Information Systems of TESCO

Information Systems of TESCO The report includes an analysis of the company major types of information systems, including a more detailed assessment of its Transaction Processing system, Decision Support System Enterprise systema and supply chain management. The company Decision Support System (DSS) is based on the effective collection of information through its Transaction Processing Systems. Management Information System (MIS) We are living in a time of great change and working in an information age. Managers in the big company now have to deal with masses of data, convert that data into information, analysis the information and making decisions leading to the achievement of business objectives. For an organization, information is as important resource as money, machinery and manpower. It is essential for the survival of the enterprise. Before computers are widespread used in the world, many organizations found difficulties in gathering, storing, organizing and distributing large amount of data and information. Development in Management Information System made possible for managers to select the information they required, in the form best suited for their needs and in time they want. This information must be current and in many cases is needed by many people at the same time. So it has to be accurate, concise, timely, complete, well presented and storable. Most companies in nowadays depend on IT. But personal computers (PCs) themselves will not improve organisational productivity: this only comes out about if they are used efficiently and effectively. This information system is the mechanism to ensure that information is available to the managers in the form they want it and when they need it. It is designed to support their work through providing relevant information for their decision-making. Computer system can clearly help organization in the processing of data into accurate, well-presented, up-to-date, and cost-effective information. However, weather that information is also concise, relevant, timely, and complete will largely depends on the capabilities of the people involved in its processing and selection. Management Information System Stages: Problem identification Implementation Search information System need System design Documentation Testing Definition: Information Systems is the application which designed to help, managerial needs, direct business and organizational operations. An information system needs to be knowledgeable of what information technology can give to an organization and how to get that solving solution of a particular condition. The effectiveness of an information system lies in the potential to apply the knowledge of information systems and technology collectively to help organizations strive more successfully in the marketplace. Introduction The organization I have selected is world famous retail giant TESCO. TESCO is a British based company working in general merchandising and retail business. Its profit exceeds three billion pound a year and it is the third largest retailer in the world. TESCO is working in more than 12 countries of the world. TESCO is the leading Superstore Company in UK with more than 2000 stores in the UK. It specializes in many items including food, drinks, clothing, electronics, financial services, home appliances, health care, insurance, dental care, music and telecommunication services etc. TESCO is world-class retailer company and everyday more than 11 million people visit TESCO stores. TESCO has got actually one of the most sophisticated retail supply chain in the world which makes it possible for all the guests to get whatever they need for the last 10 years. TESCO is also one of the most successful on-line grocery shopping services in the world which has more than 750000 active customers across the world Nature of Information system: Largest global grocery retailers TESCO, has successfully put into use Oracle and SAP Business Objects Polestar applications, because it is the retailer preferred enterprise system. For implementations of these enterprise system TESCO work out on feasibility, how they can make out best of these applications. TESCO, Oracle Retail Warehouse Management System, Oracle Marketing platform, Oracle accounting Hub, Oracle HR, Oracle BI, and SAP Business Objects Polestar has provided TESCO with a solution that is now a basis for common processes and operations locally and internationally. Functional uses of MIS Sales and marketing: Company previously were using Linux system for digital marketing purpose, since switching to Oracle Marketing platform TESCO business is closer to their customer than ever because of the digital marketing services which is in its providing supports intelligently targeting about the consumer buying habits. For example: Oracle generates personalized incentive and discount scheme to encourage customer loyalty. For these customers all they need to do is, register to receive Oracle promotion with the swipe of a credit or debit card which is located nation wide. Every time the customer of an Oracle subscriber makes a purchase the transaction data electronically transmitted to oracle’s database. This is how company are identifying and learning about their shopping patter and with the help of these discount and incentive scheme they can understand their customer future purchases. Accounting: Oracle accounting Hub helping TESCO to do day to day firm activates such as; Invoices Inventory control Customer detail Supplier details All sales and purchases Ledgers Products details Oracle financial Accounting Hub provides an internal control structure to ensure successful audit and compliance reviews. TESCO accounting structure is not also bound of Oracle accounting Hub, company can quickly accommodated with effective changing according to the organisation requirement which mean Oracle providing flexible accounting and finance system to the organisation. Human resources Management (HCM) and finance: