Causes of Currency Crises and Banking Crises

Causes of Currency Crises and Banking Crises existenceBased on my readings, I turn out found that up-to-dateness crises often accompanied by banking crises or banking crises preceded by currency crises or hitherto has no significant relationship surrounded by the two. So, why argon currency crises often accompanied by banking crises? In this paper, I will discuss on how such problem whitethorn excrete ground on historical perspective, in which the countries that have experienced Twin Crises. The next issue isthe effectiveness and dynamism of detonator controls as a content by which developing countries can manage sudden jacket crown in fly the coops and/or outflows. This is where the credibility of heavy(p) controls argon being ch all in allenged whether such restriction should be taken into a serious consideration for the policymakers to implement. It is important to analyse these economicalal situations due to past economic disasters in which the issues state were sig nificant in the 1994 Mexican peso crisis, 1997 Asian Financial crisis and the 1998 Russian monetary crisis.Twin CrisisThe coincidental occurrence of currency crises and banking crises is k immediatelyn in economic term as Twin Crises, introduced by economists Carmen Reinhart and Graciela Kaminsky in the late nineties. This phenomenon became a common problem in financially liberalized emerging market economies in the 1990s which started with the1994 Mexican crisis, followed with the 1997 Asian financial crisisand the1998 Russian financial crisis. Kaminsky and Reinhart (1999) did an extensive research on the relationship amid financial and banking crises for 20 countries and over a 25-year sample and found that banking crises often precede currency crises. The machine basically relies on two features. Firstly, organizations hold a fixed flip range system and secondly, a mismatch between national assets and strange liabilities by interior(prenominal) banks, thus, exposing t o change over rate risks( Goldstein, Itay 2005 ).A currency crises, also known as the Balance of Payment crises,is a situation in which a earth is suffering from a chronic balance of payment deficit. This problem exists when a nation is unable to finance the imports and debt repayments. The coun approximates key bank would be in a doubtful position whether, given(p) the fixed exchange rate, it has sufficient foreign exchange militia to maintain the pass judgment of domestic currency. authorities often step ins by using the countrys own currency reserves or itsforeign reserves to play the excess demand for a given currency ( Wikipedia, 2014 ). It came to a conclusion when these emerging market economies were experiencing speedy economic growth, creating massive great(p) influxs, which will then lead to the crises.A banking crises, however, is a financial crisis that affects banking bodily function which includes bank runs, banking panics and systemic banking crises, in wh ich a country experiences a big number of defaults and financial institutions guinea pig difficulties repaying contracts. A bank run occurs when depositors believe that the bank may fail which led them to withdraw all of their deposits from that bank. This causes the banking system to be insolvent if it can non pay its debts as they fall due. Insolvency can be defined as the inability to pay ones debts. Cash flow insolvency, or a lack of liquidity may occur as well when the bank might end upowingmore than itowns or is owed ( postivemoney.org, n.d ).Twin Crises started off when investors begin to put down their confidence as the massive slap-up inflow in the country creates uncertainty among investors in which the debt their capital is generating. The countrys currency will be at stake as the resulting outflow of capitals created by investors as they withdraw all of their bills will de treasure the moved(p) nations currency. Firms of the affected nation who have received the in bound investments and loans will suffer, as the earning of those firms is typically derived domestically but their debts are often denominated in a reserve currency ( Kallianiotis, 2013 ). Once the nation has exhausted its foreign reserves trying to support the observe of the domestic currency, government can raise its interest evaluate to try to prevent from only decline in the value of its currency. While this helps those with debts denominated in foreign currencies, it generally further depresses the local economy as high interest rate uncouthly encourages saving and discourages investment.Real-World Financial CrisesThe 1997 Asian financial crisis was a period of financial crisis which affected mevery economies in the East Asia. It began in Thailand when they had accumulate a massive foreign debt. In the effort to support the value of baht, the government had no pick but to float the Thai baht due to insufficient of foreign currency reserves, reducing finalize against the US sawhorse. Until 1999, economies in South East Asia enjoyed a prosperous period as they had received large inflow of money. High interest rates in emerging economies attracted many investors due to the fact that it may give a high return for the investors. As a result, price of assets in these countries began to rise at an alarming rate which created insecurity among investors. Lenders started to withdraw all of their funds at a large scale, creating recognise crunch and bankruptcies. Furthermore, there was a depreciativepressure on their exchange rates as the put out of currencies of the crisis countries was high in the exchange market. Governments from these countries had to intervene in the exchange market. To prevent any loss in value of domestic currency, they had to raise domestic interest rates by buying up any surplus of the domestic currency.The Mexican governments move to devalue the peso against the US dollar created an outburst which led to the Mexican peso crisis in 1994. In order to maintain in the value of peso, the Mexicos central bank allowed the peso to free float within a narrow pot against the US dollar through an exchange rate peg ( Wikipedia, 2014 ). Furthermore, the central bank would constantly intervene in the open market by purchasing or selling the pesos. The central banks intervention involved issuing new little-term public debt instruments denominated in U.S. dollars, using the borrowed dollar capital to purchase pesos in the foreign exchange market, will cause an appreciation in its value. Since the peso is reckoned to be increasing in value, the high purchasing power by domestic businesses, firms and consumers created an incentive to purchase more imported goods, resulting in a large trade deficit. Speculations regarding the over-valuation of peso began to circulate which encouraged investors to purchase more of U.S assets. It will be more profitable for investors as they will be able to capitalize the high exchange rat e when they exchange dollars for pesos later. The resulting capital outflow from Mexico to United States ca apply a capital trajectory which put a downward(prenominal) market pressure on the value of peso. To curb this issue, newly inaugurated President Ernesto Zedillo in 1994announced the Mexican central banks devaluation of the peso between 13 and 15 part. callable to the unpredictability of Mexican policymakers, investors felt insecure and timid of further devaluations in the currency, putting an upward market pressure in the interest rates and a further downward pressure on the value of peso. Foreign investors began to rapidly withdraw their capital from Mexican investments due to possible devaluation of peso. As a result, the Mexican central bank had to raise the interest rates to prevent from capital flight.Capital FlowsCapital flows is simply defined as the transaction of authoritative and financial assets and it is recorded in the capital distinguish. When a country has a deficit in the capital account, it means the country is experiencing a capital outflow, like Japan. The country is supposedly purchasing more assets or qualification more loans or both at the same time, thus accumulating net claims on other countries. It is a situation in which it is undesirable to the economy. Contrarily, if the country is having a surplus in the capital account, depicting capital inflows, it is said that other countries are accumulating claims on that particular country.Capital flows admits many great economic advantages. Countries are now able to catch-up with the advancement of other countries by capitalizing on their disparitys. Capital flows enables residences of contrastive nations to invest in other countries by engaging in inter-temporal trade, allowing them to reap benefits or profits for future consumption. Be it an economic boom or recession, optimum level of national consumption or expenditure is vital in every economy. Thus, capital flows hel ps to prevent from a fall in national consumption in subject area of an unexpected economic downturn, by selling domestic assets or borrowing from the rest of the world. Thus, overall cash advance in economic performance can be achieved as it will aid substantially in terms of productivity and efficiency.Free capital mobility may seem desirable, though, in reality it comes at a cost. Given the exchange rate, developing countries or emerging market economies tend to acquire more assets by purchasing a massive amount of goods and services than the rest of the world. This is due to several reasons. These countries may not be on par in terms of economic performance, efficiency as well as resources compared to the rest of the world. Besides, it may be due to fluctuation in the world price of commodities. The implementation of expansionary economic policy by government will increase the demand for imports. As a result, appreciation of foreign currency will occur due to high demand of fo reign goods and at the same time, a disparagement in own currency due to a low demand for domestic commodities. Since government would want to hold a fixed exchange rate regime, they can implement a contractionary monetary policy, a method of selling domestic bonds which increases the domestic interest rate, in order to maintain the value of domestic currency. The demand of domestic currency will be improved which will increase the value of domestic currency. Again, it proves to be costly as high interest rate will discourage investment, since it is now more expensive to borrow from the bank, reducing a potentially larger economic growth. This shows that free flow of capital may cause an upward pressure in the value of currency which may exist local firms, making them little competitive in the global market. Emerging market economies are the usual target for hot money with sudden injection or withdrawal of funds, thus, creating distortion or mental unsoundness in the market. Larg e record books of capital inflows on search for higher yields causes dislocations in the financial system. Foreign funds might fuel asset price bubbles, encourage excess risk taking by cash-rich domestic intermediaries ( Magud, Reinhart Rogoff, 2005 ).Having a strong and independent monetary policy is more viable than sustaining free flow of capital. Due to potential harmful effects of free flow of capital to the economy, capital controls is introduced to prevent such consequences from happening. A capital control is any policy designed to limit or redirect capital account transactions and may take the form of taxes, price or quantity controls, or outright prohibitions on international trade in assets ( Neely, Christopher J. , 1999 ).Capital ControlsThere are two types of controls which are the controls on inflow and outflow of capital. Like Malaysia during the Asian financial crisis in the late 1990s, control on capital outflows was introduced to supposedly generate revenue, corr ect balance of payment deficit as well as preserve nest egg for domestic use. Control on capital inflows, use by chilli pepper during the Latin American debt crisis, was used to prevent potential volatility inflows, financial destabilisation and real appreciation as well as correcting balance of payment surplus and limit foreign ownership of domestic assets. This shows various type of capital controls are targeted at specific type of movement. The chief is, how effective capital control is and to what extent should it be implemented ?During the Asian Financial Crises, Malaysian government imposed controls on outflows in 1998 by pegging the exchange rate at RM 3.80 for every US dollar. Their objective was to delay from exhaustion of foreign reserves and provide as much time possible for policymakers to implement reflationary policies as well as eliminating speculation against the ringgit. Malaysias stock market capitalization ratio at 310 percent of GDP, compared to 116 percent i n the U.S., and 29 percent in Korea and domestic debt-GDP ratio at 170 percent were, at the time, highest in the world (Perkins and Woo, 2000). In response to the crisis, Malaysian government raised the interest rates to stem the decline of the ringgit and restructured their expenditure by reducing it by 18 percent ( Ethan Kaplan and Dani Rodrik, 1999 ). However, the economy showed no sign of improvement. Their effort to reduce domestic interest rates seemed to be pointless as speculation against the ringgit in offshore markets was circulating widely. The speculation lead to the borrowing of ringgit at premium rates to purchase dollars, which created a devaluation pressure on ringgit. hard-pressed of capital flight and further depreciation of the currency, the Malaysian government also banned for a period of one year all repatriation of investment held by foreigners. Malaysia also lowered the 3-month Bank Negara Intervention score from 9.5% to 8% and the liquid asset ratio was red uced from 17% to 15% of total liabilities ( Ethan Kaplan and Dani Rodrik, 1999 ). On February 15th, 1999, the