Economic Deflation in the Euro Zone

Introduction Between 2009 and 2011, the entire world experienced a global recession that decreased the purchasing power of most people. The trend mostly affected the US; an idea borrowed from the initial crisis experienced in Europe. Notably, the number of people who spent on luxurious goods and services was minimal.Advertising We will write a custom report sample on Economic Deflation in the Euro Zone specifically for you for only $16.05 $11/page Learn More Most statisticians establish that the cause of the great recession, which the society felt a little later in 2008 was because many banks issued loans to clients enabling them to flood the real estate business. Mortgages became affordable in East Asia, the US, and the Euro zone. Most investors constructed houses whose occupants they are less likely to establish even today. When the world overcame the global financial crisis (GFC) in 2011, most banks including the European Central Bank (ECB) decided to lower its loan interests in order to accommodate the rising needs of borrowers within the euro zone (Ferrero 2014). In turn, the bank that largely depends on taxation, lending, and borrowing fails to achieve its objective in the society. The paper intends to explain how reduction in the prices of goods and services after the GFC is likely to cause a major deflation, and efforts underway to avoid the trend at the microeconomic and macroeconomic level. Deflation Economists equate deflation to a period in which the demand for goods and services grows because of a decrease in prices. They associate deflation with a falling aggregate demand (AD) and an increase in the aggregate supply (AS) (Gnos and Rochon 2011, p. 103). It results in an increase in the potential GDP over the actual GDP of a country. It means that a market experiencing high rates of deflation have high supply of commodities, which emanates from an increase in the purchasing power because of decreased prices. The followi ng illustrations explain how a decrease in the prices of goods and services influences the purchase decisions, which results in an increase in supply. Causes of deflation are assumptions made by different economists because it occurs differently across diverse regions. Two possible causes are a fall in aggregate demand and an increase in aggregate supply (The autumn statement: ‘Tis not the season 2014). The illustration summarises the fact that when manufacturers increase the production of different products and services, they should match the same with consumer demand.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More At the microeconomic level, consumers find economic stimulus in price, place, product, and promotion (Jones 2014). The four elements of marketing are very important in determining consumer decision, but the price strategy is an obvious catch when marketers seek to increa se the demand levels. After the 2008 to 2011 GFC, manufacturers believed that increasing the supply of products and services would increase the demand. Breaking such economic rules might cause the European Central Bank a great deflation.  Most European countries are capable of borrowing from the central bank with an almost negative interest rate, in order to increase the number of people interested in national bonds and other credit facilities for the development of the Euro zone. This followed decrease in demand for credit facilities after the GFC. The intention was to reduce loan acquisition austerity implemented by most governments after the GFC (Burda and Wyplosz 2013, p. 19). Deflation is not only a problem of the European Central Bank (ECB), but for various manufacturers. In a normal price sensitive market, customers will always wait for a period in which the prices are very low. Delays in purchases reduce the value of the products in the market. When ECB decided to increase credit finance for the people of Europe, it meant that the euro zone would later subject itself to debt increment. The euro zone has many debt problems within the private sector and the government (Mayes and Viren 2004, p. 17). Through bureaucratic principles, the euro zone survives the bouts of the deflation even though fears continue to increase over the economic stability of the region in the next few decades. A decrease in aggregate demand and an increase in aggregate supply are results of both benign and malign deflation. The 2008 increase in interest rates and prices of commodities was evident because of the increased intake of loans in 2001 and 2007. Benign deflation occurred between 2001 and 2007 determined by a higher supply or productivity and a low demand for loans (Langdana 2009, p. 95).Advertising We will write a custom report sample on Economic Deflation in the Euro Zone specifically for you for only $16.05 $11/page Learn More Such level s of excess result in an increase in production capacity that exceeds the demand, and it causes a financial slump. In 2008, the demand for credit facility acquisition reduced because of the increase in the rate of interest on various loans. The IMF (International Monetary Fund) and the World Bank among other fiscal, but non-profit oriented institutions played limited role in reducing the risks associated with the deflation rates. The real estate bubble, low consumption power, and high productivity rates created an environment of confusion since the supply extremely exceeded the demand. Benign deflation signified most parts of the 19thcentury especially in relation to the GFC of the 1930s (Basci, Togan, and Hagen 2007, p. 144). A repeat was obvious in 2008 when the world was in the process of experiencing another GFC. Malign deflation occurred past the 19th century, and most European countries experience the effects of the economic concern. Arguably, there is no demand for the manufa ctured products and services.  Manufacturers and credit firms are very many and the competition is very stiff. Much concern is on the value and the security of a product or a bank offering the loan instead of the interest rates or the product quality. Malign deflation mostly results in organisational layoffs in order for companies to pay the employees. The exchequer also suffers because it has to collect taxes from the taxpayers who do not display the willingness to pay taxes. The negative multiplier scenario becomes evident because the country or the entire euro zone lacks a platform for increase in income, but has to spend on paying workers and outsourcing in order to increase supply of products and services (December 2014 euro system staff macroeconomic projections for the euro area 2014, p. 5). In essence, the productivity levels of countries increase, but there is no demand for the finished products and services. In return, the society fails to account for the needs of employ ees across diverse industries. Euro zone’s below target inflation While the US had the Federal Reserve respond to its GFC, the euro zone had to seek the intervention of the ECB. Between 2009 and 2010, Europe experienced the worst case of inflation that made the population refrain from home or business ownership. The FOMC Federal Open Market Committee began creating an appealing environment for mortgage acquisition by august 2010, and the ECB had to create an assurance for the security of investment in most banks within the euro zone. Characterised by the benign deflation, most credit facility acquirers relied on security and value. Price sensitivity became an issue mostly sought after by the societal minorities. In the US, the Federal Reserve (FDR) took a bold step in making credit facilities attractive to the populace between August and December in 2010 (Mankiw 2007, p. 112). Like a security bond or an initial public offer, the FOMC created an opportunity for LSAP (Large Sca le Asset Purchases) within the euro zone. The intention was to create an environment of economic stability or stimulus in order to encourage an increase in credit acquisition within the euro zone. In the US, the Federal Reserve ensured that by the end of the year 2010, it recovered fiscal investments while empowering the public to continue accessing credit facilities for mortgage acquisition.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Many questions arise concerning euro zone’s preparation for low inflation by following in the footsteps of the FDR. According to the EIB (European Investment Bank), the euro faces the risk of depreciation. Arguably, the euro zone is in the process of transforming into a new Japan. Before the GFC in 2008, the region’s economy was 2% less than its current state, and the same seems to be the trend to date (Bentley 2008, p. 31). EIB mentions that the euro continues to weaken, while the Southern states continue to gain prowess for their efforts geared at stabilising the troubled economies. For instance, in Germany, industrial production reduced immensely one year after the euro zone experienced the GFC. The following graph illustrates the way recession affected the euro zone between August and December 2009. From the graph, the month of August 2009 presented a period in which many countries within the euro zone faced deflation. In most cases, supply increased while the pur chasing power decreased. The reason was that few people took interest in loan acquisition in order to get mortgage or real estate services in an already flooded market. Germany is yet to recover with a steady rising GDP of about 0.2% annually. Russia, Belgium, France, and Britain are in the process of increasing consumption power by producing quality and security driven products and services instead of concentrating on the price strategy. Russia, Greece, and Turkey experienced conflicts with the IMF as they had to respond to fiscal sanctions put in place after the countries became incapable of repaying their debts (Fertekligil 2001, p. 49). Euro zone’s concerns and risks associated with the deflation The 2009 global credit crunch resulted in an increase in the cost of energy and basic commodities. Consumers refrained from increased purchases and loan acquisition in order to spend on basic commodities. Houses became very expensive because real estate businesses owners who init ially gained from the deflation in 2008 increased the prices of houses in order to earn high profit margins. The rationale was also to repay the increased loan interest rates, which they would raise from the houses. Even though the ECB reduced the loan interest rates in 2011 in order to attract consumers into loan acquisition, few people displayed interest in loans. Most businesses used capitalist means to set prices for their commodities instead of depending on government controls or other avenues of consumer watch. Banks also resisted loans from the ECB, and in 2009, they only acquired only 0.19% of the offer. Out of the 42 billion Euros offered by the ECB, only 82 million Euros facilitated banks in the euro zone. Other associated risks include improvement of other continents, both household and national debt increase, and reduced expenditure (Minerd 2014). The central bank and domestic banks face the risk of losing clients to microfinance institutions that offer less secured, but prompt loans (Wolfson 2014) Mitigation measures The euro zone strived to find long term solutions to the problem of inflation by reducing the cost of product and service acquisition. It resulted in an increase in supply based on low costs of production, and decrease in demand. Most economics sceptics feel that the reduction in interest rates might be a risky step for the euro zone. The ECB governing council should be completely in support of