Management Information Systems 12th Edition

1. What are reasons behind Collection services in your library (Pl. put ‘ ‘ on appropriate number) 1. Book Acquisition/ Collection Development 6. 1. 1. Quick response from suppliers [pic] 6. 1. 2. To save money and time of library [pic] 6. 1. 3. To reduce procedure and workflow to get books [pic] 4. To achieve greater efficiency [pic] 5. To get much discount [pic] 4% says yes for the quack response from the supplier and 64% says that it is save the time and money of the library and 71% says that it is also reduce the workflow of the gets books to the library and get more discount for the purchases the book for the library and 86% says the achieve greater efficiency for the book acquisition or collection development. 1. Books Processing Related Function 6. 2. 1.To get books in Ready-To-Shelf position [pic] 6. 2. 2. To reduce time in book processing tasks [pic] 6. 2. 3. TO concentrate on core services/function(Core means LIS education is required to understand the service/f unction) of library [pic] 4. Lack of staff with library [pic] 5. Lack of time with Library staff [pic] 6. To allow users to get book issued from library within sort span of time [pic]Book processing related function means To get books in Ready-To-Shelf position is 57% yes and other says no, To reduce time in book processing tasks is 64% says yes , TO concentrate on core services/function(Core means LIS education is required to understand the service/function) of library is says 43% yes and other 57% says no, Lack of staff with library is 43% yes and, Lack of time with Library staff is says 79% yes, To allow users to get book issued from library within sort span of time is says 71% yes and remain no. 2. Books arrangement and maintenance 6. 3. 1. Lack of Library staff [pic] 6. 3. 2.Concentration on core services/ function of library [pic] Book arrangement and maintenance have to problems one is lace of library staff and other is concentration on core services79% library staff says tha t the library staff is required more for the arrangement and 79% says no for the concentrate on the core services of the library. In the library the staff is not available for the arrangement of books and other core services . 3. Book Preservation and Conservation 6. 4. 1. No expertise with library staff in preservation and conservation tasks [pic] 6. 4. 2. Rare materials needed special care to preserve [pic] 6. 4. 3.Photocopying, digitization, binding, deacidification etc are considered technical jobs [pic] The book Preservation and Conservation is consider 79% yes for No expertise with library staff in preservation and conservation tasks, 71% yes Rare materials needed special care to preserve and 71% no for Photocopying, digitization, binding, deacidification etc are considered technical jobs. 4. Circulation 6. 5. 1. Lack of library staff to performed this task [pic] 6. 5. 2. To run library for late hours [pic] 6. 5. 3. To concentrate on core services/function [pic] Circulation is most important function of the library it is says that 71. 9% says yes for the lack of the staff perform the task of the circulation, 71% no for the run library for the long period of the time means late time and 50% for the concentrate the core services of the library. 5. Classification/Re-classification 6. 6. 1. Reclassification from one classification system to another [pic] 6. 6. 2. To complete the backlog [pic] 6. 6. 3. For completing the classification task within stipulated time [pic] 4. Lack of staff [pic] 5. Lack of time [pic] 6. Cateloguing /Re-cataloguing 6. 7. 1. For Completing of backlog [pic] 6. 7. 2. For completing the cataloging within stipulated time [pic] 6. 7. 3.For cataloging of foreign language materials [pic] 4. Lack of staff [pic] 5. Lack of time [pic] 6. Reducing cost in cataloging [pic] 7. Periodical subscription 6. 8. 1. Lack of time with library staff [pic] 6. 8. 2. To reduce burden on periodical subscription and follow-ups tasks [pic] 6. 8. 3. To concent rate on core services/functions [pic] 8. Reference/e-reference Services 6. 9. 1. Due to increasing of inquiries from users of library [pic] 6. 9. 2. Due to opening Distance education centres [pic] 6. 9. 3. TO increase number of working hours (late evening and early morning) [pic] 4. Lack of professional staff in library [pic] 5.Due to increasing research projects in institute [pic] 6. 10. Indexing 1. Lack of staff to perform the task [pic] 2. To complete backlog of periodical articles indexing within stipulated time [pic] 3. TO uses standard terminology while indexing of periodical articles. [pic] 4. TO concentrate on core services/functions of library [pic] 10. Translation Service 1. Lack of translator in library [pic] 2. Due to increasing demand of translation among library user [pic] 3. Lack of translating skilled and subject’s knowledge in library staff [pic] 4. Translation job is non-library activity and it should be performed by translator pic] 11. Photocopying 1. Due t o increasing price of photocopier machine [pic] 2. To reduce burden of maintenance [pic] 3. To reduce risk of technology that becomes obsolete [pic] 4. Lack of quality if it performed in-house by library staff [pic] 5. To reduce operational and capital cost [pic] 12. Stock verification 1. It is labourious and non-routine (once a year)job. [pic] 2. Library does not want to use its staff in this job [pic] 3. TO avoid burden of staff recruitment for this job [pic] 13. Computer Desktop related functions 1. Lack of skill or knowledge of computing functions [pic] 2.Lack of computers, equipments, softwares and hardware in library [pic] 3. To concentrate on core areas of library [pic] 4. Lack of staff [pic] 14. Automation 1. Lack of expertise on this area in library staff [pic] 2. Lack of time [pic] 3. Lack of library staff [pic] 4. Lack of resources, equipments and technology in library [pic] 5. Concentration on core services/functions of library [pic] 6. Increasing efficiency in library s taff [pic] 15. Digitization 1. To get good qualities in digitized work [pic] 2. Lack of knowledge/expertise in digitization work [pic] 3. To complete digitization in stipulate time pic] 4. To complete the backlog [pic] 5. Lack of knowledge of standard of digitization [pic] 6. Lack of software, Hardware and other equipments with library [pic] 7. To concentrate on core services/functions of library [pic] 16. Retrospective Conversion of Records 1. To convert the data (backlog) from one system to another (e. g. Libsys to KOHA) [pic] 2. Lack of manpower [pic] 3. Lack of knowledge of concern software/system [pic] 4. Lack time with library staff to convert data form one system to another [pic] 17. OPAC/Bar Coding/RFID 1. To resolve trouble shooting in library software [pic] . Barcoding, labeling etc are laborious jobs [pic] 3. Library staff has not enough knowledge to maintain RFID [pic] 4. To make stock verification (automatic) process fast [pic] 18. Webpage Designing/Library Portal Creat ion 1. Lack of knowledge in webpage designing with library staff [pic] 2. To give professional touch to the library portal [pic] 3. To concentrate on core service services/functions of library [pic] 19. Data Server/Data Storage 1. To reduce risk of the software, hardware that become obsolescence [pic] 2. Lack of skilled or expert persons in Library [pic] 3.To gain benefits of resources, investment and expertise of agency [pic] 20. Digital Archival Management/Institutional Repository 1. Lack of knowledge of software among library staff [pic] 2. Lack of time to create digital library [pic] 3. To reduce risk of media, hardware, software become obsolescence [pic] 4. Lack of knowledge of international standards to create metadata [pic] 21. Entire Library/Library Management 1. To reduce responsibility of administration works [pic] 2. To concentrate on core services/functions of library [pic] 3. To reduce burden of employee related issues [pic]

Amy’s Bread Essay

Strengths: Amy’s entrepreneurial spirit; Toy Kim Dupree-excellent right-hand manager; Already has about 50 wholesale customers, plus 30 on a waiting list; Company is finally turning a profit; Positive work environment (5 day work week, better pay than competition, benefits package, 401(k) plan, employees allowed to speak freely, low turnover); Retail business allows for higher profit margins, and now represents 25% of Amy’s business; Good niche product mix-high quality bread products, micro-bakeries; Makes herself available to the press/public, leads to word of mouth advertising; Can now secure bank financing due to Amy’s proven track record; Wholesale business (representing 75% of the business) is more stable than retail business. Opportunities: Much higher profit margins in high-end breads (black olive, apple walnut rasin-$2.40 wholesale, $3.40 retail profit with the high-end breads vs. $1.71 wholesale, $2.60 retail without high-end breads); Retail business (currently 25% of business) allows for higher profit margins and payment is only in cash; Hiring another manager could allow Amy more time to run the company; Buying 31st street location would allow for production facility expansion and the ability to cater to customers currently on the waiting list; Leasing the 15th street location could allow both retail and production expansion. Weaknesses: Bakery industry is highly competitive with low wholesale profit margins; NYC locations are very expensive; Higher labor costs due to hand-production techniques (35% of CGS); Ingredient prices are volatile; Ingredients are more expensive than the competition’s; CGS is 65% of net sales; Competitors can enjoy better economies of scale due to automated production and cheaper ingredients; 75% of the business is through lower-profit wholesalers; Current production location is too small to meet growing demand. Threats: Dieting trends (i.e. Atkins diet) could affect consumer demand for bread. Mission: To produce high-quality, handmade breads for wholesale and retail customers through our retail locations and door-to-door deliveries. Objective: Amy’s Bread has seen steady growth over the last few years. This success has overextended both the employees and the warehouse space. Amy is looking to move operations to one of two locations: a building on 31st street, or one on 15th street. The 31st street location would allow Amy to expand her wholesale business and allow her to invest in a property instead of leasing. Amy should also look into adding a manager to allow her the time to focus on the overall business. Her most profitable bread lines are the high-priced breads, she should look into increasing the number of high-priced bread. Eventually, Amy should consider opening small retail locations in New York City.