TESCO encourages and provides opportunities to its employees to participate in higher educational programmes to get professional skills. TESCO has introduced two courses for its employees, these are training programmes and the once the workers complete these trainings they qualify for higher posts. These two programmes are Pre-Optional Test Optional Test These training programmes enhance the retail and customer service skills of the workers. In order to achieve that Oracle HR software are providing workforce information to the Managers. Through the software a manager can know starting and finishing time of a particular job. Human resources system (HRM) also helping in TESCO to manager regarding recruitment and retention objectives. Another example of effective Oracle HR system Retailers are well versed in the reality of store theft. Losses aren’t just about simple shop-lifting, however. They’re also about fraud and poor information management. Containing such losses requires a disciplined approach, starting with smart point of sale (POS) systems and travelling all the way up the chain to human resources. As an example, POS systems can be used to help cut back on fraudulent returns by allowing sales staff to quickly tap into customer, financial and inventory information to instantly show if a return is likely to be genuine or not. Sales staff should not be expected to distinguish between genuine and fraudulent returns without information, help and support. TESCO currently a system that allows personnel and finance department remain up to date with changes in employees preferences for work and their personal contact details i.e. bank account information, and tax contributions. Each time one of the employees clocks in and out of work it is processed electronically enabling personnel department to work out their wages and any tax contribution they owe, these are worked out automatically. Manufacturing and Production: Business circumstances demand immediate attention. Oracle BI Applications provide TESCO proactive, event-based, and scheduled alerts that are delivered directly to users via email, handheld, and other portable devices or to a personalized dashboard. Powerful, timely, and actionable information help prevent issues from becoming problems. Production planning: For example When overtime levels at a production facility are in danger of exceeding budgeted levels, Oracle BI Analytics sends an alert to the plant manager and company controller. Armed with this information, they can quickly correct the deviation, preserve profit margins and examine alternatives to paying overtime such as hiring contractors or more full-time workers. System from a constituency perspective: Transactional processing system: A Transaction Processing System also referred to as TPS is an information system used to collect, retrieve, store, and modify transactions within an organization. For a computer to be considered a transaction processing system it must pass the ACID test Atomicity Consistency Isolating Durability Each transaction process is standardized to increase competence, TESCO require a custom made TPS which works with TESCO business strategy and processes. This is why there are 2 types of transactions. Batch Processing: Batch processing stores data for processing at pre-defined times. Batch processing is useful to an organization because it needs to process large amounts of data using limited resources. Real Time Processing Real time processing systems are in place to react to an event within a prearranged time. These types of operating systems are found within organization i.e. banks. TESCO rely on their TPS because of the fact all there transaction made to there suppliers and customers and any middle parties involved are done by TPS also all the products have a bar code which the TPS uses to figure out how many products have been sold and needs ordering etc Key features of TPS Rapid Response Reliability Inflexibility Control processing Management information systems: Management information system also referred to as MIS and management information services, this is a computer based system which provides TESCO managers with essential tools for managing, evaluating and efficiently running their departments this enables them to provide past, present and prediction information, an MIS can also include software that helps managers in decision making, Within organizations the department which is usually responsible for computer systems is called the MIS department however other names such as IS (Information Services) and IT (Information Technology). For example TESCO can use this system to find out how many hours the employees have worked over a period of time, and get monthly reports of expenses compared to the costs. TESCO also use this system in Replenishment, Pricing Analysis i.e. Markdowns and Sales Management. Decision support systems (DSS) With the help of SAP Business Objects Polestar provided as part of SAP Business Objects Edge BI, TESCO guided data navigation application that helps TESCO to easily explore information and quickly answer important business question via simple search on daily, weekly, monthly and yearly basis. Moreover, it helps to analyze the salary trend on regular basis. Furthermore, with the help of SAP TESCO is able to analyze recruitment success rate, applicant statistics and dropout reasons. Moreover, provide to TESCO accurate data from the HRMS application and provide the tools to make better, more strategic decisions. Executive support systems (ESS) A ESS (or DSS more in general) is a software system under control of one of many decision-makers that assists in their activity of decision making by providing and organised set of tools intended to impart structure to portions of the decision making situation and to improve the ultimate effectiveness of the decision outcome for the executives. Organizations should focus improving their ESS after it has been implemented to maximize its usage. The decisions