the process, but few members feel that the deflation awaiting the region will be irreconcilable in the future. Besides reduction in loan interest rates, the ECB promoted the bond worth 10.5 billion Euros, whose response remains low. Initially, the inflation rate within the region was 0.2%, but today it is 0.4% meaning that the euro zone has to continue increasing interest in ECB credit facilities. With a low inflation rate displayed by a 2% annual decrease, chances are that the euro zone could end up with the greatest rate of deflation in the w orld history (Mankiw 2007, p. 128). In France, the central bank decided to issue out a 10-year bond period with an annual 2% reduction in inflation rate since 2006. By 2010, the euro dropped to $1.2437 affecting parts of Portugal, Spain, Scotland, Ireland, and Austria. ECB critics mention that the euro zone should strive at reflating the economy in order to reclaim the rightful fiscal position of the region in the world. Other mitigation measures include the introduction of prolonged loan repayment periods in order make loan repayment manageable for most credit facility acquirers. Continued efforts geared at increasing cash flow within the euro one create losses for the ECB (Herman n.d., p. 92). The effects of the malign inflation increase the rates of unemployment because the excessively low consumer demand translates into low rate of tax collection. On the other hand, the government has to fulfil the needs of the growing labour market while the rate of unemployment increases. Macr oeconomic variables Macroeconomics represents fiscal discussions involving an entire country. It encompasses the makeup of microeconomic debates resulting from household expenditure and its effects on the national expenditure. Variables at the macroeconomic level include economic input and economic output. The euro zone assesses such measure within the private and the public sector with much emphasis on the economic equilibrium, economic sustainability, and rates of employment. Economic Output Experts always measures economic output based on the amount that the society effectively contributes towards the growth of the Gross Domestic Product (Gertler and Rogoff, 2004, p. 13). By 2010, the amount of imports exceeded imports in Scotland, and it meant that the UK GDP slightly reduced by about 1.8% from 2008 to 2009. The measure of economic output results from the rate of unemployment, inflation rate, and interest rates among other factors. Unemployment rates The rate of unemployment in the UK is twice the rate of unemployment in the US today. About 16% of the entire employable population lacks the capability to work in an initially unemployed environment. Unemployment refers to the ratio of the population that has stable job opportunities over the population that lacks placement in a stable institution in which they earn income (Banerjee, Marcellino, and Masten 2005, p. 31). Through employment, people pay taxes, which earn the government revenue through the UK revenue authority. The UK over the past decade strives at creating an environment of a zero unemployment rate, which is extremely difficult to achieve if not impossible. The International Labour Law (ILO) uses the claimant count to measure the rate of employment and unemployment in the UK. According to the claimant count measure, only counts the potential population of workers who have requisite qualifications, but lack placement in the proper job positions (Armstrong, Caselli, Chadha, and Haan 2014). It als o establishes the rate of unemployment based on the population of workers who are seriously looking for employment and the benefits that accompany such positions without success.  Self-employed people who do not earn social security benefits do not qualify for the unemployed in the UK, because they have sources of income from the private sector. The following graph explains the rate of unemployment in the UK from the 1980s to 2001, which market the beginning of the global benign deflation. The rate of unemployment increased when the purchase power of the UK residents reduced in 2009.   The society made little contributions through taxations, which reduced the rate of human resource acquisition and retention within the public sector. As many people lack jobs, they do not contribute towards the economic development through tax contribution. In addition, the self-employed individuals in the private sector only get enough resources to fulfil basic needs. Most of them operate in non -regulated industries based on freelance engagement meaning that the government cannot ensure tax compliance. Without tax contribution or a society defined by tax evasion faces the risk of economic underdevelopment. It happens because the exchequer lacks enough resources to pay employees in the public sector (Ller 2013, p. 47). Recession and interest rates Consumer indices determine the level of inflation in different countries. In the UK, the society determines an increase in inflation rates when the consumer index reduces. It means that the people cannot afford basic commodities because of an obvious increase in the prices. When the retail price index (RPI) increases, it means that the rate of inflation is equally on the increase (Minerd 2014, p. 2). Most statisticians use the existing interest rates to determine the level of inflation in the banking sector. Today, for a country within the UK to acquire credit facilities, it should follow the due procedures set by the central bank . When the interest rates in the central bank increased, most banks feared getting loans, and business people equally feared seeking similar services from the local banking institutions. When the trend continues, the UK begins worrying about its macroeconomic position. High interest rates mean that the euro weakens against the dollar and investors are likely to shift gear towards continents that perform well. Nobody would face a high risk of credit acquisition in a bank or country with very high interest rates. When interest rates increased in 2009, most people in the UK shifted towards sustenance of their businesses instead of acquisition of homes, luxuries, and mortgage facilities (Main Macroeconomic Indicators n.d.). The UK reduced the interest rates in order to avoid the real estate bubble that affected the euro zone and the US after the GFC. The UK believes in the creation of a stable macroeconomic environment by maintaining stable prices of commodities even in the face of a GF C, but the mitigation plan remains unachievable (Bentley 2008, p. 34). When inflation occurs, the cost of production increases, and only the companies dealing in consumables have the assurance of making profits. Non consumable products especially in the luxury sector face the risk of immobility in an inflated market. Concerns include the possibility of a global deflation already signified by a reduction in the aggregate demand for goods and services. The price strategy remains very relevant in the determination of quality assurance for goods and services in the market. When consumers fail to create a link between product benefits and prices then the purchasing power automatically reduces. Economic input Economic input signified by what the exchequer and the banks do to avoid inflation remains very important in microeconomics discussions. The variables under investigation include the economic equilibrium, equality, and fiscal sustainability. Economic sustainability The UK measures ec onomic sustainability through its actual and potential GDP. The actual GDP represents that the real measure of economic growth annually after eliminating the aspects of recession that affected the potential GDP (Akers 2014). A steady growth in the GDP signified by the 2% growth rate of the UK for the past 8 years means that the region has the potential of creating a sustainable employment environment. In 2009, the growth rate was reverse as the economy of the UK indicated a 0.2% growth rate, which resulted in low rates of full employment. Underemployment became a concern as most companies lay off workers in order to cater for the needs of a section of employees. In 2011, the economic stimulus process adopted and the labour law adopted by the employers in the UK resulted in the absorption of many unemployed people. Equality and equilibrium The UK has a huge number of immigrants, but it still strives at creating an environment in which its citizens are capable of enjoying the resource s without any form of discrimination. In order to provide an excellent environment of growth while still sustaining its Foreign Direct Investment, the UK has to imitate Japan. Currently, Japan leads in the production of surplus commodities even when the demand dies not match the supply (Fall in euro zone inflation rate fuels deflation concerns 2014). At the macroeconomic level, surplus production attracts interest from investors and foreigners who are likely to acquire the affordable products and services (Objectives of government macroeconomic policy 2014, p. 2). When FDI fails to solve the problem of recession in a country, high probabilities include the possibility of countries running into financial deficits as indicated in the graph. The graph gives credit to Japan that has a sustainable growth rate in the GDP enabling many people to get equal employment opportunities even in the face of a GFC. Establishment of a state of equilibrium remains a high priority for most countries including the UK. The UK displays interest in creating demand for the supplied products and services contrary to initial marketing strategies in which the supply responded to the prevailing demand. The World Trade Organisation (WTO) qualifies a steady economic growth and the market equilibrium as elements of macroeconomic growth (Riley 2012, p. 4). The WTO mentions that competition between countries creates an environment of sanity because countries have to understand that consumer satisfaction at the microeconomic level has a direct impact on growth at the macroeconomic level. As such, competition between Japan and the UK should continue until the UK is capable of surplus production. Maintenance of equilibrium between demand and supply is the only solution to inflation because the RPI will also reduce automatically. In summary, at the macroeconomic level, countries have to assess the economic outputs and inputs that are relative depending on the type of market involved in the discu ssion. Most countries within the euro zone have relatively close GDPs except for the few facing financial sanctions by the IMF. At the macroeconomic level, politics, technology, and socio-environmental factors have a direct impact on the economics of a country (Wickens 2011, p. 36). Conclusion The GFC affected different parts of the world; the responses towards the economic crisis were different. The euro zone might face a worst economic deflation in an attempt to lower the risks of the 2008 recession. The mitigation measures adopted by the euro zone are short term, but the most appropriate for the season. However, the changing economic environment that calls for increase FDI efforts makes it impossible to have unique ways of dealing with global financial crises that affect everyone in the world. References Akers, H 2014, What Are Key Macroeconomic Variables?, http://www.ehow.com/info_8180727_key-macroeconomic-variables.html Armstrong, A., Caselli, F., Chadha, J., and Haan, W 2014, Eurozone deflation could derail UK recovery: Results of the second Centre for Macroeconomics survey, http://www.voxeu.org/article/eurozone-deflation-survey-uk-based-macroeconomists Banerjee, A., Marcellino, M., and