Any construction job is laced with myriad risks and possibilities of resultant losses. These losses may arise from delay in procuring materials, structural changes, faulty execution of ideas and rectifying the errors. All of these waste precious time and cost more money than initially estimated. Hence, most of the customers want a way to mitigate
Relationships among individuals and organizations are based on exchange. By exchanging products, either material or immaterial, in ways that are rewarding to all the parties that are involved. People decide whether forming a relationship with another individual or group has more benefits than costs. Depending on what decision they make, they negotiate a system where
Corporate management is a responsibility that comes with a lot of challenges. Managers are often required to attend to issues and difficulties that need resolutions, clarity and decisions. A significant portion of these matters is paltry while others are exceptionally vital to the prosperity of the organisation, particularly concerning strategic performance and the organisation’s bottom
Advertising has numerous objectives which includes communicating with potential customers as well as pursuading them to adopt a particular product or develop a preference towards the product for repeat purchase which ultimately results in brand loyalty. Advertising Theory or theories therefore try to explain how and why advertising is effective in influencing behaviors and accomplishing its
If I have to explain Adverse selection, i will take the simple example of College life. Many times in college life, our parents might say, you should sit and study. But instead, that causes a unique need in us to go and roam outside. Similarly, when we have money and financial ads say that you
The adoption theory has a simple objective – To observe new product adoptions and new product diffusion in the market to understand how and why as well as to what extent a new product is adopted by Individuals or organizations. It can also be called as theory of product adoption. Do note that it is
The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is truly applicable in some niches such as electronics and mobile handsets. Two companies which stand apart from the crowd when we talk about the product concept are Apple and google.
Our premise is that customers will buy from the firm that they see as offering the highest perceived value. Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer value is the perceived monetary value of
Behavioral Decision Theory (BDT) was first introduced by an American Psychologist, Mr. Edwards in the year 1954. It was pretty simple theory and was mostly dependent on consumer research and buying behavior. The theory soon became pretty prominent in the marketing field and is still followed by many numerous organizations around the world. Why Is
Adaption level theory, also known as AL Theory is a Psychological concept which explains that the basis of an individual’s judgment on a stimulus depends on their past experiences and/or recollections of the encounters they have had with similar stimuli in the past. In other words, the Adaptation level theory puts forward a hypothetical concept
Adaptation of product is a process or strategy of adapting or tailoring an otherwise standardized product or service offering to meet the needs and preferences of a particular market or set of consumers, where such markets and consumers are typically examined and managed within an international marketing context.
The Achievement motivation theory relates personal characteristics and background to a need for achievement and the associated competitive drive to meet standards of excellence. Achievement Motivation Theory (AMT) explains the integral relationship between an individual’s characteristics and his/her need to achieve something in life. In doing so, it also takes into account the kind of competitive
The accelerator principle is also known as accelerator effect or acceleration principle. It can be described as an economic concept that defines the association between output and capital investment. It is primarily an idea or theory, which stipulates that the cumulative net investment by an individual firm in a particular industry relies on the companies’
The words absorptive capacity is well known to marketing individuals charged with the responsibility of a firm’s innovation process. This concept works in helping firms towards successful innovation and its one that should be applied to any organisation that seeks growth and development in all spheres. But exactly what does it mean and what influence
As a firm, there are a lot of things that need to be done to ensure that you maintain a competitive advantage in the market. In addition to ensuring that you effectively meet all of your customers’ needs and expectations, a firm needs to make sure that it maintains a relatively low cost of operations.