exchange Bank of Malaysia changed the regulations on capital restrictions, shifting from an outright ban to a graduated levy and renew the levy on capital with a profits levy on future inflows ( Ethan Kaplan and Dani Rodrik, 1999 ). After the pain of capital controls in 1998, Malaysia showed a strong and quick revival from the Asian financial crisis. The fact that Korea and Thailand, which had opted for IMFs programme, recovered remarkably suggesting that capital controls imposed in Malaysia did not make any significant difference than the IMFs financial aid. jalapeno seemed to favour controls on capital inflows and been relying on it in two different occasions (1978-82 and 1991-98). The effectiveness is questionable, however, as in 1981-82 Chile went through a currency crisis despite with controls and restrictions. The peso was devalued by almost 90 percent and a large nu mber of banks had to be, bailed out by the government ( Edwards, Sebastian 1999 ). The controls were being reintroduced in 1991 with the objectives of slowing down the volume of capital inflows into own country, reducing the real exchange rate appreciation resulted from these inflows, allowing the Central Bank to maintain a high differential between domestic and international interest rates. In 1984, Chile has adopted a slightly flexible exchange rate system, where the peso-dollar rate was allowed to fluctuate within an upward-moving band. The authorities argued that by maintaining domestic (peso) denominated interest rates above international rates, inflation would decline gradually (Massad, 1998). This policy mix worked relatively well until the late 1980s, when Chile regained access to international financial markets, and capital began to flow into the country putting pressure both on the real exchange rate and domestic interest rates ( Edwards, Sebastian 1999 ). By early 1990, domestic firms were advantageously affected, as the rapid strengthening of peso has reduced their level of competitiveness and profitability. To sum it up, the effectiveness of Chiles controls on capital inflows has been overestimated. After the controls were imposed, the maturity of foreign debt contracted by Chile increase significantly. The evidence suggests more than 40 percent of Chiles debt to G-10 banks had a residual maturity of less than one year ( Edwards, Sebastian 1999 ). Although the policy affected the composition of capital inflows, it did not reduce the total volume of aggregate flows moving into Chile during the 1990s. The controls on inflows had no significant effect on Chiles real exchange rate in which it appreciated by approximately 30% during the 1990s. The controls had a short term effect on domestic interest rates. The magnitude of the effect was very small, however, raising the question of whether the central banks ability to undertake independent monetary policy really raise by the controls on capital inflows ( Edwards, Sebastian 1999 ) .ConclusionControl on inflows seems to be more favourable among authors and economists than those on outflows. Controls on outflows usually create corruption as it easier to evade than the inflows (Reinhart and Smith, 1998 Eichengreen, et al. 1999). If there is an anticipation in the depreciation of domestic currency, this creates an incentive for investors to evade controls on outflows to prevent from losses.When faced with the prospect of a major crisis, the orphic sector finds ways of evading the controls, moving massive volumes of funds out of the country. Controls on capital outflows have resulted in corruption, as investors try to move their monies to a safe haven. In almost 70% of the cases were controls on outflows were used as a preventive measure, there was a significant increase in capital flight after the controls had been put in place. Cuddington (1986) reached a similar conclusion in h is study on the determinants of capital flight in developing countries. Evading controls on inflows, however, proved to be less beneficial among investors as investing in other countries would be less viable compared to domestic return.REFERENCES L. Kaminsky, Graciela and M. Reinhart, Carmen (1999) The Twin Crises The Causes of Banking and Balance-of-Payments Problems Vol. 89 No. 3 Online at http//home.gwu.edu/graciela/HOME-PAGE/RESEARCH-WORK/WORKING-PAPERS/twin-crises.pdf Accessed 20 celestial latitude 2014Goldstein, Itay (April 2005) Strategic Complementarities and the Twin CrisesEconomic Journal. Online at http//www.res.org.uk/details/mediabrief/4392181/Explaining-Twin-Financial-Crises.htmlAccessed 20 declination 2014Tornell, Aaron (2002) Twin Crises The National Bureau of Economic Research Online at http//www.nber.org/reporter/winter02/tornell.html Accessed 20 December 2014J. Neely, Christopher (1999) An Introduction To Capital Controls Online at http//research.stlouisfed.org /publications/review/99/11/9911cn.pdf Accessed 27 December 2014Baba, Chikako and Kokenyne, Annamaria (2011) Effectiveness of Capital Controls in Selected Emerging Markets in the 2000s IMF Working Paper Online at https//www.imf.org/external/pubs/ft/wp/2011/wp11281.pdf Accessed 27 December 2014Edwards, Sebastian (1999) HOW powerful ARE CAPITAL CONTROLS? The National Bureau of Economic Research Online at http//www.nber.org/papers/w7413.pdf Acccessed 27 December 2014

Traditional Chinese Culture And Chinese Marriage Theology Religion Essay

Traditional Chinese Culture And Chinese trades union Theology Religion EssayMarriage is an definitive ruin of life. Different acculturations have their testify tradition to celebrate this big as yett. through with(predicate) understanding the conventional customs of espousal, we could learn more about the nations culture and determine. In this essay, features of tralatitious Chinese join leave al integrity be introduced and we exit direct at how Chinese Culture and tralatitious values argon involved and influence the conventional Chinese marriage culture.Introduction initiative of all, we should have some brief understanding on some rudi workforcetary traditional values about families and the ancient Chinese high society. In traditional Chinese culture, the family units atomic number 18 the basic units of the society which forms the nation. When the family units argon well-ordered, the society willing hence become well-organized and eventually form a harmonious nation. And for curtilage years, Confucianism has a very deep influence to Chinese culture and has crucial impact in diametric aspects of the Chinese society. Confucianism is a philosophy which emphasizes on the chaste ethics of states behaviours in daily life. It is a set of moral and ethical rules or ideas that dictate how a person should behave. It plays a break role in forming the amicable norms of the Chinese society (Yu 69).Patriarchal edict and valuesTraditional Chinese families are clan and patriarchal based. A clan is composed by descendants of the same(p) ascendents and families which inherit the same surname. A clan emphasis extensively on kinship and countercurrent relationship, they are regarded as an extension and the continuity of the family. Traditional family ever lay out the clans interests above personal interests and personal honor as the clans honor and rape are well-nigh related to iodine self. These values play a signifi stinkpott role in tr aditional Chinese marriage culture.Marriage in WuLun ()In Confucianism, one of ethical and moral rules on the individuals and sociable interaction is WuLun () . WuLun indicates the five major relationships within a society. The Five Relationships are King to subject, Father to son, Husband to wife, Elder buddy to younger br otherwise and Friend to friend (Yu 94). Maintaining penny-pinching relationships will stability and prosperity of the society and embrace the whole nation to live in harmony. One of the relationships which I would like to mention is Husband to wife, in other words, it is about marriage. To the Confucians, marriage is important to both the clan and the society. The marriage not only symbolizes the connective of two individuals but to a fault the joining of two families with different surnames. Therefore, marriage screw act as a medium to connect different families and clans to form a society and even nations. To certain extent, a good relationship of marriage is believed to bring harmony to the society and the whole gentlemans gentleman is a big family.Arranged Marriage and matchingFor traditional Chinese marriage, lots of constraints were as well as attached with. First of all, a marriage is al fashions pre-arranged by parents, but not based on the couples love and sustain choice. One of the reasons is that the marriages are usually associated with political reasons and benefits. But the most important one is that the marriage is a major family event and it is a reckon of the clan, therefore the marriage must be decided by the parents and individuals must subject to eldership. Brides and grooms will only see or know apiece other until the wed day comes ( Gu 137).Moreover, as the Chinese said, Bamboo approach to bamboos one, wood door to woods one. To choose an ideal partner, the wealth and social status of the family must also take into consideration. To the male side, the marriage is at a time affecting the prosperity and th e reputation of their family in the future. The fame of the family and social status of the family is exceedingly important in traditional Chinese value. People would tend to look for potential families who had similar or same social status as they were to marry with. Therefore a boy who comes from a wealthy family will never be permitted by his parents to marry a girl from a poor family.Confucians emphasize on Li Li, or the rites, are the guidelines for people to behave properly. It emphasizes respect to others and surroundings through rules and ceremonies. The ideas of Li are closely related to ethics, gentle temper and social order in society. Li is essential and favourable to society because it encourages and reminds people to aware and fulfills their responsibilities towards others. iii earn Six etiquettes Marriage also has guidelines and rites to follow and procedures are written big money in the Book of Rites. Each of the complex procedures has its own symbolic importat ion and part of the essential processes in traditional Chinese wedding are the Three Letters Six etiquettes. The Three Letters are the plight letter, gift letter and the wedding letter. These letters are the formal documents with the means of engagement, gift and confirmation of the marriage. The Six etiquettes are proposal, assessing nascence date, dumb nominateing mesh gifts, presenting wedding gifts, setting a wedding date, and finally the wedding ceremony (Chinese societal Customs). ProposalAfter the parents of the male side choose a girl, they would hence find a matcher and her role is topropose and present the male familys request to the girls family and parents.Birth date assessmentIf the brides parents did not oppose to the marriage, the matchmaker would ask the birth date and hour of the bride to ensure the couples compatibility. If there were signs of conflicts mingled with the numbers, which is believed to bring disasters to both families, then the proposed marri age will abandoned immediately.Presenting betrothal giftsAfter both of the birth dates and hours were approved, the bridegrooms family would ask the matchmaker to arrange and present betrothal gifts to the brides family along with the betrothal letter.Presenting wedding giftsThe bridegrooms family would send wedding gifts officially to the brides family. Gifts usually include tea, beans, oranges, pomegranates, bridal cakes, coconuts, wine, red hair braids, lilies and m any(prenominal) other delicacies, each with symbolic meaning in the wedding and the gifts can also fork over the familys wealthSetting a wedding dateAn benignant date is select for the wedding ceremony.CeremonyOn that day, the bridegroom departs his own home and play loud and cheerful music along the way to the brides home. During the wedding ceremony, both bride and groom have to stand side by side and make three succumbs. Three bows is the most important rites in the ceremony. The first bow is made to the Heaven and human race and ancestors. The second bow is to parents and the third one is to each other. (Chinese Wedding traditions)From the above wedding procedures Three Letters Six etiquettes, two main traditional Chinese values can be observed.First, under the Confucian dry landview, Chinese believe that the world is structured by sancai (Heaven, Earth and Human) and they all share the same nature and this nature is characterized by harmony. Confucian considers people and nature as a whole and any confrontation with the nature will destroy the harmony. Therefore, assessing birth dates and hours for choosing the correct bride and setting an appropriate wedding date is to avoid any confrontation between the nature and human. Choosing the right bride and right date can avoid any disasters from happening and prevent bad luck, and the marriage is then considered as auspicious, which brings good fortune.Second, the ceremonies show the significance of filial piety.Amongst the 100 virtues, fi lial piety come first. Filial piety can be referring to proficient respect and unquestioning obedience to parents. But it is more than that. Confucians consider filial piety as the most important virtue and must be shown not only towards to parents and elders, but also the dead. Reverence for ancestors and worship them is also part of the filial piety. People believe that the ancestor in heaven will bring peace and happiness to the clan descendants. Filial piety, by extension, is showing respect to the past and to the whole nation. We could see this virtue good from the Three Bows in the wedding ceremony. The wedding ceremony takes place at the family hall because it is an important event for the family, the clan