Showing posts with the label product

Services versus Goods – Which brings your company more money?

A fundamental shift from good-demand logic to service-demand logic is occurring within the service management field. Service-demand logic looks at the economic value of the services associated with the product versus the actual cost of the product itself. Changing this scope of understanding helps decision-makers to view the value of the product as one of many types of possible revenue generating sources. These others sources may include servicing, insurance, technical support, upgrades, etc… One of the reasons why a company would desire to move from a good-demand mentality to a service-demand mentality is because the latter affords many more opportunities to gain wealth. A secondary reason is because in today’s world of low price Asian manufacturers it is hard for American companies to compete on product price alone. Selling a total package raises the overall value of the product to the consumer. It is important to understand the differences between products and services t

The Neurological Approach to Economics: The measuring cup of the brain!

Inside the crevasses and cracks of your brain are the components to economic activity. Research has helped scientists understand that certain activation centers within the brain lead to economic activities associated with purchasing, ethical behavior, theft, choices, violating social norms and much more (Ruff , Ugazio, and Fehr, 2011). A new science entitled neuroeconomics moves to a deep micro analysis that may help to explain the macro-economic system in greater detail. Simply looking at the large economic system as a cold running machine gives one a static vision which does not offer an adequate discussion on the depth of human thought that makes up the final decision. The other half of commerce may be in the human brain and how we perceive our stake in the larger economic context. Through the internal workings of the mind we can begin to see how different choices are made based upon cellular activation. The field of neuroeconomics is new and is not yet widely studied at many un