Masten, I 2005, Forecasting macroeconomic variables for the new member states of the European Union, European Central Bank, Frankfurt. Basci, E., Togan, S., and Hagen, J. V 2007, Macroeconomic policies for EU accession, Edward Elgar Publishing, Cheltenham, UK. Bentley, D 2008, Inflation: Roles, targeting, and dynamics, Nova Science, New York. Burda, M. C., and Wyplosz, C 2013, Macroeconomics: a European text, Oxford University Press, Oxford. December 2014 euro system staff macroeconomic projections for the euro area 2014, http://www.ecb.europa.eu/pub/pdf/other/eurosystemstaffprojections201412.en.pdf Fall in euro zone inflation rate fuels deflation concerns 2014, http://www.bbc.com/news/business-25976377 Ferrero, A 2014, Desperate times, desperate measures, The Economist, http://www.economist.com/blogs/freeexchange/2014/01/deflation-euro-zone-0 Fertekligil, M 2001, European monetary union and its impact on the Turkish economy, http://edoc.bibliothek.uni-halle.de/servlets/MCRFileNodeServlet/HALCoRe_derivate_00005724/196-414-1-SM.pdf Gertler, M., and Rogoff, K 2004, NBER macroeconomics annual 2003, MIT Press, Cambridge, Massachusetts. Gnos, C., and Rochon, L. P 2011, Credit, Money and Macroeconomic Policy a Post-Keynesian Approach, Edward Elgar Publishing, Cheltenham. Herman, S 2012, The recession Kama sutra, Summersdale, Chichester. Jones, C 2014, Dovish Draghi boosts hopes of ECB stimulus, The Financial Times, http://www.ft.com/intl/cms/s/0/e2bcc510-7160-11e4-818e-00144feabdc0.html#axzz3NTjAZVPR Langdana, F. K 2009, Macroeconomic policy demystifying monetary and fiscal policy, Springer, New York. Ller, J 2013, The global economy in transition: Debt and resource scarcities, World Scientific, Hackensack, N.J. Main Macroeconomic Indicators n.d., http:// www.markets.com/education/fundamental-analysis/main-economic-indicators.html Mankiw, N. G 2007, Brief principles of macroeconomics, Thomson South-Western, Mason, OH. Mayes, D., and Viren, M 2004, Asymmetries in the Euro area economy, Suomen Pankki, Helsinki. Minerd, S 2014, Europe must act now to avoid ‘lost decade’, The Financial Times, http://www.ft.com/cms/s/0/cf718a1c-5a0a-11e4-be86-00144feab7de.html#axzz3NTjAZVPR Objectives of government macroeconomic policy 2014, http://www.tutor2u.net/economics/content/topics/macroeconomy/government_policy.htm Riley, G 2012, Deflation, http://tutor2u.net/economics/revision-notes/a2-macro-deflation.html The autumn statement: ‘Tis not the season 2014, The Economist, http://www.economist.com/news/britain/21635617-george-osborne-makes-up-lack-giveaways-bold-tax-reform-tis-not-season Wickens, M 2011, Macroeconomic theory: a dynamic general equilibrium approach, Princeton University Press, Princeton. Wolfson, P 2014, Coming soon? , The Economist, http://www.economist.com/blogs/freeexchange/2014/12/euro-zone-qe-0 This report on Economic Deflation in the Euro Zone was written and submitted by user Jaydin J. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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Development of Luxury Products: Montblanc Dissertation subject: a. Montblanc. Its development in the luxury industry OK b. The Montblancs brand extension in the luxury industry OK c. Montblanc brand: from a specialised luxury brand to a global luxury brand 2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Dissertation issue / key question: a. Did Montblanc, a specialised luxury brand in the writing instrument segment, extend its perception of luxury brand to its other product categories? OK b. Has Montblanc, a specialised luxury brand in the writing instrument segment, been successful in extending this perception to its other product categories? 3.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Literature review: a. Definition of luxury: * Different points of view * Key words/concepts (to be tested in the survey) b. Definition of luxury brand c. Concept of diversification strategy: * Objectives * Types * Drivers to be successful (consumer perception / reaction) * Performance (to which extent) * Montblanc:    strategic diagnosis (SBU) d. Brand extension    Luxury brand perception: * (How to measure it? Consumers reaction) 4.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The research: a. Key question: can a specialised luxury brand extend its perception of luxury brand to other product categories? The case of the Montblanc brand.Today, is Montblanc a global luxury brand (not anymore a specialised luxury brand)? Therefore how was it possible? Well know reputation in its core business (for quality, design, social status) and the choice of neighbouring segments. b. Hypothesis: Montblanc is today an established global luxury brand. Montblanc is a clear example of a successful brand extension. How was it possible? (Reputation, tradition, quality, Montblanc extended its way of doing business based on quality and style next to its outstanding reputation in its historical core business) 5.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The research: a. Objective: To prove that Montblanc has been able, in a relatively short time, to become a global luxury brand. 6.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The research method: a. Which is the information to be collected in order to answer the issue discussed within our work and to verify the hypothesis?    the consumers perception of the Montblanc brand (the only boss) and the point of view of the Montblancs managers (figures on diversification mix, and resources allocated) b. How to collect the data (survey, interviews)? c. Which is the pitch of the research? Luxury sector, Montblanc and its major competitors in jewellery / watches / leather categories, luxury brand current and potential consumers. Becker, Howard S. (1998), Tricks of the trade, How to think about your research while youre doing it, The University of Chicago Press. 7.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Analysis of the research findings: a. Analyse and understand the collected data    as usually it helps identify some factors that may answer our issue, although often these elements are not complete b. Criticise the research method and its limits (limited sample) 8.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Conclusion: a. Buyers of Montblanc products (not only writing instruments): confirm the hypothesis b. Buyers of only Montblanc writing instruments    to gain tradition in watch and jewellery segments requires times although a good quality but not impossible c. Montblancs managers: good results so far. Recommendations: a. Montblanc has to go on investing in its diversification strategy because failing in doing so would be highly risky for its brand perception among the final consumers. Could Montblanc extend its perception to other product categories? Not right now: low resources and need to be definitively established as a luxury brand in key categories such as watches and jewellery. Write: * la probl ©matique involves the key question, the hypothesis of the research and the elements / factors which will help to develop the chosen subject.This first part includes the definition of the subject, the review of the literature (plus bibliography), the question, the hypothesis and the method of the research other than the action plan. * Final dissertation: develop the different topics without any linking parts, add these linking parts, further develop underestimated parts and cut what is useless. Add the table of contents, bibliography, appendix, etc. Executive Summary * The research and its Interest * The key question and the hypothesis * Research method * Major findings * Conclusion * Recommendations The purpose of this research paper is to investigate if and how a specialised luxury brand can extend its perception of luxury brand to other products categories. Being the luxury industry so wide of dimensions, the researcher decided to focus on one specific brand: Montblanc. This choice permitted to closer define the pitch of the analysis in order to carry out a reliable and feasible research that might prove the success of the diversification strategy pursued by the Montblanc brand. Montblanc represents, indeed, an interesting case study to show how the diversification strategy can be an effective tool to increase the luxury brand perception among the final customers. Montblanc, market leader for what concerns the writing instruments, has been striving during the last few years to definitively become a global luxury brand. To do so, Montblanc entered many different segments of the luxury world, such as leather, watches, fragrance and eyewear in the last â‚ ¬Ã‹Å"90s and the silver jewellery at the beginning of the 21st century. Moreover, a couple of years ago, Montblanc stepped forward into the fine jewellery business which is seen as the critical step in its strategic development to attain the full status of global luxury brand. In order to verify how the Montblanc brand is viewed and perceived in its competitive environment, the researcher adopted both a quantitative and a qualitative research method. On one hand, a customer survey consisted of XXX questions was developed. This survey submitted to actual and potential customers had the objective to impartially investigate the customer perception of the Montblanc brand. On the other hand, in-depth interviews with some Montblancs managers were carried out. The interviewed, who represented different levels of the Montblancs management, allowed the researcher to gain a full picture of the Montblanc brand and its strategic movements. Moreover the direct comparison with the Montblancs management was important to identify on which resources and competences the final recommendations could be based. For practical purposes, this study can be divided in five major parts: 1. the first part outlines the theme and the key question of the research paper; 2. the second part concerns the review of the literature as regards the following points: the definition of luxury and of luxury brands, some approaches to measure the brand perception / the reasons why people buy luxury goods (status-laden or conspicuousness-laden), and the diversification strategy. This part will be concluded with an in-depth analysis of the Montblanc brand; 3. the third part gives a fulfilling view of the undertaken research with particular attention to the objective, the hypothesis and the research method; 4. the fourth part covers the relevant findings coming from the analysis of the research results; 5. the last part presents the conclusions of the study and the researchers final recommendations to the brand. The theme of the research paper Luxury and the Montblanc brand gives an important insight of the key constructs at the core of the work. In first position one finds the term luxury whose meaning and definition are almost fuzzy. It is the reason why, this work will examine some important findings coming up from the literature so wide in this respect, at the end of which some major traits of the definition of luxury will be underlined. Especially, the literature review will cover the evolution of the definition of luxury all along the recent history. To be noticed that, the construct of luxury will be also investigated in the survey submitted to the final customers and also in the interviews to the Montblancs management and other practitioners of the luxury industry. This research, carried out by exploring both the customers and the professionals point of view, enriches the research itself and helps to get a good understanding of the major characteristics emerging nowadays about this fascinating concept. To be clarified that this