Auditing in business world Essay Example | Topics and Well Written Essays - 1750 words

Auditing in business world - Essay Example This paper aims to discuss whether it is just to involve or blame the auditors for companies' failures or bankruptcies or even fraudulent activities. Are auditors really part of the blame-game or is the public just reacting on what they perceive as the auditor's failure to see and to report these bankruptcies and fraudulent activities' Is there really a gap on what the public expects auditors to do and to report and what the auditors are really tasked to do' According to Robert K. Elliot (1998), the purpose of the audit is to provide assurance that the investors and the stakeholders can rely on the information presented by management in the company's financial statements and that they are not taking on undue financial risk when they invest in such a company. The auditors' report, the ultimate output of the external auditor, is meant to communicate the various claims of the auditors. These claims are: that the auditors have complied with the required auditing standards, that they are independent of the company they are auditing and that they are stating that the balances of the company (as presented in the accompanying financial statements) are free from material misstatements and are thus, reliable to the outside readers and users. The website, www.abrema.net, defined expectations gap in auditing as "the gap between the auditors' actual standard of performance and the various public expectations of auditors' performance (as opposed to their required standard of performance)". The same website enumerated the various expectations of the public. These expectations include (but are not limited to the following): (1) that the auditors should have "prime responsibility for the financial statements" that they audited; (2) that auditors 'certify' the financial statements; (3) that when auditors provide a clean opinion, this means that the financial figures are accurate and free from error; (4) that auditors "should give early warning about the possibility of business failure; and (5) that auditors are "supposed to detect fraud". Another definition, according to Stanley Martens, is that this gap is "the difference between (1) what the public and other financial statement users perceive auditors' responsibilities to be and (2) what auditors believe their responsibilities entail" (2001). Mr. Martens went on to state that this expectation gap has been in existence for several years (even decades) now and may have stemmed from previous "well-publicized hearings" in a previous fraud case. Still another definition from Marianne Ojo is that is the expectations gap is "the difference between what users of financial statements, the general public perceive an audit to be and what the audit profession claim is expected of them in conducting an audit" (2006). In fact, there is also a distinction between the expectations of the audit profession of an external audit and the perception of the external auditor. Thus, even within the accounting profession, such an expectation gap exists. Components of Expectation Gap Www.abrema.net further divides expectations gap into the "requirements gap", where there is a difference between the actual performance of the auditor and what is required by the "current standards of the society" and the "feasibility gap", is the difference between "society's required standard

Jonestown Movie Review Example | Topics and Well Written Essays - 500 words

Jonestown - Movie Review Example It was not enough for Jim Jones that people of his church followed him, he wanted more. "What you need to believe in is what you can see  ... If you see me as your savior, I'll be your savior. If you see me as your God, I'll be your God† Hue Fortson, Jr. quoted Jones. Jim Jones wanted to be Christ. In early 70’s in his book â€Å"Letter Killed† he started to criticize the Bible for the gender & racial discrimination, and preaching that he is a reincarnation of Jesus Christ. In spring 1976 Jim started to confess openly that he is an atheist. He was losing his capability to be a leader due to his dependence on drugs and mental sickness. His behavior was really disturbing. Prior to the mass suicide many people in his community were stating they did not want to die with â€Å"The Temple†, but Jones did not want to let people make their own decision, he was persuading them: â€Å"Don't be afraid to die; it is just stepping over into another plane. We didn't c ommit suicide; we committed an act of revolutionary suicide protesting the conditions of an inhumane world.† Jim Jones had high level of intellect, getting almost the best grades in his class and was always the best student in public speaking. In his childhood he was insatiable  reader and especially liked writings of Stalin, Hitler and Machiavelli.

Dams, hydroelectricity, and the effect apon the ecosystems Term Paper

Dams, hydroelectricity, and the effect apon the ecosystems - Term Paper Example However, the idea of constructing more dams in various places has been welcomed with great opposition. Many economic and social arguments have been raised against the construction of dam, but the most profound fact that has overshadowed all other arguments is the major ecological effects that large dams have on the ecosystem. Considering hydroelectricity, hydropower is actually a renewable energy since it depends on the water cycle on earth for the generation of electricity. The cycle of water begins when the water evaporates to form clouds which in turn condenses and precipitates back to the earth and gets back to the water reservoirs. Despite the fact that hydropower pose no effects on the quality of air, the process of constructing and operating large hydropower dams can have significant impact on natural ecosystem such as river systems wildlife and aquatic life population. The assessment of how hydropower affects the environment can be effectively done by reviewing different case s. This paper aims at discussing the effects that hydroelectricity and dams have upon the ecosystem. Effects of Dams upon the Ecosystem Dams have significant effects on both the downstream and upstream ecosystems. Dams comprise hindrances on rivers longitudinal exchange and they alter numerous processes in the natural environment. Flooding of dams in the upstream brings about total damage to the terrestrial ecosystems via a process known as inundation. Flooding eliminates all terrestrial animals and plants inhabiting the affected areas. Water reservoirs inhibit some aquatic species from migrating by obstructing their pathways1. On the downstream, there are obvious changes in sediment transport, water quality and temperature, and flow regime. These particular changes occur gradually and they are not easy to predict. The very common effect of large dams downstream is the reduction of annual water discharge; this lead to an increase in low flows and a decrease in high flows. Flood peak s reduction decreases the period, degree and frequency of floodplain outpouring. A decrease in the channel-formation shrinks the chances of channel migration. Transportation of sediment in the reservoir brings about complex alterations in aggregation and deprivation on the dams surface. Regulation alters the chronological flooding prototype, an effect that desynchronizes temperature systems and yearly water flow. These particular alterations have a direct influence on some dynamic factors affecting the heterogeneity of habitats and the integrity of the river ecosystem ecology. Changes in water quality, water to land interface, and thermal regime have direct impact in primary production, which translates to long term effects on aquatic life and other members in the upper food chain. Dams may also bring about alterations in the ecosystem even at a distance far from the dam2. For instance, any alteration on the transportation of sediments may result in changes in floodplains, coastal d elta and river morphology numerous of miles from the dam site. The river ecosystem responds to dams in several, complex, and diverse ways. Subsequently, while endeavouring to establish the impacts of dams on the ecosystem there is need for large bank of information relating to: riparian vegetation and related fauna; quality of water; rivers hydraulic features; geomorphologic features; aquatic animals and their environment; importance of river’

What is Interior Design Essay Example | Topics and Well Written Essays - 1750 words

What is Interior Design - Essay Example This editing discusses the fiels of the interior design that does not only involve picking colors, functioning with flourishing stunning fabrics or being creative all day long as many people may think. Modern interior design also delineates a group of numerous yet linked projects that engross turning an interior space into a valuable setting for the range of individuals. In the ancient times, interior designers were incorporated in the processes of building. The researcher describes interior designers as the people who carry out interior design projects. The multifaceted architecture that has resulted in the development of industrial processes and development of the society has transformed the profession of interior designer today. The researcher also discusses one of the primary aspects of being an Interior Designer today, that is comprehension and interpretation of ideas and identification of a client to provide an appropriate environment in which to live or work. It is essential a nd important to come up with a space, which will convey a message. In addition, a significant emphasis should be placed on all the design processes, generation of new ideas, experimentation of different concepts and harmonies, specification of unusual materials and commitment to accurate attention to details. To conclude, the researcher mentiones that a successful Interior Designer must also cover all the procedures of formulating a concept, from formulating ideas, concept boards and technical drawings to a new design solution.

Reflective writing Essay Example | Topics and Well Written Essays - 1750 words

Reflective writing - Essay Example As described by Belbin (1993, p. 152) â€Å"a team is not a bunch of people with job titles, but a congregation of individuals, each of whom has a role which is understood by other members. Members of a team seek out certain roles and they perform most effectively in the ones that are most natural to them†. In the light of this description, I assumed the role of a â€Å"team worker†. This was because I thought of myself as a shy person as I do not find myself confident enough among those I do not know. It may be because of the lack of trust in my skills and abilities; I am full of brilliant ideas but I lack the confidence to express them and have lost many good opportunities in life due to my apparently shy nature. Carl Jung, the psychoanalyst, has termed people like me as â€Å"introverts† who spend most of their time alone or in the company of one or two friends (Osher 1998). I have only one close friend and I really feel comfortable in his company. Another thi ng I do not like about myself is the inability to make decisions. When it came to working in a team in the final year of PASBD, I gladly took the role of a â€Å"team worker†. ... In the first group meeting, I was overwhelmed by the confident faces around me. My only friend was not in the group and that really made me feel isolated. My confidence sank all time low and I did not participate in the discussions. In fact, I could not answer the questions directed towards me coherently. In my group, discussions were common and it was mandatory for every member to participate. Clashes of opinions were also frequent in the group and a final decision regarding tasks was reached after many loud arguments. I did not like both; however, both these factors proved to be a useful learning tool for me. The mandatory discussions meant that I had to voice my opinion while the clashes of opinions gave me confidence to speak out loud to make a point. While discussing group dynamics, Melucci (2004) shared the concept of conformity that fits well to my situation. Melucci (2004, p. 249) stated that â€Å"conformity is the maintenance or the alteration of one’s behavior to m atch the behavior and expectations of others†. I was actually trying to conform with the group expectations where every next member is eager to share and contribute. During this process of conforming to the group expectations, I found that my team members actually liked my ideas. This gave me confidence to speak in front of people. I realized that I had a lot of potential but was also terribly under confident. I started thinking why it was so. One thing that I had learnt from this experience (working in a group) was that I was not shy. This was because I was not tongue tied or my legs did not shake when I spoke in public. My lack of participation was because of my fear of being rejected and being ridiculed. As described by Freud, the human

