Competitive Point

A point of difference is a marketing strategy that a company uses to distinguish its products from those of its competitors. A competitive point of difference must give the first priority to consumers’ interests and ensure that it comprises something that they prefer.Advertising We will write a custom assessment sample on Competitive Point-of-Difference specifically for you for only $16.05 $11/page Learn More Since the main objective of a point of difference is to locate a benefit that differentiates the brand from others of the same type, a company has to find a feature that will motivate its consumers to purchase its product and avoid those of its competitors. The point of difference strategy is applied to distinguish different brands in the same product category; the three different product categories on which this marketing tactic can be applied include unsought, specialty, and shopping products. How Competitive Point-of-Difference Works The f irst product category, unsought products, consists of goods that consumers do not even want to think about and whose purchases are usually realized as a result of intensive marketing and branding tactics. The consumers do not actively seek out these products to purchase them but rather they get persuaded by the brand’s marketers and advertisement agencies. The best example of a brand under the unsought category of products is life insurance, which people only purchase after a serious persuasion by policy salespersons. Some of the strongest competing brands in the unsought category are: MetLife Term Life that is offered by MetLife Insurance Company, and Prudential Term Life, which is offered by Prudential Insurance Company. The two competing brands have different points-of difference that they use to lure consumers into taking life insurance policies. It is through a well calculated application of the point of difference strategy that MetLife Company has been able to control t he insurance market. The three main points-of-difference that the MetLife Term Life brand uses to attract its consumers include: an affordable way to get maximum coverage, an inexpensive system to cover specific financial responsibilities like mortgage and college expenses, and a reasonably priced means to supplement one’s permanent life insurance during periods when coverage needs, such as family growing and mortgage-paying years, are higher in number. On the other hand, the Prudential Term Life product is based on points of difference such as: the policy is convertible to permanent insurance at any time up to 65 years of age without proof of insurability, the premiums can be waived in case of unemployment or disability prior to the age of 65, and clients enjoy a provision that allows them to purchase another policy from the company without having their premiums increased. On the other hand, specialty products represent a category of goods that are very luxurious, expensive, unique and exclusive in nature. For that reason, these goods are mostly purchased by individuals considered to come from the high-class social category. These goods are not purchased out of necessity but as a result of their brand names and the special features that they have, which make them attractive to consumers.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Two of the most competing brands under the specialty product category are BMW and Mercedes. The two brands use different strong points, which determine the proportion of the market that each one of them dominates. The Mercedes brand employs three main points of difference: the cars have high fuel efficiency especially when the car is used for long distance travel, contain an engine and body that are strong and efficient, and are properly balanced making driving easy and enjoyable. On the other hand, the BMW brand convinces i ts customers by the wide availability and affordability of the cars’ spare parts, the low cost associated with purchasing and maintaining these cars, and their usability on a variety of roads or terrains. The last category, shopping goods, consists of household commodities. These goods differ in aspects such as style, cost, comfort, and most notably brand. These are the major aspects that prospective buyers of this category of goods normally take into consideration before making a decision on whether to purchase a particular product or not. Unlike other consumer goods, shopping goods are durable in nature. The two brands that are known to compete within the category of shopping goods are LG and Samsung refrigerators. The points of difference used by the LG brand are: it is available in different colors, has an assortment of different refrigerator door types, and is fitted with many cooling ways. On the other hand, the Samsung brand is known for unique advantages such as vario us temperature control systems for different types of food, its unique design and fashion that can look good with any kind of kitchen, and its large interior that increases the refrigerator’s capacity to accommodate many food items. Although all the six brands described above have very strong features that enable them to dominate the markets in their industries, the companies that own them should add more strong points to their marketing strategies and slogans to realize more sales. For instance, MetLife could add a catchphrase like ‘the policy assists you to fund your child’s education’ to its slogan while Prudential could incorporate a watchword such as ‘the policy helps you make up for you