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Porsche Company: Buyer’s Decision Process Analytical Essay

Buyer decision process of a typical Porsche buyer: analysis Typical buyers of Porsche are realized to have been influenced by identity that has been associated with the car model. This identity is first of all realized in the features that the car was given and that were realized to be outstanding.

The uniqueness that was for instance realized with the adoption air cooled cylinders in the automobile models to an exclusive feeling on the vehicle owners. The identity concept is also realized with the relatively fewer number of users that the brand registered.

While its outstanding feature of the incorporated cylinders attracted the owners who personalized the car model, the feature at the same time drove away people because it made vehicle hard to drive. Consequently, the brand remained with just few customers that were deeply rooted into the car model.

The brand is at the same time associated with a financially successful class who associates with the model due to identity. Owners of the brand are also reported to be buying it because of the utility that they derive from driving the car model as opposed to other models.

Consumer behavior with respect to the Porsche model is also realized on the ground that when the company infiltrated the model with a variety of other brands, it lost its customers until it resumed its limitation to the number of models being produced.

Though the consumer behavior of the typical users of the Porsche model looked a bit odd with the factors that the use of the brand was characterized with some level of difficulties such as driving difficulty as well as costs, consideration of buyer behavior still illustrate consistency, to some level, in the choice that the individuals made over other vehicle brands. An individual’s life style is for example expected to affect decision making of a buyer into self identity with commodities.

Such was the personalized association that was realized with the typical users. They wanted the brand for social identity with their lifestyle status. Perception of exclusivity that was created by scarce production of the brands together with its subsequent attitude was also factors to the consumer behavior.

Get your 100% original paper on any topic done in as little as 3 hours Learn More This identity driven purchase illustrates priority on the need recognition in the decision making process with disregard to other factors such as “information search and evaluation of alternatives” (Lamb, 2009, p. 329). The company thus used brand identity to manipulate the decision making process of typical buyers (Lamb, 2009)

Decision making process of the traditional Porsche customer and that of Cayenne or Panamera customer Contrary to the initial influence that the company derived from its brand identity that was basically characterized by class and the fact that the brand was specifically made in scarcity to strengthen the identity, the later brands that the company released in the form of Cayenne and Panamera were equipped with features that were meant to influence consumers through the whole decision making process.

The cayenne for instance was equipped with the capacity to faster acceleration and high speed that could match other car manufacturer’s models. The development of the larger model in the form of Panamera was also identified with improved features that influence consumers in the line of decision making. Increased luxury that was developed in terms of an extra door in the brand together with its higher speed and acceleration thus formed the basis.

The Cayenne and the Panamera customers thus had their decision making process pass through the “information search” process and the comparison of available alternatives in the market. This actually allowed the company to increase its sales from collapse due to its introduced competitive features (Lamb, 2009)

Concept behind the high sales of lower priced models in the 1970s and the 1980s The concept that the company employed to improve on its sales in the period was the marketing concept. This is because the introduction of the new brands which were at the same time cheaper were aimed at capturing individuals who could not fit into the initial class of Porsche due to high prices that the initial brand was associated with.

The company’s focus was not based on growing to large scale to increase its revenue but on the contrary using its identified weakness to capture more customers for a stronger base. This motive thus distinguish the concept as marketing whose main consideration was identification of customer’s need of lower priced brands (Kotler

Is Globalization the Main Culprit for the 2008 Global Financial Crisis? Research Paper

Nursing Assignment Help The global financial crisis that began in late 2007 but erupted in 2008 was considered one of the worst threats to the global economy. The global financial crisis was characterized by credit crunch and the collapse of stock markets.

The results of the crisis were massive since it led to the evaporation of investment decisions by firms, loss of jobs and loss of income. There was generally an economic recession in majority of the developed world and hence it slowed economy in the developing world.

It is true that globalization is linked to the global financial crises. I agree that globalization is the main culprit of the financial crises; this is largely because the agents of globalization are largely associated with the emergence of global financial crises as will be explained below:

Main Analysis Globalization can be defined as the intensification of trade and other economic activities between countries of the globe in terms goods, services and also investment. After the cold war, majority of the countries embraced the basic principles of globalization like free trade. The plain understanding of globalization is in the perspective of free trade, the function of foreign company and trade.

Globalization as a phenomenon is often linked with financial de regulation and the neo liberal economic revolution; but the Asian financial crisis, the Enron scandal and the growing inequalities together with the financial crisis have lead to more concerns on the neo-liberal strategy.

The negative effects of globalization on a national economy can be so disastrous according to the works of Joseph Stiglitz. There has been a lot of opposition to globalization since it is associated with the volatility of commodity prices and its impact on the distant economies. The ever spiraling increase in the global prices of food and fuel is considered a result of globalization.

In the 2008, for example, the surge in the prices of fuel and food commodities which are the fundamental commodities in the global market negatively impacted on the world economy. The main reason why there was an increased volatility in the global market during the 2008 financial crisis as opposed to other crisis is due to the globalized economy (Turner and Khondkar 42).

Get your 100% original paper on any topic done in as little as 3 hours Learn More Globalization has eroded the powers and the sovereignty of the state, the role of the state to regulate and to steer forward the economy has been largely ignored at the expense of the market, these are the problems and the vulnerabilities that often emerge as a result of the globalization of the world economy.