study, focusing on the Montblanc brand, is related to a part of the luxury market such as t he accessories, jewellery and watches segments. The second part of the theme of this study is represented by three words: the Montblanc brand. This recalls two topics. The first one refers to the term brand. By revising the literature, a definition of brand will be proposed. In this respect, there are not important doubts and we will briefly comment the definition of brand recently provided by Jevons (2007). Nevertheless, some issues may arise for the definition of luxury brand which is obviously related to the construct of luxury. The expression the Montblanc brand as a whole, moreover, puts the attention on the leader German brand whose unmistakable star logo is worldwide the icon of quality and excellence. As previously said, the researcher chose a specific brand to be able to concretely study the fundamental question of his research paper that will be clarified in the next lines. To be noticed that the two parts of the theme title luxury and the Montblanc brand are tied up by the conjunction and that underlines the strict link between luxury and the Montblanc brand. Nevertheless, this link requires a further consideration because it can be misleading if not misunderstood. Which is the real mean of this linkage? There are no doubts that Montblanc is a luxury brand; but is it a specialised luxury brand or a global luxury brand? This question is strictly connected to the core issue of this master thesis. More precisely, the driver question is if a specialised luxury brand can extend its perception of luxury brand to other product categories. In order to answer this key issue, the researcher chose to study a well-known brand which has been pursuing a diversification strategy to become a global luxury brand. The construct of diversification strategy will be explained from a literature point of view. Moreover, an in-depth analysis of the Montblanc brand and its strategic business areas will be undertaken by applying some tools learned during the studies at the ESCP Europe especially during the modules of strategy and of strategic diagnostic. This becomes fundamental to better understand in which kind of diversification strategy Montblanc is engaged and to give a wide knowledge to the reader about the brand itself. To conclude, herein the reasons why the student chose this theme for his master thesis. There are three major reasons bringing to this choice. The first one refers to the luxury world. The construct of luxury, albeit widely analysed in the literature, remains somehow mysterious. Today, the definition of luxury is strongly evolving mainly due to the economic uncertainty mostly caused by the financial crisis of 2008. Therefore, although the probability to uniquely define luxury is very low if not nil, the challenge to better understand what luxury is/means/represents/is perceived nowadays represents to the researcher a great topic of interest. His interest in luxury is also nourished by the will to work in this sector in the upcoming future. This surely stems from the professional experiences made by the student as part of his studies within companies (Montblanc and Concord) operating in the jewellery, watches and accessories segments. Indeed, during these experiences, the student was impressed by this world rather mysterious where the care of the smallest detail makes a huge difference. The second reason concerns the Montblanc brand. The researcher had the chance to work for five months at Montblanc International, at the Headquarter in Hamburg within the Jewellery Category Department, and for three months at Montblanc UK, in London within the Retail Department. During this extremely positive experience, the student discovered in-depth this fascinating brand, from its tradition to its vision, from a strategic and more operational point of view. Surely the experience personally gained at Montblanc became highly useful in the development of the research and mainly in the analysis of the brand and of its strategy. Moreover the ongoing meetings/interviews with the Montblancs management had a double advantage. On one hand, it enriched the content of the study and on the other hand helped the student maintain the contacts with a firm that is at the top of his personal ranking of his employment research. The third reason concerns the strategic aspect behind this theme. Indeed, the diversification strategy pursued by Montblanc offered to the student the possibility to develop this construct often used/abused by luxury brands to extend their perception of luxury and, as a consequence, to finally increase their revenues. The diversification strategy has often been the object of strong discussions, mainly for what regards the results of pursuing this strategy and the ways of implementing it. This work has got the objective to rationalise the different types of diversification strategy and to investigate this theoretical concept on a concrete case study, thanks to the study of the Montblanc brand. This research will focus on the key factors of success or failure standing from the analysis of the diversification strategy pursued by Montblanc. Did Montblanc, a specialised luxury brand in the writing instrument segment, extend its perception of luxury brand to its other product categories? This key question gives a stricter view on the content of this research paper. This study will focus on the strategic development of a specialised luxury brand as Montblanc was/is in the writing instrument segment since its origin. In detail, the research has got the purpose to investigate how the Montblanc brand is nowadays perceived from the final customers. The findings coming up from the customer survey will help the researcher evaluate if the Montblanc brand is still perceived as a specialised luxury brand or if its image has developed to the status of a global luxury brand. The customers responses represent indeed the most reliable feedback to assess the degree of success of the diversification strategy pursed by Montblanc in the last years which has brought the brand to operate in relevant luxury segments such as leather, watches, fragrance, eyewear and jewellery next to the historical business area of writing instruments. At a second stage, the customers responses will be compared with the Montblanc managements point of view in order to verify if some discrepancies exist. This step is important to get a full picture of the Montblanc brands standing. Then, after an accurate presentation of the research, the student will point out the major findings in order to draw his conclusions about his study. The conclusions will include the major factors of the diversification strategy pursed by Montblanc to extend its perception of luxury brand to other segments in the luxury industry, in addition to the fields of improvement coming out of the research. Finally this research paper will present the students recommendations which will take into account the strategic objectives standing out from the interviews with the Montblancs management and also the Montblanc brand perception outlined by the customer survey. In the next pages, the student will study, by starting from the literature review, some key concepts at the core of this research paper which include: * the definition of luxury and its evolution; * the definition of luxury goods; * the definition of brand and of luxury brands; * briefly the different approaches to measure the brand perception among the final customers.> the reasons why people buy luxury goods (status or conspicuousness); * and the presentation of the diversification strategy: the objectives, the different types, the advantages and the drawbacks, the risks, and the key success factors. The literature review, as said, will be completed by the contextualisation of these constructs to the Montblanc brand. At this stage the Montblanc brand will be studied in order to give all the required basics to launch the following research. In order to better define the constructs at the core of this research paper that will give the background of the following research, an in-depth literature review will be made. Four major concepts will be discussed thanks to the support of different literature material which includes insights from books, articles, management and fashion websites and personal references in terms of power point presentations, excel documents and excel files. The activity of research consisted mainly in going through the databases accessible from the Intranet at ESCP Europe in order to directly access to a wide range of reference material. The definition of luxury The first part of the literature review regards the construct of luxury. Luxury has always been a central field of research. Indeed its specific characteristics have attracted the interest of the researchers all along the history. However, albeit the meaning of luxury is widely discussed in the literature, researchers did not come up with a commonly accepted definition of this construct. For sure, it is not possible to uniquely define luxury. Simply, the words do not seem to be able to describe what luxury means. In this respect, the literature leaves this concept shrouded in mystery. This research paper will face the definition of luxury by going through different steps. At the beginning some different definitions of luxury will be put forward by touching its literal and economic meaning, and also by exploring some philosophical and social interpretations. Then, an interesting brief explanation of the etymology of the term luxury will be presented. Afterwards, the history of luxury will be outlined before entering in more detailed considerations regarding the notions of old and new luxury. At the end of this first part, the student will show the latest development of the luxury construct by getting important insights from the practitioners point of view founded in articles related to the luxury world. Literal definition of luxury Websters Revised Unabridged Dictionary (1913): Anything which pleases the senses, and is also costly, or difficult to obtain; an expensive rarity.'[1] [2] Economic definition of luxury Mason (81): Un produit est consid ©r © comme luxueux si l ©lasticit © de la demande par rapport au revenu est sup ©rieure    1. Philosophers definition of luxury Paul Iribe (1932): Luxe: besoin qui commence o ¹ finit la n ©cessit ©.'[3] Voltaire (1694-1778): Superflu chose tr ¨s n ©cessaire. Jaime le luxe et m ªme la mollesse. Rousseau: Le luxe doit  ªtre rejet © car il est contraire aux exigences de la nature. Sociology researchers definition of luxury Bourdieu (79,84): Comme tout acte de consommation, lachat dune marque de luxe est un moyen daffirmer sa position sociale, de faire croire    un changement de position ou prouver un changement de position sociale. Tout d ©pend du r ´le que lindividu joue ou pense jouer au sein de son groupe de r ©f ©rence. Baudrillard (68): Lacc ¨s au luxe est d ©termin © par une volont © sociale de se distinguer, de se d ©marquer ou bien encore de saffilier    un groupe. Suivant le groupe social auquel la personne se r ©f ¨re, le luxe aura une signification diff ©rente. Maffesoli (96): Lanalyse du luxe par le prisme des classes ne prend pas en compte le resserrement des individus autour de groupes restreints, de tribus. La consommation devient alors un plaisir personnel et intime, sans volont © ostentatoire. Management researchers definition of luxury Gutsatz M. (96): Le luxe comprend deux niveaux de repr ©sentation. Le premier niveau est mat ©riel, il comprend le produit et la marque (son histoire, son identit ©, son savoir faire unique, le talent). Le second niveau est psychologique. Il sagit de repr ©sentations qui nous sont propres, influenc ©s par notre milieu social et les valeurs de la marque. Roux E. (91): La marque de luxe se caract ©rise par une valeur ajout ©e symbolique, imaginaire ou sociale qui la diff ©rencie des autres. La marque de luxe correspond ainsi aux besoins symboliques que le consommateur peut ressentir (par opposition aux besoins fonctionnels ou de vari ©t ©). Laurent G., Dubois B. (95): Le luxe est subjectif, personnel et perceptuel. Si lon cherche    d ©terminer les attributs caract ©risant un produit de luxe, 6 dimensions apparaissent : Une qualit © sup ©rieure et per §ue, un prix  ©lev ©, une s ©lectivit © et une raret © des produits et de la distribution, un pouvoir attractif important un savoir faire certain et la non n ©cessit ©. Practitioners definition of luxury Coco Chanel: Le luxe est le contraire de la vulgarit ©. Boucheron A.: Le luxe est une  « mayonnaise  » constitu ©e de diff ©rents ingr ©dients. Si lun dentre-eux manque ou est mal dos ©, la mayonnaise tourne. Le luxe est un concept et non un produit.