and ancestors. The three bows first shows great respect to the nature and then show filial piety to ancestor and parents. And in another ceremony, tea ceremony, the new couples have to kneel mow while serving tea to parents and elder in order to show filial piety to the m (Katie).Male puckaity in Chinese traditional familyAs mentioned earlier, the traditional Chinese adopted Patriarchy. It is a social governance that male is central to both family and society, and where men h rare authority and personnel over children and women. It shows the higher status of male than female, in terms of agent and marriage.In traditional Chinese society, men were thought to be the one to continue on with the family line. For this reason, men had a higher status than women in both family and society, as they were the powerful ones who could lead and organize the whole family, even to sustain the continuity of the family (Lan, Peng, Mei 126 )For women, they were only organism characterized as assisting men in traditional family they had relatively low social status by then. The saying A womanhood lacking in talent and learnedness is virtuous shows the difference between men and women, which womens role would only be a stay-home mother who takes care of the rest and breed.Inheritance of the family line is the most importantUnder the influence of patriarchy, another reason for having marriage is to put across birth to the next generation, as the major role of women back then. In order to successfully earn birth to a boy, men would catch up with married with more than one wife, which were allowed in the traditional society. It was not being seen as problematic because having children and sustaining a family was vital for all in the old times.In the other hand, this also shows the low status of women in traditional Chinese society. The septette reasons for divorce can best illustrate the phenomenon. The seven reasons is a list of behaviors for which a man would be justified in divorcing his wife. The most concerned one criterion in relation to the continuity of family would be the third one a woman could be break if she did not bear a child.People see family as the most important element in society. Although womens social status was rel atively low, they had compete an important role in giving birth to children. This was also their in the first place function in a marriage life. That is why if a woman is incapable of carrying a child, the meaning to the marriage to her husband would be gone. So men could use such reason to marry another wife or divorce the wife who couldnt give birth to a child. terminusLots of Chinese traditional culture and values are found in the culture of Chinese marriage. For traditional Chinese marriage, the benefits of families were always more important than individuals. The traditional Chinese marriage was pre-arranged between parents of two families. And traditional Chinese marriage involves lots of complex procedures. Among them, they shows the great emphasis on rites (Li) in Chinese traditional culture and among the rites and the rules, we could easily observe one of the most important virtues filial piety. Children should always respect parents and ancestors. Traditional Chinese peo ple also emphasis on maintain harmony with the nature, they believed that human and nature were united, that is why the new couples have to bow to the Heaven and Earth first during the Three Bows. In Patriarchal society, male are superior to female and the inheritance of the family line is significantly important. To do so, male can get married with multiple wives and divorce any wife that couldnt give birth to child.(Word Count2020)

History Of Lg Electronics Global Company

History Of Lg Electronics Global troupeINTRODUCTIONIn 1947, LG was born as the Lak Hui Chemical Industrial Co. by Mr. In-hwoi Koo for manufacturing cosmetic creams. After that, the troupe produced radios, TVs, refrigerators, washing machines, and demarcation conditi geniusrs as Goldstar Co. ( trustworthyly LG Electronics) in 1958. The LG group was a merger of 2 Korean companies, Lucky and Goldstar the current LG fool touch was acronym from the name of these companies. With to a corkinger extent than 82.000 employees and 110 subsidiaries and marting units to distributively maven told over the world1, LG Electronics Inc. (LGE) was a succeederful company of Korean electronics that got the revenues of more than than $43 billion2. Its crossroads involve 4 strategic line of work units vigorous communications, Digital appliance, Digital display, and Digital media much(prenominal) as CDMA hand locateds, DVD players, distri yete conditioners, micro ovens, consumer electron ics, and so on.In this story, we argon going to discuss the delineate strengths of the Korean electronics fabrication during their blueprintative years and how firms supplement these profits to enter authentic boorish commercializes. After that, the report mentions positionly about the strategic ripenings of LG Electronics to hail the emergent trades and we ar going to settle out the commonalities cross courses its strategies in the BRIC countries. Finally, the report will be ended with the points of learning that foundation be distilled from its success in emerging market and if these advantages help firms to compete in demonstrable country or non. differentiate IICase school principal 1What were the key strengths of Korean electronics industry during the formative years? How did firms leverage these advantages to enter developed-country markets?During the formative years, al intimately Korea electronics is an Original Equipment Manufacturer such as Goldstar, Samsung, and Zenith which received orders from international companies. This should bring them a lot of experiences on node petition, the indication of markets, the customized products of some countries. The combination between innovate and education insurance encouraged more students for technical education, the miserable-cost skills of Korean employees, the access of impressive technology across all firms, the strongly development of technology in all country. Korea electronics companies rouse learn quickly fuckledge, technologies, skills from atomic go 63, US, Japan beca physical exercise politics allows these opposed firms become touch baset venture with internal firms. For example LG Hitachi, Deawoo GE, Samsung Sanyo, so on. too that, political relation in like manner rivet on most sectors of Electronic industry of country, so they supported so much to develop this industry. Foreign coronation was supported to develop the intermediate parts and component ind ustry, term prohibiting contradictory investing in companies producing finished goods. Korean firm with letters of reference book for exports automatically received access to preferential loans. Export companies were exempted from various confirmatory levyes and received tax breaks for depreciation and tariff rightments they similarly had access to duty-free imports of capital goods. Government helped to encourage firm creating their topical anaesthetic RD.With the developing and investment of technology, some firms st bed to export their products by their possess logo, non as OEM anymore like LG and Samsung. Because they were OEM of some international markets, so they already had the reference of consumers and globular standards. After that, with more supporting of government, they had their man top executive supplying with skills and abilities from university. Government has the tax breaks for depreciation and tariff payments for exporting companies. And the RD depa rtment had enough experience to substantiate the market and give the best solution for company. As the Glodstar product lines, LGE open up a central RD to develop and bring to pass color TV (CTVs), VCRs and computers.PART IIICase enquiry 2Were at that place any straightforward patterns in terms of the companys approach to emerging markets? Trace the commonalities across its strategies in the BRIC countries.BrazilBrazil is a country in South the States wide more than 8.5 million km2, rich in mineral resources, commonwealth 190 million population with diverse nuances. Brazil is the leading parsimony in Latin America, ranking 10th in the world. Brazil chooses the grade of frugal model fast growth with the advantage that fast miserliness flourishes, the growth rate in average income is precise senior high school. Besides that, government has some regulations to promote investors such as preferential tax rates, attain subsidies in country, particularly in some underdevel oped rainforest region.With these advantages, LG began assail the Brazilian market in the mid-1990s. that during that time, Brazil besides confront a lot of difficulties. Because their economic model is fast growth, so it excessively furbish ups unequal economic, political well-fixed increasingly fierce the quality of bearing is non considered. At the late 1990s, almost global companies had to exit the market because of very high import tariffs, significant competition from the gray goods market, very low brand sentiency. Inflation rate increased with high speed, topical anesthetic anaesthetic currency became unstable, exchange rates started to plummet with increasing levels of uncertainty.LG decided to reserve a long-term system, and withal expanded their brand name in India. They had 2 factories in Manaus and Taubate to produce their products, this dodging do Brazil as a regional manufacturing hub to serve South America and US markets. LG excessively let Brazilia n government k flat that they ar a believability partner in term of national growth by join with government to combat the problem of the rampant smuggling of gray market goods.Everybody knows that Brazil is a country passionate about soccer, Brazilian lie in for football game. So LG had one strategy to reach millions of football fans sponsored a football club in Sao Paulo that most popular among the top clubs in the country3. By providing official uniforms with the LG logo for Sao Paulo club, LG line up the instant brand credit rating and fixed image in consumer.IndiaLG began in 1993 as a form of joint venture with a consumer products company named Bestavision. They chose the Goldstar line of products to distri entirelye in India. Since the government allowed foreign companies set up their own firms without local anaesthetic partnership, and the business of LG and Bestavision failed, LG decided to launch LGE India Ltd. (LGEIL) in 1997 with their own wholly owned subsidiaries in India. There were many challenges that LG had to overcome like low brand aw arness about LG brand name LG was one of the last MNCs entered in India high import duty of government set sensitiveness of the Indian consumer and competitors. following(a) the global strategy, LG still entered and centraliseed on the outlandish market. Because in that location be a lot of competition from local and global players in urban market big population of rural market but in any case large untapped etc. There is 1 year for them to set up manufacturing operations in Greater Noida to fabricate televisions, washing machine, etc. to over some the high import rate cost. At the world-class time, LG created an RD aggroups by local employees to customizing its products lines to meet local needs. It helped LG distribute their existing products and also customizing the smart unique characteristic of products that matched the consumers expectations. This is an important resolution for LG to ac hieve two objectives marketing and produce. LG had differentiated its product using technology and health assist system like golden eye technology of CTVS, health air system for air conditionals, so on.They focus on emphasizing good-quality products, with found technology and network. For customized products, they did non cut expenses in manufacture existing product lines, but they decided to create bracing version with less worldly cost and also catch the needs of consumers. They kept the engineered quality of the appliances and focused on value engineering and design to manufacture at the disgrace cost. Such as microwave ovens with cooking menu including 77 kinds of Indian dishes4, television is displayed by 10 regional languages, washing machine with sari cycle, and so on. It helped LGEIL lead all levels of consumers, especially low-class consumers, because company served sullenly the need of them high quality but not expensive products. The price range of the produc ts of LG India is quite reasonable and affordable so as to make it easier for every(prenominal) class of pile to go for it thereby increasing the consumer level. For example, the price of Sampoorna reduces from 9000 to 5050. This shows R D team has worked very well and complete their tasks, it helps the exertion of LG reasonable based on deep understanding of Indias cultural and lingual diversity.LG Company invested and created the distribution network encompassing with 65 Remote eye socket Offices, 60 central bea piazzas, near to 4.000 access points in all areas, and they also had their online channel lgez get.com to provide information of products, comparison of prices and qualities across geographic, get down the individuals buyers. These regional distribution networks helped LG E to penetrate the B, C and D markets quicker and wider.http//htmlimg3.scribdassets.com/6q46i2mohe5bi0w/images/14-631b49b1d4/000.pngAs same activity in Brazil, LG started sponsoring to catch mo re customers. LG became the largest adept sponsor of cricket in the world, although they came from a country where cricket was not played. It immediately attacked to millions of cricket fans in this country and prelude to the success of the cricket-game TV set lines. LG also brought their products to 4 capitals of Indian cricket team for endorsing. some other strategy for other field of India, LGEIL promoted their products by Indians leading charter stars. This is considered the largest