Price Discrimination Essays - Marketing, Pricing, Microeconomics

Price Discrimination Define, discuss, and account for the existence of price discrimination. Compare and exemplify the first, second, and third degrees of such discrimination. Overview Price discrimination is the practice of setting different pricing formulas in different virtual markets, while still maintaining the same product throughout. The prices are based upon the price elasticity of demand in each given market. In more practical terms, that means that during "Ladies Night" at M.P. O'Reilly's, it costs more for me to have a beer than if I were a female simply because this particular saloon sees fit to charge members of the female species less as a means to draw more such females to the establishment on such a night. Price discrimination is rampant in many areas of the commercial and business world. Movie theatres, magazines, computer software companies, and thousands of other entities have discounted prices for students, children, or the elderly. One important note, though, is that price discrimination is only present when the exact same product is sold to different people for different prices. First class vs. coach in an airline (though sometimes just differing in how many free drinks you can get) is not an example of price discrimination because the two tickets, though comparable, are not identical. Price discrimination is based upon the economic premise and practice of marginal analysis. This conceptualization deals specifically with the differences in revenue and costs as choices and/or decisions are made. A good example is illustrated in the textbook by the Hartford Shoe Company model. The most important portion of the model, however, is on page 201. Here, it is calculated that if the company raises the prices of the shoes from $60 to $65, their revenue and number of shoes sold will shrink...but their actual profit margin will raise slightly due to that higher profit margin more than just offsetting in the loss in sales. Profit maximization is achieved neither where the number of products sold is the highest, nor where the price is the highest. Profitability Price discrimination is only profitable if and when the given target groups' price elasticity of demand differs to the point where the separate prices yield to profit maximization for each given group in question (where marginal revenue equals marginal cost). Groups that are more sensitive to prices, students and senior citizens for example, have a lower price elasticity of demand and are thus the ones that are often charges the lower prices for the identical goods or services. The key to price discrimination and utilizing it to fully compliment other economic practices, ultimately achieving the total profit maximization, is the ability to effectively and efficiently collect, analyze, and act upon data gathered about the different groups. First of all, the groups must be accurately identified and the differences between groups must be discerned ahead of time. Children, genders, and senior citizens are easily singled-out by appearance, while military personnel, college students, and other groups must carry some sort of identification. Firms typically will advertise the highest prices in publications, and then offer discounts to qualified groups. The three basic conditions for price discrimination to be effective are as follows: 1) Consumers can be divided into and identified as groups with different elasticities of demand. 2) The firm can easily and accurately identify each customer. 3) There is not a significant resale market for the good in question. First Degree Price Discrimination The premise behind the practice of first degree price discrimination is that the firm has enough accurate information about the end consumer that products can be sold each time for the maximum amount that the consumer is willing to pay. The two most prevalent examples of first-degree price discrimination are called "price skimming" and "all-or-none offers", both of which are described below. Skimming here refers to the demand function, as firms take the top of the demand of a given good to maximize profits on the per diem sale. This, of course, requires that the firm know the actual demand for the good that it produces. Furthermore, the firm must divide its customers into distinct, independent groups based upon their respective demands for the good. The firm wants to first sell to the group who will pay the highest price for the new product. It then reduces the cost slightly and sells to another group with only slightly less demand for the good. This process is replicated on numerous occasions until the marginal revenue dips to equal marginal cost. While this example may seem similar to other examples of price discrimination, it should be noted