lost income’ into its adverts. Mercedes could add a slogan like ‘cars fitted with air conditioner that enables you to regulate the car’s temperature while on the road’ to its ads. BMW could also bring in something like ‘we have t he strongest models in the world’ when advertising its brands. LG could include a statement such as ‘fitted with a built-in water filtration’ in its marketing slogans while Samsung could add the declaration ‘extremely strong and durable’ to its product labels.Advertising We will write a custom assessment sample on Competitive Point-of-Difference specifically for you for only $16.05 $11/page Learn More How These Points-of-Difference Convince Consumers The points of difference applied in the six different brands have different effects on potential buyers who are willing to purchase them. For instance, in the case of MetLife Term life insurance, the policy holders believe that such a policy will assist them in getting maximum coverage and in covering some financial responsibilities such as college expenses. The policy holders in the case of Prudential Term Life believe that the policy is of great importance in cases such as job loss or disability. The points of difference used in the case of specialty products also determine the consumers’ preferences and influence their choice to buy or ignore certain special goods. In the case of the Mercedes brand, the consumers believe that these cars are fuel efficient and consume less fuel especially when driven over long distances. On the other hand, BMW’s customers have been influenced to believe that its cars are strong and can be driven even on rough roads. The same effect that is witnessed in the specialty goods is also evident in the case of the shopping goods. The buyers of LG refrigerators believe that the gadgets can preserve any kind of foodstuffs owing to the wide-range temperature control system fitted in them. On the other hand, the buyers of the Samsung refrigerators are attracted to them as they are convinced that they have the ability to clean and detoxify the water stored in them. This assessment on Competitive Point-of-Difference was written and submitted by user Rachael Grant to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Juveniles And The Death Penalty Essays - Law, Misconduct

Juveniles And The Death Penalty Essays - Law, Misconduct Juveniles And The Death Penalty Juveniles and the Death Penalty Why its not a Deterrent, and How it can Become One Today, minors are using their age as a shield against capital punishment. I feel the death penalty is appropriate for juveniles in certain circumstances, such as murder and brutal crimes that are considered capital offenses. The rate at which the death penalty is carried out, as well as inconstancies in sentencing doesnt make it a deterrent. There should not be an age limit in all capital offenses for those who could face the death penalty and knew what he or she was doing was wrong, and a crime. Age limits do not predict when one is able to handle responsibilities. What they do is assume one should be able to take on new responsibilities, laws, and issues. One is not suddenly capable of driving at sixteen, and not immediately given the knowledge of the voting system at eighteen. How does a specific age predict when a person knows right from wrong? By not having a minimum age for juvenile offenders in capital offenses, juveniles special rights and immunities would be taken away. Thes e rights for juveniles exist so justice courts can provide measures of guidance and rehabilitation for the youth by using mentors in society. There have been several laws made for juveniles regarding the age they could be tried as adults in capital cases. Although, the age limit varies from state to state, and even then that age isnt always followed due to different situations in cases. This is what I mean by inconsistencies among court cases. These laws were made because some youth who was not yet considered an adult committed a horrific crime and knew what he or she was doing when the crime took place. These juveniles perform the same malicious acts as adult capital offenders. They need to be punished for their actions just as the adults are so they know they cant get away with crime just because their age says theyre not an adult yet. Thirty-eight states and the federal government created statutes authorizing the death penalty for certain forms of murder and other capital offenses. Presently, fifteen states have chosen the minimum age of eighteen for a youth to be considered for the death penalty, four have chosen the age of seventeen, and twenty states have chosen sixteen as a minimum age. There was one agreement among justices regarding the Constitution which doesnt say juveniles cant receive the death penalty. The Constitution, which has its roots in English Common law, is not in violation of the cases of juvenile death penalties. Before having a minimum age limit in effect, English Common law had a direct influence on the Constitution. This common law, carried over to American statutes, established the assumption that no one under the age of seven had the mental capability to commit crimes. Therefore they had no concept of mens rea, which is a Latin word meaning intent. In English common law intent had to be p roven in cases concerning offenders of ages seven to fourteen, which carried over to be an American standard. Only in cases of youth over the age of fourteen was it possible to acknowledge they had the mental capacity to perform