Journal Topic 11: Brand Names and Utility

Obviously, we will buy or demand the goods or services that are cheaper and more in our self-interest. In Wal-Mart and Costco and other big company stories sells goods that have brands. Goods that have brand names are more expensive than no brand names goods. The quantity demand for the non brand goods increase and the quantity demand brand that has name are lower than it. I think it’s more utility because a brane name are more quality and durable, and so on, but as a consumer, I’ll choose goods that have cheaper values if they are the same goods and products. In Aldi, every goods comparing to other companies, their goods are 50 percent less. People started to consume goods in Aldi because other companies sell the same thing as Aldi, but Aldi only change the brands into non brand names. If I’m saving money, planning to retire earlier, or other plans, I’ll go to Aldi because they sell cheaper products that are same as the other companies. Oreo is a product that I think it needs brands because I ate a lot of non brand oreo or fake oreo that taste really bad. I basically accept any non brand stuff if they have low prices than the others. 

Journal Topic 10: Consumer Preference and Utility - Skechers

They target consumers between the ages of 12 and 24, however, Sketchers also has an older consumer base on who purchase their shoes for a more youthful look. They market their preferences by established their brand name recognition through target marketing, market research, and strong promotion. They held their focus of their product by many ways, such as promotes their products in all forms of media including magazines and TV shows. Skechers is constantly striving to differentiate their product from strong competition through innovation. Skechers has an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots.

VIDEO SUMMARY

Skechers is an athletic shoe company that started in 1992 and has strong brand name recognition. Instead of trying to influence the market with the products that it makes available, Skechers established their brand name recognition through target marketing, market research, and strong promotion. They target consumers between the ages of 12 and 24, however, Skechers also has an older consumer base who purchase their athletic shoes for a more youthful look. They determined the needs of the target group through a number of ways. They held focus groups that provided them with feedback on how the product is working, they have a young workforce that seeks out information in nightclubs, and they are located in desert, mountainous regions where people are more likely to wear the shoes. Skechers promotes their product in all forms of media including magazines and TV shows. They also use personal selling, sales promotions, public relations, and advertising. The MTV cable channel for example, is one way that Skechers reaches the youth market. Skechers is constantly striving to differentiate their product from strong competition through innovation. Skechers has an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots.

RELATED CONCEPTS

This video clip can be used to illustrate the following economics concepts from your text:

• Discuss how Skechers obtains information about consumer preferences (utility) when presenting the model of consumer utility
• Define the marketing strategies through advertising.
• Discuss the factors that contribute to the secret of Skechers success through competitive models like monopolistic competition.
• Use the five competitive forces model to analyze the competition in the footwear industry.

Journal Topic 9: The Myth of Outsourcing's Effect

• Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Comparative advantage is the ability to produce a particular good or service at a lower marginal and opportunity cost over another.Outsourcing is the contracting out of a business process, which an organization may have previously performed internally to an independent organization from which the process is purchased back as a service. Globalization and comparative advantage leads to outsourcing, because outsourcing makes economic more efficient and also leads to more opportunities. The characteristics of an open economy is trading with international countries. Outsourcing is productive and efficiency. With outsourcing, prices are lower than without it. Marginal product of labor with outsourcing is higher. 
  
  

Journal topic 8: Debate on Globalization

The convergence ties in with globalization in China and India leads to a bigger and strong economic growth in both of the developing country. For example, China doubles their economic growth every 10 years. Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. Globalisation enables greater trade and competition between different economies, leading to lower prices, greater efficiency and higher economic growth.However developing Countries often struggle to compete with developed Countries. One problem of globalization is that it has increased the use of non-renewable resources. Globalization affects my dress, food, materials, and demand for a good. If there's no globalization in Taiwan, then we only use the food the goods that are produced my Taiwan. Mostly, every product are made out of other countries, and it changes my way of living. 

Journal Topic 7: Government Farm Subsidies

When the price of agricultural products rises, politicians in America's farm belt are pushing for morn farm subsidies. UNder the enabling the American family farm to compete, these politicians are arguing for extending and increasing subsidies for agricultural products, yet there are concerns about the subsidies in the Congression farm bill. The author doesn't really agree about subsidies on farm production because he says it only support the large company farm production instead of the smaller production, and the author also say like the action of the subsidies to farm productions aren't making the production ample or increase. I agree with the author's point of view. Other subsidies can be like this one or not it depends on how the subsides is allocated. No, i can't think of any now. Subsides for students in college and university should continued to be supported because they are helping the students to get education and it's also increase their human capital when they enter society. Yes, as long as people have a average or high income, they should try their best on supporting the subsidies. 

Topic 6 : Opportunity Cost of a College Education

marginal analysis is the idea when consumer make decisions, they make decision of the next unit of something, analyzing the benefit and cost of the action and decision. The marginal costs  of one more year of higher education is one year of having fun and earn money outside. The marginal benefit of one more year of higher education is the the more money get in the future job. Yes, it might be true because companies want to find people who have better education and higher human capital. They leave school because they think that the marginal benefits exceed the marginal cost, and it means that leaving school and earn money is better than staying school and wasting money to get a higher education. This video doesn't effect me because my parents still force me to good to college and university. It did change a little bit of the view of college education but it doesn't effect that much because i know that companies want people who have higher education, and since my parents have the money to support me to college, then it's legitamate to go to college.