.8 5.7 11.2 313 7.6 45 7.4 7.2 15.0 318 9.9 50 9.6 8.8 18.7 323 12.4 55 10.5 10.3 22.7 328 14.5 60 12.4 11.8 27.3 333 17.2 65 13.7 13.2 31.2 338 19.4 70 15.1 14.5 33.6 343 21.1 75 16.6 15.8 35.7 348 22.7 80 17.9 17.0 38.7 353 24.5 85 19.3 17.8 43.6 358 26.9 90 20.5 18.6 46.1 363 28.4 Analysis (continued): From my results and graph, I have found out that as the temperature increases, the pressure also increases. (School Notes, Plashet School) To prove this using my graph, I will quote five values for temperature and pressure, from my graph. Temperature (Kelvins) Pressure (KPascals) 303 3.2 328 14.5 348 22.7 363 28.4 This table clearly shows that as the temperature increases, the pressure increases too. Increasing the temperature by ten Kelvins, i.e. from 303K to 313K, the new pressure is increased by a factor

A Brief History of Prosthetics

A Brief History of Prosthetics The history of prosthetics and amputation surgery begins at the very dawning of human medicine. In the three great western civilizations of Egypt, Greece and Rome, the first true rehabilitation aids recognized as prostheses were made. Early use of prosthetics goes back to at least the fifth Egyptian Dynasty that reigned between 2750 to 2625 B.C. The oldest known splint was unearthed by archaeologists from that period. But the earliest known written reference to an artificial limb was made around 500 B.C. During the time, Herodotus wrote of a prisoner who escaped from his chains by cutting off his foot, which he later replaced with a wooden substitute. An artificial limb dating from 300 B.C., was a copper and wood leg that was unearthed at Capri, Italy in 1858. In 1529, French surgeon  Ambroise Pare  (1510-1590) introduced amputation as a lifesaving measure in medicine. Soon after, Pare started developing prosthetic limbs in a scientific manner. And in 1863, Dubois L Parmelee of New York City made a significant improvement to the attachment of artificial limbs by fastening a body socket to the limb with atmospheric pressure. While he was not the first person to do so, he was the first to make it practical enough to be used in medical practices. In 1898, a doctor named Vanghetti came up with an artificial limb that could move through muscle contraction. It wasn’t until the middle of the 20th century that major advancements were made in the attachment of lower limbs. In 1945, the National Academy of Sciences established the Artificial Limb Program as a way to improve the quality of life of World War II veterans who suffered the lost of limbs in combat. A year later, researchers at the University of California at Berkeley developed a suction sock for the above-knee prosthesis. Fast forward to 1975 and  the year an inventor named Ysidro M. Martinez took things a major step further by creating a below-the-knee prosthesis that avoided some of the problems associated with conventional artificial limbs. Instead of replicating the natural limb with articulated joints in the ankle or foot which tended to lead to poor gait, Martinez, an amputee himself, took a theoretical approach in his design. His prosthesis relies on a high center of mass and is light in weight to facilitate acceleration and deceleration and reduce friction. The foot is also considerably shorter to control acceleration forces, further reducing the friction and pressure. New advances to keep an eye involve the growing use of 3-D printing, which has allowed for the fast, precise manufacturing of artificial limbs that traditionally have been custom-built by hand. The U.S. government’s National Institutes of Health has recently established the 3D Print Exchange program as a way to provide researchers and students with the necessary modeling and software tools to fabricate prosthetics using 3D printing machines.   But beyond prosthetic limbs, here’s another fun fact: Pare could also have laid claim to be the father of facial prosthetics, making artificial eyes from enameled gold, silver, porcelain and glass. Thats your fun fact of the day

Corn as biofuel Research Paper Example | Topics and Well Written Essays - 1250 words

Corn as biofuel - Research Paper Example Courting this scenario an alternative source of energy is in its utmost need. At this background a series of alternative sources of energy such as solar energy, hydro electric energy, and atomic energy all made their entrance on the discussion table. However the most new form of alternative might be the bio fuel that nowadays has gathered much interest of the scientists. Among the bio fuels, Jatropha, Pongamia are some very common names, but the recent emergence of corn as a vital source of bio fuel and there by a source of energy might be nothing short of path breaking. However before moving into details regarding the corn fuel it would be wise to consider some associated points before hand. Crude Oil & USA United States of America is the largest consumer of crude oil and the third largest producer. In statistical terms USA produces around 10% of the global crude oil and consumes 24% of the same. Furthermore in order to keep its existence in export market the country indulges in exp orting 1.4 million barrels of crude oil per day. A careful consideration of this situation clearly indicates a demand supple gap that needs to be filled with import of crude oil. It has been estimated that USA in the year 2007 imported 12MMBD that is in terms of percentage 58% of the total domestic demand (Energy Information Center 2008). Dependency of USA in terms of crude oil on other countries and overseas Among the total import of crude oil the Western Hemisphere constitutes 51% of the total import. Canada, Venezuela, Saudi Arabia, Mexico and Nigeria are other oil exporting countries in USA in exact order. The following table depicts the dependence of USA in terms of crude oil import based on 2007 data. Name of the Country Percentage