a crime with intent. Because these juveniles crimes were so harsh, the youths case would be transferred to criminal courts and, in turn, makes it possible to sentence violent, juvenile offenders with the death penalty. The idea of whether or not the death penalty should be applied to juveniles is only possible through the transfer of juveniles out of the juvenile courts and into an adult criminal court. Only then can a guilty, violent youth be punished to the full extent for the capital crimes they have committed. Due to inconsistencies in the laws, the death penalty is not a deterrent from keeping youth from committing crimes or fearing any serious punishments. The goal of having stricter penalties will hopefully also decrease the numbers of future generations who commit crimes. I feel that age is not a determining factor in deciding whether or not a youth should be punished for their actions. It should be based on

A Structured Stakeholder Analysis Essay Example | Topics and Well Written Essays - 1000 words

A Structured Stakeholder Analysis - Essay Example This paper will review The Richard and Hinda Rosenthal organization as a key stakeholder in healthcare, with regards to how it acts towards solving the issue of microbial resistance. The association of the Rosenthal Family foundation to health care is derived from its connection with the Institute of Medicine, IOM which in 1988 initiated an outreach program. The program aimed at creating a communal innovative outreach through which organizations and other able parties could team up with the IOM and brainstorm together in solving specific issues in health care. The Rosenthal Family Foundation, which at that time was known as the Richard and Hinda Rosenthal Foundation, strongly moved in to support the move by the IOM. Ever since, the two have been working as partners year after year, and have been including additional experts in the fields in addressing some health policy issues. The main operational base of this partnership has been around Washington DC, although their services in health care have at times extended to other parts of the United States (Institute of Medicine, 2014). One of the most recent campaigns hosted by the partnership between the Institute of Medicine and the Rosenthal Family Foundation is titled â€Å"The 2014 Richard and Rosenthal Symposium 2014: Antimicrobial Resistance: A Problem without Borders†. In this campaign, the foundation reveals that it was inspired by a report released by the Centers for Disease Control and Prevention. The report stated that of the five threats currently facing the United States, antimicrobial resistance dominates as one of the most critical. The issue lies in that about two million Americans acquire bacterial infections, which prove resistant to one or more antibiotics. The result of this is approximately twenty-three thousand annual deaths (CDCP, 2014). The Rosenthal Foundation is representing the World Health Organization, which through the White House in 2011

About Hp company Research Proposal Example | Topics and Well Written Essays - 1250 words

About Hp company - Research Proposal Example any’s major product lines comprise personal computing devices, enterprise servers, related storage devices, printers, and imaging products (HP 2008). The company has been declared by market research firms Gardner and IDC as the largest global seller of personal computers surpassing its closest rival Dell Inc. After having long commanded the industry, the latter has been taken over by 3.9% gap in market share. During 2006, HP generated annual sales of $91.7 billion then jumped to $104 billion the following year making it as the first information technology company to exceed the $100 billion sales mark (HP reaches 100 billion 2008). As opposed to other competing firms in the information technology industry like Apple, HP consumers are the middle and lower income consumers who opt for more affordable products. Even in its establishment, the company has long been committed in serving these consumers who are more price-sensitive and prefers more affordable products with lesser features. The company serves households and small and medium enterprises worldwide, always tailoring its products in order to suit the evolving needs and demand of the buyers. The success of HP can be traced to its ability to price its product more competitively in the market. It should be noted that the company’s sales have been generated by ensuring that consumers’ have an affordable choice in order to suit all their computing needs. The mere size of the company is also an advantage. It should be noted that since the business organization caters to a lot of markets worldwide, it is able to distribute it cost more efficiently through economies of scale. The large number of output that it produces in its plants allows it to distribute fixed cost thereby making its unit production cost relatively lower. This makes it possible for the company to charge prices which are more competitive than its other rivals in the industry. The company’s reach and exposure to both industrialized and

Post Olympic Effects on Hospitality Industry Essay Example for Free

