How to Deal with a Credit Crunch - Essay Example

Module Credit Crunch: How to Deal with It During the recent financial crisis, there were so many people who suffered from the credit crunch. The depression was a global event that was so harsh on everyone’s financial statuses that many sought to declare their bankruptcy, others sought foreclosure; while others went on to commit suicide because of frustrations. The companies were not left out as they closed out some of their outlets because of the increased losses and the need to cut down their expenses. Workers were laid off while others gained more favors and were elevated to better jobs due of their experience. So how can one avoid such adverse effects if another case arises in the future? One sure way of being hit hard by the credit crunch is by engaging in unmonitored money borrowing practices. Even an untrained accountant will tell one that. It is also important to cut on the family budget by striking out those items that swallow your money literally and leave the basic items on the list. Overspending does not help in any way, even when there is no crunch. Cutting back on the expenses will soon follow with the bank statement providing a basis through which these will be dealt with (Molenaar 45). Rogue direct debits will be identified through the statement and any standing orders for forgotten memberships will also be noted and dealt with before they become a bother. Switching from some of the lifestyles we embrace will also be helpful. Switching from expensive satellite TV connections or internet connections will save a lot in the future. So, be a wise spender and an individual who considers saving as a long term activity rather than a victim of circumstances. The Best Credit Card. The issue of a credit crunch is always difficult to discuss amongst those who have really felt the pinch and the whole weight of the depression. From the previous blog where I dealt with the best survival tactics of remaining relevant in such a crisis, I would like to deal with credit cards. With the current global trend, more people are resorting to online banking and spending as a way of cutting costs and improving their efficiency by having their services automated and offered at the click of a button. This is of course not a bad idea because the level of technology allows us to use such means to pay for services. I will compare two types of debit cards that are most common in the world today. There is the HSBC Platinum MasterCard and a Capital One Venture card. These two cards have options where one may gain points from using them while flying. If a capital One Venture cardholder with $1500 uses the card, they gain $460 worth of points while one with a HSBC Card will only gain $180 worth. Now, these may be difficult to even contemplate because they are rarely advertised, but with the need to save money, these are the details that one should research on before making a definite choice. There are those that come with annual fees and fewer rewards while another comes with a fee but with higher rewards. To be on the safe side, the card that offers you more rewards will always be beneficial especially to frequent fliers. These perks may cover for some fees later on and help you save much more. Before getting one; seek an honest opinion from a qualified accountant. Facebook Hits A Billion Users: Good Or Bad? Many have been speculative when the news that facebook had hit more than a billion monthly users who were active. Many looked at it from the angle of their current sloppy stock while others look at it from its huge expectations, less results point of view. But as a consumer blogger, I need to look at how this affects the consumer. There are positive and negative aspects of each technological development with those addicted to the internet understanding each of these albeit intensively. To make more money, facebook has been stuffing ads into users’ mobile news feeds to gain from the constant use of this social media activity. There are so many companies that have opened accounts that have made it easier to sell their products. There are so many people who are continually accessing facebook from their mobile phones, laptops and even desktops at home, at work, at school and even on the road. Thus, from ay point of view, it is true that this is a God-sent opportunity for the consumer to view as many products, check as many adverts, and interact with as many people as possible before they come to a conclusion on what they need. This has made it easier to make wise choices and get tips on some of the best ways of dealing with the products. It has made it possible to make adjustments to lifestyles and get quality at a cheaper price. Whether facebook meets it’s targeted or expected stock revenue, the consumer stands at a better position now more than they did before. iPhone 5 or Samsung Galaxy S3?Since the inception of the iPhone, there has been very little competition from other Smartphone producers. However, the toughest android rival, Samsung, has come up with a product that has put the iPhone on the verge of losing out of its traditional market share. Samsung Galaxy S3 has been quite euphoric in the way it has attracted both critics and admirers who believe that it has stolen a lot of Smartphone users amongst the wireless carriers. Within 100 days of availability, it had attracted sales of 20 million units. But before we get too far, let’s look at some of the aspects that make a Smartphone worth one’s time and money. When it comes to the design and construction, iPhone has not lost its grip on