Italian Words Beginning With the Letter Z

Italian Words Beginning With the Letter Z Try out these Italian words beginning with the letter Z, with their English translations: zacchera – splash of mudzaccherone  Ã¢â‚¬â€œ mud-bespattered personzaffare – to stop upzaffata – stenchzafferano – saffronzaffirino – sapphirezagara – orange blossomzaino – knapsackzampa – leg, footzampare – to paw the groundzampillante – gushing, spurtingzampirone – fumigatorzampogna – bagpipezana – basketzangolare – to churnzanna – fang, tuskzanni – clown mask, fool, zanyzanzara – mosquitozappa – hoezappare – to hoezattera – raft, slabzavorro – ballast, dead weightzazzera – mop of hairzecca – mintzecchino – sequinzelante – zealouszelo – zealzenit – zenithzenzero – gingerzeppa – wedgezeppo – packed, crammed, burstingzibaldone – mixture, medleyzelo – zealzerbino – matzibellino – sablezimbellare – to lure, to enticezimbello – decoyzinc are – to coat with zinczinco – zinczio – unclezippolo – pin, pegzitto – silencezizzania – discordzocollaio – clog makerzocollare – to clatter about in clogszodiaco – zodiaczolfo – sulfurzolla – clodzollette – sugar cubezompare – to jump, to leapzona – zone, bandzoologia – zoologyzoppaggine – lameness, shake, ricketyzoppicare – to limpzoticaggine – roughness, boorishnesszoticone – boor, lout, rough personzucca – summer squashzucchero – sugarzuccheroso – sweet, sugaryzucchino – squashzuccone – blockheadzuffa – scuffle, frayzufolare – to whistlezuppa – soupzuppiera – soup tureenzuppo – soaked

Contemporary environmentally ethical dilemma in the business world Research Paper

Contemporary environmentally ethical dilemma in the business world - Research Paper Example Velasquez & Rostenkowski (1982) averred that â€Å"an act with ethical or moral consequences is that such an act involves decisions freely taken that will have positive or negative consequences for others†. To determine the morality of a decision or an action, one approach is that of utilitarianism which holds that a moral decision or action is one that results in the greatest good for the greatest number of people (Gilbert 2000). The philosophers most commonly identified with this view are two nineteenth century Englishmen, Jeremy Bentham and John Stuart Mill. The assumption of this approach is that pleasure causes happiness and pain takes it away. Since pleasure and the happiness it causes are the ultimate good for humans, the act that causes the greatest pleasure or happiness for the greatest number of people is the morally good act. (Gilbert 2000: 4) Socrates, known to be the father of utilitarianism (Kofman & Porter 1998), shares the same view as examining an action based on its consequence for the good of a greater number of people. In this case, the overdevelopment of Florida’s beaches by private conglomerates only satisfies the purpose for profit of a few individuals. The public, who remains to the greatest recipient of these beaches, in the end, suffer from the wanton destruction of these beaches. Another approach to examine the issue of morality in environmental situations is the concept of rights and duties made famous by Immanuel Kant. According to Gilbert (2000), this approach is better explained, to wit: â€Å"the basic position here is that individuals have rights, either as humans, as citizens of a given country or state, or as occupants of a particular position. These right rights confer duties on others, and the morality of a given decision or act can be determined by an analysis of these rights and duties.† The rights of the concerned citizens of Florida

Global Economic Environment and Marketing Essay - 2

Global Economic Environment and Marketing - Essay Example The changes that have taken place in the world economy have led to the replacement of the traditional trade methods by capital movements. It can be observed that the global economy has given the local economies only a subordinate role in the market operations (Kotler et al., 2012). Economic systems have changed from what was traditionally known to new systems, which have taken into consideration the areas that are affected by globalization. The areas considered in modern economic systems include governance in various countries operating in the global market, capital and trade flows, hierarchy of command in terms of transport and communication, services funded through taxes and many others (Masterton &Pickton, 2004).The field of marketing in the global economy has experienced dynamic changes as well. Therefore, companies operating in the global economy should put into consideration these aspects and employ changes that fit the requirement of marketing in the modem global economy. The report will focus on McDonald, which is a multinational corporation operating in the fast food industry and supplying millions of customers across the world. (Solomon, 2009). The Macdonald Company has established its branches in almost all countries of the world. In this regard, the company experiences varied economic challenges and opportunities in different countries. With the current world economic state, the developing countries are struggling to better their economic status (Drummond et al., 2003).. In this case, the McDonald company experiences reduced economic gains in the developing countries compared to the developed nations. Another challenge that faces MacDonald Company in the global economy is the stiff competition in the developed economies. In this regard, it can be witnessed that operating in the international markets requires outstanding skills and knowledge since it involves dealing with high-level risk. Essentially, operating in a