of Crude oil exported to USA Western Hemisphere (North, South, Central America along with parts of USA in Caribbean) 51% Canada 23.3% Venezuela 10.7% Saudi Arabia 10.4% Mexico 9.2% Nigeria 8.3% Source: Energy Information Association, 2008 Rickman, 2 009 Alarming news is that this dependency without being reduced over the time is actually increasing and statistics reveals that import of crude oil has actually increased by 0.183 MMBD in August 2008 over the previous month. It should also be kept in mind that countries like Iraq, Brazil, Angola and Kuwait are kept aside of the above table who contributes at substantial level to the USA oil import. (Energy Information Center, n.d.; Energy Information Center 2008) Why should we look at alternative fuels? As mentioned earlier that fossil fuel is limited in availability and it is constantly depleting, at this rate either coal or crude oil can not sustain as the prime form of global energy source beyond 2025 to 2035. Humanity is in search for some alternatives that can be used and re used time and again as a source of energy or at least can be produced at one’s free will. The trade partners of USA in Crude oil and their unfriendly behaviour USA shares a hostile relation apart fr om Saudi Arabia and partially with Kuwait among al the Middle East countries. Among them Iraq and Iran are USA’s arch enemies. Saudi’s oil reserve is depleting and it can not hold for long its position as an important oil exporting country. Kuwaiti oil wells were set in fire long back during the Iraq-Kuwait war and that had eroded the country of the prime position it used to enjoy as oil enriched country. Again historically Middle East is an area that has

Reading summaries Essay Example | Topics and Well Written Essays - 250 words - 2

Reading summaries - Essay Example It can be defined that people who belong to poor environment are suffering from various illness more than those people who are living in healthy environment. To stay healthy people should maintain its surroundings in a healthy manner. As per my understanding, people should avoid smoking as it is injurious to health. Smoking is very dangerous for the human health and causes several health related issues in the long run. It is observed that people who are smoking are affected directly and people who are living in such a polluted atmosphere are indirectly getting affected by the smoke poison. It is stated that not only smoking but also passive smoking is injurious for health. The consumption of the alcohol is harmful for the human health as well. The consumption of alcohol in an excessive rate is harmful for the health as stated and analyzed (LeBesco, 2012). By reviewing the articles, I can determine that the author explains bout the medical view regarding various diseases, which are caused due to obesity or fats. As per the â€Å"New Public Health† it can be described that obesity is the main focus of the medical industry in the present day era. Author in her study explains about the significant responsibilities of the civilized people who belong to society. As per my understanding the author wants create awareness to maintain the environment clean for living healthy (LeBesco,

Buying decision process and Sony overview

Buying decision process and Sony overview Sony was founded in 1946 in Tokyo to be a new revolution in the world of communications and technology, was able to progress throughout her career innovative products added all the new and useful to the lives of millions of people, Sony is one of the best companies in the worlds leading manufacturer of Audio Video In addition to excellence in the areas of technology and development of industry computer laptops and mobile phones It is well known for many fans and viewers of the technical world of electronics Since it was founded in May 1946 and to this day continues to Sony in its bid submission to the infinite and well-being and comfort of all categories of consumers through a variety of high-quality products. We may need a lot of pages to talk about Sony and its history of achievements, which had said the welfare of peoples lives But the company is well known by its fans and clients and its products is almost devoid of any where in the house Acquire products and all categories of people and on a different level of consumer In this report we will learn on one of the excellent products, which is a high-quality TV set in terms of purity and clarity of image and sound What makes this product the perfect choice for those who wish to enjoy watching favorite programs with all the comfort that it is not only a high quality product in terms of the characteristics contained in But several of the most important aspects of it available to consumers at a competitive price is almost unmatched by any other product on the market And where the decision to purchase is the most important decisions of interest to any organization interested in studying the market and the marketing of their products we will discuss in some important details about. INTRODUCTION TO SONY TV SET This offer is available at all Sony stores, and customers would enjoy 10% discount if they buy online from our web site www.sony.com Also we offer free delivering and one year guarantee Facilities for payment by installments with the possibility of payment in installments over two years 60 inch LX900 Series 3D Full HD BRAVIA LCD TV High frame rate LCDs with a frame sequential display, Sony makes it possible to watch Full HD 3D quality video on 3D compatible BRAVIA LCD TVs. This technology involves alternately transmitting images for the left eye and right eye to the screen. When viewed through the active shutter glasses, the two separate images on the shutter glasses are synchronized with the onscreen image with their Full HD quality intact and precisely transmitted to the viewers eyes. The high-quality