What I learn from Analects Personal Statement Example | Topics and Well Written Essays - 1500 words

What I learn from Analects - Personal Statement Example The three major themes of the book are social philosophy, political philosophy, and education (The China Reviews 165). In this paper, the author explains what they have learned from the book as far as these themes are concerned. In the process, they relate their lessons to their personal experiences. The paper is based on Lau D. C’s 1979 translation of the book. From the book, I learn certain qualities a good leader should possess. For instance, a good leader should be disciplined, lead by example and correct their subjects with compassion (Lau 18:19) rather than by punishing them (Lau 15:5). Confucius, in arguing against punishment as a means of leading people, claimed that over time, the subjects will become contemptuous of punishments and the tool will become ineffective. If, on the other hand, they are led by a sense of virtue, a person’s conscience will convict them of their wrongdoing and they will refrain from it in the future. Whereas this is not the first time I am reading on the qualities of a good leader, Confucius’ prescription stands out: it is simple and practical. This is in spite the fact that the philosopher failed to popularize his ideas in the China of his day partly because the political leadership depended heavily on punitive laws. Indeed, from the various leadership positions I have served in, I can confirm many of Confucius’ qualities of a good leader. For instance, I have come to appreciate the importance of leading by example. This quality, for instance, demands that if as a leader I assign tasks; at the next meeting, I must be the first person to have completed my task. In addition, when I convene meetings, I must arrive punctually. On correcting people, I have learned that it is much easier for me to win the cooperation of a non-cooperative member extending small gestures of kindness. For instance, I may assign the member a simple task and promise to buy them lunch if they accomplish the task well. This

Australian Business Law Essay Example | Topics and Well Written Essays - 4000 words

Australian Business Law - Essay Example Hence, the provisions of the TPA likewise applies to the given problem. Section 53 specifically prohibits the use of false representations about the standard, quality, grade, composition, style, model or history or particular previous use of goods: ACCC v Cadbury Schweppes Pty Ltd (2004) FCA 516. Moreover, Section 58 specifically prohibits the use of false representations about the standard, quality, value or grade of services. Furthermore, the TPA and FTA likewise prohibits the use of false representations about the the sponsorship, approval, performance characteristics, accessories, uses or benefits of goods and services (Pinetrees Lodge Pty Ltd v Atlas International Travel Pty Ltd(1981) ATPR 40-248); the sponsorship, approval or affiliation of the corporation; and the price of goods or services: ACCC v Allens Music Group Pty Ltd (2002) FCA 1552; TPC v Cue Design Pty Ltd (1996) ATPR 41-475); the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy; the place of origin of goods: ACCC V GIA Pty Ltd (2002) FCA 1298; TPC v QDSV Holdings Pty Ltd (1995) ATPR 41-371. Moreover, it violated Sections 54 of TPA and 62 of the FTA for falsely offering gifts or prizes because a corporation should not offer gifts, prizes or other free items to people buying its goods and services if it does not intend to provide them. It is also violated Sections 55A of the TPA and 64 of FTA for engaging in misleading conduct regarding the services it offers by misleading the public as to the nature, the characteristics, the suitability for their purpose or the quantity of any service: Doherty v Traveland Pty Ltd (1982) 4 ATPR 40-323. It also violated Section 56 of TPA and Section 65 of FTA as a corporation under the said Sections are prohibited from engaging in trade or commerce or advertise goods or services at a specified price where it has reasonable grounds to expect that it will not be able to comply with the advertisement. Finally and in addition to that, the corporation violated the prohibition on accepting payment without intention to supply under Sections 58 of TPA and Sections 67 of FTA specifically prohibiting a corporation from accepting payment or other consideration for the goods if at the time of acceptance it intends not to supply the goods or services or to supply goods and services materially different from the goods and services in respect of which the payment is made. It is clear from the facts that the corporation contravened Section 58 reasonable grounds exists to show that it is aware that it would not be able to supply the goods when accepting payment: Dawson v World Travel Headquarters Pty Ltd (1981) ATPR 40-240. These foregoing provisions of the TPA and the FTA as illustrated in the above- mentioned case were clearly violated because first, contrary to what was stated in its brochure, the Happiest Kangaroo was not really located in bushland but was in the centre of Kingscote, the main town on Kangaroo Island. Second, Ariel had a ground floor room which opened on to the main street and was very noisy. Third, there were no live Australian animals in the grounds of the hotel. Fourth, when Ariel complained, the staff directed her to the many cement statues of kangaroos and wallabies in the back garden of the hotel and soft toy kangaroos and koalas used in the decoration of her room.

FINANCIAL REPORTING Assignment Example | Topics and Well Written Essays - 3500 words

FINANCIAL REPORTING - Assignment Example The paper presents the financial evaluation of the company and for this particular purpose, the most effective tool of ratio analysis has been utilized. The financial ratios are usually divided into various sub categories such as profitability, gearing and liquidity, each put emphasis on a different area of the financial outlook of the organization. These analyses form an integral part of the financial statement analysis, especially from the investor’s point of view, which are always looking for avenues to invest in countries having strengthened and stabilized financial ratios and representing an upward trend. In addition to the financial evaluation, for the purpose of risk assessment, several risks has been identified and assessed such as firm related risks, currency risks, capital structure risks and market risks. The Kerry Group PLC actively follows the corporate governance directives issued by the government for the corporation registered in the Ireland. Being a premium co mpany listed on the stock exchange, the company is required to follow the directives of the corporate governance requirements. ... Market and Industry Risk and competitor analysis The company operates in a highly competitive market where its competitors are continuously devising methods through which their profitability and market share can be increased. The company is exposed to a risk where its competitors can introduce a major change in their production process through introducing a state of the art technology. This can not only enhance the efficiency of their production, but it can significantly provide them with the cost leadership as well. In order to analyze market competitive forces, Porter gave a five forces model which analyzes the competitive forces acting in the market which a corporation has to manage in order for it to obtain competitive advantage. 3.2 Porter Five Forces Model Analysis Porter’s five forces model is an effective tool in exploring the competitive forces of the environment in which the organization operates. It allows the business to critically analyze its current business stra tegy and formulate one which can allow it to achieve a competitive position in the market. With the advancement in Information Technology, it has been prominently observed that the businesses are now focusing more and more on implementing information system in order to make the best use of their resources. In the mentioned case, KERRY GROUP PLC has several functional units carrying out activities related to the manufacturing and delivering of food merchandise. By integrating these units using information system, KERRY GROUP PLC can gain competitive advantage in the market which can by analyzed in the light of Porter’s five forces model. The first competitive force according to the model is the entry of new competitors