Riordan Amended IT Budget Essay Example for Free

Riordan Amended IT Budget Essay Amended Riordan Manufacturing IT Budget The executive board for Riordan has tasked Information Technology with reducing their overall budget by two percent, while providing an increase of four percent to hardware line item, software line item, and outside IT support services. There are many lines within the budget that can be cut immediately to provide the necessary budget cuts, but it is important to make sure that none of the services being provided to staff will suffer with the adjustment to the budget. This paper will discuss the current budget, the increased made to the requested line items and the overall budget decrease. The paper will also justify the changes made to the budget. CURRENT BUDGET Riordans current IT budget consists of $1,567,750 being spent on salaries, benefits and bonuses. Another $333,500 is being spent on Operating costs. The total IT budget is $1,901,300. In order to meet the expected two percent decrease, IT will need to cut $38,026 from their budget. The hardware line item has a total budget of $8,500 and the four percent increase totals an additional $340. The software portion of the budget has a total of $45,000 when you include the line items for software licenses and maintenance. The four percent increase for this line item will cost Riordan an additional $1,800. The outside IT support services has a budget of $93,600 when you included the contracts and the leased lines line items. The increase for this portion of the budget totals $3,744. The total amount needed to increase each of the requested line items by four percent is $5,884. WHERE TO CUT BUDGET After increasing the specified line items as requested by the executive board, the IT department is left with the need to cut nearly $39,000 to meet the two percent budget reduction. This would bring the total IT budget down from $1.91 million to 1.87 million. The first places to look for reductions are any miscellaneous projects or non-essential spending within the budget. The first line item to reduce would be the entertainment portion. Currently, the IT department is spending $1,400 for entertainment. I would adjust the budget and allow $200 to be spent every four months, which will total up to $600 dollars a year. While I understand the need to entertain or reward the IT department for a job well done, it is not necessary to entertain them nearly every month of the year. Quarterly job well done or entertainment is enough to keep team members motivated, but not enough to become an expectation. By reducing the amount of entertainment, the IT department will recognize a cost savings of $800. This leaves a balance of $38,200 in order to meet the reduction goal. The next place I would check for reduction is in the travel budget. Now I do understand that Riordan has three locations worldwide and sometimes it may be necessary to travel to a location, but there is no need to travel every month of the year. Travel could occur twice a year, February and June. The rest of the months would be cut out. The IT department can set up Skype accounts, or WebEx accounts to allow the managers to communicate about projects and to take care of the issues that were normally handled with the travel budget. Skype allows users to communicate face to face while the WebEx account allows the users to see each others screen and collaborate. The travel budget would go from $22,000 to $7,000. This is a cost savings of $15,000 and now only leaves a balance of $23,200 that must be reduced from the budget. The last place where I would adjust the budget would be the special projects line item. This line item has $150,000 allocated to it, but no specific projects tied to it. I would reduce the budget to $126,800 which would take  care of the remaining shortfall to reduce the overall budget by two percent. This final reduction will take the total IT budget to $1,862,300. NEW BUDGET I was able to reduce the IT budget without losing staff. This allows Riordan to continue with the plans to move the China location to Shanghai. The new budget also allows for the IT Department to continue their hardware purchases, software licenses and IT support services. The new budget is as follows: The highlighted sections include the reductions made to meet the requested two percent decrease. SUMMARY OF CHANGES To meet the requested two percent budget reduction, there were three line items that were reduced. The first group was the travel line item. This line item was reduced to $7,000 and was reduced because staff members can have video conferences using Skype and can collaborate via WebEx on projects. While some travel is necessary and reflected with a budget of $7,000 some work can be completed from their local offices and thereby eliminating the monthly trips between the three locations. The next reduction made was to the entertainment line item of the budget. While there is a need to keep the staff happy by providing entertainment or rewards for a good job, the rewards can be better received by making them an expectation. I dont see a benefit in completely removing the entertainment budget, but there was a benefit in reducing the amount spent on entertainment/rewards. The budget was reduced to allow for entertainment/rewards quarterly. This can motivate employees to work harder to be one of those chosen to receive a reward every quarter. The entertainment budget was reduced to a total of $600. The last change made was a reduction to the special projects line item. The  special projects line item was reduced to $126,800. The reason for the reduction was there were no special projects tied to the line item. Because there were no special projects tied to the line item, it is easier for IT to adjust to the reduction before planning any special projects. CONCLUSION The IT department was tasked with increasing the following line items by four percent: software, hardware and IT support services. But the overall budget also had to be decreased by two percent. This was done by first increasing the requested line items and then decreasing the budget to the requested levels. It was only necessary to reduce three line items, the entertainment section, travel section and special projects. The reduction of these three line items do not have a huge impact on the IT department but allows the department to meet the budget reduction request.