that one. It has improved its scratch and shatter resistance on the glass used. Unlike Samsung that has used polycarbonate frame, it has used aluminum which gives it more tensile strength. In terms of the feel, Samsung has specialized in giving the consumers what they want: comfort, a large screen and ease in use. Screen quality has also been improved in both. Samsung S3 uses the AMOLED variation which gives it a better look from far and also allows one to view the icons with little backlight especially for the black pixels. However, iPhone 5 has a more calibrated and sharper focus that gives the eye some pleasure while viewing it. Samsung S3 uses a more complex user interface compared to the iPhone and would thus be appropriate for those who love handling complex android iOS. It is also good for those who love personalizing their interfaces compared to the iOS 6 that iPhone uses to date. Despite the number of reviews that are made on these two smart phones, it will always boil down to what you want and what has more value to you. These are just some of the important features but the in-depth analysis of each would be important before indulging in purchases. Customer Focus. Every marketing company looks at the ability and probability of attracting as many clients as possible, The way they do their product mix will surely offer one a chance to view who really cares about what, and they show it through their products. With every location, they are able to come up with a brand that will suit the particular country, region, or community. This has to come from the depth of the area they are advertising and must come out as genuine and non-discriminative. Each region has its specialty and making use of it would really attract many clients. People are always proud of supporting products that identify and appreciate them. For example, Halloween is one of the most celebrated occasions in the lives of many Americans (Molenaar 54). Using this as a theme for an advert would really attract those who believe in such things. Thanksgiving is another way of attracting clients to buy products and more so the edible ones. Others have picked on events that have shaped the world’s trends such as the Olympics, the financial crisis, new vehicle trends, gay and lesbian adverts, and the growing concern over global warming issues. The American presidential elections have also attracted such themed ads which have been viewed with much skepticism in areas where either of the candidates are not popular. Therefore, customer focus is quite an intriguing aspect that requires proper studies to understand what the target demographic adores or abhors. Every marketer must understand the importance of adverting their brand and this can only come from understanding their target clients and focusing on what that particular region is proud to be associated with. The Elections and the Consumer Budget: Any Relations? The impending general election at the end of the year has had some of the industrial observers cautious. There may be actually no connections between the elections and the consumer’s fear of inflated prices but it is worth noting that the current position is actually tricky. It is tricky because the current economic status of the country does not guarantee any boom in sales. The less-than-stellar global economic conditions mean everything to the industries and the consumer. The industry will use the costs they incur as a prerequisite through which they will set their prices and this will affect the consumer. The elections will mean that the best must be placed at the helm of the nation’s leadership. The reforms that they have put in place will determine what is prioritized and how this affects the industrial costs and eventually their pricing techniques. An election either spells doom or prosperity based on who gets to the helm and how they implement their social, economic, and political reforms to steer the country to greater heights. The election is thus a great time for companies to review their promotions and discounts and how these will allow them to utilize the available stock to make more profit before stealth reforms make it difficult to benefit from what one has invested for a long time. Each of the presidential hopefuls has a policy they seek to sell to the country to win them popularity and ultimately, a ticket to the Whitehouse. Importance of Product Display. When walking across any mall or shop, it is very easy to notice some of the products that have been displayed. Displays have an effect that helps either sell or make people shun the product altogether. What mall attendants do nowadays is to place the very best products by the windows and they entice the clients to get into the shop to try out the others. There are brands that sellout even without being advertised or discounted. It is because they have been tested over time and proven to be of higher quality at all times, with their appeal growing more every day. Everyone wants a product that will serve them best. When displays are made, the malls are always careful about what they place on the display shelves. The blending of these products must be catchy and attractive so that the client will want to look again to make sure they were not fantasizing. Anytime one buys a gem, or something valuable, they always want to show it off. When something new gets into the market, the malls want to assure the clients that they have the fastest sense of the fashion industry or are aware of their changing needs and have sought products that fit their tastes. Whatever the reason, displays are always