[4] Jean-Louis Dumas-Herm ¨s, historic Chairman and CEO of Herm ¨s: [5] Just by analysing these few definitions of luxury, one can notice the absolute subjectivity of this concept. It stands out that luxury has got a close linkage with pleasure, rarity, exclusivity, quality, high price tag. Economists define luxury as something which is unnecessary, statement which would be probably argued by some studies on the consumers reasons to buy luxury. For someone (Rousseau) luxury should even be avoided because it is not a primary need of the human being. Luxury is something that belongs to the inner part of each individual but it can be also highly other-oriented. By wearing or experiencing luxury items, an individual expresses his own personality and can show his social status and position in the community. The fact is that luxury is probably a bit of everything, a perfect trade off of opposite concepts. This makes luxury a kind of mystery. After this round-up, the study will briefly present the etymology of the term luxury before briefing touching the historical evolution of luxury. Etymology of word luxury According to Dubois, Czellar and Laurent (2005) the English term[6] luxury is derived from the Latin luxus, which, according to the Oxford Latin Dictionary, it signifies soft or extravagant living, (over-)indulgence and sumptuousness, luxuriousness, opulence; luxus also means sensuality, splendour and its derivative luxuria is extravagance, riot etc. Merriam-Websters Dictionary defines luxuriance as something characterized by richness and extravagance, often tending to excess. The word luxury is also often semantically associated with lux the Latin word for light; therefore, luxury carries connotations of brightness. It is glittering and, in addition, it is something visible. The evolution of luxury Until the Middle Ages the writings point out that luxury was the reflection of the religious mystery that drives the human being to go beyond himself driven by an offer or a sign. But the heyday of luxury is without any doubt the Renaissance (15th and 16th century), flourishing period for literature, art and science. This period reflects the explosion of luxury, vogue of the ostentatious architecture coming from Italy. At that time, luxuries are exclusive items belonging to the aristocracy and the court. During the Renaissance luxury becomes the prerogative of the bourgeoisie. During the 18th and 19th century luxury remains exclusive of the  ©lite. The 20th century signs an important step in the evolution of luxury. Mainly after the Second World War luxury becomes almost conformist, not extravagant or eccentric. In the â‚ ¬Ã‹Å"80s, the focus is on the luxury consumer; in this time, younger period discover luxury thanks to the accessories. At the end of this decade, there is the boom of luxury for what concerns the distribution channel development. The major players widen their reach by exploiting the markets where they are present and even by entering new markets. At the beginning of the â‚ ¬Ã‹Å"90s, the crisis that hit also the luxury industry, pushed to rethink the concept of luxury that gained a higher spiritual/moral meaning in addition to the impeccable quality.[7] Old-luxury vs New-luxury With the 21st century, new terms about luxury are emerging in the practitioners literature. For the purpose of this research paper, in the next few lines some considerations will be made on the expression of old luxury in opposition to new luxury in order to clarify their meaning. Some practitioners argue that old luxury is about the good itself and is defined by the company, in opposition to This seems to trace a clear line between the two concepts: old luxury is about the material thing, it is about stuff. Instead, new luxury is about experiencing. Nowadays, it seems evident that old luxury cannot anymore survive. The high quality of luxury products is assumed by consumers who are looking forward for something more. In our time, luxury is increasingly defined as those special qualities, features and attributes intrinsic to a product and that go beyond the item itself. According to Ms. Danziger (2008)[9], the product itself does not anymore create personal fulfilment. Today, luxury is in the eye of the beholder and the consumers perceptions are not anymore, exclusively depending on the exceptional quality of luxury products and on the high price tag. This does not mean that the materialism is not important but only that consumers are eager of experiences. Therefore, as a consequence, a shift from product-centric to consumer-centric point of view becomes inevitable to attract luxury consumers. The needed clarification of old luxury and new luxury concepts will become also useful when the study will discuss the definition of luxury brands and in the research of the consumers perception of the Montblanc brand which will lead to the students recommendations at the end of this research paper. At this point, it becomes interesting to see how the todays definition of luxury has evolved in the light of the recent events occurred in autumn 2008 which had an important impact on the entire economy and, therefore, also on the luxury industry. Todays definition of luxury ppt vale, crisis, bling bling, tradition, According to Yeoman and McMahon (2005), luxury is incredibly fluid, and changes dramatically across time and culture'[10]. This opinion becomes very much clear by thinking if the meaning of todays definition of luxury is the same definition of luxury of just eighteen months ago. Today it is even harder to give an accurate definition of luxury. After the financial crisis, culminated with the bankruptcy of some key players in the real estate and banking industry which caused a chain reaction hitting all the other sectors, the perception of luxury has surely changed, at least to a certain extent. This critical point merits further considerations and, therefore, it will be investigated in the following research at the core of this study. In the next lines some leaders opinions in luxury will be presented. Some of these thoughts were collected in a confidential in-depth research carried out at the beginning of 2009, supplied by Montblancs management. They will introduce the students point of view about the sharp evolution of luxury meaning in the last months. Herein, some comments about the change of luxury construct in the last year. S. Toledano, Dior: Compulsive shopping, its over. M. Nieto, Baume Mercier: Price sensitivity is coming back fiercely. C. Binkley, The Wall Street Journal: Its bling over J. Rupert, Richemont: During a recession, Im sure consumers will choose solid values. B. Pavlowski, Chanel: Dont neglect any aspect of the product quality. R. Palti, Le Nouvel Economiste: Many markets are saturated and there is an increasing number of offers proposing the same service. Finding what will best meet the clients expectations is no easy task. And yet, in these days of economic, financial ( lack of confidence) crisis, there is not a single company that can afford not to satisfy its clients, even just to sell. B. Arnault, LVMH[11]: post-recovery customers will not only place a particular emphasis on values like quality and craftsmanship, but also on exclusivity and commitment to social and environmental responsibility. D. Dion, Sorbonne University: Luxury has to return to its exclusive and extraordinary roots. B. Fornas, Cartier: We are witnessing a return to true luxury and high end luxury products, which Cartier symbolises. JC Biver, Hublot: When there is a crisis, it is necessary to get as close as possible to ones clients to better understand them, to reassure them and to make in due time the right decisions. S. Toledano, Dior: There should be both empathy and connivance between the brand and the client. A. Ahrendts, Burberry: Even though the overall market may become difficult, I think that retailers and customers are always open to a new innovative idea or a new exciting concept. Jeffry M. Aronsson, Donna Karan: luxury is attention to detail and quality backed by superior service.'[12] B. Pavlowski, Chanel: One should keep investing in creation. D. Peters, Jewelers of America: Selling in challenging times is not about product and its not about price. Rather, its about people and relationships, and the quality of the customer experience. J. Taylor, Harrison: The definition of living well is changing. There is a desire to not stand out. If youre laying people off, you dont want to buy a Ferrari. S. Geary, Mulberry: In the coming months, the mood will be against that â‚ ¬Ã‹Å"blind consumption. A. Arnault, LVMH: The collection focused on elegance and discretion and used materials that were noble but not too visibly noble. Giorgio Armani: Those who deliver what they promise to their customers, and bear their customers in mind, will survive the current economic climate. After this round-up, some further considerations have to be made. At our time, some relevant trends can be observed in luxury. These trends have an important impact on todays interpretation/ perception of luxury. Increasing of price sensitivity is one of them. In time of crisis, luxury sector is one of the most negatively affected due to the nature itself of luxury products. According to Maslows pyramid, luxury products do not belong to the first steps of the human beings needs (phy

In Opposition of Eugenics and Human Embryo Research Essay -- Argumenta

In Opposition of Eugenics and Human Embryo Research There are a variety of views of eugenics and all that it entails. The definition of eugenics is "the science of improving the physical and mental qualities of human beings through control of the factors influencing heredity," ( Funk and Wagnall's, 1984). Others think eugenics is the social control of human genetic evolution, an ideology of racism and genocide, thought to improve society and halt disease while others think only of the Nazi Regime (Saetz, 1985 and McGee, 1997). Eugenics has a long and tumultous past but with the mapping of the human genome and research on human embryos, where will eugenics lead the wolrd in the near future? There are two main practices of eugenics: positive eugenics, increasing the procreation of those with "desireable" traits, including high IQ, physical attractiveness, resistance to disease, etc., and negative eugenics, halting the procreation of those with "undesirable" traits through sterilization, abortion, infanticide, birth control and couseling (Saetz, 1985 and Davis, 1981). Und...