The Subway Franchise Essay -- essays research papers

The Subway Franchise   Ã‚  Ã‚  Ã‚  Ã‚  The Subway story started in 1965 in Bridgeport, Connecticut during the summer of 1965. 17 year old Fred DeLuca was trying to earn enough money to pay for his college tuition by working in a hardware store. He wanted a way to add money to his minimum wage salary. He got the solution at a backyard barbecue in a conversation with a family friend, nuclear physicist Dr. Peter Buck. With a $1000 loan from Buck, DeLuca opened Pete's Super Submarine on August 28, 1965. One year later, he opened his second shop so customers would see him expanding and believe that he was successful. In an effort to increase visibility to customers, he shortened the name to Subway and introduced the bright yellow logo. The first Subway franchise opened in Walling...

Identification of food constituents in milk Essay

Objective †¢To compare and analysis the composition of two different types of unknown milk, K1 and K2. †¢To determine the differences of the fat content in milk samples, K1 and K2. †¢To compare the reducing sugar in the both samples of milk, K1 and K2. †¢To compare the protein concentrations in the both samples of milk, K1 and K2. Introduction Milk provides a useful dietary source of calcium, which is vital for the growth and maintenance of bone and tooth. Milk is the first source of nourishment as it played an important role in human nutrition. The constituents in milk that are vital in food preparation are enzymes, vitamins, pigments, salts, sugar, fat, and proteins. Different milk samples which contain different food constituents will have a different nutritional value respectively. Sudan (III) is fat-soluble dye used for staining of triglycerides (fat). It is used in the experiment to detect for the presence of fatty acids. It will appear as red globules if fatty acids are present in the milk sample. Benedict’s reagent is used to test for the presence of reducing sugars. The solution will form a brick-red precipitate when the milk sample contains reducing sugar (glucose, maltose, lactose.) Sugar that can form an aldehyde and ketone in the presence of an alkaline solution is known as reducing sugars. The Biuret test is used to test for the presence of protein. The biuret test is based on the ability of Cu (II) ions to form a violet-coloured chelate complex with peptide bonds (-CONH-groups) in alkaline conditions. In Biuret’s test (consist of sodium hydroxide and copper (II) sulphate solution),the solution will turn to purple when the proteins are present in the milk sample. Proteins are organic compounds important for growth and repair. Protein molecules are composed primarily of amino acids linked together through peptide bonds. Materials Copper(II) sulphate solution, unknown milk sample (K1,K2), cooking oil, distilled water, salad oil, Sudan(III), full cream milk, Benedict reagent, 10% potassium hydroxide, 0.5% copper(II) sulphate Apparatus Test tubes, plastic pipettes, cork, water bath Methods (A) 1. A clean test tube is filled until 1cm of the top with copper (II) sulphate solution. 2. A small amount of K1 is pipette into a clean plastic pipette and a drop is gently released into the copper (II) sulphate solution as shown in Figure 3. Another drop of milk is further released. 3. Then the pipette is withdrawn slowly without disturbing the copper (II) sulphate solution. The movement of K1 is observed carefully and the observations are noted. 4. The procedure above is repeated using new, fresh copper (II) sulphate solution, new clean glass apparatus and the sample of K2. Observations on the movement of K2 are recorded and any differences in the behaviour of the drops of K1 and K2 are noted carefully. (B) 1. 6 test tubes are obtained and numbered them from 1-6. 2. The materials listed in Table 1 are added. 3. The contents of each tube are mixed thoroughly. 4. The colour changed of the tubes contents are recorded. TUBETUBE SOLUTION 1.1ml cooking oil + 1ml distilled water 2.1ml salad oil + 5 drops of Sudan III 3. 1ml full cream milk + 5 drops of Sudan III 4. 1ml distilled water + 5 drops of Sudan III 5.1ml distilled water + 1ml cooking oil + 5 drops of Sudan III 6.1ml cooking oil + 5 drops of Sudan III (C) (i) Reducing sugar test 1. 2cm3 of K1 obtained is poured into a test tube and added by 2cm3 of Benedict’s reagent. The reagent with the K1 solution is mixed thoroughly. 2. The test tube is shaken occasionally when placed in the water bath with the temperature of 94á ¶ ¿c and left for 5 minutes. 