Post Olympic Effects on Hospitality Industry Essay Aim: To identify the issues that the hospitality industry may be faced with  post Olympics 2012 and to recommend  strategies to overcome the reduction in the business to hospitality organisations. Objectives: 1. To study the opportunities in the hospitality industry during Olympic 2012 2. To evaluate the impact of post Olympics 2012 on hospitality industry. 3. To recommend the strategies to the hospitality industry to survive post Olympic downfall in business The London Olympics is spending a huge amount of money for the Olympic Games and for their facilities. Preparing for the Olympics, hospitality industry needs to consider the impact of tourists during the Olympics time and beyond. It involves the pre and post Olympic stays of the tourist. The hoteliers are creating a unique atmosphere and spending lots of money for the Olympics. Hospitality industry has challenges to recover all the money which they spend for Olympics, which depends on the strategies which they will use after post Olympics. The Olympic Game is now becoming the most important event in the calendars of sport tourism and is also acting as a catalyst for the growth of a tourism destination’s product. It is very important to examine the pre-games impact and contrasting them with post games results, researching the works of various authors on the same topics pulls up the threat of vast differences. It is very obvious that there is essential need for more rigorous and standardized industry method to reduce the differences to minimum. The reports of DCMS suggests that there is an inadequate attention and underestimation of importance is being paid to what could be the most important period of all that is the post Olympic period and there is also an overall lacking in understanding the behavior of Olympic tourists. It is very vital to evaluate the post games impact of Olympics on Hospitality as a great deal of money and time is invested into predicting the impacts of the games, the Games suffer from a lack of ex-post analysis. London 2012 will provide an opportunity for UK to generate extra revenue as sport tourism is now considered to be in the introduction phase to the tourism product lifecycle, London now has achieved the position which could help to maintain a unique competitive advantage through tailoring the product to the contemporary tourists. London 2012 Olymdspic Games Visit Britain’s aim’s to use cultural and sporting activities to improve the quality of life, support the pursuit of excellence, creative and leisure industries, and champion the tourism. It will also track progress, monitor and implement as follows: BHA will work towards a new tourism growth target for 2008-11, and later a further target for 2012-15, and monitor progress towards those targets. The Strategy will be to maximize the legacy through effective post-games marketing and make London and Britain â€Å"must see destinations’. DCMS, Visit Britain and Visit London published Winning in 2007 after consulting the local tourism agencies and tourism industry, Visit Britain (2011). Wining is the revised document emerged after consultation and its envisaged programmed will run until 2017. It was an enviable task to write a strategy that would embrace the whole of UK, yet accurate to make the most of the opportunity provided by the London 2012 games . The document also mentions more specific targets and aspirations, as in how through tourism extra revenue will be generated using London 2012 games. For example, it showcases an explicit objective that would help in reversing the decline in domestic overnight stays which explains lack of interests or attention on cultural tourism. Although they mentioned about new festivals, the desire to imitate Australia which achieved success by utilizing the 2000 games and contributed extra thirty percent through cultural activities in international tourist participation and the cultural Olympiad. Can these aims prove feasible/how realistic they can be? A strategy called Winning was published in the year 2007 which was supported by researchers and prominent economist from UK, who claim that the London 2012 Olympics can unveil an opportunity to UK to add ? 2. 1 billion additional revenue to the overall tourism benefits. The substantial economic bequest written is, there will be a dramatic increase in the number of tourist spending, which is merely supported or justified with the aid of their positive projection. The accent on estimated revenue by tourism as a vital monetary consequence of the event allows an appealing negation. The Tourism policy is also being marginalized in organizational structures and strategy scaffolds of broader Olympic development. Visit Britain and Visit London is forecasting that amid 50-70% of the net economic profit of organizing the games measures over 7-10 year period will amass through tourism. These forecasts are a result of â€Å"ex- ante† monetary collision analysis which is reputably unpredictable. (Kronbalatt, 2006) and (Crompton, 1995) indeed suggest vigilance when taking into account such tourism projection for Olympic profits. By developing three estimates of its most probable effects (Blake, 2005) accredited the vague economic results of the Olympic Games. The central case suggests that there can be an increase of 1. 5% to the UK’s tourism amid 2012 and 2016. However possible consequences can range amid a probable decrease by 4% or increase in 7%. To ascertain the correctness of these forecasts, the report also contains ways on how to observe the effects. The only facet that initiates concern is that being so close to the event, the UK had failed to have an initiates in the earlier part as Sydney did. Winning, a strategy which was published in 2007 is supported by suggestions from economists, researches and postulates that the 2012 games will provide them an opportunity to generate ? 