Strategy Evaluation in the Transportation Services Sector Essay Example for Free

Strategy Evaluation in the Transportation Services Sector Essay Strengths Improvement in technology In the transportation service sector, the improvement in technology has increased the productivity within the industry by reducing order picking, and delivery times of good and services provided. Additionally, with the improvements in technology, such as bar coding, radio frequency identification tags (RFID), and route optimization software can allow for better tracking of trucks, shipped goods, and the transportation of people (University of Phoenix, 2014). Low employee turnover rates Overall, in the transportation services sector the employee turnover rate is low because of the industrys use of benefits packages and the fact that most employees belong to organized unions. However, in individual segments of the transportation industry, such as trucking and warehousing, turnover rates are higher than the rest of the transportation service sector. The reason is due to an aging workforce and recruiting practices (University of Phoenix, 2014). Industry is trending upwards The transportation service sector is trending upward and is rebounding. It is being led by the for-hire trucking industry, which include services provided through the use trucks, railroads, ships (both inland and ocean going), And airplanes. The transportation service sector has increased 27 percent over the last five years. Additionally, air cargo traffic is projected to double by 2033, and the expected international trade volume will rise 3.1 percent in 2014 and 4 percent in 2015 (University of Phoenix, 2014). People and goods are transported by this industry The transportation service sector includes companies that deliver rail, truck, water, and air transportation; transit and ground commuter,  postal delivery, courier, pipeline, messenger services, storage and warehousing facilities. The volume of passengers and goods that are transported are ever increasing providing a long-term viability and sustainability of the transportation industry. Long term relation with suppliers and customers Once, a provider within the transportation service sector has proven their ability and created and established a value to suppliers and customers; a long-term relationship is possible.A long term relationship is possible providing that the established capacity and value remain constant for both parties involved in a transaction. Weaknesses Capacity restraints Capacity restraints can reduce profitability. When providers from the transportation sector are unable to move people or goods because of capacity constraints the possibility of voided freight contracts, and bad customer service reviews exist. A company that does not look forward and see the capacity requirements of their particular division in the transportation industry can lead to loss of potential growth; thereby decreasing their profits (University of Phoenix, 2014). Extensive governmental regulation Transportation service sector businesses are subordinate to many laws and directives dealing with matters extending from safety and labor procedures to ecological policies and restrictions in trade. Such as, the governmental agencies that regulate the airline industry, which is administered by the Federal Aviation Administration (FAA), the Department of Transportation (DOT), and the Transportation Security Administration (TSA), among others governmental agencies. Combined industries such as deep sea shipping and railroads also draw concentrated examination concerning practices of pricing services and goods(University of Phoenix, 2014). Union influence of workers within the industry Unions have a substantial voice in labor issues, including wages and benefits levels, in many transportation service sector companies. Many of the segments within the transportation industry are labor- intensive.  However, weak union negotiations can lead to strikes by union employees that can harshly impact a company’s undertakings and cash flow (University of Phoenix, 2014). Opportunities Growth in local and regional markets The current growth in population has brought about an increase in city growth. The growth in the towns is opening the demand for more transportation needs for passengers and products in local and regional area that have been lacking transportation and warehousing services due to the lack of population. Growth in international markets The demand for transportation and warehousing is being driven by an increase in international trade as new markets are opening up such as China, Asia, South America and the Middle East. These new market currently do not have enough equipment or building space to handle the increase in international trade that provided for a substantial growth in companies in the transportation service sector internationally. Growth in specialize transportation As new international market begin to open, there is a growing need for more specialized transportation such as transit of a new workforce in other countries. Furthermore, jobs in the warehousing and transportation industry are opening up; hence the need for passenger transport and the need for more transportation of useful goods. Improved online technology As the technology is improved in other areas of the transportation sector, the innovation of online technology has also improved. Therefore, providing for more E- commerce growth in foreign countries than can improve the profitability of companies in the transportation industry. Threats Environmental constraints As the transportation service sector grows to provide for an increase in population, so do environmental constraints such as a rise in pollution created by the addition of more vehicles to the industry worldwide. Likewise, as environment concerns increase so do regulation. A  transportation company must be innovative in designing new equipment looking not only at a rise in alternative fuel vehicles but other green possibilities. Increased competition As new international market open the possibility of new transportation companies opening their doors to business increases. For companies in the transportation industry to be competitive and profitable; they must be open to change and attack these new markets with innovative ideas and an open mind to diversity. Increased security needs As international borders begin to open to trade; so the need to increase security of employee’s persona and company’s assets also is present. Additionally, as more business is crossing borders the needs for stricter guidelines are also required. However, with these more stringent guidelines come increase cost of transporting passengers and goods. As one can see from the SWOT analysis, the transportation service sector is full of potential growth possibilities. However, there are risks and threats that must be avoided when addressing the opportunities that exist in the industry. While the industry is trending upwardly and the strengths outweigh the weaknesses those companies in the industry must strive to be innovative in their approach to the opportunities at hand. One way a company in the transportation industry can address innovation is by embracing diversity. When a business includes diversity, it opens doors to creativity. Moreover, this creativity can lead to new ideas in transportation and warehousing. Being innovative has brought about many new advances in tracking services, goods, and software to promote productivity and profitability in the transportation service sector. Reference University of Phoenix. (2014). Transportation Services Sector. Retrieved from the University of Phoenix, PHL/320 website.

Presidential election Essay Example for Free

Presidential election Essay During the 2004 presidential election, John Kerry offended dozens of military families, both the enlisted men and their relatives, with a gaffe he said was directed at President George Bush. The candidate for president claimed that most American soldiers joined the military because they had no better options, that the economy made them do it. While that may be the case for some soldiers, the reality is that a great many soldiers join the military for more than just the help with school or the paycheck. Especially after the September 11, 2001, attacks on the Pentagon and New York City, patriotism was a primary reason for joining the military as was the desire to see the world and serve their fellow man. Even for the soldiers that join the military for economic reasons, the service is more than just a paycheck and deserving of far better than the malicious words of an also-ran like Kerry. Jonson Mahathath is a United States Marine stationed at the Marine Recruiting Station in Louisville, KY. Mahathath, 21, will be the first to admit his primary reason for joining the Marine Corps was the opportunity. â€Å"I grew up in the middle of Missouri where the economy is bad, really bad. I knew that if I wanted to get out of there and have a life of my own, the Corps was a way out,† he said (personal interview, May 12, 2008). But that is only half the story. Mahathath said that since joining the Corps he has developed a newfound respect for servicemen and himself. When you choose to be a Marine, you know that you are committing to being part of one of the finest fighting forces in the world. You know the strength of character required to make it through boot and you know that a fellow Marine will never leave you behind. Try finding that kind of friendship and loyalty anywhere else,† he said. Indeed, after serving his first tour, Mahathath will likely reenlist, not because of the economy, but because of his dedication to the Corps. â€Å"This is a closer family than the one I was born into,† Mahathath said. Some people join the military to pay for their education and then discover other reasons for their military service. Rebekkah Henderson Thomas is one of those people. Thomas joined the Army Reserves to pay for her college education, but when the soldiers around her were deployed for war duty, Henderson felt the call to action. â€Å"I felt like I was cheating, like I wasn’t a real soldier. Here were all these people I trained with, going off to war and I was still here. I needed to be deployed, to fulfill my commitment,† Thomas said (Gunnin 2008, p. 1). Thomas could have served her entire commitment to the military without ever seeing combat, but her dedication to keeping her oath of service made her long for more. At the time she was deployed, Thomas left behind a two-year-old son and an ex-husband. Being away from her son will be difficult, but she gave her word and intends to keep it, she said (Gunnin 2008, p. 5). Airman Richard Burnell wrote in an Air Force Press Release that he joined the military for selfish reasons. â€Å"To be quite frank, my initial reason for joining the military was selfish. I enlisted Aug. 15, 1985, because I was unsure what I wanted to do with my life. I believed the military would provide me a healthy environment in which to decide. † (Burnell 2003). But the decision to join the military is not what made him a soldier, or in this case, an airman. â€Å"I became an airman because my squadron commander gave me responsibility that exceeded my confidence. He believed I was capable of things that I did not believe I could do. My desire to not let him down motivated me to accept the challenges he proposed. † (Burnell 2003). Essentially, he wrote, he joined the military to help him find a direction in life and the military not only provided it, it exceeded his wildest dreams. The reasons then why a person joins the military can be as wide and varied as the branches of the service, but to claim as Kerry did that people do it out of economic desperation is to underestimate the appeal and worth of the American military. Yes, it can be just a job to some people, but the old ad cliche is true as well, it’s more than just a job; it’s an adventure. It’s a family and a way of life.

