Macroeconomics Essay Example | Topics and Well Written Essays - 750 words - 1

Macroeconomics - Essay Example And this is manifested in the steepness of the curves. As shown above at current utility U1, consumer A3 appears to be more aggressive and impatient compared to consumer A1. That is A3 is consuming 60,000 units now compared to A1 at about 36,000 units with the prevailing interest rates. If everybody moves in the direction of the arrow, which is more time and consumption in the future, then the same scenario is replicated with a marginal change of current consumption. (Balvers, Cosimano & McDonald, 1109-1128) Interest rate can also determine the opportunities of investment. Investment has the purpose of creating future wealth for utilization at that time. Thus considering that one can invest by either a past saving or current borrowing, a saving is composed of one net income less what is consumed. Also in order for one to be able to be wealthy in the future, from a borrowed capital point of view, they will need to have paid the tax on the borrowing with the accrued interest. There after the value of the wealth will ALSO be on the market price plus the principal sum that has been paid back. Consider the diagram below. (Balvers, Cosimano & McDonald, 1109-1128) When we have lower interest rate savings, we are likely to accumulate more wealth for future consumption or for further investment from the decent returns. The concave curve moves outward as shown above. However when we have a higher rate of interest borrowing there will be a lower rate of wealth created for future consumption. The concave curve moves inwards to the left. The two diagrams are now superimposed as shown below. (Balvers, Cosimano & McDonald, 1109-1128) The next point is to establish the optimal point at which interest rates determine the consumption and the investment simultaneously. The aim is to achieve increased wealth utility (consumptions) with

Services marketing and relationship marketing Essay

Services marketing and relationship marketing - Essay Example The process of addressing customer concerns on every call is considered the front-stage activity. Every customer interaction is a â€Å"moment of truth.† (Teboul, 2007, p.19) The back-stage is where the company works on how to provide the services promised on the front-stage interactions. Both the front-stage and back-stage components are essential in providing services to the customers (Blumberg, 2003, p.23). Every successful service provision is composed of interaction and material transformation (Cook, 2011, 34). Both are significant, but very distinct (See Figure 1). Knowledge of the distinction is necessary because overseeing a direct interaction with customer in the front-stage is very different from managing the material transformation in the back-stage. The end result of successful front-stage and back-stage operations is customer satisfaction (Blumberg, 2003, p.27 and Cook, 2011, 35). Figure 1 Front-Stage and Back-Stage Distinction SERVICES AND RELATIONSHIP MARKETING 3 It is noticeable that the arrows in the flow chart go both ways. This is because every aspect of service delivery consists both of the front-stage and back-stage processes, and although not interchangeably, very much connected to each other (Glushko & Tabas, 2009, p.407). Gathering of Services Request Information – This involves a direct customer interaction of the company representative, either through phone, mails, or face-to-face communication (Vargo & Lusch, 2004, p.68). A fitting scenario could be, a customer calls in and talks to the service representative. The customer inquires about services provided by the company, and decides whether the services suit his/her needs and budget. The representative provides information that is based on the set procedures by the company. These procedures are also based on the ability of the company to process the promised services. This is the reason why the arrows here go in both directions (Glushko & Tabas, 2009, p.4011). Processing of Promised Services – This is where the processing of requested services takes place. Representatives from the operations department, where the actual customer interaction takes place, pass the requests to a certain department where the planning for material transformation of the promised service occurs. Activities may range from paper works to on-field delivery or services. No services will be processed in the back-stage without requests from the front-stage (Wa?gar, 2007, p.641), which is another reason why the arrows here go in both directions. Information-intensive interaction – This involves the actual interaction again with customers. When a customer calls in and contacts the customer service department (front-stage), they usually ask for information on possible services they could obtain. The representative’s responsibility is to provide adequate information and choices to the customer. They should sound knowledgeable and expert in the service informati on they offer (Glushko & Tabas, 2009, p.416-7). Confidence building in customers usually start at this stage (Vargo & Lusch, 2004, p.68). The decision on whether the customer will acquire the services offered by the company usually depends on how well the interaction took place. It is the duty of these