2. 1 billion in additional tourism benefits (DCMS, 2007, p. 17). The main tangible economic legacy of the games will be an increase in the number of visitors spending is justified with the help of their optimistic projection. The emphasis on Tourism revenue as the key economic outcome of the games allows an interesting contradiction. Tourism policy has been marginalized both in the organizational structures and policy framework of wider Olympic planning. Visit Britain and Visit London is estimating that between 50-70% of the net economic benefits of staging the event measured over 7-10 year period will accrue through tourism. Such forecast are the outcome of â€Å"ex-ante† economic impact analyses which are notoriously unreliable (Crompton, 1995). Kornblatt (2006) certainly recommends caution when considering the tourism projections of â€Å"Olympic benefits†. These positions are reaffirmed by academic analyses. By developing three estimates of its likely effects (Blake, 2005) acknowledged the uncertain economic outcomes of the 2012 games. According to Blake’s â€Å"Central Case†, the most likely outcome is that there can be an increase in tourism to the UK of 1. 5% between 2012 and 2016. However, Blake also suggests that the effects could range between a reduction of 4% and an increase of 7%. To establish the accuracy of these forecasts, the report also includes measures on how to monitor the effects. The only aspect that initiates worries is that, being so close to the games, the UK does not almost have any initiatives similar to that of Sydney, where effects of longitudinal tourism were monitored by groups that began working well before the 2000 games and which included a strong representation from the academic community ( e. g. , see Faulkner et al. ,2001). To recommend the strategies to the hospitality industry to survive post Olympics downfall in business: According to a stark warning from the European Tour Operators Association issued for the start of British Tourism Week LONDON tourism is â€Å"running away† from the U. K. rather than toward it. The main concern was the shortage of availability of hotel space at â€Å"reasonable market rates† in London during Olympics period. ETOA’s Executive director, Tom Jenkins had said that the European tour operators are â€Å"most concerned that the U. K. in general is underperforming on the worldwide tourism market†, citing a 105% U. K. 10-year growth figure compared to 130% growth in European tourism and 195% worldwide. On the other hand along with raising problems with the taxation system and the complications and restrictions imposed with getting a U. K visa, Jenkins also highlighted â€Å"a core postulated that London will have bonanza year for business in 2012† as leading to overpricing and a potential pre- and post-Olympics â€Å"crater† in the hotel market. He also warned this Olympic effect could have much longer lasting implications. According to the research made by us we would recommend the following strategies for the issues: UK hoteliers should be able to position themselves for the London Olympics: Hoteliers need to consider the before and after impact of visitors coming for the Olympics or arranging the vacation holidays around the time of the event. They need to consider the impact of the event itself. It should be mainly focused in terms of occupancy and rate and most of the hotels should have sophisticated models in place to deal with these issues Smith and Stevenson (2009) . London hoteliers should incorporate Olympics related ideas into their packages: The hoteliers should use the occasion to create a unique atmosphere. It is important that all the UK hotels recognizes that it will have to step up to the plate and offer a world-class welcome to what could possibly be completely new inbound markets Gibson (2010). Improving customer service: People expect best service when they come to visit the country for the Olympics. In this situation many skilled workers are required for providing a good experience for the visitors. The hotels must employ sufficient staff, as well as well trained chef to work flexibly and must be able to cope up the pressure. They should employ people who will welcome the visitors in a helpful manner and in a professional way. They should also have good language skills as well as they must be aware of disability requirements and other cultural ideas, Red White and Blacks (2011). Need to increase accessibility: The Paralympics games are going to attract nearly 4,500 athletes, the tourism business must strive to provide reliable information about accessible facilities and must understand the need of the visitors mainly the disabled people. They should explore the possibility of the research of the effectiveness of disability awareness training in the tourism industry. They should also consider the disability training as a part of gold standard customer service work Improve skills and retention of the staff: For the last two years more than half of the managers do not have minimum management qualifications. There is a severe shortage of skilled chefs. The main backdrop of the hospitality industry is high rate of staff turnover which costs approximately ? 1 billion each year. The employers should check for the qualification reform while recruiting new staffs. The industry must check more for employee benefits as well to retain the employees Kirkup Major (2006) Bibliography:

The European Union Essay -- EU Europe European Union Politics Essays