film producer in the world by subjugate of films produced annually and the number of tickets sold at cinemas, it has its owned name Bollywood to describe the effective to local consumers.After that, LG had another long-term strategy in trying to feel for about the social welfares in India initiatives. It created a friendly look to the company, throng knew that company really did not right trading on their own country, but also cares for their lives. They subsidized the primary school educatio n and books for children, built a village school. While most of employees of company in India were local nation, they provided medical clinics for the health care strategy to employees as well as the local companionship. Also there were some basic levels, but LG shown that their muckle social responsible done well.As mentioned above, LGEIL put local employees staffed as the main labor force in their manufacturing. With the local employees, company could get great resource of engineering and design skills. LG Indias purposing is satisfying the needs of its consumers not only in the domestic market but all across the globe. Company is trying to make India as their training hub for global strategy. The company had begun rotating some of these managers into positions in third countries in the middles east and Africa. This is one of advantages of LG to bear a leading position by providing fast and innovative techniques on their products. They always create new products with the best technology possible.RussiaLG scratch line entered Russia for the settle to sale products they imported goods manufactured from other countries and sale in Russia. not the same as Brazil and India, LG operated themselves in and around the city of Moscow, and they just focused on Goldstar brand.LG set up an RD center and regional office in St. Petersburg for their first strategy. Till Russian engineers were cognise for their ability and skills in technology, company looked for talent employees to support their global employees. LG promoted their reputation by rise LG brand shops, retail channels with LG brand portfolio, culture marketing events such as LG fetes, cooking events, and so on.1998, Russia was affected by the severe economic crisis it do Russia faced the debt moratorium problem. This was the time LG shown their long-term strategy and loyal military position to all Russian local and government. The more they pushed the mode of operation to endure the market dropped th ey enhance the image with consumers through the sponsorship of events, more carefully to the requirements for each market. These activities created a foundation for their premium strategy and image to local. In 2005, government allowed company to use the Narodnaya Marka logo for their products. This is an important event for LG officially recognize as a national brand, the successful of foreign company of their localisation principle strategy.ChinaIn this market, LG first reason for entering china is lower-cost production, and they washed-out a lot of time to understand the local market conditions and assessing the feasibility to be successful. Since LG Electronics established its local subsidiary in Huizhou in 1992, the LG Groups 12 subsidiaries have come to manage some 34 local companies, including 22 manufacturers. LG Electronics took the top position in the Chinese domestic market in the area of TV export, CD-Rom drivers, washing machine, and air conditioners during that ti me because of their advantages of techno analytical prowess and the marketability of their products.In china, they used the new strategy as a bipolar strategy a strategy offer high value-added digital home appliances to the high income earners living in the coastal areas, and low-priced mansion electronically appliances to general households living in the interior.China is a great resource for operating a business. With many advantages such as low labor cost, low material cost, government regulations, geographic proximity to Korea market, 16 corporate entities of LG were built in the country which focused on manufacture Plasma TV, white goods, and important research, development in 2006. LG expanded their brand to set up a manufacturing network to serve countries such as Russia and US. As 98% off employees were local Chinese and RD center, this is a refreshed strategy of LG in case of localization in China.For their promoting image, LG initiated an I delight in china campaign a nd passed out free sanitary masks to local citizens during the severe acute respiratory syndrome crisis in China. This activity really effected to customers while others competitors tried to summing up their business. LG also well done with their Corporation Social Responsibility by launching schools, offering scholarships to economically disadvantaged students, sponsoring a touting cultural festival that would bring traditional Chinese cultural experiences to s saunter towns and villages, founding a hospital program to provide surgical treatment to children with cleft palates. communal strategy across BRICAt the first time, LG Electronics always put up their local manufacturer and RD team with local employees to understand the need and characteristic of each market. They depend on these researches and created some particularisedation for local. Such as in India, most of consumers require on cheap price of products, but still have the same quality of international LGEIL decided to produce the television with a smaller screen size and scaled-down sound system. They did not forget to serve the high-end products to all markets. This is really the big success of their RD activities. They are supporting global strategy by looking for for talent local employees, meaning they localize with a purpose for global market. And with local operation, they can keep back much of manufactured products such as materials, employees, etc. fleck thing for their global strategy is they always established their brand name on rural market, where avoid the competition of those large corporations around the world. This is one unique strategy of LG because they focus on lower-class consumers and appropriate way to satisfy consumers in cheap prices but still benefit. The population of rural areas is always greater many times than urban areas. In 2007, LG Electronics reached the $2 billion marks in revenues in India this is a good root for their strategy.By recruiting the local emplo yees, LG E knew well about the characteristic of their consumers and this is an advantage to attack them. The company is always looking for talent employees to train them as a global standard. LG E did sponsors to the passionate of the country, such as cricket game in India, football in Brazil. other(a)wise, they had good corporation social responsibility that shown local and government their loyalty. All strategies of LG E in BRIC countries are long-term commitment this make LG has a different position contrast with other operations. LG still tries to overcome all the barriers if they believe that a market is really profitable.PART IVCase nous 3What are critical points of learning that can be distilled from its success in emerging market?How these advantages are leveraged to compete in developed countries? Are there advantages transferable?By some successful experiences of LG in BRIC countries, LG brought to people the strategy to run well an operation in emerging market. Some o f their success experiences are do sponsorship, event to create an image to customers they always had their RD team to customization their product to satisfy the markets based on localization. They still kept the global standard on their product lines and put it into new products for each market. By this way, their brand name will have the image of globalization and also get benefit for customized products. And LG focused on rural market and they know that major population of BRIC countries is poor, so they give what the customers want low price. In case of operate in developed country, LG can also use this strategy to attack their customers, but its harder. Because in developed countries, there are many sponsorship and activities daily, if their marketing strategy is not unique, LG can get many difficult to compete with others like Sony, Phillip, etc.Foreign businesses always focus on 2 things outsourcing and marketing when enter a country. LG really did 2 things above in BRIC cou ntries because they built their own factories, using local people, manufacture products on their factory in each country. They produce their customized products and sale them. But maybe this strategy will not work in developed country, because of the highly cost rates. The purpose for building their outsourcing is reducing the cost, but in developed country, the cost for these activities is very expensive. There will be wear out for them if they just do marketing and sale activities in developed country.Other thing is their distribution network. They expanded their brand name by a lot of retail channel, offices to most areas of each country. They also can save the cost for import, export, transfer, and quickly accessible to consumers. This will be the prepare strategy before LG enter a developed country.PART VReferences locomote LG. (n.d.). Retrieved 11 24, 2010, from LG Electronics Inc. http//www.lg.com/global/about-lg/careers/faq.jspCorporate infomation. (n.d.). Retrieved Novembe r 20, 2010, from LG Electronics Inc. http//www.lg.com/africa_en/about-lg/corporate-info/global-sports-sponsorship/sao-paulo-football-club.jspGrand Finale Of LGS MALLIKA E Kitchen 2010. (n.d.). Retrieved November 24, 2010, from intellectual nourishment and Nightlife http//www.foodandnightlife.com/content/grand-finale-of-lg-s-mallika-e-kitchen-2010LG Record sales and products. (2010, 1 28). Retrieved 11 19, 2010, from Consumer Lifestyle news show http//www.cln-online.org/index.php?option=com_contentview=articleid=511lgprofitscatid=40industryItemid=135LOUIS VUITTON IN INDIATable of ContentsLouis Vuitton emphasize Introduction 24Case query 1Why do people buy sumptuosity goods?25Case Question 2Louis Vuitton is a high-end product. India is a low-income economy. Can this wave-particle duality be reconciled?28Case Question 3What are the external factors kindering the purchase of sumptuosity goods in a country like India?30Case Question 4Why do luxury goods marketers form retail clust ers?33Case Question 5Why do certain luxury brands look for store locations in luxury hotels?35Case Question 6How does a luxury mall work for luxury goods marketers?37Conclusion 39References 40PART IINTRODUCTIONLouis Vuitton, a French shape house officially founded in 1854, is the worlds leading of high-end fashion brand in international fashion industry. The well-known label is LV monogram which is featured on most products ranging from luxury trunks to leather goods is also as a way to deter counterfeiters. Founder of LV first launched a small leather shop in 1821 with the original products narrow in crafting fine leather luggage ware. But since recognized the demand among prestigious travelers who cute premium steamer bags, flat cases, and weekend bags, the namesake designer, Louis Vuitton, stepwise grew into a brand that offered deluxe travel goods. Back then, as successfully in establishing LV initial reputation, LV expanded the assortment to embroil carry-on-bags, toiletry cases, small trunks, jewelry boxes, and eventually luxury watches. Today, over one hundred and fifty year brand Louis Vuitton has been spread throughout Europe as the fashion icon of the most exquisite symbol.In this particular case study, we are going to discuss the reason why people purchase luxury goods, especially is LV and how the dichotomy between a high-end product and a low-income economy to be reconciled. Then, the report will be continued with the external factors that hindering the purchase of luxury goods in India, culture typically. After that, mentioned more in international marketing, we are going to find out the reason why luxury goods marketers form retail clusters, why certain luxury goods look for store locations in luxury hotel. And finally, the report will be ended with the way of a luxury mall work for luxury goods marketers.PART IICase Question 1Why do people buy luxury goods?Nowadays, when the world becomes globalization, there are no more barriers in the i ntegration process of every country. Therefore, people are entitled to purchase and use global products made by international companies. Not the same as consumer goods or need goods, luxury goods are cyclical and correlate with GDP in specific regions, often exaggerating the up- and down-swings in boom times, consumers demand tends to grow faster than the growth of economies (as measured by GDP)5. More precisely, luxury goods are goods for which demand is not related to income. Basically, there are three main factors that lead people by luxury goods. Especially in todays consumer-driven economy, people spend proportionally less on basic necessities and more on things based upon sensation and desire.Firstly, they buy luxury good because of its superior functionality and quality. Most of them were old because of hard working time period, so they were wealthy enough that willing to pay premium for products that had enduring value. They usually conducted extensive pre-purchase researc h, then making logical decisions rather than emotional or impulsive. This action highlighted the messages of product quality. And that message were information-intensive appealed to them. Consisting of connoisseurs, this division was the largest.Secondly, they are people who perceive luxury products as a reward. They aphorism these products as status symbols which make the personal statement that they had arrived. Highly driven, they were cause by a desire to be successful, eager to showcase their success to others. They also were keen on appearing lavish or hedonistic. They wanted to make seemingly smart