The paper topic I am most interested in concerns the recent bailouts with a specialization on Wall Street. My only concern with this topic as of now is the chance that someone else has already chosen it. Currently I am planning on describing the initial plans and intent of the Wall Street specified bill, how it was implemented, where money has been actually been dealt out, and reactions from speculators. There is more than enough information concerning these bailouts to fill out thousands of pages(as they no doubt did), but a condensed 10 to 15 page examination would be appealing.
This plan was particularly interesting to me because I have read lately that not many people believe it is working as fast or as well as it should be. I do not yet understand how we are passing three or four multibillion dollar bailout plans within a span of six months and still coming out with no short term success. It seems like a waste of time for the government to intervene with the market only to instill long term commitments while bankrupting citizens and increasing unemployment in the short run. Meanwhile we are sinking deeper into a recession that has been happening for months now, but only recently declared. How long will we let this go on or hike up inflation before we realize the answer does not lie within printing more money? Tax cuts and inflationary practices have been tried in the past and have failed miserably so this leads me to believe that somewhere within this new bill there is a provision that will avert repeating history. Despite the fact that I believe we, as Americans, have been living beyond our means for a number of years, I am curious to see what Wall Street has done with such a rushed Carte Blanc.
Wall Street activities mainly deal with customer experiences in the borrowing environment. Consumers are currently being held back from expansion because loans are hard to come by. New businesses are not able to open there doors where old ones have faded. This is the first stepping stone that serves in widening the gap between rags and riches. Eventually this will hit customer experiences across the board as far as most industries go because a deep recession has many negative implications. In addition to the negative impacts the depression of the early 1930’s we also have to deal with what Wall Street has begun in the earliest 21st century. Multiple bailout plans have been made necessary because the mainstays of the American market (Wall Street, Real Estate, and Automotive) are failing simultaneously.
Also I have read recent articles pertaining to angry citizens that have lived within their means on Wall Street for the last twenty years. Backlash has been developing amongst those who spent responsibly and now have nothing to show for it. Why should they have been subject to keeping great credit when they could have lived outside their paycheck and accepted a bailout towards the end? While we are printing up billions of dollars for those who have squandered for years why can we not help out those who were raised to be responsible? This entire term paper may be my biggest push for social Darwinism yet. There are no red states and blue states anymore, just many people misinformed over things that have no relevance to society today. We spend millions to help out those in need, but we never just let the market decide who should have wealth. Hopefully by the end of the semester I will be able to draw up plans for a structured bankruptcy and a resurgence of market based decisions that are not solely dependent upon which lobbyist spends the most time in Washington.
There are also political implications I would like to explore when it comes to the topic of passing this bailout in both houses of congress. People rejoiced when it was announced that the first bailout proposed had been eliminated and struck down in the eye of a weary America, but less than a week later a refurbished bill was easily passed as altercations were made to appease more republican congressman. A few hours of quick discussion over the few changes they have used to punch up this new bill decides a good portion of our countries future.
I just noticed the comment sections that are on each of my posts. I am sorry the previous posts were not long enough for your tastes, but I was just following the syllabus outline of one page.*** Ahh checked the syllabus and I misunderstood that these should be one page single spaced. I will make the necessary adjustments on previous topics not that it will inherently change my grade, but just so its clear I am not half assing anything just misunderstanding the comment system here. I have blankly been checking the comments on my grades under blackboard for feedback.
Christ, I can't seem to get this blogging stuff down correctly. As we talked about in class here are the websites that I used for information on this blog.
http://www.boston.com/business/personalfinance/articles/2009/02/22/bailout_lament_what_about_me/ - Consumer backlash against bailout
http://online.wsj.com/article/SB122650321703420903.html - Consumer distrust in the bailout
Monday, February 23, 2009
Monday, February 16, 2009
Children in the Supermarket
Supermarkets have evolved over the years to incorporate not only a wide selection, but also an experience that draws customers back to certain stores. The most interesting strategies stores take concerning experience are geared towards the younger generations. Baby boomers grew up when products were on the rise in the food industry. Newly created microwave meals and frozen dinners fascinated consumers. Generation Y and very young children have been brought up with these foods surrounding them and have come to expect certain things at the supermarket.
Retailers throughout the world have recognized the profitability that comes with correct product placement and needy children. Walking down the aisle of a local food mart, you will see that products such as candies, cookies, and other treats are placed at eye level for youngsters. Kids are set off into “must have” mode whenever certain items grab their attention and turn their heads. Little children will stop at nothing to force their parents or guardians into buying something they don’t especially need. Placing products at eye level also creates the ability for children to reach the items. This lets the child think that they posses the item because they themselves can physically grab it. Once the child has the product the notion that consumers are less willing to give up an item than acquire one begins. Parents often give in to crying children rather than take cheap candy with high margins out of their hands.
Another part of the child experience in supermarkets deals with colors. Children are attracted to bright colors that are strategically placed throughout aisles. Impulse buying colors such as red and yellow contribute to disruptive behavior. Disruptive behavior leads to frequent small purchases or swift slaps to the behind depending on how strong the adult is. Eventually even the strongest parents will break down however.