Introduction In the course of fifty years, the European Union has expanded from six countries united under economic treaties to a large collective of twenty-five sovereign nations. Maintaining the union within such a large group has grown more difficult as numerous treaties have been drafted to control the governance of the European Union. To reduce the number of treaties in the union, the convention decided to draft a Constitution, which now moves through the process of ratification in each of the sovereign nations. The Constitution works to set up a basis for the expansion of the Union and the requirements that need to be met when a country seeks entry into the Union. But with the greater controls the EU seeks to place on the legal arena, many countries question whether their individual sovereignty will survive in the system. The evolving legal system will be shaped by the Constitution, but the influence of the document could reach much farther than what it allows for in the text. In this paper, I intend to explore how the Constitution will affect the culture within the European Union through the legal changes imposed on nations and the further expansion of the Union. History of the European Union In 1950, after the economic depression caused by the first and second world wars, Europe sought a way to ensure lasting peace among the nations. The French Foreign Minister Robert Schuman, following the ideas of other world leaders, proposed to integrate the European coal and steel industries in the hopes that political and economic unity would ensure peace among the involved nations. This brought forth the European Coal and Steel Community in 1951, constructed between Belgium, West Germany, Luxembourg, France, Ital... ...e than the United States of America. Works Cited A Constitution for Europe. Luxembourg: Office for Official Publications of the European Communities, 2004. Craig, Paul and Grà  inne de Bà ¹rca. EU Law: Text, Cases, and Materials. Pg 9, 11. New York: Oxford University Press. 2003. d’Estree, Claude. Personal Interview. 9 March 2005. â€Å"E pluribus unum?†. The Economist. 25 September 2004. â€Å"EU Czech Klaus Reaction†. CTK National News Wire. Brussels. 4 March 2005. General News. â€Å"The History of the European Union†. 2005. Europa. 7 February 2005 . Wolf, Martin. â€Å"No way to create a more dynamic and flexible Europe†. The Financial Times: London England. Pg 17. 7 April 2004. Smith, Don. â€Å"RE: EU†. Email to Katie Mulligan. 9 March 2005. Smith, Don. Personal Interview. 2 March 2005.

Commentry on Rising Fuel Prices Essay

Air travel is fast getting out of reach for relatively small town Indians. According to Airport Authority of India’s (AAI) latest figures, April 2008 saw lesser number of people flying from places like Goa, Patna, Thiruvananthapuram, Guwahati, Calicut, Srinagar and even tourist hotspots like Udaipur, Jammu and Jodhpur over same period last year. On a national basis, the growth rate of domestic passengers this year has fallen to single digit, down from the heady 30% to 40% figures recorded in past three years. While this growth was largely due to airlines offering attractive fares, the drop in passenger flow was as high as 35% in Jodhpur or 24.5% in Jammu. These figures have the alarm bells ringing as the steep hike in jet fuel prices – which have led to sharp increase in airfares – started only in April and the fall in flyers could get much worse for later months. Till April, fuel surcharge on each ticket was Rs 1,650. Now the same surcharge is between Rs 2,250 and Rs 2,900 and base fares are also much higher, making flying a fancy for many. â€Å"We are slowly reaching a situation where only flights between metros or ones originating or ending there may remain viable for airlines at these operating cost levels. State governments must come forward and offer low sales tax on jet fuel to airlines in return for an assurance that the latter would neither cut flights, nor hike fares to those places,† said a senior AAI official. In fact, the huge 30% to 40% growth recorded in past four years (after the advent of budget carriers) was substantially due to airlines rushing in with flights to places where bus and rail users could be shifted to air by the lure of low fares. But now with airfares on the rise, this connectivity is under severe threat. Airlines have already started pulling out of unprofitable centres. SpiceJet executive chairman Siddhanta Sharma gave the airlines’ perspective. â€Å"Basically flights from most small cities are short haul. On such sectors, high airfares now compete with other cheaper fares of other modes of transport and air travel becomes unviable. Only a reduction sales tax on jet fuel may help keeping such places connected as we would be able to offer competitive fares,† he said. But as state government still dilly dally on this issue, their connectivity is suffering. Cities like Lucknow, Varanasi, Trichy, Patna and Rajkot witnessed much lesser domestic flights in April 2008 than last April. While fares of international flights haven’t risen as sharply, international passengers have also declined. Times of India Introduction: The Indian Aviation sector has grown by leaps and bounds over the last financial year but this seemingly booming sector is now slowing down. The above article talks about the decline in the number of air travellers from cities other than the metropolitans. The growth in the number of passengers came about because of one major reason, the introduction of low budget airlines which fly at a much lower cost. Even this effect is being negated by the rising cost of civil aviation. I will use the concepts of Choice, Necessity and Price Elasticity of Demand. The alongside diagram shows the increase in Jet fuel or aviation fuel over the last few months. It also comparatively shows how expensive travelling by car is becoming, due to the rising fuel coats. Figure 1 Concepts Involved: There are mainly three basic concepts involved in this article- ‘Choice’,’ Necessity’ and ‘Price Elasticity of Demand’. 