3. The colour changed is observed and the observations are recorded. 4. Procedures 1-3 are repeated with another sample of milk, K2. The observations are recorded. (ii) Protein test 1. To 2cm3 of K1 obtained in a test tube, 2cm3 of 10% potassium hydroxide solution is added into it and the tube is shaken to mix the contents. 2. 0.5% copper sulphate solution is added a drop at a time and the tube is shaken continuously. The drops added did not exceed 10 drops. 3. Procedures 1 and 2 are repeated using another sample of milk, K2 in place of rest solution. Results A.(i) Type of unknown milkObservation K1Milk droplets sank in the CuSO4. (ii) Type of unknown milkObservation K2Milk droplets floated on the top of CuSO4. B. TubeTube solutionDescription of reaction BeforeAfter 11mL cooking oil + 1mL distilled water2 layers solution formed, oil floated2 layers solution formed, oil floated 21mL salad oil + 5 drops of Sudan III2 layers of oil and Sudan III droplets formed2 layers solution formed (slightly red), Sudan III floated 31mL full cream milk + 5 drops of Sudan III2 layers of milk and Sudan III droplets formedSlightly pink milky solution formed 41mL distilled water + 5 drops of Sudan IIITransparent slightly red solution formedTransparent slightly red solution, small black precipitate formed 51mLdistilled water + 1mL cooking oil + 5 drops of Sudan III3 layers solution formed, Sudan III at the top while oil at the middle2 layers solution formed (slightly red), oil floated 61mL cooking oil + 5 drops of Sudan III2 layers of oil and Sudan III droplets formedSlightly orange solution formed Table 1 Questions: 1.What is the rational of Sudan III is used in this experiment? Sudan III in this experiment is used for staining lipids or fats. Sudan dyes are a group of lipid soluble solvent dyes called lysochromes. Sudan III also used to color the protein bound lipids in paraffin sections. 2.Which test tube is i.Positive control? Test tube 1, 2, 3, 5, and 6 are positive control. ii.Negative control? Test tube 4 was negative control. 3.Describe the chemistry of liquid test using Sudan III. Sudan III is used to determine the presence of lipids. It will stain the fat cells red. Sudan III is usually using in lipid test. First, the liquid being test and water are filled to a test tube about half full. 3 drops of Sudan III are added to test tube and being shaken gently. There will form a red-stained oil layer separate out and float on the water surface due to the presence of fat. C.(i) Reducing sugar test Types of unknown milkObservation K1Orange precipitate is formed. K2Yellow-orange solution is formed. (ii) Protein test Types of unknown milkObservation K12 layers solution of darker slightly purple milky solution and white colour milk is formed. K2Slightly purple milky solution is formed. Discussion In the part A experiment, milk droplets of K1 and K2 are released into the copper (II) sulphate solution gently. After released, both of the droplets are not dissolved in it. The K1 droplet slowly sank in the copper (II) sulphate solution while K2 droplet slowly floated on the top of copper (II) sulphate solution due to the different density. The density of K1 was higher than the density of K2 and copper (II) sulphate solution while K2 was lower density than CuSO4 solution. This experiment is used to determine the fat contained in different types of milk by the movement of milk droplets in CuSO4 solution. The higher the density of milk, the lower the fat contained. The results showed that K1 contained less fat compared to K2. Therefore, K1 was low-fat milk while K2 was full cream milk. In the part B experiment, cooking oil, salad oil, full cream milk, and distilled water were mixed with Sudan III in different test tubes for determining the lipid. Lipids are insoluble in polar solvent s for example water and can dissolve in non-polar solvent. Lipids are less dense than water and will float on the surface of solution. Sudan III in this experiment was used to colour the lipids. It stained the fat cells to become red colour. If lipid was presented, Sudan III will stain it and form red-stained oil. In test tube 1, cooking oil floated on the water surface after being shaken. In test tube 2, slightly red solution being observed after shaken showed that salad oil contain lipids. In test tube 3, the white colour full cream milk became slightly pink milky solution after added with Sudan III due to the fat