Poverty Java Poor

Poverty Java Poor This thesis examines the incidence of poverty in Central Java in the period from 1996 to 2002. Susenas expenditure data in 1996, 1999 and 2002 were used to measure the incidence of poverty based on the Foster, Greer, and Thorbeckce (FGT) index. Using the decomposition formula developed by Huppi and Ravallion (1991a, 1991b), this thesis also investigates the effects of urban and rural poverty on the change in overall poverty. The incidence of poverty was higher in rural than that urban areas before the economic crisis. However, the urban poverty has worsened more significantly than the rural poverty after the crisis, as indicated by the higher headcount and poverty gap index in 1999. Spatially, poor people were distributed unevenly across districts. There were two major clusters of poor districts: one in the eastern part and the other in the middle of Central Java. One of the policy implications from our analysis is that poverty reduction programs seem to be more effective if they are targeting the poor in specific location. Poverty reduction programs should be targeted both on rural and urban poor people with specific policy measures and instruments between the rural and urban sectors. Since economic growth is found to be very effective in reducing poverty in both rural and urban areas, growth promoting policies in general should be conducive to alleviating poverty across the country. CHAPTER 1 Introduction 1.1. Background Central Java is one of six provinces in Java Island, which is the heart of Indonesia. It is located between West Java and East Java. Administratively, it consists of 29 kabupatens (regencies) and 6 kota (municipalities). According to data from Indonesia Population Census, the population of Central Java was 31,223,258 in 2000 and 31,997,968 in 2005. Compared to other provinces, it is the third most populous province in Indonesia, with the percentage of 15.2 % in 1995, 15.2 % in 2000 and 14.6% in 2005 out of the total national population of the country. According to Indonesia poverty information data base, 19.04 % of the poor people of Indonesia lived in this area. Among other provinces in Java, Central Java has the lowest GRDP. Until 1996, the growth rate of the GRDP was approximately 7% per year. In 1997, its GRDP shrank and grew negatively due to the economic crisis. The economic crisis following the currency depreciation triggered the increase of price of basic needs, especially foods. The inflation rate in Central Java increased sharply from 5.4 % in 1996 to 10.9 % in 1997 and reached 75.5 % in 1998. This undoubtedly affected the living standard of the people. The people not only suffered from the price increase, but also lost their jobs. Many industries collapsed, increasing the unemployment rate in Indonesia, including Central Java that brought many households into poverty. 1 1.2. Objectives of Study Firstly, the objective of this study is to examine the poverty incidence in Central Java in 1996, 1999, and 2002. By calculating the incidence of poverty using the FGT measure for each kabupaten and kota, this study tries to describe the spatial distribution of poor people at the district level. It aims at finding out the most severe districts in the period from 1996 to 2002. Using the same poverty measurement, the incidence of poverty is also measured for urban and rural areas, to investigate where the poor are concentrated. Secondly, using the decomposition formula developed by Huppi and Ravallion (1991a), this study also aims at investigating the influence of poverty incidence in urban and rural areas on aggregate poverty changes in Central Java. 1.3. Organization This study has six chapters, including this introductory chapter. Chapter 2 provides a literature review of studies on the impact of economic crisis on poverty and living standard in Indonesia, and the spatial analysis on poverty. Chapter 3 presents an overview of Central Java economic performance in 1996-2002 and poverty reduction policies that have been implemented in Central Java. Chapter 4 describes the method and the data used in this study. Chapter 5 presents the pattern of poverty in urban and rural areas and pattern of poverty by kabupaten/kota. Finally, chapter six presents the conclusions. CHAPTER 2 Literature Review 2.1. The Impacts of Macroeconomics Condition on Poverty Studies on the impact of the changes in macroeconomic condition and government policy on poverty have been conducted by many researchers. Their objectives were to find desirable development policies to facilitate poverty alleviation. One of the interesting issues is the impact of the financial crisis that caused high inflation in the mid 1997. Since poverty is often defined in terms of income, price changes must have a significant effect on individuals living standard. The external shock that affected macroeconomic condition in Indonesia in the mid 1980s was the declining of oil prices which caused GDP per capita growth rates to fall sharply (Huppi and Ravallion, 1991b). To examine how this shock affected the aggregate poverty in Indonesia, Huppy and Ravalion (1991a) employed the Foster, Greer, and Thorbecke (FGT) index to measure the incidence of poverty. Using Susenas data in 1984 and 1987, they developed a decomposition formula to assess relative gains to the poor within the specific sectors and the contribution of each sector to the change in aggregate poverty. They found that aggregate poverty, both in urban and rural areas in Indonesia declined during this adjustment period. 3 Using the same data and method, Huppi and Ravallion (1991b) continued their research to examine the change in the sectoral structure of poverty in the adjustment period. They employed their decomposition formula to examine the sectoral gains due to the reduction in aggregate poverty. According to the findings, a high concentration of poverty was found in rural farming areas, therefore gains within rural farming sector had the highest contribution to the aggregate poverty reduction. An increase in rural farming sectors mean income and consumption had strong contribution due to aggregate poverty reduction. This study also found that more than a half of the gains were contributed by rural farming sector in Central Java and East Java. After the adjustment period, Indonesia was hit by the financial crisis in the mid 1997, which caused a significant decline in GDP per capita. Friedman and Levinsohn (2002) analyzed the distributional impact of Indonesias financial crisis on household welfare. They used the consumption module of the 1996 National Socio-Economic Survey (SUSENAS) as the pre crisis data and monthly price data for 44 cities throughout Indonesia from January 1997 to October 1998. They matched both data to obtain compensating variation which is the amount of money sufficient to compensate households following price changes and enable a return to pre crisis level utility (Friedman and Levinsohn, 2002). According to their finding, the impact of the crisis on household welfare depends on the consumption choice, sources of income, and location, i.e., urban and rural areas. In general, households were severely affected, and the urban poor was the most adversely affected by the crisis. Rural poor were not affecte d as much as the urban poor because of their ability to produce food to mitigate high inflation. Skoufias et al.(2000) also conducted a research about the changes in household welfare, poverty and inequality during the crisis. They used the 100 village survey data conducted by CBS (Indonesian Central bureau of Statistics) in May 1997 and August 1998. Using the social welfare function developed by Atkinson in 1970, where welfare at time t is the function of the mean level of per capita consumption expenditure (PCE) in period t multiplied by one minus the level of inequality in the distribution of PCE in period t, they investigated the changes in households welfare. They used the Foster, Greer, and Thorbecke (FGT) index to calculate the incidence of poverty, while to calculate inequality, they used the generalized entropy class of indices, the Gini index and Atkinson index. The findings of this study were that the welfare of Indonesias household decreased in the first year of the economic crisis and the incidence of poverty doubled. One of the other studies about the dynamics of poverty during the crisis was Suharyadi et al. in 2003. To obtain a complete picture on the changes in poverty during the crisis, they used a consistent series of data which were obtained from various sources. The method used for estimating the change in the headcount ratio with the poverty line equal to the food poverty line plus non food poverty line after considering the change in prices (inflation rate) during the crisis. The result was that the headcount ratio fluctuated over the period, and reached the peak in 1998 then declined until 2001. After 2001, it started to increase, but until the early 2002. This study found that there were approximately 36 million additional people who experienced absolute poverty. Suharyadi and Sumarto (2003) investigated poverty and vulnerability in Indonesia before and after the crisis. The study used the three-step feasible generalized least square (FGLS) method to investigate the vulnerability, by combining 1996 SUSENAS as pre crisis data and 1999 SUSENAS as the post crisis data with the village potential (PODES) datasets. The result showed that the poverty incidence increased significantly, and the chronic poor (the poor who have consumption expenditures below the poverty line and will most likely stay poor in the near future) increased from 20% before crisis to 35% after the crisis. ( Suharyadi and Sumarto, 2003). Using SUSENAS data of 1984 and 1990, Cameron (2000) examined the impacts of the changes in age, educational structure, and industrial structure on poverty and inequality in Java by employing the method used by DiNardo et al., (1996). This study modified the method used by DiNardo by decomposing the changes in cumulative distribution functions, Lorenz curves and generalized Lorenz curves. Following DiNardo, the decomposition was presented visually rather than in statistical form. The results show that poverty in Java decreased during the period from 1984 to 1990, but income inequality increased in the same period. Increase in educational attainment, income of less educated workers and income of outside agriculture workers contributed to the poverty reduction in Java. On the other hand, an increase in non-agricultural income and education attainment also contributed to the inequality increase. 2.2. Spatial Analysis on Poverty Poverty can also be analyzed spatially. It is a spatially heterogeneous phenomenon where poor people tend to be clustered in specific places. Geographic variation in the incidence and magnitude of poverty is due to such spatial factors as natural resource endowments and access to services including health care, education, labor and products markets (Henninger and Snel, 2002). Islam and Khan in 1986 conducted a study on spatial pattern of poverty and inequality by using Susenas data in 1976. Inequality measures used in this study were Gini ratio, Atkinson index, Theil T index, and Theil L index, while to measure poverty, they used head count index, poverty gap index and Sen index, with different poverty lines for each province. This study investigated the correlation between poverty (using Sen index) and income inequality (using Atkinson index) by categorizing the incidence of poverty and income inequality into three categories, low, medium and high. Seven provinces, i.e., Jambi, South Kalimantan, Aceh, East Kalimantan, North Sumatra, Bali, and Central Kalimantan, had low poverty and low inequality. Six provinces, i.e., Yogyakarta, West Java, West Nusa Tenggara, South Sumatra, Riau and Bengkulu had medium level of poverty and medium level of inequality. Provinces which had high levels of poverty and inequality were Lampung, North Sulawesi, East Nusa Tengga ra, Central Sulawesi, Maluku, South Sulawesi and South East Sulawesi. Jakarta had low poverty but high inequality, West Kalimantan had a medium level of poverty but high inequality, West Sumatra had a medium level of poverty and low inequality, while Central and East Java had high poverty and a medium level of inequality. To examine the effect of a regional poverty target program in Indonesia, Daimon (2001) conducted a research on the spatial dimension of welfare and poverty. He found that there were significantly different social effects of the economic crisis across geographical locations. This study used spatial econometric method to estimate the spatial poverty trap in Indonesia. The data used was the Indonesian Family Life Survey (IFLS) in 1993, which included 6,000 households throughout 13 provinces in Indonesia. Poverty target program, called Inpres Desa Tertinggal (IDT), was designed to empower the local communities. Empowerment of local communities was the key factor to remedy the targeting policy. CHAPTER 3 Overview of Central Java Economic Performance in 1996-2002 and Poverty Reduction Policies in Central Java 3.1. Overview of Central Java Economic Performance in 1996, 1999 and 2002 Located in the middle of Java Island, Central Java has a strategic position due to its regional economic development. Its northern part, which mainly has a low terrain and passed by main transportation route, has various kinds of economic activities, particularly a lucrative fishery on Java Sea. For that reason, infrastructure developed more rapidly in this area. While the southern parts main economic activity is a less productive fishery, the central part is mainly dominated by farming due to the mountainous terrain. This province consists of 35 districts, consisting of 29 kabupatens (regencies) and 6 kotas (municipalities). 8 Central Java is the third most populous province in Indonesia. The population of Central Java was 29,698,845 in 1996, 30,761,221 in 1999 and 31,691,866 in 2002. Kabupatens Brebes, Cilacap and Banyumas were the largest districts in terms of population; while Kotas Surakarta, Tegal and Pekalongan had the highest population density. The population density of those three districts was 11,734/km2, 8,609/km2, and 7,213/km2, respectively. . Generally, per capita income decreased in the period from 1997 to 1998. It should be noted that during this period, economic crisis occurred. Only three districts (Kab. Cilacap, Kota Semarang and Kab. Brebes) experienced an increasing per capita income during this period. Based on data presented in table 3.3, 1998s growth rate was negative, due to the economic crisis in 1997, which shrank the GRDP from Rp. 43,129,839 million in 1997 to Rp. 38,065,274 million in 1998. Looking at the economic structure, the largest contributor of Central Java economy was the manufacturing industry, followed by trade and agriculture The structure of Central Java in terms of employment was slightly different from the structure in terms of GRDP. As shown in table 3.5, the highest share of employment was registered by the agriculture sector, followed by trade and manufacturing. It indicated that agriculture sector had lower productivity compared to trade and manufacture. The 1997s economic crisis also had a negative impact on employment because many industries had to reduce their production cost, mainly their labor cost. The number of unemployed people increased from 552.914 people in 1996 to 599.237 people in 1997, and 831.435 people in 1998. 