the executive makes should be tracked with the use of cause effect relationships. The system can produce graphs, statistics, and etc. to show the effect of the decision and depending on the time frame of when the decision was made; it’s very much possible to turn a negative, decisional outcome into a plus for the organization. Executives should consistently monitor the system for opportunities to improve their decision-making. Oracle Credit-to-Cash Software enables information about activities to be presented to those responsible for the activities whatever is going internally and externally Uniquely enables to TESCO Via these capabilities Improve Cash Flow and Increase Efficiencies Streamlined credit decision; flexible invoice presentment; configurable collections strategies activity prioritization; customer self-service account management; automated receipts revenue processing Balance Growth with Financial Stability and Control Dynamic credit decision based on risk/revenue optimization rules; flexible role-based security, time, event, and rules-based revenue recognition For minute to minute Oracle Credit-to-Cash Software solution enables TESCO mangers to drive working capital efficiency with integrated business processes that lower DSO, increase customer satisfaction, and maintain fiscal discipline. Credit-to-Cash is defined as the business process flow comprised; Cash flow Revenue recognition Working Capital Closing and opening Inventory etc Interrelationship between the systems: The various types of systems in TESCO exchange data with one another. Transactional Processing system (TPS) is a Main source of information data for different systems, particularly Management Information System (MIS) and Decision Support System (DSS). TPS works in TESCO as, operational level systems that compile transaction data. Examples of these are payroll or order processing that leads the run of the daily happening transactions that are important to conduct business in TESCO. TPS make available data that are needed by office systems, KWS, MIS and DSS, regardless of the fact these systems may also avail other data in TESCO. KWS and office information systems not only conduct data from TPS but in addition from MIS. Decision Support System not only uses data from TPS but besides from Office systems, KWS and Management Information System. MIS depend upon heavily on data from Transaction process system but also avail data from Office systems and KWS. ESS gains most of their internal data from Decision support system and management Information system. Enterprise applications Enterprise Resource Planning systems form the ground units of building a complex information system of a company. The role of ERP systems within the wide portfolio of TESCO products is basically the same. Enterprise resource planning systems provide functionality for complex processing of all company internal economic agendas and allow for keeping up-to-date and true view of the companys economical management. Based on a complex and up-to-date approach to managing the information flow in the company, present-day ERP systems are of modular, open and parameter-driven character to be easily customized according to the customers needs. TESCO SW has wide experience in developing and implementing its own partial ERP system based on state-of-the-art technologies of Oracle. Prior to developing this solution, TESCO developed another, similar, system for keeping tally and processing of company internal economic data including assets management (the system was in the Turbo Pascal environment). Supply chain management systems: Oracle Retail Warehouse Management System provides TESCO to a standardization of supply chain pattern across the national and international business and is liable for a steep alteration in distribution centres productivity and potential. Oracle Retail Warehouse Management System is currently totally operational in Southeast Asia, and Europe and now in America. TESCO first put into use Oracle Retail Warehouse Management System at its fresh ambient distribution centre in South Korea. With a requirement to supply more than to 1 million cases across 10,000 SKUs per week, the purpose were to strip out amount from the supply chain, make possible transport through large extent capabilities via one site, and maintain a vanilla to put into practically to get the basis for all further implementations nationally and internationally. A collection of strong base functionality and TESCO-specific growth by Oracle Retail has fixed up TESCO with an answer that is now a foundation for common processes as well as operations across the international distribution centres. TESCO generated a set of centralized processes to convert, manage and join replenishment and distribution and take part with Oracle Retail to join these into the fresh warehouse management system. Where possible, TESCO tried to use a steady execution team to make easier to change management process. Customer relationship management systems: Primarily, TESCO is using the customer relationship management system to chase customer interactions through Email and telephone from the contact centre, and to generate a knowledge base of the information on products such as, food, drinks, clothing, electronics, financial services and frequently asked questions. TESCO Tech Support needs to widen the usage of the RightNow system to a web self service system for customers as well as for staff in TESCO stores. TESCO will further investigate development of web chat so all the customers can connect with the contact centre staff while they are online. Assessment of current used or MIS/Recommendation: SAP and Oracle currently have been using in TESCO to identify their needs in administration area. Both the software’s are currently not fulfilling the required target because they need a system which they can implement worldwide because TESCO has 240,000 employees around the globe. According to David Richardson, people insight director