decisions that demonstrated the importance of their purchase while not leaving them open to social criticism of any kind.Thirdly, this is the smallest and consisted of younger consumers, with a higher proportion of males than the other categories. They saw luxury products as a means of self-indulgence. They enjoyed luxury products for their feel-good factor. They were emotional in their purchase decisions and were not concerned with product longevity or its enduring value.Particularly, in India, people who buy luxury goods fall into the entropy category. As we know, maharajahs are the most wealthy and powerful in India in the late 19th century. They are the one who prefer everything luxury to showcase their positions as great king. It was the on-going orders from Indian royal families, among other wealthy customers, that had helps Louis Vuitton survive the Great feeling of the 1920s6.After that, although the changes in 1971, these maharajahs lost their traditional hold in post-independent India and their wealth with the abolition of annual financial grants from federal government, many of them became entrepreneurs but accidentally, the new generation of customers for LV was formed in India including start-up owners of myriad new businesses, nonrecreational CEOs in their thirties and early forties, non-resident Indian, small and medium retailers, big- brand franchisees, Bollywood actors and closet spenders. This new generation of customers could be the third category of who purchase luxury goods. They are new and not too many of them are really rich, but they still purchase LV as the feel good factor. Hence, they are very essential in long-term strategic development in Indian market.PART IIICase Question 2Louis Vuitton is a high-end product. India is a low-income economy. Can this dichotomy be reconciled?India, throughout history, has been a land of extremes and known for the indulgence of its opulent classes7. Typically, there are more than 600 maharajahs existed that time. They are truly powerful and wealthy enough to be considered as great king. As a positive result, most of global brands were looking India as a market with long-term potential whereby there are high demands of luxury goods from Indian royal families, so does Louis Vuitton. Until now, almost luxury brands are still survived in Indian market despite of global ec onomic crisis. Clearly evidences are the Indian market has increased a significant percent of consumption this year when customers are more implicated in walking into the outlets and, importantly, buying rather than just looking.Besides that, India is known as a low-income economy, but there are really have several wealthy people who are superior to the average population. Since Louis Vuitton made an important observation that the rich in India were flying to London, Dubai, Singapore, New York, and genus Paris to shop because there were noting available in India for them to buy8, the company has joint the clear long-term goals in India that is open store in every Indian city so that the wealthy class can buy the needed items right in their home country. The World Wealth breed 2005-06, published by Merrill Lynch and Capgemini, put the number of dollar millionaires in India at 83,000 in 2005. The report also said that India recorded the worlds second fastest growth in the number of HNW individuals, 19.3 per cent in 20059. Thus, we can easily realize the potential market of Indian consumers purchasing power.Currently, collectable to the capitalist mind set and growing young population, India offers to luxury brands favorable advantages such as more wealthy people, increasing awareness, increasing consumerism, and greater supply of luxury goods. Firstly, luxury product companies strategizing their entry into India were primarily targeting high-net-worth individuals because they are those with a million dollars or more in liquid financial assets. They are the largest category of spending on luxury goods as the number of them as well as their demand increased. Secondly, India young generation is now travelling abroad more than before, thus, the foreigner brand awareness is also increasing. The more they go out of the country, the more they exposure with international brands, especially luxury brands. Then, the demand of these kinds of global brands is increased in India but domestic market can not satisfy their demand. That is the reason helps luxury goods generally and Louis Vuitton particularly still existed and developed gradually in this market. Thirdly, there are also an increased numbers in consumption of non-essential items. The world is getting globalization day by day the demand of human is not only the needs but also the wants, so that their life becomes more convenient and sophisticated. They dont afraid of giving a large amount of property to spend on a luxury product that it is worth for and convenient their wants. Of course, there is no more guilt feeling associated with spending on luxury nowadays. Finally, together with the boom of expanding global, luxury brands opened more and more outlets in as many countries as possible, including India.Generally, in the world of opposition, this dichotomy entirely can be reconciled.PART IVCase Question 3What are the external factors hindering the purchase of luxury goods in a count ry like India?Depend on several conditions of each country the factors that are hindering the purchase of luxury goods are various. In this particular case study, we are finding out the external factors in Indian market.Advertising platform Nowadays, Advertising is a service to the conjunction10. It is usually revealled the latest fashions and the new popular novelties on the market. Therefore, the effect of adverting to the community is essential. Advertising has the power of persuade and influence consumer. Advertising has short-term power (conveying new information, building awareness, enhancing credibility, etc.) and long-term power (conveying brand image, attaching emotional set to the brand, building positive reputation, etc.)11. Actually, there is lack of advertising platform in Indian market. No famous magazines or newspapers are found in India at tha

Food Choices And Meal Patterns In India Media Essay

Food Choices And repast Patterns In India Media EssayThe chapter will inclose the decreeings, in the form of themes and c subscribegories, which was seen from the compend of the interviews with the participants. The themes are recurring instances of responses occurring across ein truth last(predicate) the interviews and which are important and relevant to the research. The themes were carefully organized into over-arching relevant categories. The themes constitute overly been separately discussed as sub-themes, which were based on the responses of the participants and listed in their avow voice, so as to enable a better understanding of their thoughts, k straightledge and responsiveness.Category I Changes in Food choices and Meal patternsThe themes and sub-themes talk ab let on(predicate) the transbroadcastts in forage choices and repast patterns that took place amongst the Indian students in Leeds metropolitan University and understanding what it meant to them.Theme 1 Fo od choices and Meal patterns in IndiaSub-theme A I had more contrasting a type of Indian nutrient earlier at home than it is hither.Yes, on that head word is quite an a arcsecond of difference in the type of food that I kill up hither(predicate) and that I am used to having in India. I donot get the conventional foods that I liked a lot and once in a while I do get Indian food present as well, which is as close to home that I undersurface get.The pulmonary tuberculosis of food showed a gr immerse degree of variation from different regions of the country. They were also dependent on the types of sides that were eaten with the meals. Also, the fact that or so of the students report that, disregard slight of where they came from in India, the choices addressable for them regarding traditionalistic food, were more than they get here.I had rice for in all the meals. Thats what people do there. Bread is not that common, may be occasionally, however the most common wa s rice, which we could corroborate with any side.It was seen that rice was considered as not only the staple ingredient however also something that they could go with most of the side dishes. Due to certain religious beliefs that they grew up in, there was apparent absence of snapper and meat products in the responses of some participants.My family had perpetually eaten wheat for atleast whizz meal of the day. I guess it may be because of the fact that we harpd in the North of the country and also that it was cheaper and slow available.The enjoyment of wheat by these participants was because it was less costly and also that it was easily available in the region. Also, wheat formed the forageary resemblance to the cultural associations of that region. Also, amongst the meat and meat products, chicken was seen as the acceptable option, plane during the religious and cultural gatherings. The Indian food consisted of heavily spiced dishes ranging from vegetables, meat or fi sh.Sub-theme B We ate more regular meals and had a balanced dietall(a) the participants say that they had a more regular meal pattern with 2-3 meals in a day and most of it was home cooked. They also brought up the idea of a proper meal, wherein they had food that was specific with that meal of the day.Before I came here, I used to arrest proper three meals in a day, but here I may only end up having 2 meals in a day. Also, here the meals are not balanced and quite second base.The participants snarl that the meals they have here were not similar to the ones they were used to having natural covering home. The participants say they were used to having lavish and complete meals, which consisted of variety of dishes.I had a very good feeding habit at home. I had a set meal for breakfast, lunch and dinner, with occasional snacks in between them. have regularly, as I used to before is the key to keeping firm.All the participants talked near the importance of having traditional meals atleast twice or thrice a day. They tangle that the breakfast was one of the important meals of the day and that it results in healthy eat habit. It was also seen that they anchor proper after(prenominal)noon snack and a filling dinner was healthy, with long term health benefits.Sub-theme C When we were plunk for home, we never used to eat out often, even though it was period of play to eat out.I used to eat at home for most of the clocks in a week. May be once or twice, I would go out with my friends for dinner bit then that was also not that frequent.The participants talked somewhat the fact that most of the measures they preferred to eat at home and did not want to spend money or get worried about the quality and hygiene related with the food. Also, they matte up that consume away from would mean going against the normal home cooked food. Also, they sensed junk food as something that was not a part of the meal and not to be healthy, even though it presents itsel f as an important candidate if the Indian culture and religious festivities.Theme 2 Food choices and Meal patterns in join KingdomSub-theme A Foods that I eat here are very different from what I am used to.The participants showed signs of change in their eating habits after moving to Leeds Metropolitan University in the get together Kingdom. The participants said that they found it ticklish to have breakfast, as they were used to pricker home and even if they did, it was more of ready to eat foods like cereals. in that respect were less consumption of traditional Indian food items and more consumption of canned food items, fruit juice, cheese, snacks like sweets and chips. The meals usually consisted of food from another(prenominal) ethnic origins as well like Mexican, Continental, Italian, which were eaten at local restaurants in Leeds.The participants said that they had to plan towards their meals here and they felt that it was difficult to retain their traditional food hab its because of the time constraints faced by the students.I have to plan my own meals here. But at home, it was my mom. My meals here are not consistent. I donot have time to cook the things that I am used to eat back home, as most of the traditional dishes require planning, energy and time, which is difficult here. So I eat whatever is easygoing to cook and less time consuming.The participants also said that, though most of the time they have non-traditional food, however during the weekend or holidays, they try to stick to traditional Indian food. They felt that for them Indian food enabled them to maintain their cultural associations.Sub-theme B My eating habit is very irregular here.Most of the participants said that their eating patterns were irregular after they came to the United Kingdom. Most of them said that they never or rarely had time to have breakfast. They could only have a proper meal for dinner, wherein they could cook traditional Indian food for themselves.My foo d habits have changed after coming here. I skip meals as I donot get the time and energy to cook for me. Most of the times I am at the university and I eat whatever I get at that point of time. However, for dinner, I try to cook some traditional Indian food. It builds a difference to have dinner as a complete meal.The analysis of the responses shows that the participants had an irregular food pattern, which was mainly due to the pressures of the new life here and the lack of time to plan and prepare a complete meal. Also, it was reported that they found the local food not to their liking all the time and hence it resulted in skipping entire meals.Sub-theme C I eat out a lot here, more than I used to in India.Here, I be to eat out with my friends most of the times. Even when I am in the university, I would go to the vending machine and pick up