3.2. Poverty Reduction Policies in Central Java In 2002 central government initiated a poverty reduction program by establishing an independent board called Komite Penanggulangan Kemiskinan (KPK) or The Poverty Reduction Committee and Komite Penanggulangan Kemiskinan Daerah (KPKD) or The Regional Poverty Reduction Committee in each province. Poverty reduction policies in Indonesia are classified into two groups. The first is aiming at community development and the second includes the safety net programs. The aims of community development based programs are to create job opportunity, to develope local/regional capacity, infrastructure building, and to improve community based activities. These programs include the following programs. Inpres Desa Tertinggal ( IDT) / Presidential Instruction to Underdeveloped Villages According to Daly and Fane (2002), this is the first anti-poverty program in Indonesia. The aim is to raise the employment opportunities and household expenditures through community development. This program was targeted to underdeveloped villages in the form of a revolving block grant, where each village accepted Rp.20,000,000.00 per year for 3 years. The fund was distributed among groups of people based on each groups proposal, and should be used for productive activities. Program Pengembangan Kecamatan (PPK) / Kecamatan Development Program. Kecamatan is a sub district which consists of several villages. The Kecamatan Development Program (PPK) was a program that also included a revolving block grant, but the fund was distributed on kecamatan level. Each kecamatan is given a fund from Rp. 750,000,000.00 up to Rp. 1,000,000,000.00, which could be used to support the private sector economic activities as revolving loans or as a capital for providing public infrastructure. This program was supported by NGOs. Program Penanggulangan Kemiskinan Perkotaan (P2KP ) / Urban Poverty Alleviation Program The idea of this program was almost the same as PPK, except that this program was targeted specifically to kecamatan in urban areas. The aim is to mitigate poverty in urban areas by supporting economic activities with loans and creating jobs for unskilled workers. Each group given the fund has to return the loan within two years with low interest. 4. Program Percepatan Pembangunan Daerah Tertinggal (P3DT )/ Supporting Infrastructure Development of Underdeveloped Villages (Desa). This is the newest program which replaced IDT program. The program has been implemented by local governments and NGOs. Hence, the NGOs help to facilitate recipient groups in each of the planning, implementation, evaluation, and report making stages. Program Pemberdayaan Masyarakat akibat Dampak Krisis Ekonomi (PDMDKE)/ Regional Empowerment to Overcome Economic Crisis Impact. This is a special program to overcome the impact of economic crisis through labor intensive activities. The aim of this program was to create jobs and to build public infrastructure. Gerakan Terpadu Pengentasan Kemiskinan (Gerdu Taskin) / Integrated Movement for Poverty Eradication. This program was administered and coordinated under The Ministry of Demography / Indonesian Family Planning Board ( BKKBN). There are three targeted groups: Family This group includes poor household, the elderly, the disabled, the unskilled unemployed workers. The program provides, for example, foods, and subsidized contraception. Regional/areas Underdeveloped villages, slum areas, coastal areas are included in this category. The programs provides basic infrastructure, such as clean water piping and public toilets. It is also used to improve housing quality in these areas. Institutions This includes governments and non governmental organizations. The program is aimed at empowering these institutions in order to overcome poverty. Social safety net programs are in the second group of poverty reduction policies. These programs were made mainly in response to the 1997 economic crisis. They are aimed at meeting basic needs, by providing subsidized rice for the poor, supplementary foods for primary school pupils, and supplementary foods for children under five years old. Under social safety net programs, governments provided free health services and subsidies for primary school fees to the poor people. They also gave a specific block grant for schools and hospitals. In 2005, a new social safety net program started, after the central government reduced oil subsidy, especially a subsidy for kerosene which is widely used by poor households. Under this new program, each poor household received the sum of Rp. 100.000 per month. CHAPTER 4 Data and Methodology 4.1. Data This study used national socioeconomic survey (Susenas) carried out in 1996, 1999 and 2002. Susenas is a consumption based survey, conducted annually by the Central Bureau of Statistics of Indonesia (CBS) since 1963 (Core Susenas). In addition, there are three modules of Susenas that has been carried out every three years since 1981. One of the modules is the consumption expenditure module that captures more than 300 items of consumption expenditure for representative of 30 provinces. This study used the consumption expenditure module for Central Java that was conducted in 1996,1999 and 2002. The sample size for Central Java Province was 6,803 in 1996, 7,303 in 1999, and 7,374 in 2002, covering 35 districts. The consumption expenditure module is classified into food and non food categories. The food category consists of 216, 214 and 216 items, whereas the non food category consists of 103, 105 in 1996, 1999 and 2002, respectively. This module also presents the way those items are obtained, whether they are purchased in the market, self produced, or received as a gift. 17 All the data are in 1996 constant price because in the mid 1997, Indonesia was hit by the economic crisis that caused the growth rate of GDP to decline, from a positive 4.7 percent in 1997 to a negative 13.1 per cent in 1998. The crisis affected the living standards of the people because the inflation rate increased substantially due to large depreciation in rupiah against US dolar. In 1998 and 1999 the inflation rate was 57% and 20% respectively, but declined to 4 % in 2000. It increased again to more than 10% in 2001 and 2002. Therefore, nominal household expenditures need to be deflated using the consumer price index in 1996 as the base year. Household consumption expenditure data are very useful when we estimate individuals living standard. Many researchers have used household consumption expenditure as an indicator of an individuals living standard. The reason is that consumption expenditure is a better welfare indicator than income. The data can be used to measure poverty by setting a poverty line based on consumption expenditure. According to Central Bureau of Statistics of Indonesia (CBS), the poverty line is defined as the total expenditure in rupiah that are able to purchase foods needed to satisfy 2,100 calories energy requirement per capita per day. It is based on the recommendation of the National Workshop on Food and Nutrition in 1978, which states that in order to stay healthy, a person must consume as much as 2100 calories per day (Maksum, 2004). The method for computing the value of the daily minimum standard of living has improved over year. The poverty line was determined separately for urban and rural areas and also for each province since the basket of food items differs among urban and rural areas and provinces. The calculation is based on the average consumption of basic items, including 52 foods items and 46 non-food items. The poverty line set by BPS for Central Java in 1996 is Rp. 30,499 for rural, Rp. 40,075 for urban and Rp. 33,444 for overall (urban and rural) in terms of monthly per capita expenditure. 4.2. Methodology 4.2.1. The Measurement of Poverty In order to measure poverty, the class of poverty measures developed by Foster, Greer and Thorbecke (FGT) will be employed (Foster et al., 1984). By using the FGT index, a quantitative estimate of the effect of a change in subgroup poverty on total poverty can be obtained. The index is defined as follows: (1) where is total number of people, is the poverty line, is the total number of poor people, is the expenditure of individual and ÃŽ ± is a parameter. The formula can be redefined according to the value of ÃŽ ± . When ÃŽ ± = 0 (2) It is simply , that is the proportion of people living below the poverty line, known as the head count index . When ÃŽ ± = 1 (3) It presents the extent to which each individuals expenditure falls below the poverty line as a percentage of the poverty line. It is called the poverty gap index. When ÃŽ ± = 2 (4) It measures the severity of poverty. P2 is distribution-sensitive for any transfer of expenditure, since the square term gives a higher weight to poorer people. 4.2.2. Decomposing Change in Overall Poverty To analyze the change in overall poverty over the study period, this study uses the decomposition formula developed by Huppi and Ravallion (1991a, 1991b), where the change in overall poverty is decomposed into intrasectoral, population shift, and interaction effects. The decomposition formula is given as follows. In this decomposition analysis, we consider two sectors: urban ( = 1) and rural sectors ( = 2). (5) In this formula, is the incidence of poverty in sector i in year t, as measured by the FGT index with the parameter , while is the population share of sector i in year t. It should be noted that in this formula, refers to the population share, rather than the total number of people. presents the change in overall poverty due to the changes in the intrasectoral poverty ( = 1, 2). presents the change in overall poverty due to population shifts, i.e., due to the change in the distribution of population between urban and rural sectors. presents the interaction effect, which captures the correlation between the sectoral and population shift effects. Since this study uses Susenas data for 1996, 1999, and 2002, we analyze the change in overall poverty in two periods: from 1996 to 1999 and from 1999 to 2002. 4.2.3. Mapping the Incidence of Poverty Using Arcview GIS 3.3 (a software package), this study presents the incidence of poverty by Kabupatens (regencies) and Kotas (municipalities) on a map using the FGT index. The aim is to show the spatial distribution of poverty in Central Java, i.e., to see whether poor people are concentrated or dispersed. In order to present the distribution of poverty on a map, we classify all districts (i.e., all Kabupatens and Kotas) in Central Java into three groups: low, medium, and high poverty groups. The low poverty group includes those districts that have the FGT value smaller than , while the high poverty group includes those having the value higher than , where is the average value of the FGT index, is the standard deviation. The medium poverty group consists of those between and . CHAPTER 5 Poverty Incidence in Central Java From 1996 to 2002 5.1. Incidence of Poverty by Location (Urban and Rural Sectors) The incidence of poverty was higher in rural areas than that in urban areas in 1996 by any FGT measures (. The headcount index ()was 0.189 in rural areas, while it was 0.172 in urban areas in 1996, its means that rural areas had a larger proportion of poor people than urban areas. The poverty gap index () was also higher in rural than urban areas, as it was 0.032 and 0.029 in rural and urban areas, respectively, meaning that rural poverty was deeper than urban areas in 1996, though this was due mostly to the fact that rural areas had a larger proportion of poor people than urban areas. 22 The incidence of poverty increased significantly both in rural and urban areas in 1999. But the increase was more substantial in urban than rural areas, as the headcount index () was 0.215 and 0.227 in rural and urban areas in 1999, respectively. In 1999, both the headcount index () and poverty gap index () were larger in urban than rural areas. The economic crisis that occurred in 1997 seems to have a much larger impact on urban than rural areas in Central Java. Food prices skyrocketed because of the large depreciation of Rupiah against the U.S. dollar after the economic crisis, and many people lost their jobs due to the collapse of some industries. But the effects were much less severe in rural areas than urban areas, since many rural people were able to produce their foods by themselves, so that they could mitigate the impact of the inflation. In 2002, Central Java seems to have recovered from the crisis, as both the headcount index () and poverty gap index () decreased prominently in both rural and urban areas. The headcount index () was 0.100 and 0.099 in urban and rural areas, respectively, meaning that mere 10 percent of the people in Central Java were under the poverty line in 2002. In 1999 and 2002, rural areas had a much larger value than urban areas (0.020 vs. 0.012 in 1999 and 0.009 vs. 0.004 in 2002), even though both the headcount index () and poverty gap index () were smaller in rural than urban areas. This indicates that while rural areas had a smaller proportion of poor people than urban areas, their poverty was much more severe than urban poverty, meaning that there were a large number of extremely poor people in rural areas whose consumption expenditures were far smaller than the poverty line. 5.2. Incidence of Poverty by District (Kabupaten and Kota) and Its Spatial Pattern In 1996, Kabupaten Blora had the highest head count index (), which was followed by Kabupatens Grobogan, Wonosobo, Sragen, and Temanggung. On the other hand, Kota Magelang had the smallest head count index (), which was followed by Kotas Salatiga, Tegal, Pekalongan, and Kabupaten Pekalongan. Except Kabupatens Pekalongan, Demak, Sukoharjo, and Kudus, kabupatens had much larger values of the head count index () than kotas, showing that poor people were concentrated in kabupatens. The poverty gap index () had almost the same pattern as the head count index () in 1996. Kabupaten Blora had the highest poverty gap index (), which was followed by Kabupatens Wonosobo, Sragen, Grobogan, Magelang, and Temanggung. On the other hand, Kota Magelang had the smallest poverty gap index (), which was followed by Kotas Salatiga, Tegal, Pekalongan, and Kabupaten Pekalongan. Again, except a few kabupatens, kabupatens had much larger index values than kotas. The number on the map shows the rank of districts with respect to poverty measures within Central Java. There were two major geographical clusters of poor districts