at TESCO, said in a statement. We looked at solutions from SAP and Oracle but felt that a combination of functionality and PeopleSofts culture matched our requirements best. The browser-based system will replace the existing mainframe infrastructure and will help centralise TESCO HR admin. Organizations who fail to upgrade their hardware in support of ESS face the possibility of experiencing slow response times especially when the system is conducting complicated and complex queries. Slow response times may be the result of the organizations unwillingness to spend money on new hardware Furthermore, Oracle Business Intelligence solutions carry best in class technology for Reporting, Analysis, Packaging application system. Day to day Sales and purchases Ground on an integrated, scalable, web-native architecture, Oracles unified and open BI foundation reduces cost of ownership, efficiently accesses information from heterogeneous sources, and provides an enterprise semantic layer with multiple channels of information delivery to support self-service, pervasive BI, and management excellence. Together with Oracle BI Applications complete, pre-built BI solutions that help people understand how their business is performing Oracles Business Intelligence Suite provides the most comprehensive, integrated solution available. Conclusion To Sum up, TESCO benefits from both the transaction processing systems and Management information systems. Using these automated systems helps TESCO to run efficiently by helping with stock replenishment and analyzing sales figures and help TESCO bringing in revenues Billions of Pounds. Resources: http://www.ameinfo.com/75391.html http://www.itbusinessedge.com/offer.aspx?o=00300079lib http://hardware.silicon.com/servers/0,39024647,11032001,00.htm http://www.oracle.com/appserver/business-intelligence/hr-analytics.html http://www.angelfire.com/rebellion2/jsmith/case_2.html http://www.oracle.com/applications/financials/credit-to-cash.html http://www.tescosw.eu/products/erp-systems/art_168/article.aspx http://www.oracle.com/corporate/press/2006_jan/tesco%20news%20release_final2.htm http://www.mcrit.com/ASSEMBLING/assemb_central/WhatESS.htm http://www.taloustieteet.oulu.fi/opiskelu/opiskelumateriaali/advanced-firm/Tesco_Report_2007_FULLlow.pdf

Consumer Behavour

Models of Consumer Behaviour UNIT 9 Objectives MODELS OF CONSUMER BEHAVIOUR After reading this unit, you should be able to: †¢ †¢ †¢ †¢ identify the different levels of consumer decision-making explain the process of consumer decision-making differentiate between types of buyer decision behaviour describe the buyer behaviour with the help of an input, process, output model Structure 9. 1 Introduction 9. 2 What Is a Decision? 9. 3 Levels of Consumer Decisions 9. 4 Process of Decision- Making 9. 5 Types of Purchase Decision Behaviour 9. 6 Stages in the Buyer Decision Process 9. 7 Models of Buyer Behaviour 9. 8 Summary 9. 9 Key Words 9. 0 Self-assessment Questions 9:11 Further Readings 9. 1 INTRODUCTION In this unit we shall examine how a consumer actually arrives at the decision to purchase a specific product or brand out of the so many available in the market. Or, in other words, we shall study the process of consumer decision-making. In the previous unit we had di scussed a simple model of consumer decision-making, comprising an input, process and an output. A consumer receives stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms of either buying or not buying the product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. 9. 2 WHAT IS A DECISION? A decision is the selection of an alternative out of the several number of alternatives available. It is only when theme are two or more alternatives available that there is the need to make a choice. In the field of consumer behaviour, we are only concerned with situation in which the consumer has to take a purchase decision where there is a choice available. 27 Understanding Consumers 9. 3 LEVELS OF CONSUMER DECISIONS As a buyer or consumer you are all the time making decisions such as what product to buy (a book or a shirt as a birthday present for your friend), Which brand (Lux, Liril, Hamam, Rexona or OK toilet soap) from where (Super Bazar, nearby corner shop, chemist), etc. Table 1 presents a summary of the different levels of purchase related decisions most commonly encountered by consumers. The table highlights the broad range of choices the consumers have to select from when making a decision, starting from the generic product category level to the brand level and retail outlet level. 9. 4 PROCESS OF DECISION-MAKING The most basic and important requirement for the marketer is to understand how consumers make choices. Ajzen and Fishbein have attempted to explain human choice behaviour in their theory of reasoned action which states that: â€Å"Generally speaking-human beings are usually quite rational and make systematic use of information available to them. People consider the implications of their actions before they decide to engage or not to engage in a given behaviour. † Thus, making a decision is a rational and conscious process in which the consumer evaluates each of the available alternatives to select the best amongst them. Each decision you make involves an elaborate mental thought process, a degree of active reasoning, though on the surface it may not always seem to be so. This may be because over a period of time you have taken certain decisions so many times that they now seem to be made almost automatically but that is not true at all. Even your daily decision of buying a loaf of bread involves the element of active reasoning as buying a new sofa set for your drawing room. However, in the former case, the extent and intensity of active reasoning may be much less as compared to the latter case. 28 In the case of bread, the only decision variables may be which brand, quantity and retail outlet. But in case of buying a sofa set the decision variables are far more in number. These