something to eat. I also eat many snacks here like sweets, chips. It is even more than I used to at home.The participants talked about their habit of snacking of food items like sweets, chips etc as it was easily available to them and also that they cost- commencement. The inability by them to invest time towards grooming for themselves and at times resulting in them tout ensemble skipping or replacing their meals with snacks or fast-food options. The participants also perceived that the snacks they had in India were low in fat content and hence better than the ones here.I donot have time to go home and cook an Indian meal for myself. I usually gout to eat or do some takeaway. It is all about convenience for me and usually I donot have an alternative.The participants said that for them eating out or at restaurants in India were considered a luxury, however here they feel it as imperative because of its convenience and easy availableness as compared to the traditional meals. They felt that a healthy Indian meal is one that would have less cream, oil and cooked at home.However, even though the participants were not extr emely interested in eating non-traditional food, but also felt that there were wide range of options available here, something that they did not uprise easily in India.Category II Factors affecting Food habitsTheme 3 Food habits and perceptions regarding Food habitsSub-theme A I wish I cooked at home so that I knew how to cook.There were interesting perceptions that were reported by the participants towards knowledge and cooking skills. Most of the women participants said that they did most of the cooking at home however they found the same difficult here as they had busy schedules with lectures, university. Whereas, the men were unanimous in their response they found cooking a meal difficult without any previous knowledge.I never took interest in cooking. I did not have to worry about how much to make and if it is healthy or not. After coming here, I tried to cook but it was not easy. Most of the times I would make something that is easy like ready to eat or flash-frozen food.The differences in responses could be due to the traditional beliefs that are related to the consumption that a man and a women play in the Indian society. In most cases, the Indian meals were mostly enjoyed in the local Indian restaurant. The anthropoid participants talk about their lack of skills to prepare Indian meals that makes it difficult for them to have a traditional diet. Also, the female participants, even though most of them said that they had the required skills to cook, showed preference to non-traditional food habits, due to the lack of time demand to cook Indian meals as well as the limited availability of ingredients required to make a traditional meal.My eating habits have changed a lot here. I donot eat traditional Indian food anymore and at times I donot even cook. However, I feel if I knew how to cook, it would have helped.Sub-theme B I find the food here very different from what I am used to.All the participants said that they found the food here as convenient food due to its easy availability and ease to prepare. However, they thought that these food were not important to be considered as a complete meal, as most of them were artificially active with preservatives in them. Some of the participants said, contrary to the general opinion, that they found the non-traditional food healthier than the ones they used to have at home in India.Even though I have eaten Indian food throughout my life, I find the options here like the sandwiches, soups, salads as healthier than the Indian counterparts. I find them to be light and fresh.I cook Indian food at times, but they are time consuming and pass to be unctuous and greasy, especially if I am going to a restaurant. But the non-traditional foods tend to be more nutritious because they are prepared in slipway to preserve their nutritive value, with less oil and cream.The participants also described the luck staying away from home as a way to be more experimental in their food habits, breaking a way from the traditional diet to try something new.I have always had Indian food. The fact that now I can actually try new things and to be gallant with my food habits is a nice feeling. At times, I will make pasta, sandwich or Mexican and they taste good too.Sub-theme C I find it difficult to always have a traditional diet here.Many students talked about factors that affected their traditional way of eating. One much(prenominal) was that of financial considerations, which greatly influenced food and eating habits during their stay in the United Kingdom. They found that the local food to be more reasonable as compared to the traditional Indian food.I donot spend much on food, tend to eat whatever is cheaper. I never ate beef in India, would never entail about it, however after coming here, I got to know that it is difficult to always live by traditions. I obstinate to accept the change rather making it a problem.The participants described their evaluate the change in their food habits as a way to be accustomed and accepted by the new culture here. Also, some of the participants talked about their exposure to the Western diet in India, which had played an important component towards them accepting the change in food habits that happened here.Sub-theme D My diet has changed well with time that I am here.Certain participants said that the duration that they have been in the United Kingdom have resulted in changes to their dietary habits. For them, they felt that a reason to come here was the freedom of making choices regarding their eating habits, wherein they ate out often, which they felt as an enjoyable experience.I think my diet is more or less the same here but then it is not definitely the way it was in India. I live alone and hence to eat what is easier and faster to cook.

Elements Of Quality Culture Management Essay

Elements Of choice Culture Management EssayIndeed, eccentric flori purification starts with top oversight. T here need to be top steering lead to drive this assimilation of feature across the physical composition. For this to happen, business leaders and managers must(prenominal) have the commitment in setting up tint defend programmes, strategic planning for pure tone and provide resources for smell. In addition, top commission leadership role is also a distinguishing element of a fictitious character culture. Adopting a democratic leadership style where departers are not punish for errors and failures and that never-ending learning is what prevails in the shaping. Management attitudes should be towards treating employees as members and abate barriers of superiors or subordinates. This suggests to everyone that the work of all members of the company is classic and adds value to the final exam payoffs. Members of the organisation should emphasis on the purpose for which they are all here To get better and better at creating that mutually beneficial race between them and their customers. Therefore, the authority of the top management is to support the mutual interests of its police squad openly and conscientiously.Employee focusUnderstanding employeeEmployee, existence the most prominent reckon of production, needs to be given consistent attention by management. Their actual skills and competencies (both technical and interpersonal) need to be assessed continuously through murder management programmes, the SERVE model for service competencies among others and training should be given as and when needed. Alternatively, managers must be attentive on the needs of employees with proper rewards and incentives programmes being conducted. For sustaining a timbre culture, it is also vital to consider the non-work aspect of employees much(prenominal) as marital or family problems, financial or other favorable problems.Employee sanctionMan agement cannot on its own make quality a driving force of the organisation. Employees are those who are relate in treat and marketing the companys product. As such, employees should be empowered to make timely, accurate and priceless purpose with regards to improving the quality of the companys product or service. Moreover, in most cases, empowerment may also in circumstances where the employee has to delegate nearly powers and authority to his/her colleagues with the sole aim of improving quality of service. However, effective empowerment involves appropriate training given to employees, management monitoring of the decision and review and feedback given to management.Involvement and society of the employeeEmployee involvement programmes (EIPs) can take a variety of forms including job participation, consisting of permanent programmes in which employees take a formal, groom role in decisions relating to quality issues consultative participation with top management to impro ve their production stage businesss, including long-term interventions like quality circles, employee suggestion schemes, cerebrate sessions, in which employees opinions are sought as managers engage in decision making regarding quality issues over the long term. On the other hand, employee participation will be at the board where discussions are held between managers and/or employees over issues that requires employees and/or management ideas and suggestions.Customer focusThe impetus for quality return begins with the customer. Customers are d grossn to products and services of a particular organisation because they feel their needs and expectations are met or exceeded by these products and services. The bottom line for the customer has always been whether he or she obtains the products and services desired. For this reason, a focus on customer needs and expectations is recognised as the key to quality improvement by Demming, Juran, Crosby, and other pioneers of TQM. Therefore, customer driven values would be firstly to adopt a user based quality advancement whereby the quality is based on what the customer wants since he/she has always reason. Furthermore, in that location should be a change in management/employee attitudes as wellspring the door should always be left open for maintenance and advice. uninterrupted improvement and InnovationA quality culture requires organisations to embrace continuous improvement and kaizen throughout their attendes. This approach assumes that employees are the best people to let out room for improvement, since they see the processes in action all the time. A self-colored that uses this approach accordingly has to have a culture that encourages and rewards employees for their contri providedion to the process but to meet the highest standard possible at any time. In line with this continuous mechanism, management should allow room for innovation and creativity, work alongside the research and development, and inves t massively in the development and new(a) products based on customer requirements.Partnering with suppliersSuppliers are probably among the most important stakeholders for businesses in quest for a sustainable quality culture. This is because, the essence of quality starts with the inputs of production which normally constitute of a greater proportion of raw materials and components. The values that the organisation needs to holds vis-a-vis its suppliers are not as stakeholder but as partner for the longer term. Clear emphasis should be laid on the quality of raw materials. The organisation could make an organisation by having quality control officers at the warehouse of the supplier. In addition, quality is also about the delivery of inputs which requires the principle of just-in-time where raw materials and components arrives at the pulverization as and when needed therefore reducing the cost of storage but also keep the materials at the standard required for production.Perform ance measuresQuality standards are imperatives if quality is to be consistent in an organisation. However, using quality standards as performance measures will give employees room for continuous improvement in their skills and competencies. The culture that needs to prevail in the organisation is that performance of employees needs to be assessed with regards to quality standards and not based on the quantities of output produced.CommunicationIn order to have a dominant quality culture prevailing in the organisation, open, honest parley is vital. Dishonest communication is the kind of communication that leads to misunderstandings which frequently create problems on the job. In an surroundings where open communication is a stated value, such dishonesty in how people interact with each other makes little sense and therefore quality is reached in terms of conversations, discussion and sharing of ideas. Another requisite element of a quality culture is empathy which is to do with pro actively seeing the humanity from the perspective of others-other members of the company, customers, suppliers, the community. It is having a sense and appreciation of their problems, their abilities, and their behaviours. Finally, in connection with empathy, members of the organisation need to have active listening skills by suspending judgements.Team edificeIndividual advantage depends on how everyone in the company works together, and the companys success depends on all individuals doing their work well. This crucial element of quality culture encourages the development of teams and teamwork when collaboration is appropriate to execute work. In organisations with this value, people establish the tasks that need to be done. They then look at the interdependencies among people involved and organised teams around these tasks. The commitment and inclination to teamwork in a culture with this value will indeed be naturally extended to suppliers and customers. Ultimately, the teamb uilding cypher will help remove barriers and class differences among people and work towards implementing keep down quality across the organisation.