super-fine Full HD 3D images deliver unprecedented reality and presence. This offer includes loudspeakers and a DVD Player which makes the user feels Like a home cinema Features: LCD size: 60(152cm), 16:9 TV system: digital: dvb-t analog Display resolution: full HD 1080 (1920 x 1080) Buyer behavior decision-making process How do customers buy? Customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below: This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favorite hamburger would recognize the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, I need a new TV set, I have a headache) or responds to a marketing stimulus (e.g. you pass Sony store and are attracted by a big screen showing a football match or an action movie and). An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: à ¢Ã¢â€š ¬Ã‚ ¢ Personal sources: family, friends, neighbors etc à ¢Ã¢â€š ¬Ã‚ ¢ Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays à ¢Ã¢â€š ¬Ã‚ ¢ Public sources: newspapers, radio, television, consumer organizations; specialist magazines à ¢Ã¢â€š ¬Ã‚ ¢ Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How can the customer benefit from the information? An important determinant of the extent of evaluation is whether the customer feels involved in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is highly involving, the customer is likely to carry out extensive evaluation. High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a TV set or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. Why should a marketer need to understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale. Post-purchase evaluation Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision. Factors affecting buying decision Possible influences on the decision process Personal influences Demographic Situational Involvement Psychological influences Perception Motives Attitudes Personality Social influences Roles and family Reference groups Social classes Culture and subcultures Personal factors: Is one that is unique to a particular person? It can influence purchasing decision In this section we discuss three categories which are demographic, situational, and level of involvement factors. Demographic factors: Such as age, sex, race, ethnic, origin, income, family life-cycle, and occupation Demographic factors have a bearing on who is involved in family decision making. For example, its estimated that by 2010 the Middle East and North African countries. Will have the largest market for TV sets because of more new apartments built for old men who is getting married that means more opportunities to sell wide number of TV sets . Men with age between 25 and 35 are know to have more influence in buying decision process for furniture and other equipments when they are starting furnishing their new apartments with all Necessities. Another example is a persons age and income may affect the number and types of information sources used and the amount of time devoted to seeking information. Demographic factors also affect to which a person uses products in a specific product category. Consumers in the 20 to 45 age group are more interested in buying new technology such as this TV set with high definition image specially those who get high income they find it easy to buy a new TV set even if the old one still in a good shape or condition . Here Sony set plans how to attract those potential consumers in term of marketing mix focusing how to set prices and Situational factors: Are the external circumstances or conditions that exist when a consumer is making a purchase decision. Sometimes a consumer engages in buying decision-making as a result of unexpected situation. For example, a person may hurriedly buy a TV set to watch the world cup 2010 or owner of a coffee shop try to attract more customers by offering them watching their favorite teams in the world cup or Olympic Games just two or three days before it starts or sometimes during that occasions. Yet in other circumstances the same individual might spend many weeks shopping around for a discount or any offer available. Situational factors can influence a consumers actions during any stage of the buying process. The time available to make decision is a situational factor that strongly influences consumer buying decision. If there is a little time for selecting and purchasing the TV set, a person may make a quick choice and purchase a readily available brand. Level of involvement: Many aspects of consumer buying decisions are affected by the individuals level of involvement; it determines why he or she is motivated to seek information about this product and brand but virtually ignores others. The extensiveness of the buying decision process varies greatly with the consumers level of involvement. The sequence of the steps in this process may also be altered. Low-involvement buyers may form an attitude about this product and evaluate its features after purchasing it rather than before. Conversely, high-involvement buyers spend much time and effort researching their purchase beforehand. Such TV set is a product that undergoes a great deal of investigation before they are chosen. Psychological factors influencing the buying decision process Operating within individuals partly determine peoples general behavior and thus influence their behavior as consumers. Perception Different people perceive the same thing at the same time in different ways. Similarly, the same individual at different times may perceive the same product in a number of ways. Perception is the process information inputs are the sensations received through sight, hearing, and touch the product. Perception is a three-step process. Although consumers receive numerous pieces of information at once, only a few of them reach awareness. They select certain inputs and ignore many others because they do not have the ability to be