may be: †¢ †¢ †¢ †¢ †¢ ready-made or made to order from a furniture shop or to be built at home type of material for frame: Wood, Steel, Aluminium type of material for cushion: cloth, rexine, leather design: with or without arm-rests, height, depth of seat, seating capacity, loose or fixed cushion. Models of Consumer Behaviour Thus, depending on the type of decision being made, the degree and strength of active reasoning will vary. There are three factors which influence the degree of active reasoning that is undertaken by the consumer in his process of decision-making. These are: i) involvement, ii) alternative differentiation, and iii) time pressure i) Involvement: When a product is perceived to be of great personal importance to the customer, such as personal clothing, or its purchase involves a great deal of money or risk such as jewellery, car, house, company shares, the level of involvement in making the decision is likely to be very high. The consumer is likely to spend a great deal of time before arriving at the final decision. In contrast, when buying items which do not reflect much on the consumer's personality or their purchase involves small amounts of money . or the risk associated with them is not high, the degree of involvement of the consumer is likely to be low. Products such as shoes, polish, toilet soap, toothpaste, biscuits etc. would fall in this category. i) Differentiation: When the consumer perceives that the various alternatives which are available are very different from one another in terms of their features and benefits offered, he is likely to spend more time in gathering information about and evaluating these different features. On the other hand, in case of products which are not very different from one another either in terms of their features or benefits offered, the consumer is bound to perceive them as being almost the same and buy the first available product/brand which satisfies his minim um expectation. He will not like to spend much time in evaluating the various alternatives. The various brands of washing powder available in the market today are an excellent example of low level of differentiation with the consumer perceiving the different brands to be offering almost identical benefits. All the brands, such as Nirma, Vimal, Vijay, etc. look similar with identical packing and carry almost the same price tag. Till a few years ago, the two wheel scooter market in ,India was highly undifferentiated with Vespa and Lambretta offering almost identical scooter to the consumers in terms of basic features. But today the same market is highly differentiated. The consumers have a wide range of brands to choose from such as Kinetic-Honda, Lohia, Bajaj etc. each offering a variety of shapes, horse power and many other innovative features to choose from. A potential consumer of scooter would have to spend considerable time in evaluating each brand before he is in a position to make his decision. iii) Time Pressure: When you are under pressure to make a decision quickly, you cannot afford to spend a long time finding out about the various products or brands. You would probably buy whatever is readily available. While traveling in your car to a hill station your car tyre bursts and you need to buy a new one. At that time you would buy the brand that is available at whatever price without giving it too much thought. But under a different situation, when you need to buy new tyres, you would certainly like to find the features of nylon and radial tyres and evaluate various brands e. g. Modi, MRF, Dunlop and Apollo etc. on their individual advantages and disadvantages. 29 Understanding Consumers Activity 1 a) For each of the products/services written below, identify whether the purchase decision involves a high or low degree of involvement under normal circumstances: i) ii) iii) iv) v) vi) vii) viii) ix) x) Scooter Tyre Steel almirah Transistor radio Bicycle Shirting material A pair of shoes Toothpaste A family planning device such as Nirodh Restaurant Voltage stabiliser. b) In respect of the above products, record which differentiated alternatives (brands) are available in the market. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9. 5 TYPES OF PURCHASE DECISION BEHAVIOUR Consumer buying behaviour varies with the type of buying decision. Earlier, we stated that while a decision for buying bread was almost made automatically, the decision for buying a sofa set was more deliberate and time consuming. Similarly, there is a great deal of difference in buying a tube of toothpaste, clothes for yourself and a refrigerator for your home. We shall now distinguish three types of buying behaviour: i) Routinised response behaviour, ii) Limited problem solving, and iii) Extended problem solving. ) Routinised response behaviour (RRB): This occurs when the consumer already has some experience of buying and using the product. He is familiar with the various brands available and the attributes of each and has a well establ ished criteria for selecting his own brand. Consumers do not give much thought or time when buying such products and already have a preferred brand. The degree of involvement in buying such products is low. Frequently purchased and low cost products such as razor blades, coffee powder, toothpaste, soap, soft drinks, etc. fall in this category. Marketers ealing in products involving routinised response behaviour must ensure the satisfaction of existing customers by maintaining consistent quality, service and value. Also, they must attempt to attract new customers by introducing novel features, using point-of-purchase promotional material and special displays. ii) Limited Problem Solving (LPS): In this type of buying behaviour, the consumer is familiar with the product and the various brands available, but has no established brand preference. The consumer would like to gather additional information about the brands to arrive at his brand decision. For instance a housewife buys refined