America, a Democracy? Essay -- essays research papers

America, a Democracy?   Ã‚  Ã‚  Ã‚  Ã‚  America. What’s the first thought to come to your mind after hearing this? Democracy? Land of Rights? That would make sense. America, the land of the free. The land of opportunity. But is America really a democracy? A country for the people, by the people? To an extent, but not exactly. The people of this great country do not have unlimited rights and the freedom to do what they please. Many of the rights guaranteed by the Bill of Rights and the U.S. Constitution are being limited and slowly being taken away.   Ã‚  Ã‚  Ã‚  Ã‚  Since America is such a powerful country, it follows that the United States President is one of the most powerful figures in the world. Considering the United States is a democracy, it would seem obvious that the people directly elect their leader. Wrong. The popular vote has nothing to do with the election of the president. Instead, the way the president is decided is by whichever candidate wins the most electoral votes. Each state has a certain amount of electoral votes based on the number of people in that state’s House of Representatives. In most cases, the winner of the electoral vote is also the winner of the popular vote. In a few rare cases though the winner of the popular vote lost the election. This shouldn’t be. The U.S. should have the people directly elect the president. A most recent case was the last election of 2000, Bush vs. Gore. Gore had the popular vote won by a margin...

Personal Narrative - Severe Chest Pain Attack :: essays research papers

Silent Killer Today was like supposed to be just like every other day. On another early Monday morning, just like every time I had to get up 2 hours before school, I woke up and went downstairs for breakfast at 6:30. I clean the mess from last night’s dinner with my brother and get ready to go with my carpool to school, because just like every other day, gas is expensive. Funny thing about the carpool, which comes at 7:00 sharp, 7:30 came and she didn’t show up, Therefore, we ended up waking up my father and dragging his tired angry self to school. I had forgotten my wallet at home, so I wasn’t going to have lunch and I didn’t eat breakfast either. Around 11:00, I start my pre-calculus class where we are doing long division of polynomial functions when it hits me. Pain. Intense sharp needle like pain in my chest. Subtle at first, but as I continue breathing, the pain gets worse. So, to solve this, I thought my chair was too tight to the desk. I moved back. Not helping. Clenched at the chest and bent over. Breathed slower. Not helping. Tore off my jacket and bent over in my chair fully. Not helping. And my breath kept getting shorter and shorter until I was barely gasping one every 5 seconds. I reached over and hit my friend and she got the point. Mr. Courtney phoned the principal, vice principal and school administrator. They all came down and told me to lie on the floor. By this time, I was nauseous and convulsing because of lack of oxygen and trauma. I lie there shaking as my teacher moves tables and finds jackets so that I can get my head elevated. The students leave the classroom. My teeth start chattering and I am near tears when the paramedics come in, 8 grown men with machines, clipboards, walkie talkies, and suits storm into the classroom and strap things on me. A red-lighted finger clamp to check my pulse, a blood pressure thing on my arm to check my blood, and 4 sticky clamps attached to wired to check other vitals of some sort. After 15 minutes, the pain subsides almost completely, except when I started to stand. Vital signs, good. Blood pressure, Good. Pulse, strong steady and fast. Adrenaline rush, maybe. Anxiety attack, maybe. Hospitalization, not necessary. By that time, they had called my mom and she came down from North Scottsdale in 14 minutes.

Army Ants :: essays research papers

A quote made by Lewis Thomas, "Ants are so much like human beings as to be an embarrassment. They farm fungus, raise aphids as livestock, launch armies into war, use chemical sprays to alarm and confuse enemies, and exchange information ceaselessly. They do everything but watch television." I am going to focus this report on the part of the quote, "..launch armies into war..," which sets a metaphor of ants and our armies in today's society. Ants have many tactics, so to speak, that are similar to the way our armies have when going to war. Ants have many different roles in their society. One of the main roles that army ants or soldier ants have is that they forage in masses for food. These masses of ants travel together and are able to overcome and capture other social insects and large anthropoids, they may occasionally kill larger animals but they do not eat them. As the need for food for the larvae increases, food gathering raids become more intense. The hunting raids made by ants are carried out by "armies" of thousands of ants and set out from the bivouac in various directions. They form two or three parties going out simultaneously in different directions for 100 yards or more. In the U.S. army we attack countries in different areas to weaken the force we are attacking. We send out thousands of troops in various directions and try to surround the source of the location being attacked. For instance, if there are several locations that needed to be attacked to weaken the enemy, like their weapon storage or air force base, we send several sets of troops to attack each individual location. This is very similar to the way army ants set out on a hunting raid. They will send out thousands of ants at once in two or three different directions. When ants go out on their raids, a subgroup called Dorgline ants, walk along margins of the trails as though protecting the smaller individuals in the center. Dorglines are large soldiers that broaden the trail where it follows a narrow ledge of bark and twigs or smooth the path where it crosses a rough plate and they do this with their own body. They do this because footing for the large ants is better along the margins than in the midst of dense mass of scurrying ants. When the army wants to invade or occupy a county, they usually will set up aircraft carriers in the surrounding oceans and set up air forces in neighboring countries. They do this to protect the inside forces of troops and Army Ants :: essays research papers A quote made by Lewis Thomas, "Ants are so much like human beings as to be an embarrassment. They farm fungus, raise aphids as livestock, launch armies into war, use chemical sprays to alarm and confuse enemies, and exchange information ceaselessly. They do everything but watch television." I am going to focus this report on the part of the quote, "..launch armies into war..," which sets a metaphor of ants and our armies in today's society. Ants have many tactics, so to speak, that are similar to the way our armies have when going to war. Ants have many different roles in their society. One of the main roles that army ants or soldier ants have is that they forage in masses for food. These masses of ants travel together and are able to overcome and capture other social insects and large anthropoids, they may occasionally kill larger animals but they do not eat them. As the need for food for the larvae increases, food gathering raids become more intense. The hunting raids made by ants are carried out by "armies" of thousands of ants and set out from the bivouac in various directions. They form two or three parties going out simultaneously in different directions for 100 yards or more. In the U.S. army we attack countries in different areas to weaken the force we are attacking. We send out thousands of troops in various directions and try to surround the source of the location being attacked. For instance, if there are several locations that needed to be attacked to weaken the enemy, like their weapon storage or air force base, we send several sets of troops to attack each individual location. This is very similar to the way army ants set out on a hunting raid. They will send out thousands of ants at once in two or three different directions. When ants go out on their raids, a subgroup called Dorgline ants, walk along margins of the trails as though protecting the smaller individuals in the center. Dorglines are large soldiers that broaden the trail where it follows a narrow ledge of bark and twigs or smooth the path where it crosses a rough plate and they do this with their own body. They do this because footing for the large ants is better along the margins than in the midst of dense mass of scurrying ants. When the army wants to invade or occupy a county, they usually will set up aircraft carriers in the surrounding oceans and set up air forces in neighboring countries. They do this to protect the inside forces of troops and

