Economic Choice & Economic Decision Making

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· Due Aug 04, 11:59 Pm

Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While analyzing your decision, keep in mind that everything from the interest rates to the price of gasoline is driven by the economy in one way or another.

Develop a 1,050-word analysis of your decision-making process in which you include the following:

· Discuss the role of the interest rate and the cost of financing on your purchase decision. Interest rates are derived from the supply and demand for money and the actions of the Federal Reserve System. What was the rate of interest you paid on your vehicle loan? Were interest rates rising or falling at the time of your decision?

· Examine the influence of gasoline prices on the choice of vehicle you selected. Gasoline prices rise and fall dramatically based on economic supply of and demand for crude oil. When gasoline prices are low, Americans buy larger, heavier autos, SUV's and pick-up trucks. When gas prices are high, Americans purchase more compact and fuel efficient vehicles. When you purchased your last vehicle, were crude oil and gasoline prices rising or falling?

· Discuss the following in regard to your household at the time of your purchase:

· Were you employed?

· Was the economy growing or contracting (recession)?

· If you were employed, did you take into consideration the risk that you might lose your job if a recession occurred during the period of your loan pay-back?

A basic assumption of consumers making purchases of large items requiring financing is that their household cash flow will be adequate to cover the monthly loan payments. For most Americans, this also means assuming continuation of their present wages. But many jobs are sensitive to rises and falls in the business cycle, as witnessed by the 10% unemployment rate of the past "Great Recession."

Evaluate the financial trade-offs made when making your purchase. This includes lower maintenance costs for a newer vehicle versus a car payment and higher insurance among other factors.

· Discuss the influence of any of these Federal or state level programs on your decision to purchase a vehicle; or if these did not factor into your decision, explain why or why not:

· Buying fuel efficient vehicles such as Flex fuel, hybrids and electrics

· Converting existing vehicles to use alternative fuels (Flex fuel)

· Removing old, fuel inefficient, and high polluting vehicles from the highways

· Explain the influence of environmental factors such as emissions and health concerns on your decision.

· Discuss the ways in which your purchase illustrates one piece of the circular flow model of economic activity.  What are the other parts?

· Develop conclusions about the economy's influence on personal and business decision making such as purchases, investments, and so forth.

Cite a minimum of three peer reviewed sources.

Format your paper consistent with APA guidelines.

MKT402004VA016- 1166- 001 Strategic Market Pricing

Week 4 Week 4 Assignment 1H

Week 4 Assignment 1

Week 4 Assignment 1 Submission

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Assignment 1: Pricing Strategy

Due Week 4 and worth 200 points

Imagine you have inherited a restaurant. The restaurant has been out of operation for a bit so this is a blank slate for you to start a new career as a restaurateur and to open a new restaurant. Choose the type of restaurant you want to have, upscale casual, café, super club, etc.

Write a six to eight (6-8) page paper in which you:

1. Create a statement describing the value your restaurant will bring your clientele. 2. Determine the pricing strategy that will benefit your restaurant the most. Explain why you chose this

strategy. 3. Choose a value communication strategy that you will use to attract potential customers and keep

customers coming back. 4. You are contemplating adding a daily special that is unique from the regular menu. Decide and then

justify your answer to whether it makes more sense to go upscale and offer a higher priced item than is on your current menu, the same price that aligns to the other menu items, or a lower- priced item compared to your current menu.

5. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Analyze the key elements of strategic pricing and the role of pricing decisions in marketing strategy. Evaluate the impact assessing value has on pricing strategy and profitability, and the importance of market segmentation. Analyze the application of various pricing strategies and tactics to develop and manage an overall pricing strategy for a company.

My Institution Tutoring Resource Center Career Resources Help Cynthia Jones 6

Evaluate the effectiveness of price and value communication strategies. Use technology and information resources to research issues in strategic market pricing. Write clearly and concisely about strategic market pricing using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills. Click here to access the rubric for this assignment.

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