vegetable oil for her cooking. She is familiar with the concept of vegetable oil (as opposed to say vanaspati and ghee) and also knows that Postman, Dalda and Ruby are some of the prominent brands available. But to establish her choice of brand, she would like to check with her friends and regular shopkeeper about the attributes of each. Limited problem solving also takes place when a consumer encounters an unfamiliar (or new) brand in a known product category. The housewife who buys refined 30 vegetable oil, on her next visit to the market, sees a new brand of oil, Saffola. Apart from being a new brand, this brand of oil also claims the unique attribute of being low in cholesterol. To arrive at a decision, whether or not to buy this brand, the housewife needs to gather information about the new brand which will allow her to compare it with the known brands. The marketer's task in a situation where he is introducing a new brand in a well known product category is to design a communication strategy that gives complete information on all the attributes of the brand, thus increasing the consumer's confidence and facilitating his or her purchase decision. ii) Extensive Problem Solving (EPS): Extensive problem solving occurs when the consumer is encountering a new product category. He needs information on both the product category as well as the various brands available in it. This kind of decision is by far the most complex. For instance, you are thinking of buying a Flat colour television to replace your existing black and white TV set. You do not have much idea about how to judge the quality of a, colour TV set. You have heard about the various rands, such as Videocon, BPL, Samsung, LG, Sony, Thomson etc. but you do not know what t heir respective quality ranking is in colour TV. Each brand makes claims of foreign technology, latest features such as flat square tube and channel display. Further, t here is a range of models to choose from within each brand, models with remote control . different cabinet colour finish, vertical monitor styling etc. To arrive at a decision, you have to gather information at three levels and also establish a criteria for evaluating this information. The three levels of information gathering and evaluation are at generic product level, brand level and model level within each brand. The marketing strategy for such buying behaviour must be such that it facilitates the consumer's information gathering and learning process about the product category and his own brand. The marketer must be able to provide his consumer with a very specific and unique set of positive attributes regarding his own brand, so that the purchase decision is made in his favour. The concept of EPS is most applicable to new products. The product may be new at the generic product concept level (such as Maggi noodles) or it may be an established product concept but new for a particular consumer. In case of a new product concept such as ready to cook instant snack, the entire consumer universe is unfamiliar with the product. The marketer has to spend large amounts of money in educating the consumers about his product. The consumers in turn need a great deal of information before they can take a decision; and the decision process takes a long time. On the other hand, you may have the situation where the product concept is well understood by a majority of the consumers, but it is being bought or used by a particular consumer for the first time. To take a very simple example, a tribal who is exposed to the concept of toothpaste for the first time in his life will seek a lot of information and take a long time to decide. For him, buying a toothpaste is a EPS behaviour, whereas for most of us it simply requires a routinised response behaviour. Models of Consumer Behaviour 9. 6 STAGES IN THE BUYER DECISION PROCESS Even buying decision involves an element of active reasoning. The manner in which this active reasoning manifests itself is illustrated in Figure I. In making a purchase decision the consumer goes through the five stages of: i) ii) iii) iv) v) problem recognition, pre-purchase information search, evaluation of alternatives, purchase decision, and post purchase behaviour. However, in case of routine purchases, the consumer may skip the second and third stages and straight away go to the stage of purchase decision. But in case of purchase 31 Understanding Consumers decision involving extensive problem solving, the consumer is likely to go through all the five stages in the specified sequence. The important point to note is that the buying process starts much before the actual purchase and has implications even after the purchase has been made. This should give ideas to the marketer as to how he has to start designing his marketing strategy in order to achieve his specified marketing objectives. Figure I: Stages in the Buyer Decision Process Let us understand the stages in decision-making process with the help of a Mr. Rao's specific decision to purchase a briefcase. i) Problem Recognition: The buying process starts with the buyer recognising a need or problem. Mr. Rao feels very uncomfortable carrying his papers, files and lunch packet in his hand or in a plastic bag to his work place. Sometimes, the papers and even files from his hand and get spoiled Mr. Rao feels the need for a suitable receptacle to carry papers to and fro from his office and has identified a briefcase as the solution to his problem. i) Pre-Purchase Information Search: In response to the stimuli provided by the need for a briefcase, Mr. Rao starts searching for information on the kinds of briefcases available in the market. Search can be of two types: internal and external. Internal search refers to recalling relevant information stored in the memory. For instance, Mr. Rao may recall having seen the different kinds of briefcases used by his colleague s. Or he may recall having seen some advertisements for briefcases on the television or in some magazines and