In Cold Blood – Creativev Writing

I was standing in one of New York's vast parks, last nights cold apparent from the white frost that lightly covered the normally green grass. My next victim stood ahead of me, silhouetted by the low, early morning, autumn sun. I made sure that I traced his steps, placing my shoes in the imprints made by his in the grass. This meant that I didn't leave my own footprints and that I also did not crunch the frozen dew on the grass, making my approach that little bit more stealthy. I was yards from him when I reached inside my black Armani raincoat, my hand grasping the gun, placed inside the holster wrapped around my shoulder, the harsh coldness of its metal handle not felt through my black leather gloves. I quickly withdrew the weapon and, with practised ease, took a fix on my target. He was much smaller than me, although most people were, and I could see the wisps of his clouded breath, fogged by the early morning chill, rising up above him. I had to aim slightly downwards to get a fix on the base of his skull. This point would kill the man instantly. I didn't realise until I slowly released it, but I had been holding my breath. I applied minimal pressure to the small piece of metal that would start the chain reaction soon to follow. The ‘phut' of the bullet leaving the barrel of the gun was hardly heard, quietened by the silencer screwed into the end of the device. Only the birds seemed to pick up on this sound as they all flocked from their morning resting grounds of a large oak tree nearby. The bullet hit the man at the point where the neck and skull met and his body and, although only momentarily, went taut; almost as if he had been expecting such a thing. His body then swiftly slumped to the ground, his life draining quickly from the new orifice in the back of his head. Blood oozed from the fresh, smoking wound and left deep, crimson stains on the ground, the white frost a great contrast to it. A bee busied itself amongst the wild flowers beside me, its monotonous drone, a testament to the normality of the day. Ahead of it, birds dodged between the trees, almost chasing each other in some game that only winged creatures could play. Above me, an aeroplane, carrying it's passengers to a paradise destination no doubt, carried on regardless. How could the day take no note to the act of violence that had been perpetrated; how could this vicious act not taint the air itself? Funny as it may seem, after delivering death upon this man, I myself considered life. As I stood in the beauty of the park, the many different colours of the leaves as they died and fell from the tree staining on my mind, I wondered, for what reason was I placed upon this Earth? What was the point of life? Was it cyclical? Is there such a thing as reincarnation? Would this dead man get his second chance†¦Ã¢â‚¬ ¦. would I? Maybe I would be given the opportunity to seek my redemption, to ask for the forgiveness that I hardly deserved, to repent my past indiscretions. If I could, would that not mean that I would spend my life paying for the awful things done in my past lives? Repaying the debt to society that I have amassed in a different time? The answer was no! I would repent my sins in this life, not having another chance, just now. I always had the feeling that my past would catch up and haunt me. I was, however, totally oblivious to just how close this time was. So what was this past that would catch up with me? I'm not going to blame my childhood for the life I now led. I grew up in Brooklyn, a poor black boy in the heart of the gang run ghetto. My mother died when I was very young, and the only memory I have, the only reason I knew that she existed, was that life was once good. After she died, my father grew distant, telling me that I was too much of a resemblance of my mother. I was an only child so had no brothers or sisters to turn to for help. Soon after this time, when I was about 7, my father would invite his ‘friends' around, they would give him things, beer, money, anything that he wanted at the time, and he would give theme. I was abused mentally, physically and sexually and my father sat back and let it occur while he gained everything and I lost my innocence and my childhood. He sold me as a possession, rented me to anyone willing to pay. This happened many times over the years- too many to count, too many to remember, too many that I could remember- until I finally ran away. I turned to killing to support myself, not because I was forced to or because of the things that had happened to me, but because I chose to. The first person I ever killed was the first man that ever laid his filthy hands on me. I can remember that day like it only happened seconds ago, I made sure that I remembered it. He was walking home, it was late at night and I seem to always remember the smell of him. Even now, to this day, the smell of whisky turns me sick. I will save you the details of exactly what I did to him but when they found him in the morning, they needed to use his dental records to discover his identity. I was only seventeen years old. I almost love that night, remember that I enjoyed that moment so much, drew it out for almost two hours, torturing and humiliating him, before finally putting him out of his misery. But why did I put him out of his misery? Did he show me the same compassion? It was, I realised, because I was ashamed of myself, what I had done to a human being. I was twenty-two when I received the news of my fathers death and had made a relatively good life for myself. Despite all the things he had done to me, I cried when I was told. To this day I'm still unaware of the reason I cried. Maybe it was relief or maybe it was grief of losing my father. But back to now, this time, back to the park where another cadaver lay, felled by my hands. I was not killing nowadays for me, but for others. They would pay me to kill their tormentors. Many people would say that I was nothing more than a ‘hired killer', but I saw myself as so much more. I would only except cases where I was killing a true fiend, although people would never know this. On the exterior, I was a successful stockbroker, rich in life, rich in money. However it was my shady interior that nobody knew about. The money I won in the stock market was used to supply my weapons. I made a killing in the stocks and through this, made a killing on the streets. I left the serene park behind me, walking at a quick enough pace to distance myself from it and yet slow enough to make it seem I was not. People walked by me on the streets and, when I reached the mail office, were happily holding doors open for me and wishing me a ‘nice day'. If only they knew of the horror I had just committed. In the mail office, I had my own personal mail box, owned by myself and under the name â€Å"Block and Wood enterprises†. This meant that I could receive information on future ‘hits' without getting my own name or address involved. There was one letter in my box, I removed it, placed it in my pocket and left. My apartment building was not harsh or an eyesore to the skyline of New York. In fact, it seemed to make it better. It was a very tall structure, with large glass windows and a sprawling lobby which was decorated with white marble and gold-look metal. Each floor housed its own apartment. I owned the apartment on the top floor, the penthouse. It had sweeping views of the whole of New York City and possibly the best view of the Statue of Liberty in the whole of Manhattan. My keys slipped into the lock and turned with the ease I expected. I threw the door open and the comforting smell of ‘home' greeted me. I placed my keys onto the small table in my hall, closed the door, hung up my raincoat and started towards the luxurious bathroom. The large living room stretched out ahead of me, my expensive furniture seemingly glowing due to the light in there. It was well lit due to many factors. Firstly I was so high up that hardly any other building could block the light, secondly, the sprawling glass windows spread around the apartment let in much light, often too much and so I had blinds installed to occasionally block the sun. I stopped suddenly, somehow aware of a presence in the apartment. My gun was swiftly out of the holster and, like I had many times before in other peoples houses, was stalking around, jumping around corners, hoping to catch the crook who was here. After a thorough search of my premises, I found nothing out of place, nothing stolen and no one in any of the rooms. I put it down to the recent hit I had performed and it was just the jitters or the ‘high' I got from killing. I made my way back toward the bathroom and noticed that the front door was still open. Had I closed it when I walked in? I was sure I had. I then remembered the letter in my coat pocket. It must have been my imagination playing tricks on myself. I closed the door, grabbed the letter from my coat pocket, settled into my reclining leather chair and began to read. â€Å"Dear Mr Johnson† it read. People were always formal even though they knew they were writing to a killer. The letter went on to describe the man I was to kill, the manner in which they would like me to do it (I never did do any personal requests) and the time and place. People always seemed to assume that I was uneducated or dim because they always told me every detail, as if I wouldn't research the hit myself. I decided to take this one on as the man to be killed was nothing short of scum. He had raped the woman asking for his death and had beaten her and stolen from her on many occasions. To make matters worse, it was her own