conscious of every input at the same time. This phenomenon is sometimes called selective exposure because they select inputs that are to be exposed to their awareness. For example if they are concentrating reading this paragraph, they probably are not aware that car outside making noise, that the light is on, or that they are touching this book. Even though they are receiving these inputs, they ignore them until they are mentioned. For example a person hoping to buy this TV set is likely to watch an advertisement containing TV set information. An input is likely to reach awareness if the information helps satisfy current needs. If the intensity of an input changes significantly, the input is more likely to reach awareness. When a store manager reduces a price slightly, they may not notice because the change is not significant, but if the manager cuts the price in half, they are much more likely to recognize the reduction. Motives Is an internal energizing force that directs activities towards satisfying a need or achieving a goal. Motivation is the set of mechanisms for controlling movement toward goals. A buyers action at any time is affected by a set of motives rather than by just one. At a single point in time, some motives in the set have priority, but the priorities of motives vary from one time to another. For example, a persons motives for having this TV set when not having a TV set rather than if having an old TV set. Motivation also affects the direction and intensity of behavior. Individuals must choose which goals to pursue at a particular time. A buyer may use a particular shop because of such patronage motives as price, service, location, honesty, product variety, or friendliness of salespeople. Thats why Sony marketers should try to determine why regular customers patronize a store and then emphasis these characteristics in the stores marketing mix. The marketing department should do researching by asking group of people for example what motivates them, why they keep buying that brand even if they know that brand is not as good quality as Sony. Keep researching what motivates them by other brands and what are motives of other brands. Ability and knowledge Individuals vary in their ability, their competence and efficiency in performing tasks. One ability of inters to marketers is an individuals capacity to learn. Learning refers to changes in a persons behavior caused by information and experience. The consequence of behavior strongly influences the learning process. Behavior that results in satisfying consequences tends to be repeated. For example, when a consumer buys a TV set and likes it, he or she is more likely to advise friends or relatives to buy the same TV set with the same brand he/she bought. In fact, the individual will probably continue to purchase that brand until it longer provides satisfaction. But when the affects of the behavior are no longer satisfying, the person will switch to a different brand. This is very important for marketers in SONY Company to keep searching for reasons that makes individuals satisfied with this product related to the marketing mix. Buyers when making purchasing decisions, have to process information. Individuals have differing abilities in this regard. For example, when purchasing this TV set , a well-educated potential buyer who has experience with technology and good brands available in the market may be able to read, comprehend, and synthesis the considerable quantities of information in technical brochures for various competing brands. On the other hand, another buyer with more limited abilities may be incapable of performing this task and will have to rely on information obtained from advertisements or from a sales representative of a particular brand. Here SONY marketers should offer all informations that attract different levels of people, and choose smart advertisements that introduce the product, and its benefits. Inexperienced buyers use different types of information from more experienced shoppers who are familiar with the product and purchase situation. Inexperienced buyers use price as an indicator of quality more frequently than buyers who have some knowledge of a particular product category. So sources of information are different, while buyers with expertise are more confidence to compare and find direct information related to the product, consumers who lack expertise may seek the advice of others making a purchase or take a long a friend. Marketers should be aware of what general consumer back ground of the company and its products, while some consumers think SONY is quite expensive others believe that SONY has the best quality and so on, here SONY have to create the best tools of providing positive information and knowledge for those Attitude Refers to knowledge and positive or negative feelings about the product. The acts towards which consumers have attitudes may be tangible or intangible, living or non-living. An individual learns attitudes through experience and interaction with other people. Just as attitudes are learned, they can be also changed. An individuals attitudes remain generally stable and do not change from moment to moment. Likewise, at any one time, a persons attitudes do not all have equal impact; some are stronger than others. Consumer attitudes towards a firm and its products greatly influence the success or failure of the firms marketing strategy. When consumers have strong negative attitudes towards one or more aspects of a firms marketing practices, they may not only stop using the firms product but also urge their relatives and friends to do likewise. For example, one of SONY stores in NORTH AFRICA is was not trusted by wide range of customers because of unfair prices related to other branches in the MIDDEL EAST countries, consumers in those countries does not know that was not SONY company, so