Provide an example for five of the ten Price Sensitivity Effects Essay

Provide an example for five of the ten Price Sensitivity Effects - Essay Example Expenditure effect causes consumers to choose alternative options because of high price that might be unaffordable. For example, car brands like Mercedes Benz or BMW offer a prestigious image and quality, but are highly priced. Consumers that are unwilling to spend majority of their income on products like these tend to choose alternative options that provide similar luxury and feel. In such case, price becomes the ultimate deciding factor. Products with unique value tend to accompany price-quality effect. In such cases, price becomes the deciding factor for value creation of the product. This also creates a psychological effect on the consumers through value attained over time. For example, if fast-food brand like McDonald’s alters or raises its product price, consumers would still continue to opt for its products for their quality. This factor refers to the availability of external financial help to buy a specific product that otherwise would seem highly expensive for the consumer. For example, purchasing a house would require huge amount of money. If the consumer is able to procure loan for the purchase, then the price will be less significant as the deciding factor in the purchase. Inventory effect occurs when sellers anticipate price rise. This allows the sellers to hold the stock till price rise and sell the same at increased price, which will in turn give higher profits. This situation is more often seen in retail markets for pharmaceuticals, petroleum products, groceries etc. When the wholesalers anticipate price rise due to market fluctuation, they tend to buy huge amounts of product stock in advance and hold it as inventory. After price rise, they sell the products at increased prices to consumers, thereby making more profits than

Democratic Deficit in Canada Term Paper Example | Topics and Well Written Essays - 2250 words

Democratic Deficit in Canada - Term Paper Example What and how a country faces democratic deficit is all dependent on the perception of its people towards the government policies, this thinking alone could be as a result of higher expectations of the people from its government or it could very well be because of their objectives. The subjective thinking of the people or the objective thinking is what categorizes a country to be labeled as suffering from democratic deficit or not suffering from Democratic deficit. A system usually falls under the category of Democratic Deficit because as society grows and becomes more complex the needs change and become of different priorities which need to be met by the elected representatives. Failing of which the people see it as not working as a democratic system and hence term the system Democratic Deficit. In a similar manner the democratic institutions have to be in accordance to the changing needs like for example an institution that worked for a few hundred people would not prove successful with the figures of hundreds changing to millions. Hence the Democratic Deficit sets where the government fails to keep up with the growing demand of technology and economic environment. Even the media plays a very important role to the problem of democratic deficit by publicizing one view to the extreme. ... e of the media to project the situation in a manner without thinking up tactics of promoting its own cause only then would the people be able to grasp the deficiencies if any in the government or even the good beneficial effects that the system is affording. The knowledge gain factor is directly associated with the media in the current times and one must ensure that the media plays its vital role fully and duly. What the term democratic deficit implies is that it is the differences of the different people's opinions in the sizing up of their government. We could also put it in this way that basically the people feel that they are being neglected and their needs are not addressed. By Canadian standards the democratic deficit stems from the fact that when a definite gap is seen in the involvement, trust and decision making of its people. The main characterizing point of the system to be in democratic deficit is when there is a low voter turnout; people do not take an active interest in politics and a failure of trust in the democratic institutions. Canada has shown a gradual decline of the voter turnout. This started from the Second World War and was especially marked in the years 1953, 1974 and 1980. If the recent elections were to be accounted for then one would note how the eligible voter's number was by far greater than the number who did vote and the party one. Canada has seen less interest in the Canadian politics and leadership since 1960's. Today Canada suffers from democratic deficit as the people of Canada do not have high opinions about their politicians and they simply don't trust them. They are of the opinion that those who stand to be elected are misfit and will not keep their word and are more after the money than they have any care about the people or