uncle. I called the woman, from an untraceable safe cell phone, to tell her I would do the hit, not letting her say anything and hanging up as soon as I had finished. I finally had the chance to take a well deserved shower. It was a Sunday and I would not be working today. While in the shower, I thought of the new target I was to kill. Normally I didn't take on a hit so quickly yet this man was too vile to keep on this Earth any longer. I would squash this cockroach in 3 days time. A smile crept across my face as I thought of eradicating another life that shouldn't have been started at all. I slept that night, a dream filled slumber. My head was filled with memories, old and new, and some, I realise now, were thoughts of events that had not yet happened. Thoughts that would lead to my demise. It was mere hours before the job was to be done. I had followed the target for the past 2 days. His name was Attis Jones and he was, it seemed, a recluse. He lived in an old lighthouse that he had converted himself. His wife had left him many years before due to his alcoholism and his children had severed all contact with him soon after this. He drunk even more severely following this and even turned to drugs, a healthy lifestyle he was still continuing to this day. He was now only forty yet seemed much older. His white hair seemed that it hadn't seen a pair of scissors in many years as it was down to his shoulders. It was thinning on the top of his head and seemed to abandoning him, just like everyone else in his life. I was in my car driving towards the coastline where his lighthouse was situated. I had already found a way around his poor security. The chain link fence was easily climbed and although he had a security camera pointing at the drive way to the lighthouse, it was simple to avoid. In any case, I was a careful man and so parked quite a distance from the lighthouse and walked the final mile or so. I had my trusty 9mm silenced baretta in its holster around my shoulder where it was always kept. However, today I brought my colt revolver also, just because it was a secluded area and I hardly ever had the pleasure of hearing the gunshot well. It was beginning to get dark by the time I had reached the lighthouse and there was a light rain starting to fall. As I approached the tall structure, a rather stereotypical lighthouse with its red and white patterned stripes going down its shaft, I noticed that the grounds were littered with many skeletons of cars that had been left to rust. The grounds themselves, surrounding the lighthouse seemed to be in a state of disrepair, weeds choking the last of the wild flowers growing around. I also noticed, for only the second time, a small jetty. It was secluded around the back of the structure and was very neglected. This time, however, the jetty had changed for now there was a boat at it. A figure stood hunched on the deck, pouring diesel into the engine's fuel hatch. The rain, now heavier, fell on its bare skull, onto the white hair that plastered its face and shoulders, onto its black coat and black leather boots. He must have sensed me approaching for he looked up, a smile slowly spreading across his face. He was, I guessed, about 6 feet tall, with long, white, tapering fingers and pale, elongated features. In the dusk, his eyes were a deep, dark blue, bordering on black and his almost lipless mouth seemed to start just where his nostrils ended. It was, of course, Attis Jones. Diesel spilled onto the deck of the boat as he had momentary lapse in concentration. I wondered why he was smiling and it was only when I noticed the handgun in his other hand that a smile spread across mine. â€Å"Clever boy†, I shouted â€Å"Have you been expecting me? † â€Å"We all have†, was the only reply. The gun in his right hand was quickly raised an aimed at my head. I was faster however as my gun was up and releasing a bullet before he realised. It tore through his right arm, shattering it, sending the gun to the watery depths below. â€Å"You are going to die tonight, sinner†, called Attis â€Å"Your mistaken, it is you who will die, I have nothing to answer for. God did not send demons to kill the firstborn in Egypt, he sent angels. I am an angel, sent by God to clear up the mistake he made by allowing you to be born. † I was happy with this reply and was seconds from releasing another bullet, this time toward his chest when he mouthed 4 simple words to me, â€Å"Good bye, Mr Jones†. It was then that something hard struck the back of my head, leaving me sprawled across the floor. A brown shoe stamped down hard on my fingers, causing me to release the gun from my grip. It was kicked away from me and a huge weight seemed to press down on me. There were knees in my back and my face was being pushed into the mud. The water and mud burned my eyes and the weight on my back was restricting my breathing. I fought hard and managed to throw the being from my back. I quickly remembered the colt tucked into my sock. It was out and shooting my assailant before he could say, or do, anything about it. Again I was struck from behind, only this time, it was more than one person. I was thrown to the ground again and kicked and punched repeatedly. I lost the grip of the gun in my hand and this one, like the first, was kicked from my reach. I tried in vain to fight back but was overpowered by the many people around me. I was held to the floor by my captors and then Attis Jones was standing over me. Despite his right arm being splintered by the bullet from my barreta, he was standing over me with relative ease, the pain not very visible on his face. What was, however, visible on his face was the malicious look. I wondered why these people were doing this, for what reason they were holding me to the floor. â€Å"I said you would die sinner†, Attis scolded, â€Å"Just as my son and their brother died at your hands, so you shall die at ours! † With that, he knelt on my chest, placing all his weight on top of my lungs. This constricted my breathing but the cold hand around my neck restricted it further. I was staring up into the eyes of hell. All of the malignant thoughts that Attis Jones could muster were being forced to the front of his mind. I could almost see them through his eyes. Attis's grip shifted so that his thumb was pressing hard, trying to crush my Adam's apple. I was trying to free my hands but they were held tightly to the ground by Attis' Sons. I tried in vain to kick my legs but again, restrained by someone. The pressure in my head was increasing as my windpipe was constricted. My ears were filled with the roaring in my head and the laboured, spit-flecked breaths of the man who was killing me, I felt a burning pain behind my eyes, a numbness spreading from my finger. I desperately tried to free myself, but I was losing the battle, the feeling in my body. My vision was blurring and my lungs burning as the last of my life was choked from me. The only sound, apart from the steady rhythmic beat of the rain, was me, gurgling the last of my air out. Everything became dark and the last thing I remember hearing was â€Å"Take ‘im inside, we'll chop ‘im up and feed ‘im to the sharks! † Now, looking back on my life, I realised how what I had done was right. If you believed that what I did was wrong, that killing those awful people was a bad thing, your deeply mistaken. I killed those people because they were delivering pain onto others, what I did was stop them from hurting them, or any other, ever again. Attis Jones had set me up so that he could take revenge upon me for killing his son. Had I researched deeper into his background, I would have found that the web of lies I was fed were given to me in the hope that I would be led straight into the trap. It worked. I now know that his son was a certain Joshua Jones. I had killed him many years before. He was a personal call. There was no money when I killed him. There were no people who specifically asked me to kill him. I did it because I wanted to. He was grooming small children, taking them from the streets and teaching them how to become prostitutes. He was using them to gratify his own pleasure, acting like nothing more than a common pimp. For this reason I had to kill him. His family was totally oblivious to what he had done and I think that they may have reconsidered taking my life had they found out his true past. So this was my past catching up with me, it never actually haunted me, just left me for dead. There was no afterlife, no Heaven, no Hell. There was in fact, nothing. Just a black void that I seemed t float around in, left to contemplate my life and the things I had done. The hurt I had caused, the pain visited upon the innocent bystanders of the families of my victims. I also thought of the good I had done, killing all those people, taking their lives so that they could no longer harm anyone else And as I did, I realised that I wouldn't change a thing, if given a second chance at the same life, I would do it all the same as I had, doing everything the way had intended to do. I looked back and saw myself as sort of makeshift hero. Saving the common folk and helping their lives to be lived better. Maybe they would find out of my secret past and declare me a hero, or maybe call me a murderer, tell everyone that what I had done was a terrible thing. In any case, I knew that I had done right and did not care what people thought. The only part of my life that I truly hated, the one thing that stuck in my mind as the thing I would change, would be the manner in which I died. But there was nothing I could do about that now, I could only watch it over and over again, in my minds eye.