Kellers Model Of Customer Based Brand Equity Marketing Essay

Kellers exemplification Of Customer found Brand Equity Marketing EssayHow do consumers evaluate cause headspring soft touchs An investigation of the performance of Harrods as a swear out stigmatize to catch up with their soil imageBackground of the Research stigmatization has been bingle the more or less exciting yet phenomenal merchandising creation of the 21st century. A sucker tin be keep an eye oned as a promise make with consumers, the promise of providing consistent quality and satisfaction (Balmer Greyser, 2003). in that respectfore the status nock lav be defined as a shit, symbol, knock-down(prenominal)-arm body or a combination of these to unwrap a ingathering in the food market (Keller, 2006). Brands invite dumbfound precise grievous in recent historic period and atomic number 18 get out of our e realday life and with so much pickaxe available it sticks difficult to choose a special(prenominal) tick offed output. commonly consumers te nd to select products that be familiar to them, products that tend to grow a clear importful forget me drug of shelters, attri plainlyes and smirch names that be indisputable (Keller, 2006). some(prenominal) physical goods and function discharge be trademarked, still in that location has been a vast focus towards the stigma of physical goods and very light work carried out on the targeting of serve (OCass change, 2004).The growth of dish outs has been rapid across the world and it has force all-important(a) to understand the rotating shafts that mass be apply to filth name a improvement to initiate differentiation. stigmatization of physical products tends to be simpler beca handling the consumer is able to bound, touch and feel the end product. Branding a do good is slightly more complicated due to its intangible asset nature, because youre non going home with an item but more of an attend that occurs with gains. Many scholars much(prenominal) as de Chernatony and D each(prenominal)Olmo Riley (1999), Berry (2000), McDonald, de Chernatony and Harris (2001) and OCass and Grace (2003, 2004) stupefy interpreted an approach to create a framework that can be utilise towards stigmatisation a profit. Most of these frameworks are created to measure assisters that are intangible such(prenominal) as banks, hotels, airline, financial and consultant assistances.This study forget be nidus on the mark of Harrods renovations. The study has been motivated by the nature of process stigmatisation and the frameworks that turn out been created by scholars previously mentioned. fifty-fifty not all of these frameworks are applicable for this study and at that placefore forgeting be concentrating only on the framework created by OCass and Grace (2004). The primary(prenominal) reason macrocosm the framework created by OCass and Grace (2004) is the only one that measures serving fire defects from the consumers point of view. The wait on station sit by OCass and Grace (2004) will be used against attend tos creation offered by Harrods.Harrods is substantially famous for the luxury and high class products it offers, however this research emphasises on the run it offers. The main serve ups Harrods offers are as followsKarim Fayed hearing middleBeautySports FitnessFinancial and decentty goHome lifestyleThe studio Interior Design InnovationFurniture and interior designFoodFashion and accessoriesFine JewelleryWeddings OccasionsCorporate gifting operateHealthcareAirport ServicesThis research is not particularly foc victimisation on one help it provides, rather it takes all these overhauls in general and the doents would be the customers of Harrods who have used any of its portions.Aims and ObjectivesThe main charter of this throw away is as followed.What are the service stigmatization factors taken into reflection by consumers when selecting a luxury tag service provider Harrod s?The adjacent objectives have been suggested and need be reached for a successful achievement of the project aima) To pick up, examine and discuss the relevant service stigmatisation associations consumers hold towards service brandsb) To identify and discuss all the relevant service mark associations this instant linked towards Harrods Servicesc) To examine how important are the service brand association for Harrods service consumersd) To evaluate the influence these associations have on the get of services from HarrodsLiterature ReviewOverviewWhat is Brand?A brand is prefatoryally a trademark or a distinctive name of a product or manufacturer, it conveys and portrays the image of the product word brand refers to a name, term, symbol, sign or design used by a soaked to differentiate its offerings from those of its competitors, to identify a product with a particular seller, Kotler, (1999) give tongue to. Developing a good brand has be seed a major task for many governing s today because it provides a number of advantages. Strong brands benefactor the firm establish an identity in the market place (Aaker, 1991). A successful brand has a recognizable name which provides specific attributes to the consumer (i.e. quality, elegance, nurture). accord to The Economist (1988) the staple fiber plan of branding is to manufacture the products image, this image will influence the perceived worth of the product and will amplification the brands value to the customer, leading to brand loyalty. From the market spatial relation, Kotler (1994) believes brands convey a few meanings to the consumers manageBenefit The help and benefit sought provided by the firm to its consumers, which is modify by its attributesCulture The brand reflects an organizations image and beauteousnessPersonality The brand is regarded with sealed characteristicsUsers self-image The brand reflects or consistent with consumers self-imageBrand Value Both physical and mental values provided by the brand to its customersAttribute The functions of the product brand provideCompanies normally develop brands as a mention or mode to rive and keep customers by promoting value, image, prestige, or lifestyle. Hence, a brand is not just a symbol but comprises of fondness product, packaging and marketing communication, which includes many important meanings and values of a firm the objective of brand building is to develop more valuable salary and benefits to the friendship.Relationship of Brands and Their EquityAccording to Motameni and Shahrokhi (1998) today brands play an important part in marketing dodge because it has become an important marketing grammatical constituent for the company and a source of information for the consumers. Branding and brand beauteousness has been a key topic of interest to the researchers of marketing for many years. The term brand can be explained as a name, term, sign, symbol, or design, or a combinations of them which is intende d to identify the goods and the services of a seller or a group of sellers to differentiate them from those of competitors (Kotler, 2005. pp 42).This topic of branding and brand honor has been a detailed research topic in the marketing literature. Aaker (1991) and Keller (1993) have gave some thorough insight into brand impartiality, and two have provided theoretical schemes that link brand equity with various consumer response variables. Brand equity has emerged as a marketing imperative, so too has the need to full understand and manage brand associations (OCass Grace, 2003). Aaker (1996) has defined brand equity as a set of assets (and liabilities) linked to a brands name and symbol that adds to (or get off the ground from) the value provided by a product or service to a firm and/or that firms customers. Aaker has in addition identified five assets of brand equity brand awareness, brand loyalty, perceived quality, brand associations and other proprietary brand assets. Aake r (1996) withal presented brand isentity model which is very important in elaborating the concept of brand identity.Fig. 2.1 Source (Aaker 1996)The brand is a very important tool for marketers as consumers use it as a reminder to conclude certain product attributes such as quality (Krishnan Hartline, 2001). Lim OCass (2000) stated that brands are seen to be valuable assets and sources of differentiation that plays a vital role in marketing dodge. Branded goods make it simpler for consumers to identify the product in the marketplace (Lassar et al, 1995), brands also reduce the consumers search costs, perceived risk and signals the quality of the product (Keller, 2006).Kellers Model of Customer Based Brand EquityOn the hand Keller (1993, 1998) has proposed a knowledge based framework which is a customer based brand equity model. The framework consists of two dimensions commonly cognize as brand awareness and brand image. The model consists of product link and non product cogitat e attributes (OCass Grace, 2003 Keller, 2003). The product associate attributes are explained as the components of the relateion product or service wanted by consumers (Keller, 1993). The colligate attributes of service can be described as the handle that takes place in the lead, during or after receiving the service. For case when a customer uses a dry cleaning service they are paying for getting their clothing cleaned and the charge charged is usually for the unseen particles such as the use of premises, detergent, cleaning equipment and employee expertise (OCass Grace, 2003).The non product related attributes refers to all other attributes that are external to the function or the process of the service offering (Keller, 1993). The four non product related categories are price, exploiter and practise imagery, brand genius and feelings and realizes. Price is considered a non product related attribute as it remains external to the purchase or breathing in of a servi ce (Keller, 1993, 1998). In price of branding the price does not directly reflect the service or performance. Moreover price is launch as an important association in brand image rating and a slopped quality indicator (OCass Grace, 2004, Keller, 1998).User imagery is related to the showcase of person who is going to use the product or service (Keller, 1998). The attributes are usually formed by the consumers own experience via sink in of brand users or by the image represented by marketing communications. On the other hand usage imagery illustrates the situational factors in which the brand is used (Keller, 1998). For example condemnation of day, week or year, location, or type of activity. The user and usage imagery typically reflects the conventional users of a product or service in the context within which it is used.Brand constitution has been defined as set of human characteristics or traits that consumers attribute to a brand (Keller, 2006, p.369). In simpler terms bra nd personality can be expressed by two demographic and psychographic characteristics, providing a concept upon which the brand can be positioned in the consumers mind. Brand personality or personality characteristics are used to target consumers, hence attracting that particular market where the population can relate themselves to how they see their ideal self (Keller, 2006, p.66). A well established brand personality has the ability to increase emotional ties with the brand along with developing trust and loyalty.According to Keller (1998) feelings and experiences which are also non product related attributes, have become important in terms of consumer evaluations of brands, frequently occurring through the evaluation of publicize. In the context of services, it is important to evaluate the feelings and experiences of service brands. For the reason that product and habit occur simultaneously in services, the service experience is the active structure of meanings associated w ith the behaviours, thoughts and feelings that occur during consumption, which directly adverts on the consumers perceived brand image (Keller, 1998, 2006).The measurement of brand equity has also been a high interest field of force of study. There are direct and validating measures for brand equity. The direct approach is an attempt made to assess the value added by the brand to the product (Keller, 1993). The indirect approach focuses on the acknowledgment of the potential sources of brand equity (Aaker, 1991 Keller, 1993). Both these approach can be given a merit, however Keller (1993) argues that direct and indirect approach to mensuration brand equity are complementary and should be used together. fantasy of Service Branding in the Marketing LiteratureBasically branding is basically an effective marketing strategy, tool and technique which have been utilise with great results for organizations and enormous success in the past (Rooney 1995). Nowadays, branding is confront a new popularity due to new and innovative applications. Though at that place have been times when branding was less than successful. Now marketers are workings to get the appropriate applications in the given settings. All the bothers regarding branding strategy in current time include the selection of a proper brand name. Coonan (1993) stated that this fundamental issue will impact on the success of a branding strategy.Marketers have to choose the advertising strategy to support and communicate the name, once a name is selected. Hence belongings the brand in a strong position is a particular concern. peeled areas of branding include corporate, industrial, and service branding. These non-traditional branding environments are get the future for marketers using branding strategy. To add to the new branding areas, thither are new branding techniques. These techniques include brand extensions and ingredient branding. New strategies, techniques, and arenas for branding have to b e managed. The organization must support and identify with the strategy. The goals, objectives, and mission of any organization should be in line with the branding strategy employed.There has been a lot of work carried out on branding and brand equity by academic researchers like Keller (1993, 1998) and Aaker (1991, 1996), but majority of their work has been focused on physical goods branding. In the get going decade there has been many frameworks created to assist marketers to realise how consumers think about, and respond to brands, as a result enabling marketers to implement effective consumer centred marketing activities. Turley and Moore (1995) have stated that there is an increased growth of service economies passim the world, but the branding literature has mainly explored branding in terms of physical goods, whereas the branding of services has been minimal and left out of the picture.several(prenominal) researches have been done on services marketing that has focused on t opics such as measuring service quality, service failure to service switching but the examination into branding of services has not been undertaken (OCass Grace, 2004). Keller (1993, 1998) and Aaker (1996) have suggested branding frameworks that can be applied to measure brand equity, however these frameworks are excellent when used towards physical goods but are not fully adaptable for service brands as some attributes need to be taken out or completely adjusted. Keller (1993, 1998) has created a construct known as dimensions of brand knowledge which is an in-depth analytical view of the brand from the perspective of the consumer. The model has been criticised because only a small section of the model has been empirically tested to date and the model overlooks the variations found in the area of consumer evaluation concerning goods and services (OCass Grace, 2003). Keller (1998) has however argued that his model can be applied to both branding of goods and services. With respect Berry (2000) has criticised that these models by Keller (1993, 1998) and Aaker (1996) have some aspects in common across the two domains of goods and services, but the application of these models can be questioned. The reason being the marketing principles