the image of SONY was affected in that area, and sales started to flow down because of that big mistake by the company who was representing SONY company in NORTH AFRICA. Marketers in SONY should always measure consumers attitudes towards prices, package design, the brand name, advertisements, salespeople, services after sale, stores locations, features of the product, and also social responsibility activities. Several methods can help gauge these attitudes. One of the simplest ways is to question people directly. Asking about the consumer satisfaction about the TV set, are they satisfied with quality and the price, knowing the feedback of consumers, and keep going determining the positive and negative points , to check the performance of all steps involved while marketing the product, trying to attract more consumers by studying their attitudes. Personality Includes all the internal traits and behaviors that make a person unique. Each persons unique personality arises from both heredity and personal experience. Personalities are typically describes as having one or more characteristics, such as compulsiveness, ambitiousness, gregariousness, dogmatism, authoritarianism, introversion, extroversion, aggressiveness, competitiveness. Here should attempt to find relationships among such characteristics and buying behavior. Even though a few links between several personality characteristics and buyer behavior have been determined, the results of many studies have been inconclusive. Some researchers see the apparently weak association between personality and buying behavior as due to unreliable measures rather than a lack of relationship. A number of marketers are convinced that a consumers personality does influence the types and brands of products purchased. For example the type TV set brand that a person buys may reflect one or more personality characteristics. At times, SONY aim advertising campaigns at general types of personalities. In doing so, they use positively valued personality characteristics, such as gregariousness, independence, or competitiveness. Most products promoted this way. Social factors influencing the buying decision process The forces that other people exert on buying behavior. Roles and family influences Every person occupies position within groups, organizations, and institutions. Associated with each position is a role. A set of actions and activities that a person in a particular position is supposed to perform, based on the expectations of both the individual and surrounding persons. Because people occupy numerous positions, they also have many roles. For example, a man may perform the roles of son, wife, father, employee or employer, civic organization member, and student in an evening class. Thus are several sets of expectations placed on each persons behavior. An individuals roles influence both general behavior and buying behavior. The demands of a persons role may be inconsistent and confusing. To illustrate, assume that the man mentioned above is thinking about buying this TV set. While he wants this TV set to enjoy watching world news or football games, his children want to watch cartoons or connect the screen to play station and play games. His wife wants him to delay the TV set purchase until next month. A colleague at work insists that he should buy a particular brand, known for high quality. Thus an individuals buying behavior is partially affected by input and opinions of family and friends. Family roles related directly to purchase decisions. The male head of household is likely to be involved heavily in the purchase of this product. Deciding if its the right time to purchase or not. Although female roles have changed, women still make buying decisions related to many household items. Husbands and wives participate jointly in the purchase of products, especially durable goods such this TV set. Some young men aged 25 to 35 who is getting married in summer season; their brand loyalty can be quite changeable. In this case marketers in SONY frequently promote for such product during holidays to catch this hard to reach group at time when they are more receptive to a promotional message. When two or more family members participate in a purchase, their roles may dictate each is responsible for performing certain tasks: initiating the idea, gathering information, deciding whether to buy this TV set, or selecting another brand. Thats why marketers need to be aware of how roles affect buying behavior. To develop a marketing mix that precisely meets the needs of the target market, and they must know not only who does the actual buying, but also what other roles influence the purchase. Because sex roles are changing so rapidly, they must ensure that information is current and accurate. Reference groups A group becomes a reference group when an individual identifies with it so much that he or she takes on many of the values, attitudes, or behavior of group members. The person who views a group as a reference group may or may not know the actual size of the group. Most people have several reference groups, such as families, friends, religious, civic, and professional organizations. A group can be negative reference group for an individual. Someone may have been a part of a specific group at one time but later rejected its values and members. One can also specifically take action to avoid a particular group. A reference group may serve as a point of comparison and a source of information for an individual. A customers behavior may change to be more in line with the actions and beliefs of a group member. For example, a person might stop buying one brand of TV set and switch to SONY on the advice of members of the reference group. Generally, the more conspicuous the product, the more likely it is that the brand decision will be reference group. This days reference groups plays