Transumerism

Transumerism Rental bags are now seen as a quick and easy way for consumers to access luxury brands that they might never have been able to afford using the usual, old fashioned way of consumption i.e. retailing. This move is a direct result of a transumerism culture and attitude. Transumerism in this case refers to a trend in which consumers look to achieve temporary pleasure or experiences through the services and products they purchase.Advertising We will write a custom report sample on Transumerism specifically for you for only $16.05 $11/page Learn More Transumers prefer this kind of lifestyle because they get to escape the restrictions that come with permanent ownership (Sterba, 2009). Those restrictions may be monetary or otherwise. Renting luxury bags as is the case with thatbagiwant.com, allows a consumer to gain fractional ownership of the commodity. These individuals may be interested in keeping up with trends and opt to do so through such businesses. On the o ther hand, these kinds of trends may be brought on by environmental concerns. The leasing lifestyle allows more people to use less products or it propagates reuse of items. This in essence means less waste and fewer detriments to the environment. Alternatively, some people may be renting bags because they are simply addicted to the excitement of new things. They would rather not be bogged down by the restrictions that come with ownership so thatibagiwant.com allows them to indulge in this practice. Telis and Gaeth (1990) explain that consumers often access the quality of a commodity through its price. Consequently, expensive luxury brands are often believed to be high quality. Sellers are likely to sell these brands at relatively high prices in order to appeal to status conscious buyers. These kinds of buyers usually seek to impress others and they usually do this by expensive products (Dubois and Patrick Duquesne, 1993). However, since not all status conscious consumers have money to buy expensive products at one go then businessmen are working around this problem by offering them rental options or rent to own contracts. Eventually, those consumers can still impress others by owning designer handbags without having to part with a lot of money at once while businessmen can move their goods to wider markets. Such trends are also becoming popular because consumers also want to improve their self concept in their groups. Berry (1994) explains that sometimes products are really used to illustrate a person’s membership in a certain group. In other words, conformance to group values often causes members to feel like they belong.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Many will use a certain product to either stand out from other groups or to affiliate themselves with prestigious groups (Bearden Etzel, 1989). The reference theory of consumer behav iour is particularly relevant in understanding this phenomenon. Sometimes markets may possess several reference groups and their demands usually compete with those ones on one’s own group. In such situations, consumption trends will be dictated by the reference group rather than that group. In other situations though, people may conform to their group’s assertions and those is often the case. Usually, these opinions maybe formed through mass media i.e. magazines and televisions. When it comes to handbags, most people will associate designer handbags with an affluent lifestyle as seen through their favourite celebrities (Hirschman, 1988). They usually form ideologies about what it means to be prestigious using these stereotypes displayed on TV and the like. Designer handbags have been flaunted by many celebrities and young women from all over the country often look for prestige through such outlets. Eventually, these designer handbags become status symbols for groups in colleges and other institutions which have a vast number of young people. Most will rent handbags in order to conform to the reference group which holds such items in high esteem. This is definitely one reason why the rent a luxury bag business has become popular. Renting luxury bags has also become common owing to internal factors associated to consumers. Individuals may simply buy a luxury brand because they want to derive certain benefits from it. In other words, these consumers purchase in order to increase their level of excitement or beauty as they go along. Many luxuries have been marketed as having unique value since they are pleasing to the eye. Some consumers have heard such messages and may actually want to experience that emotional satisfaction although their major challenge has been money. Businessmen have solved this problem by offering them that same pleasure without the need to purchase it. Even low budget consumers can therefore get to enjoy the benefits of this lu xury brand as they go along changing their positions. They can therefore get partial fulfilment even though they may not have been able to in the past (Kahle. 1995)Advertising We will write a custom report sample on Transumerism specifically for you for only $16.05 $11/page Learn More Some external factors have also contributed to this trend and they include economic challenges as well as technological advancement. The UK economy had been down for some time, consequently, people needed to look for ways of saving the little money they were making. Most of these consumers may have been high end consumers who could no longer afford luxury bags after the economic slump or they may have been regular consumers who simply wanted a taste of the affluent lifestyle. Businessmen responded to this need by offering them renting options for designer handbags. These individuals could therefore keep up with the lifestyle they were used to at affordable rates. Additionally, they could do this at their own discretion and without the knowledge of their peers. Renting designer bags may also been boosted by the proliferation of online businesses. These have brought products and services to consumers who would never have been aware or who may never have thought of using them. Also businesses have benefited from the use of internet technologies by saving on overhead costs associated with retail outlets and by having an extremely wide consumer base. Most rental options for luxury bags are found on the internet so this is definitely indicative of the fact that technology has played a huge role in popularising the trend. The target market for these rental designer bags will therefore consist of fashion conscious individuals who are economically challenged. It will also appeal to transumers who have a need for excitement and new things all the time. In certain countries, the trend may work better than in others because of economic conditions (Vigneron Johnson, 1999). If economic times are tough for a while then this could offer an easy outlet for people who are trying to save up. Therefore, the trend may work in countries whose economies are on the decline. They may also be appropriate for financially stable countries which have many affluent consumers. Chances of finding transumers in developed nations are higher than in non developed ones. Some nations of the world may not understand the concept of designer handbags and such a business may not work well in these countries.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More I would not rent a bag if I was asked because of a number of reasons. If one was interesting in renting a bag for ownership, then one would not be impressed by the terms of purchase. The final selling price is definitely much higher than the cost of the designer bag. I also realise that in this arrangement, the handbag can be repossessed if I fail to meet my weekly or periodical obligations when am interested in purchasing the product; a scenario common to most lease agreements (Lacko, 2007). Furthermore, the business has no cash refundable option if one changes one’s mind about buying a bag. All one gets are some baggie points which limit one’s options to renting yet another bag. Also, if one was interesting in renting the bag alone, there could be the danger that the bags are not original designer bags. The company affirms that all its bags are retailed from top designer outlets; however, the firm has an option for renting out its customers’ bags too. Here, a member gets into the M-RTO program and they are expected to prove that they obtained the bag from a reputable reseller or they got it from a boutique which is well known. They usually do this with authenticity cards or receipts. The major problem with this kind of approach is that some resellers may not be strict about the authenticity of the bag and if that bag comes to thatbagiwant.com then chances are people will be renting non original bags from the company. This is quite a big loophole that the company needs to address in order to prevent such kinds of problems in the future (Rent a bag, 2011). If the company wanted to get my business then they should simply streamline their MRTO programme such that strictly designer bags are bought and introduced into their system. They can achieve this by making sure that they do not deal with any bags that were bought from resellers as that could the point at which the quality of their products are tarnished. Furthermore, the company needs t o improve its rent for ownership program. Customers end up paying much higher prices than normal. The company should cut down on these prices and lay it out in the website. The non refundable option should be scrapped so as to make this option plausible. Also, they should be clear about the ninety five percent buy back option. In their explanation, they assert that they are willing to buy back a handbag for as much as ninety five percent. They did not explain the conditions needed to get it at a lower rate. In the future, it is likely that luxury bags may lack the exclusivity that they possessed before if rental bags become so common. In other words, designer products will now come to the mass market and the affluent will not be such a prime target market for sellers of these commodities. However Groth and McDaniel (1993) explain that high prices often make certain products desirable because there is a quality cue linked to them. Affluent consumers may no longer treat luxury bags as high quality products if so many of them are available to the masses. Therefore, designer bag makers may lose out on the high end but will gain on the low end of the market (Erickson and Johansson, 1985). Alternatively, it is likely that the future may also record greater diversification in this luxury renting business. It should be noted that in the past, car rentals and wedding dress rentals were the staple. Now, companies specialising with jewellery, party dresses and bags have become common. In the future, it is likely that more and more categories will be added into this exciting new industry. Also, membership prices and rental costs will dramatically reduced because there will be greater competition between such businesses. It will also lead to greater levels of exposure among the population because designer brands will be more accessible (Jackson, 2005). Rental luxury brands are definitely a force to reckon with in today’s business world because they have created tota lly different markets for companies. They are also meeting needs of fashion ‘addicts’ with minimal income to spare for such indulgences. Furthermore, they are a response to the transumerism culture prevalent today. Things will definitely look up for this industry in the future because it will provide access to unreachable consumers. References Jackson, K. (2005). Renting a handful of luxury. The Boston Globe, October 13, 2005. Vigneron, F. Johnson, L. (1999). A review and a conceptual framework of prestige seeking consumer behaviour. Academy of marketing science review, 1(3), 1-17. Rent a bag (2011). Rent a bag in Singapore. Web. Sterba, J. (2009). Transumerism: What does it mean for your business? Marketing Intelligence, July 27, 2009. Lacko, J. (2007). Staff report: rent to own customers. FTC Bureau of economic report. Bearden, William O. and Michael J. Etzel (1982), Reference Group Influence on Product and Brand Purchase Decisions, Journal of Consumer Research, 9 (S eptember), 183-194. Berry, Christopher J. (1994), The Idea of Luxury: A Conceptual and Historical Investigation, New York: Cambridge University Press. Hirschman, Elizabeth C. (1988), The Ideology of Consumption: A Structural-Syntactical Analysis of Dallas and Dynasty, Journal of Consumer Research, 15 (December), 344-359. Kahle, Lynn R. (1995), Role-Relaxed Consumers: Empirical Evidence, Journal of Advertising Reseach, 35 (2), 59-62. Groth, John C. and Stephen W. McDaniel (1993), The Exclusive Value Principle: The Basis for Prestige Pricing, Journal of Consumer Marketing, 10 (1), 10-16. Erickson, Gary M. and Johny K. Johansson (1985), The Role of Price in Multi-Attribute Product Evaluations, Journal of Consumer Research, 12 (September), 195-199. Dubois, Bernard and Patrick Duquesne (1993), The Market for Luxury Goods: Income Versus Culture, European Journal of Marketing, 27 (1), 35-44.