of goods and services are inconsistent because the end mingled with the two domains. The core offering of goods is different from the offerings of a service, because core service offering of a service is more complex and mostly compromises of elements such as processes, people and physical facilities (Tax Stuart, 1997 cited in OCass Grace, 2004). As a result the evaluation of service brands by consumers maybe different as there maybe the need for more or newer attributes required in examining service brands than physical goods brands, hence the models by Keller (1993, 1998) and Aaker (1996) are inconsistent and cannot be completely relied on when evaluating consumer perceptions of service brands.ServiceWhen exploring the con cept of service new(a)s office is very important. Youngs (2000 P 43) says, A service, combined with goods products, is experienced and evaluated by customers who have particular goals and motivations for consuming the service. Gronroos (1990) stated that service is an activity or serial publication of activities of more or less intangible nature. He also stated that service normally, but not necessarily, takes place in interactions between the customers and the service employees and/ or physical resources of goods and/or systems of the service provider, which are provided as solutions to customers problems. Young (2000) has mentioned three areas of service, to elaborate it in much better way. First is that service takes place via interaction of consumers and the service provider, it can be a company or an individual. The other factors are the physical resources or the environments playing a vital medium role in the process of service production and consumption. Third service is ne eded by consumers to provide certain functions such as problem-solving.Boone and Kurtz (1994) have worked on services and according to them each of service characteristics is as follows1. impalpability Customer cannot sample a service before purchasing it that appealing to customers sense of sight, hearing, smell, taste, and touch.2. Inseparability Customer perceptions of the service provider become their perceptions of the service itself. Often Customers are unable to judge the quality of a service before purchase.3. Perish-ability The organization cannot put an unsold service into storage.4. hard-fought to Standardizes It is mostly impossible to standardize offerings among sellers of the same service or even to standardize the service of a single seller.5. Buyer Involvement It is very important that buyers are often involved in the development and scattering of services.6. Service quality is actually high variable in all aspects.When goods and services are compared on the ground s of their characteristics following table can be helpful in doing comparison.Fig. 2.2 Comparison of products and services and service branding implications (Source Grace and OCass 2003)Kristen (2008) stated that when its about providing service, knowing the prognosis of customers and the customers perception of the service encounter is a vital component to delivering superior service. Delivering superior service, especially in the hospitality industry creates a myriad of opportunities for the service organization to surpass the competitive and become a recognized leader in the service industry. It only stands to rationalize that the concept of the service encounter directly affects satisfaction, loyalty and future behavioural intensions which in turn, has a direct affect on the organizations success and financial stability.There are four basic unique features of services intangibility, inseparability of production and consumption, heterogeneity and perishability.Heterogeneity of S ervice BrandsThe advertising that positions the brand should be met by frontline lag as if imitating the brand. Regular planning, control, mechanisation and regular reviews of performance improvement and consumer reaction should be made use of to overcome heterogeneity and quality control difficulties of service brands (Chernatony Riley, 1999). The human element in service condition cannot be subjected to quality control measures as a product from a factory, thus each service experience is potentially distinctive, where agreement can prove difficult to achieve on a regular basis (Berry, 2000). Berry (2000) believes the concurrent product and consumption of services can enable to customise the service brand to serve the inescapably of particular consumers better, thereby devising the practice of marketing the responsibility of every employee. The previous branding strategy is unlikely to accommodate differing consumer needs because of the rigid structure and almost inflexible a pproach. By making branding an internal as well as external activity, may help ensure torso across time and differing situations (Chernatony Segal-Horn, 2003). Internal branding also known as internal marketing, has sired great deal of wariness and an area of vast interest, which has created a consistent organisational culture revolving around the brand concept. Within the service company the brand concept needs to be understood, which allows the brand to become an internal cohesive device, enabling employees to retain flexibility to deal with different people and situations, while conforming to the brand concept. As a consequence employee relations and internal communications are essential means to motivate and retain consumer conscious employees and ensure greater consistency in service quality (Chernatony Riley, 1999). Employees with positive attitudes and behaviour can increase consumer satisfaction with the service brand, which results in increased market share and sales. Intangibility of Service BrandsThe factor of intangibility of the services of the organization makes it hard for customers to identify and assess the quality of a service and differentiating between other competing brands. There is also a concern to firms as they find it difficult to set accurate prices for services. To overcome this problem number of branding strategies can be implemented. It has been suggested the size and reputation of companies, which are perceived associations of the firms brand name, that are used by consumers as an indicator to measure the quality when selecting between very intangible services (Chernatony Riley, 1999). It has also been noted by Balmer and Greyser (2003) that consumers are instinctive to pay higher premiums for services of a company with a strong reputation. Moreover firms that recognise the company name as the brand name, reason by a distinctive corporate identity, personality and image is considered an important service branding strategy , providing endorsements recognition and acceptance as well as making the service more meaningful hence tangible (Balmer Greyser, 2003 Berry, 2000). some other(prenominal) service branding strategy that has been encouraged is the use of unique word of honor or physical facilities that consumers can immediately associate with specific service providers by offering relevant tangible clues (Chernatony Riley, 1999).Many researchers have considered the branding of goods and services have their similarities however specific nature of services requires orient approaches (McDonald, de Chernatony and Harris 2001). Since every service is based on series of performances, service brands become a target of being perceived as commodities. To overcome this problem McDonald, de Chernatony and Harris (2001) have taken a different approach and recommended to make service brands more tangible to provide consumers with favourable set of perceptions. The authors have identify an effective way to c arry this out is by using physical components associated with the service. For example making changes to the physical elements associated with the brand such as staff uniform, consistent office decorations to the type music played in store. nevertheless making these changes doesnt assure that consumers will have a positive view when assessing the service, because the actual service the company provides cannot be improved due to these changes being made.Inseparability of Service BrandsAs consumers are involved in services production, their expectation usually differ between encounters, mainly due to the fact how they interact with different service providers. The main influence of satisfaction with a service brand is caused by the similarity between expected and perceived behaviour, making it complex to control service quality (Summers, 1996 cited in Chernatony Riley, 1999). Moreover there is an increased emphasis towards selecting and training staff to provide a service that is co nsistent, however it has been argued firms should emphasis the use of corporate branding to establish a favourable consumer nature towards the company (Balmer, 1995). According to this perspective, the company brand provides consistency to the employees behaviour while maintaining consumers expectations. On the other hand it has been stated that by involving consumers in the production process, firms are better able to adapt services to individual needs.Perishability of Service BrandsService brands face a great altercate not only does the firm have to build a strong image and reputation to attract consumers (Balmer Greyser, 2003), but also preventing competitors from making promises that attract consumers away, even before the service brand has been experienced. Services cannot be stored and the service encounter often does not involve any transfer of ownership. In services such as life insurance or pensions the service is purchased long before the benefits have been received and e valuated. To overcome these difficulties it has been suggested the company should build strong brand image and reputation as one of the branding options available. Another problem arising from the characteristic of perishability is the difficulty in synchronising tack on and demand. Service firms need to formulate strategies either to cope with fluctuating demand or make adjustments to match capacity and demand more closely, or they will not only face financial problems but branding issues as well (Chernatony Riley, 1999). The brand as recognised by consumers, encapsulates both the quality of the service and the efficiency with which the service is provided. Chernatony Riley (1999) have provided an example that the brand image of a supermarket chain depends not only on the price and the product they stock , but also how quickly and efficiently customers can pay for the good and exit the store. Long waits at queues can adversely affect the image, unless ways are found to drive on up the queues or persuade consumers to shop outside peak times. Therefore organisation systems become part of the branding process that enable the delivery of promises with regards to service quality, speed and efficiency.Frameworks of Branding of ServicesBecause of the unique features of services, consumers have a complex time evaluating the content and quality of a service prior to, during and after the usage of the service. It has been stated by Krishnan and Hartline (2001) branding is more important in services due to the complexity faced by consumers in assessing the purchase of a service. Branding of services is critical for the reason that consumers view services as a commodity. Branding of services has not been a well researched area hence the literature is slow in development and primarily basic in nature (de Chernatony Segal-Horn, 2003 Grace OCass, 2002). Berry (2000) has suggested service brands should be distinctive, relevant, unforgettable and flexible and should be named same as the company rather than another name. The intangibility of services makes it difficult for consumers to evaluate the quality of the service. Regarding the growth of services across the world and the incompatibility of brand equity frameworks used for services, academics such as Berry (2000) Chernatony and Riley (1999) McDonald, Chernatony and Harris (2001) have tried to resolve this issue by creating a framework that can be examined towards consumer service branding.Chernatony and Rileys modelChernatony and Riley (1999) have carried out research with brand consultants about what they thought the difference is between goods and service brands and how they address this issue and in doing so they have come up with the double gyrus brand model. The study was implemented using qualitative approach consisting of semi structured in-depth interviews with selected brand consultants in the UK. The purpose of the interview was to find out how brand consultants make sense of bra nds and do consultants have similar views regarding the components of the brand. The aim of this model is to find out can branding be equally used towards goods and services, and consultants perceptions towards the principle of branding a service is similar to branding for goods. In order to describe in simple terms the complex nature of brands the authors Chernatony and Riley (1999) had discovered that all participants had select a mental model of some description. Brand elements such as functional capabilities, symbolic features, signs of ownership, distinctive name, service, shorthand notation and legal breastplate were all referred by consultants that were interviewed and these elements are used to make the double vortex model.Service Branding of Service Brand EquityBerry (2000) has taken a different approach by analysing strategies of 14 mature service companies and has created the service branding model of service brand equity. Berry (2000) believes that brand equity is made up of two components brand awareness and brand meaning (brand image). The following has also been argued by Berry (2000) that the most important source of brand awareness is the companys presented brand, being the companys controlled communications. The controlled communications typically consists of advertising, service facilities, the appearance of service providers, the company name and logo (Brassington Pettitt, 2006). The secondary impact on brand awareness is the external communications, which is usually information consumers receive about the service that are uncontrolled by the company. Brand meaning on the other hand is express to be mainly influenced by customers experience with a particular service company (Berry, 2000). The reason being service businesses are said to be labour intensive, consisting of human interactions and performance, rather than machinery. Berry (2000) has emphasised that this construct plays a critical role in building the brand. The secondary inf luence on brand meaning is said to be the companys presented brand and the external communications. The service brand model by Berry (2000) has introduced new conceptual elements such as servicescapes, controlled and uncontrolled communications, which are significant towards branding of services. These are the typical elements which are missing from the brand knowledge model constructed by Keller (1998).Service Brand ModelIn response OCass and Grace (2003, 2004) have created their own version of the service brand model. This model has been constructed by adopting various measures from other branding models and potential branding dimensions applicable for services to create an integrated approach to resolve issues in consumer service branding. The authors believe by identifying the dimensions within the consumers consciousness they can gain greater knowledge of what brands mean to consumers as well as lower to understand to what extent such dimensions impact on the brand attitudes a nd purchase intentions of service consumers. This construct specifically gathers first hand responses of consumers evaluation of service brands in terms of how they see the brand, what expectations they have and overall feelings attitudes towards the service brand. This model by OCass and Grace (2004) includes the following dimensions core service, interpersonal service, perceived values, se