Financial liberalization involves the elimination of tariffs, and duties have resulted in an unrestricted cross border transaction. The 2008 economic crisis was largely associated to the collapse of the Lehman bothers, which was the largest American investment bank; this brought to fore the function and the capacity of state institutions and revived the debate that despite the growth of globalization forces, there should always an efficient state structure (Turner and Khondkar 58).

The trend of globalization had been increasing after the end of the cold war when America was declared the world superpower following the collapse of the USSR. This trend of globalization had been characterized by the increasing levels of trade, intensified movement of people and the advancement of technology that has brought the people and the entire world into a closer economic, political and cultural unit.

It is this increasing independence that led to the 2008 global financial crises due to the fact that the monumental accumulation of global debt in the American financial institutions was unsound. The 2008 economic crisis had roots in the 1997 financial crisis in the Asian region; after the collapse of the Asian markets, people opted for the USA as a favorite investment destination.

This led to the increase in the value of stock market and the rise in the price of housing. This movement of capital from one location to another like for example the Asian Region to the US was made possible by globalization and hence globalization is directly linked to the global financial crisis of 2008 (Bulliet et al 824).

The institutionalization of global phenomenon like the financial globalization has contributed to the increase in the inequality gap between the developed and the developing countries; this is largely associated with international capital flows.

Financial globalization was touted as the best mode of enhancing savings, relax the credit stress, and improve the income of the developing countries and to stimulate economic growth.

We will write a custom Research Paper on Is Globalization the Main Culprit for the 2008 Global Financial Crisis? specifically for you! Get your first paper with 15% OFF Learn More This was never to be the case as financial globalization could not meet these expectations but instead it helped intensify economic instability. Trade liberalization together with its expected impact like prospect of economic growth, employment and income inequality came under close scrutiny.

The emergence of financial globalization and wealth inequality has resulted in the unequal flows of capital and also uneven progress in the opening of capital accounts; unlike in Asia and Western countries, those of Africa and the Latin America have lagged behind in opening their capital accounts.

The world has witnessed uneven financial globalization which is linked to the global financial crises (ILO report 39).

Emmerich and the group in their book titled Globalization 2.0: roadmap to the future from leading minds have identified seven virtues of globalization and in these virtues, one has been linked to the global financial crisis, and this is the thrift; Emmerich, Ijioui and Ceyp related this virtue with 2008 global financial crisis and the increasing opulence in some parts of the world.

They argued that in the western world, people had socialized themselves with the period of cheap money and hence they considered it primitive to save money leading to the decline in savings in Anglo-Saxon countries like the Britain, Canada and the US. These countries were paragon of economic and financial culture and hence they adopted the culture of non-saving.

When the global recession hit, commercial banks had run out of savings, the population had little to spend and hence generally low liquidity level which resulted in the collapse of commercial banks (Emmerich, Ijioui and Ceyp 80).

When the global financial crisis is analyzed in the context of globalization, then the instability that is created by the speculation about trade is worth mentioning.

The global financial crises did not only concern the financial markets but also the international institutions and its productive structure since globalization is controlled at the core and its effects will only be triggered at the center and will be felt across the globe as exemplified by the 2008 crisis that was triggered by the financial markets in the USA and was felt all over the globe.

Not sure if you can write a paper on Is Globalization the Main Culprit for the 2008 Global Financial Crisis? by yourself? We can help you for only $16.05 $11/page Learn More Due to the forces of globalization, financial crisis can be mad-made; the realization that the global world desperately needs oil and the fact the Washington consensus legalized trade liberalization makes the world vulnerable to the whims of cartels, especially if they have the knowledge and the ability to determine the timelines of the speculative course and the subsequent collapse of the speculation who can take advantage of speculative trade to push the prices of crude oil upwards (Chodussudovsky 1).

Conclusion The occurrence of the global financial crisis in the year 2008 was considered globalization at its death-bed; there was an imminent dissolution of the globalized world. This was further exacerbated by the fact that the global financial crisis was followed by the world economic crisis, which was a reflection of how the global chain reaction can be triggered and can interact to pull a destructive fashion.

There have been some demands that the goals of globalization should be redefined that is; world leaders should consider other ways of cooperation and also they should create institutions that should be used in solving international disputes.

With the current developments with regard to the three forms of globalization; global markets, infrastructural development and global corporations, then the future appear bleak since these forms of globalization are man-made and hence volatile and prone to suffering from the vagaries of nature.

Globalization has led to simultaneous impoverishment of individuals from different nations largely due to the global market mechanism factor. The several global financial crises are not only due to the volatility of the financial markets but also due to the collapse of state institutions and the development of rapid profit ventures.

Works Cited Bulliet et al. The Earth and Its Peoples, Volume 2, 5th Ed. New York: Cengage Learning, 2008. Print.

Chodussudovsky, Michel. Global financial meltdown. Global Research, 2011. Web.

Emmerich, Heike., Ijioui, Raschid and Ceyp, Michael. Globalization 2.0: A Roadmap to the Future from Leading Minds. New York: Springer, 2009. Print.

ILO report. world of work report; income inequalities in the age of globalization. ILO Report, 2008. Web.

Turner, Bryan and Khondker Habibul. Globalization East and West. New York: SAGE Publications Ltd, 2009. Print.

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