Once initial shopping trips with children are over the experience is built and youth will want to revisit certain shopping markets countless times. Small tokens such as a free cookie or WholeFood’s free balloon instill a desire in kids to frequent supermarkets. More visits from parents and kids will result in more sales not only in small impulse categories but also in other sections of the store. Therefore, we can see that targeting youngsters in retail markets results in multiple benefits whether it be through high margin gifts within short reach or frequent visits to the supermarket to appease a child and create a family ritual.
Retailers throughout the world have recognized the profitability that comes with correct product placement and needy children. Walking down the aisle of a local food mart, you will see that products such as candies, cookies, and other treats are placed at eye level for youngsters. Kids are set off into “must have” mode whenever certain items grab their attention and turn their heads. Little children will stop at nothing to force their parents or guardians into buying something they don’t especially need. Placing products at eye level also creates the ability for children to reach the items. This lets the child think that they posses the item because they themselves can physically grab it. Once the child has the product the notion that consumers are less willing to give up an item than acquire one begins. Parents often give in to crying children rather than take cheap candy with high margins out of their hands.
Another part of the child experience in supermarkets deals with colors. Children are attracted to bright colors that are strategically placed throughout aisles. Impulse buying colors such as red and yellow contribute to disruptive behavior. Disruptive behavior leads to frequent small purchases or swift slaps to the behind depending on how strong the adult is. Eventually even the strongest parents will break down however.
Once initial shopping trips with children are over the experience is built and youth will want to revisit certain shopping markets countless times. Small tokens such as a free cookie or WholeFood’s free balloon instill a desire in kids to frequent supermarkets. More visits from parents and kids will result in more sales not only in small impulse categories but also in other sections of the store. Therefore, we can see that targeting youngsters in retail markets results in multiple benefits whether it be through high margin gifts within short reach or frequent visits to the supermarket to appease a child and create a family ritual.
Wednesday, February 4, 2009
Consumer Decision's Now Longer
Barry Schwartz makes excellent points as he portrays the amount of variety we have in today’s world of information as a hindrance in many ways. People take much more time to arrive at even the smallest decisions. The vast amount of choices we have has led our decision-making ideology to always seek out something better. The expression “the grass is green on the other side” can now be applied to any situation. Shoppers at the supermarket can be seen pacing isles numerous times looking for the best deal. Consumers are now unwilling to settle on one selling point for a product such as a basic price point, quality aspect, or guarantee. Once a consumer finally makes a decision, they can be seen later wondering how the product’s competitor would have satisfied them more.
Professor Schwartz depressed me if anything as I came to the realization that his descriptions depict my life. Generation Y has been raised in a time where information is abundant and choices are always possible. Perhaps one of the biggest decisions of a college student’s life is what career he/she wants to pursue. Even here, we have always been told that with hard work a person can be whatever he/she wants to be. After graduating high school there are literally thousands of universities and colleges to choose from. Each university offers hundreds of degree plans to cater to each type of person. Even after these first two steps are overcome, we as students must decide how to use the next few years wisely in order to establish a bright future.
Personally, I was indecisive regarding my future until a family member finally showed me through example which path I could take successfully. The Mccomb’s Business School boasts about one of the best programs in the nation that develops some of the most successful students in the nation. However, after having experienced it first hand I believe that my time here has just served as filler for the decision of my future. If society did not constantly evolve and create new jobs, we would not have so many choices to consider for professions and my job search would be much simpler.
The paradox of choice that Mr. Schwartz continually illustrates through cartoon has been present with generation Y since its beginnings. However, we can see that in older generations, such as the baby boomers, choices are now plaguing their lives as well. Adults are learning to research certain products and services beforehand rather than taking the advice of a close friend immediately. Therefore the paradox of choice is able to overcome the previous decision habits of older generations.
Professor Schwartz depressed me if anything as I came to the realization that his descriptions depict my life. Generation Y has been raised in a time where information is abundant and choices are always possible. Perhaps one of the biggest decisions of a college student’s life is what career he/she wants to pursue. Even here, we have always been told that with hard work a person can be whatever he/she wants to be. After graduating high school there are literally thousands of universities and colleges to choose from. Each university offers hundreds of degree plans to cater to each type of person. Even after these first two steps are overcome, we as students must decide how to use the next few years wisely in order to establish a bright future.
Personally, I was indecisive regarding my future until a family member finally showed me through example which path I could take successfully. The Mccomb’s Business School boasts about one of the best programs in the nation that develops some of the most successful students in the nation. However, after having experienced it first hand I believe that my time here has just served as filler for the decision of my future. If society did not constantly evolve and create new jobs, we would not have so many choices to consider for professions and my job search would be much simpler.
The paradox of choice that Mr. Schwartz continually illustrates through cartoon has been present with generation Y since its beginnings. However, we can see that in older generations, such as the baby boomers, choices are now plaguing their lives as well. Adults are learning to research certain products and services beforehand rather than taking the advice of a close friend immediately. Therefore the paradox of choice is able to overcome the previous decision habits of older generations.
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