a big role affecting the buying decision, specially in advertising and the way the company choose to promote for the product, it was a very successful experience when SONY do a smart advertisement for its products specially TV screens, a lot of consumers enjoyed watching the Brazilian football player RECARDO KAKA doing the advertisement, he attracted a lot of customers, even who dont watch football matches. Social classes Within all societies, people rank others into higher or lower positions of respect. This ranking results in social classes. A social class is an open group of individuals who have similar social rank. A class referred to as open because people can move into and out of it. The criteria for grouping people into classes vary from one society to another. In western countries, many factors are taken into account, including occupation, education, income, wealth, race, ethnic group, and possession. In some countries like Arabic countries, wealth and income are more important than education and occupation in determining social classes. A person is ranking someone does not necessarily apply all of societys criteria. The number and the importance of the factors chosen depend on the characteristics of the individual being ranked and the values of the person who is doing the ranking. Social class influence many aspects. For example, it affects childhood training, choice of religion, selection of occupation, and how people spend their time. Because social class has a bearing on so many aspects of a persons life, it also affect buying decisions, for example, upper-class seem to prefer luxury automobiles such as the BMW and MERCEDES-BENZ, which symbolize their status, income, and financial comfort. Thos upper-class would buy TV set with the latest technologies available which is full HD screens and 3D with 60ince size with all the accessories, they like to make it like a home cinema they might spend large amount of money to buy such a TV set. Culture and subculture Is everything in surroundings that is made by human beings. It consists of tangible items, and intangible concepts, such as education, welfare, and laws. Culture also includes the values and wide range of behaviors that are acceptable within a specific society. Are learned and passed on from one generation to the next. Culture influences buying behavior because it permeates daily lives. It determines what people wear, eat, where to live and travel. It also influences how people buy and use products and the satisfaction gained from them. While some countries spend a lot of time watching TV , others might spend much time surfing the internet, so culture determines how TV purchased and used, it in turn affects all the marketing mix, promotion, distribution, and pricing of the product. Marketing mix The Market Mix (often referred to as the 4-Ps) Refers to the unique blend of marketing Elements designed to meet the needs of the Organizations target market. The Marketing Mix consists of the organizations à ¢Ã¢â€š ¬Ã‚ ¢ Product à ¢Ã¢â€š ¬Ã‚ ¢ Price à ¢Ã¢â€š ¬Ã‚ ¢ Promotion à ¢Ã¢â€š ¬Ã‚ ¢ Distribution (Place) Understanding how to position the market offering Putting the right product in the right place, at the right price, at the right time. We already have created a TV set that is a particularly group of customers wants, now we put it on sale in a place that those same customers visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Theres a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then we need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time. The marketing mix is a good place to start when we are thinking through our plans for this TV set, and it helps avoid any kind of mistakes. The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing. Marketing mix is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way. A good way to understand the 4 Ps is by the questions that we need to ask to define marketing mix. Here are some questions that will help you understand and define each of the four elements: Product What does the customer want from the product/service? What needs does it satisfy? What features does it have to meet these needs? Are there any features weve missed out? Are we including costly features that the customer wont actually use? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below). Place Where do buyers look for this product? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What does competitors do, and how can we learn from that and/or differentiate? Price What is the value of the product to the buyer? Are there established price points for the product in this area? Is the customer price sensitive? Will a small decrease in price gain extra market share? Or will a small increase be indiscernible, and so gain extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market? How will the price compare competitors? Promotion Where and when can we get across marketing messages to target market? Will we reach audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mail shot? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of market launch, or the timing of subsequent promotions? How do competitors do their promotions? And how does that influence your choice of promotional activity? The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions listed above are the key, they are just a subset of the detailed probing that may be required to optimize marketing mix. Amongst the other marketing mix models have been developed over the years is Boom and Banters 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions. Another marketing mix approach is Lautenbergs 4Cs, which presents the elements of the marketing mix from the buyers, rather than the sellers, perspective. It is made up of Customer needs and wants (the equivalent of product), Cost (price), Convenience (place) and Communication (promotion). In