1. Choice: In today’s day and age of cut throat competition, if we need to travel from New Delhi to Mumbai we have several options regarding as to what mode of travel that can be taken. Flying is obviously the fastest and least time consuming and according to popular belief was also very expensive. Since the introduction of low budget carriers, the cost of flying drastically reduced, as these airlines worked on a â€Å"NO FRILLS† policy meaning that they offered no service whatsoever. As a result travel by aeroplane became as expensive as travelling by a second or third class Air Conditioned compartment by the most popular mode of transport in India namely the Railways. As a Result the people travelling by rail reduced in the respective ticket brackets and the passengers aboard aeroplanes increased. People from smaller towns thus for better and quicker travel increased their journey a little bit out of choice and took a plane from the nearest airport of their departure to the airport nearest to their destination. Footnotes: 1. Financial Year- the time period between the 1st of April to the 31st of May. It is called a financial year as the government of India asks for the finances of a company between this period. 2. Low Budget Airlines- They are those airline services that operate on a lower cost due to certain in-flight service policies that they follow. As the price of aviation fuel rises so does the cost if the ticket required to sit on a plane and as a result people from smaller towns are not finding air travel to be a viable means of transportation as they found to be having a lesser income than travellers in bigger cities are resorting to the next best option for their travelling needs. 2. Necessity: A necessity in economics means a compulsion to consume a certain good or service. This applies to a lot of people who travel from larger cities by air. Maximum usage of domestic air travel is done due to some business activity. Businessmen are in vast numbers in big cities such as Calcutta or Bangalore and as a result they not only have a want to travel but this want of theirs is a need. They travel by air as it is the best and the most convenient way to get to a destination in which business has to be transacted. As a result he businessman would not care what the price of air travel is as; they gain more business in exchange for paying a higher price. 3. Price Elasticity of Demand: Elasticity of demand is the responsiveness of the demand of a commodity to a given change in the price of a commodity. We can generalise the kind of people who travel by air in two categories, one who have a highly elastic price elasticity of demand for a commodity and the other who have a relatively inelastic price elasticity of demand for air travel. People from smaller towns will be generally classified in to the first category as they use air travel as an alternative to other modes of transport and seeing a rise in the price they will happily revert back to their earlier means of travel. Travellers from large cities on the other hand will be classified into the second category. They travel by air out of necessity or because they have enough means to account for a rise in the price of air travel. As a result a change in the price will induce small town travellers to cut down on air travel while not so much affecting others from larger cities. Conclusion: Travelling by air for people in smaller towns was a better alternative and not a necessary change. As a result when price went against them, they simply chose not to fly by air. Footnotes: 1. Highly Elastic Price Elasticity of Demand – A change in demand which is related to the price of and article. It is called highly elastic as the change in demand is large due to a change in price. 2. Highly Inelastic Price Elasticity of Demand – A change in demand which is related to the price of and article. It is called highly inelastic as the change in demand is not very large due to a change in price. 3. Aviation fuel- The fuel consumed by aeroplanes. 4. Domestic air travel- Travel which is within the country. 5. Want- It is a desire to consume a good or service backed by the ability and willingness to pay for it. 6. Business- A venture taken on by an individual with the purpose of gaining a profit out of it. Bibliography: * The article was taken from the Indian newspaper â€Å"The Times of India†. Dated 2nd July it is written by a journalist by the name of Saurabh Sinha. The link to the article is: http://timesofindia.indiatimes.com/Steep_fares_lead_to_drop_in_small-town_flyers/articleshow/3186374.cms * The footnotes and other definitions were written with the help of the book: â€Å"Economics Course Companion† written by Ian Dorton and Jocelyn Blink. * Footnotes and definitions that are not found in the book were written out of memory and previous reading from various unrelated and previously read newspapers and articles. * http://content.edgar-online.com/edgar_conv_img/2007/12/21/0001362310-07-003512_C71797C7179706.GIF