newspapers. External search refers to the deliberate and voluntary seeking of new information regarding the product/brand under consideration. Mr. Rao can seek information from the following three sources: †¢ †¢ †¢ Personal sources: family, friends, colleagues, neighbours. Commercial sources: advertisements, retailers, salesmen. Public sources: seeing others, consumer information centres. By tapping all these sources of information, Mr. Rao is able to identify the different types of briefcase on the basis of material, branded versus unbranded, high-mediumlow priced. A wide variety of materials are used for making briefcases ranging from the best leather to rexine to plastic. There are branded briefcases available and Mr. Rao can choose from the well known VIP, Safari and Aristocrat and some less known local brands, or he can choose to buy an unbranded briefcase. The price ranges from Rs. 125 to Rs. 1200. Also, there are a number of other features which can influence the choice, such as type of lock, and number of partitions and pockets for keeping different documents. By the end of this stage, Mr. Rao has gathered enough information about different kinds of briefcases available and has narrowed down his alternatives to moulded plastic, branded briefcase. Within this broad range there are various brands and price ranges to make the final choice from. Evaluation of Alternatives: Mr. Rao will make his final decision using certain evaluative criteria. The most commonly used criteria are: (i) product attribute, (ii) the relative importance of each attribute to the consumer, (iii) brand image, (iv) attitudes towards the different brands or alternatives under considerations. For instance, the product attributes of the (Plastic branded briefcase) alternatives identified by Mr. Rao are: , unbreakable, lightweight, spaciousness, reliability of locking system, colour, price. Mr. Rao attaches maximum importance to the product attributes of light weight and spaciousness as compared to other attributes. He already has some kind of attitude towards the various brands developed in the stage of information search which will affect his final decision. 32 This stage of the buying decision process gives the marketer a chance to modify his product offering in keeping with the relative importance attached to each attribute by various consumer segments, altering beliefs and attitudes about his own brand, and calling attention to neglected product attributes, Purchase Decision: In the evaluation stage, Mr. Rao has ranked the various brands in terms of his first, second and third preference. In short, he has made up his mind about which brand he wants to buy. However, Mr. Rao may finally end up buying a brand which is not his most preferred. This may happen because attitudes of others and †situational factors. For instance, when Mr. Rao goes to the shop to make his purchase, the shopkeeper's negative remarks about his (Mr. Rao's) most preferred brand may make him change his mind. Also, it is possible that Mr. Rao's preferred brand is not available, or there is a very attractive price discount on the brand ranked third by him which eventually makes him change his mind. Post Purchase Behaviour: After purchasing the briefcase, if Mr. Rao finds that its performance or utility matches up to his expectation, Mr. Rao will feel satisfied with his purchase. The satisfaction will reinforce Mr. Rao's perceived favourable image of the brand, which is likely to be extended to the entire range of products manufactured by the Company. Also, Mr. Rao is likely to strongly recommend the brand when his friends ask his advice for buying a new briefcase. A satisfied customer is thus a very powerful source of influence for potential customers. However, if Mr. Rao feels that the briefcase which he has purchased is not upto his expectation, then he is likely to feel dissatisfied. The gap between expected (or perceived) and the actual performances causes discomfort or dissonance to the buyer. As a result of this, Mr. Rao may decide to stop buying other products sold by the same Company and also warn his friends about the poor utility of his briefcase. To reduce his own state of discomfort or dissonance arising from the feeling that he has not made the right choice, Mr. Rao can: (i) re-evaluate the unchosen brands and downgrade their desirability by identifying some negative features, and (ii) search for information to confirm his choice. Models of Consumer Behaviour Activity 2 a) Consider the case of a consumer durable which you may have recently purchased. Try to recall the actual process you might have undergone in buying that. Write down the specific activities you undertook at each stage of the decision-making process. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ b) Do you find any differences in the approach described above and the approach that you may have followed? What could be the reasons for these differences? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 33 Understanding Consumers 9. 7 MODELS OF BUYER BEHAVIOUR Consumer behaviour is a process and purchase is only one stage in that process. There are many underlying influences ranging from internal motivations and attitudes to social and external influences of many kinds. Having explained the consumer decision. making process, now let us turn our attention to the process of consumer or buyer behaviour. We shall explain the process of buyer behaviour with the help of four models. The first two models describe the decision process as applicable to individual consumer. The third model explains the decision-making process of a group, namely the family. The fourth model explains the decision-making process in the context of an organisation. Howard-Sheth Model This model explains the buyer decision process using four major sets of variables as presented in Figure II. The four sets of variables are: (i) inputs, (ii) perceptual and learning constructs, (iii) outputs and (iv) exogenous or external variables. i) Input: The input to the customer decision process is provided by three distinct types of stimuli. Of these two types of stimuli are provided by the marketer in the form of physical, tangible product characteristics known as significative stimuli, and intangible, perceptual product characteristics known as symbolic stimuli. To return to the example of Mr. Rao, while the physical appearance, sturdiness, finish, and spaciousness would constitute the significative stimuli for quality, the overall quality that Mr. Rao perceives in his briefcase connotes the symbolic stimuli. The actual price paid for the briefcase is significative stimulus while the perception that the price is reasonable, or too high or is a good bargain is the symbolic stimulus. The third type of stimuli is provided by the consumer's family, reference groups and social class to which he belongs. 34