presented in it. In test tube 4, distilled water formed a transparent slightly red solution after Sudan III was added to it. Sudan III was dissolved in distilled water but water is always negative control because there are only H2O molecules in it. In test tube 5, 3 layers solution became 2 layers solution that cooking oil at the surface. Oil became slightly red and Sudan III dissolved in oil. Sudan III is much more soluble in oil than in distilled water, so the distilled water still clear after experime nt because of Sudan III was absorbed by the oil. The last test tube which is test tube 6, the observation was similar to test tube 2 but it formed slightly orange solution which also contained lipids. Test tube 1, 2, 3, 5, and 6 stained red showed the presence of fat while test tube 4 was the only sample liquid that did not stained by Sudan III which fat absent. In reducing sugar test, Benedict’s reagent was used. Samples of milk, K1 and K2 became orange colour solution when tested with Benedict’s solution and heated. The observation showed that there was reducing sugar presented in both two milks. The solution added with Benedict’s reagent will change colour from green to red depend on the concentration of sugar provided. Before heating, K1 and K2 were bluish milky solution because added with blue colour Benedict’s solution. The colour of the milk changed during heating in the water bath. During the heating section, both of K1 and K2 were changed to green colour and finally orange colour solutions were formed. K1 produced darker colour of orange than K2 and precipitate formed in K1 showed that the sugar concentration of K1 was higher than K2. The biuret test is based on the ability of Cu (II) ions to form pink or purple colour when attached with peptide bonds in alkaline conditions. This was used to test protein in milk K1 and K2. In protein test, both of two samples of milk formed slightly purple milky solution as a result of reacting with potassium hydroxide and copper (II) sulphate solution in Biuret’s test. The solution turned purple in the end of experiment indicated that milk contained protein. After 0.5% copper sulphate solution added to K1, it became 2 layers solution of slightly purple milky solution at top and white colour milk at the bottom. The different concentration of protein can show by observing the different level of purple colour formed. The slightly purple colour formed in K1 was darker than K2 showed that higher protein concentration presented in K1. Precautions: 1.Released the drop of milk inside plastic pipette at the center of CuSO4 solution to avoid affection of movement of milk droplets in part A. 2.Shook the mixtures with Sudan III by using stopper as it is toxin. 3.Carried out the Biuret test for proteins at room temperature as it will cause negative results. 4.Added 0.5% copper sulphate solutions not exceed 10 drops as it will cause negative results. 5.Handled potassium hydroxide carefully as it is caustic. Washed affected area immediately if it contacted with the skin. Conclusion The experiment identified the major food components in different sample of milk. The part A experiment indicated that K2 milk sample contained more fat compare to K1 milk sample. K1 was low-fat milk while K2 was full cream milk. The part B experiment was conducted to determine the presence of lipid by adding Sudan (III) into different test tubes. Sudan III will stain it and form red-stained oil. The result showed that Test tube 1, 2, 3, 5 and 6 contains fat while test tube 4 did not contain fat. When tested with Benedict’s reagent, K1 milk sample produced darker colour of orange than K2 milk sample and the precipitate formed in K1 showed that the sugar concentration of K1 was slightly higher than K2. K1 milk sample formed more slightly dark purple solution than K2 when conducted in Biuret’s test. Therefore, it can conclude that K1 contained more protein compare to K2. References Websites †¢The chemical constituents of living matter. 2009. Retrieved October 27, 2012 from: http://voices.yahoo.com/the-chemical-constituents-living-matter-3856864.html †¢Analysis of the Chemical Components of Milk. 2000. Retrieved October 27,2012 from: http://uncw.edu/chem/Courses/Reeves/OnLineLabs/NonScience/9-milk%20lab.pdf †¢Experiment 3: Identification Of Food Constituents In Milk. 2012. Retrieved October 27, 2012 from: http://www.markedbyteachers.com/as-and-a-level/science/experiment-3-identification-of-food-constituents-in-milk.html