an important part of attracting a client and this can only happen if the mall or retail shop understands its clients and its target demographic well. Supermarkets always understand this notion and have their products arranged in such a way that the client will always be tempted to delve deeper into the shop and discover other artifacts that may not have caught their eye at first. This way, they open up their world to their clients and allow them to explore from such a perspective. Music and Its Effects during Shopping. Music is like the medicine the soul has been looking for all these days. It is something that we cannot live without and that which we turn to in case we feel depressed, are in the mood for partying, or just feel like we want to relax. This is something that was there even in the days of King Solomon and King Soul who used it for different reasons. Even the shopping malls, supermarkets, cafeterias, and fast food joints have realized the effect of music and seek to apply it to woo customers. Many are of the idea that music in the shopping malls seeks to attract and motivate impulse buyers and not the thoughtful shoppers. This means that they will spend more time in the mall and may end up buying much more due to the enhanced environment. Research has shown that the volume, speed and the type of music has a profound effect on the way shoppers will behave and also on the product preference, alcohol consumption, and spending money. There are those who want slow-tempo music while eating and hopping while those in the clubs want something funky that keeps them in the mood. This way, they will enjoy their stay at the place and engage more based on the induced feelings created by the music they have listened to. Volume creates a vague perception of time and may increase time spent shopping. For instance, loud music leads to more impulsive buying compared to soft background music. In an eatery, the soft-background music will work out just fine for those in the place. Thus, understanding what music works for the clientele will be an important investment in the long run. The Shopping Environment: What Works? From the music, to the display, and the general shopping environment, every shopper has preferences that make it difficult for them to shift their loyalties from one area to the next. Retailers also acknowledge the importance of keeping the stall enticing as a way of differentiating itself from the rest. The physical surroundings of the store are very important. These include the music, lighting, layout, directional signage, and the human elements that are there to assist the clients. These are factors that at all times will never go wrong if the retailers really understand how to blend them to fit into their client’s liking. A research that used lemon-scented perfumes in the shopping area and some soft music found that more shoppers felt relaxed and ended up purchasing more than they had set apart. It is said that some of these attributes elicit a more direct response from the client and impacts on their thinking, feeling, or body comfort. Human beings are mainly wired to follow certain layouts based on the shopping mall or the particular stall that one is in. With every theme; people create their perceptions and pursue them consciously or unconsciously. If it is Halloween for instance, everyone expects the themes to be related to that. If it is thanksgiving, that is what people expect. The retailers must be savvy with the goings-on in the society and attune themselves to the attributes that will help them attract as many clients and therefore get more sales. For instance, fast food outlets are determined largely by their outlook. Therefore, as a customer, your senses will be attracted to something that relates to what you have in mind regarding the place. What Constitutes Smart Shopping? Many people will always tell you about how they shop smart, how their shopping style is the best, and how others should emulate their mode of shopping. But how does one come about such a notion as “Smart Shopping”? Smart shopping will always involve more things than just going to the best stalls in town. It involves making a budget that details the priorities, the basics and the luxuries in that order. This allows one to spend what they have rather than what they wish they had. The next thing is price comparison. Shopping is not all about going to the shop and getting items from the shelves. Window shopping, though many detest it, is an important part of the shopping spree. We do not have to go to the mall and do the comparison manually. Technology has made it easier to conduct these searches from the comfort of our homes. Most of the retail shops have also automated their processes meaning that we can directly view their prices even without physically getting into the retail shop. Choosing the best shop will now depend on what one has allocated for their budgetary purposes. Shopping can be extravagant or ideally simplistic and within one’s limits. Online shopping and home delivery options may also be a cue for easier and cheaper shopping. No expenses incurred by moving from one stall to the next. Everything is done online and goods delivered right to your door step. Therefore, before you say you are a smart shopper, weigh your options and change some of the cliche things that make your shopping boring rather than interesting part of your life. Works Cited Molenaar, Cor. Shopping 3.0: Shopping the Internet or Both? New York, NY: Gower Publishing, Ltd., 2010. Print. Read More

 

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