Essay on FIN364 Course Project Summary 1 - 648 Words

Course Project: Economic Research Objective Each student is to select research question related to money and banking and develop a well written paper that provides insight into the topic. The goal is to obtain a better understanding of the topic, while relating the identified topic or concept with real world scenarios. Guidelines For this project, select one of the following research questions below. If you want to select a topic that does not appear in the list below, please contact me for approval. 1. What has been the impact of the recent mortgage crisis on the money supply in the United States? What actions did the Federal Reserve take in response to the mortgage crisis? 2. What interventions were taken by the Federal Reserve†¦show more content†¦Compare and contrast today’s structure versus historical structures. Why has consolidation occurred and who will experience benefits and losses – customers, the institutions, etc. Why have bank failures occurred? Are there any consequences of consolidation and failure in the industry? 10. What are the effects of electronic transactions and banking upon the industry and/or monetary policy? Have innovations created greater or less efficiency? What has been the role of the Federal Reserve? Once you have selected your research question, review the materials in the text that can help you get started, and then begin conducting outside research using the online library, the Internet, the Wall Street Journal websites, the Economist, and so forth. From your research, create an annotated bibliography. (An annotated bibliography includes the full reference in APA format and a paragraph explaining the value of the source to your research.) This will help you both in organizing your research, and in generating your reference page at the end of the project. At the end of Week 3 you will submit a Topic Proposal in which you will identify the topic you selected for the Course Project. Within this Topic Proposal, you will also include the annotated bibliography for your sources. You are required to have five to seven outside sources for this project. The Topic Proposal will consist of a one page, typed, and single spaced paper. The final research paper will

database management system and information retrieval system

Differentiate between database management system and information retrieval system by focusing on their functionalities. A database management system in the main software tool of the database management approach because it controls the creation, maintenance, and use of the database of an organization and its users. The three major functions of a database management system are first to create new database and database application. Second to maintain the quality of the data in an organized database. And last to use the database of an organization to provide the information that its end users need. An example of a database management approach in a banking information system. Note how the savings, checking and installment loan programs use a†¦show more content†¦Highlight the differences between data and information. The difference between data and information. Data usually is a form of attachment figures are relative. From a data will be processed into a information important fo r the owners. Usually treatment of an information to be able to give us an information in written and oral form. Information may be derived from which only. We can see from the difference source of information available. But we should be able to see how a data that has been processed into an information would be helpful to be able making an important decision. We can try looking from the side of the data can be processed as a valid information. This information will later be able to be one of the key components of the side of a system. We can see from the side of various systems (SIM) and Decision Support System (DSS), a system based on knowledge (knowledge-based system). From some of the system will be able to form a network of information system using a computer or commonly called the CBIS (Computer Based Information System). From an information system is then we will get to see some professional employees will be needed in this area, namely asShow MoreRelatedDatabase Management and Information Retrieval Systems766 Words   |  3 Pages1. Differentiate between database management system and information retrieval system by focusing on their functionalities. (up to one page) [30 % marks] Database Management System A Database management system (DBMS) main software that handles the storage, retrieval, and updating in a computer system. DBMS performs a few important functions that guarantee the integrity and consistency of the data in the database. The first function is security, which components that restrict accessRead MoreComparison of Database Management System and Information Retrieval System1223 Words   |  5 Pages 1.A) Differentiate between database management system and information retrieval system by focusing on their functionalities. 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