Word of Mouth Marketing in the Time of the Internet

At the threshold of the onslaught and brutal display of power of the internet-based word of mouth, there are many important things to discuss standing from different perspectives. The most important of which is from the standpoint of an advertising/marketing strategist, which is constantly manipulating the mechanisms of social behavior (including the word of mouth phenomenon then and now) in the name of successful market control. Word of mouth (WOM) and marketing go hand in hand in the past, largely because of the impact of interpersonal relationship and communication in consumerism. Companies overwhelmingly believe in the ability of consumers to influence one another’s purchasing decisions (Nacht, Chaney, 2006, p. 64). † Today, another player comes into the picture – the internet. If traditional marketing and advertising has managed to weave its way around traditional word of mouth communication enough to successfully manipulate it, the same cannot be said about how advertising and marketing entities are dealing with internet-based sources of word of mouth communication. The internet has shown that it is a powerful tool for word of mouth communication and the power grows vis-a-vis the growth of users, who are also the consumers. â€Å"The large number of users gives Internet WOM significant potential power for marketers. Anecdotal evidence of the power of the Internet WOM abounds (Schindler, Bickart, 2005, p. 35). † Despite the problems that go with the rise of internet-based word of mouth communication and marketing, there are still positive things to hope for. The opportunity here is for companies to find their brand ambassadors (Nacht, Chaney, 2006, p. 64),† while for others, the task is to simply be able to work well with this new social trend empowered by new technology that many is enjoying at the moment. Nonetheless, this is a very important topic to discuss, break down and analyze. This paper will discuss how different internet-based sources of word of mouth marketing including web sites, blogs and other similar mediums affect th e decision-making process and the buying habits of modern day consumers. This paper will be discussing the special and important relationship of three factors – the internet, consumers and the word of mouth communication – because how these factors affect each other is an important aspect that shapes how consumerism takes place today. Since the day that humans were able to understand and execute the system of selling items or services for a profit, the consumer segment of the society has already been created; and today, everyone is a consumer. With the creation of the consumer section and the start of the flow of local economics via sustainability through the sale of items or services that other people are willing to pay for is the creation of word of mouth communication. What is word of mouth communication, or WOM? There are several yet similar explanations about word of mouth communication made by experts. Here is one: â€Å"Word-of-mouth communication† is used â€Å"to exchange post-purchase experience among the costumers (Takahashi, Sallach, Juliette, 2007, p. 09). † Providing that this explanation is correct, the very first word of mouth communication is the very first time the very first consumer who bought something from another person told another individual what he or she thinks of the recent item he/she purchased. This trend has not changed since. All over the world, part of the culture of consumers is to let other people know how they feel about the product they purchased. Usually, neighbors who have pleasant relationship with each other include in their casual conversations appraisal and assessment of the things or services that they recently bought or paid for. It could be about anything and everything – food, clothing, equipment, accessories, home appliances, medicine etc. Word of mouth communication happens everywhere: as neighbors and friends talk to each other during social gatherings or everytime they pass by each other in malls, grocery stores, at work or when they bump into each other in leisure locations like in beach, gym, arcade etc. Word of mouth communication is a product largely a personal face-to-face conversation, although sometimes telephone conversations, even mails also become sources of word of mouth communication. This happens when friends or relatives suggest or advise for or against a particular item or brand, or if they simply express how satisfied or dissatisfied they were in a particular brand or item even without the conscious effort to affect the personal belief of the listener in the item or brand in question. Word of mouth is everywhere, it was an everyday experience which, at one point, was believed to be strong enough that it can affect consumer attitude. At the onset of media advertising in radio, television and print, commercials took to mimicking word of mouth phenomenon to reflect real life and make it appear that in real life, people are really talking positively about the brand featured in the commercial so that the consumers are influenced towards imbibing the same mindset about the product. Word of mouth style in advertising in media is one of the important types of advertising approach because it was successful and effective. When people see individuals in a commercial enjoying a bottle of a popular soda and talking about it and recommending it to other people, they feel that the people in the commercial are directly talking to them; and for most part consumers who are exposed to television are influenced into trying the product because the commercial made them feel/think that the product was great and it was worth trying. At this point, there was already a genuine word of mouth communication happening between individuals, as well as artificial word of mouth communication, which happen when commercials try to influence and manipulate the thinking, mindset and attitude of the consumers through the help of commercials. Word of mouth, at this time, was still powerful but it was not an unstable power that cannot be controlled. For one, word of mouth communication moves around a particular network and does not extend any further that it cannot immediately create a nationwide attitude for or against a product or brand. Secondly, advertising agencies and marketing professionals managed to control consumer attitude and buying preference largely because of the ability of commercials and marketing efforts to convince people to patronize a particular brand. And then, there was the Internet. The internet was not created primarily to alter the previous status quo in the consumer world. The idea behind the internet is to provide an information highway for everyone to use. But the inherent characteristics of the internet made it an important aspect in how word of mouth, marketing and consumerism would change. The internet gave word of mouth communication renewed power by giving the consumers power communicate with each other and let other consumers know how individuals feel about particular products being sold to the people. The society was introduced to a new set of culture that included blogs and websites, emails and chats, forums and websites which all provided new platforms where information can be made available, information which included the personal thoughts of other consumers about products. It turns out that other consumers are very much interested in finding out what other people think, especially about products that other people are thinking of buying. Because of this, consumers knowingly or unknowingly focused more attention online, looking for the opinion of individuals about different products and letting real life experience and not padded advertisement act as the source of information about products. This information is used to assist the individual in the formation of the individual’s buying attitude and consumer behavior upon a particular product. Some of the examples include the browsing of Internet users in sites that feature blogs on consumer appraisal on products, found in websites like www. oxygen. com and its message board; www. leftgear. com and its style chat; and other websites like www. consumerreviews. com and www. epinions. com. The entry of the internet complicated the relationship of consumer world with world of mouth communication, and most of the problematic aspect of this social change targeted the companies which are finding different ways and means to be able to regain control of this new source of word of mouth communication. I. The Consumer and word of mouth The consumer and word of mouth has been together and closely related to each other for a long period of time. â€Å"Verbal consumer-to-consumer communication, often referred to as simply ‘word of mouth’ (WOM) has long been recognized as an important factor in consumer behavior (Schindler, Barbara, 2005, p. 35). † Word of mouth and consumers are symbiotic and intertwined, each other directly affecting the other. Without consumers, word of mouth communication, at worst will lose its essence and its ethos, especially if the information disseminated are merely results of company-led propaganda. Without word of mouth communication, consumers will have to rely on how much information they have for them to be able to make the best, educated decision when buying products or services and selecting which brand to pick from the shelf. â€Å"The word-of-mouth communication between the consumers is crucial (Takahashi, Sallach, Juliette, 2007, p. 109). † Getting the opinion of other people first before making a decision is one of the innate characteristics of many individuals, and their particular attitude in buying is no different. For some people, they want to know first how other people ahead of him or her in buying the product feels about the item, and then uses this information to assess whether or not he or she will pursue purchasing the product, opt for other brand of the same product or shelf the idea of purchasing one all in all. â€Å"Innovators first seek information from other people in the purchase of an innovation and such behavior is similar across various new product categories (Krishnamurthy, 2004, p. 73). † This particular attitude of consumers is the main vein that connects consumers to word of mouth communication. For most experts, they believe that there are many enough individuals who follow this pattern of behavior in buying that it is important for companies to know how word of mouth communication. The consumers react and interact with each other so that the companies can make adjustments that enable them to use the presence of word of mouth communication to their advantage. If marketers were to realize the intended results of their efforts, they would benefit from understanding the manner in which consumers process WOMC (De Carlo, Laczniak, Sridhar, 2003, p. 225). † This is crucial for consumers because information sharing and dissemination is accomplished through this. But there is more to that. This is also crucial for companies relying on positive word of mouth from consumers to improve how the public perceive the product they are selling, or simply, marketing. The best marketing that ever was, or ever will be is word of mouth. There is no dollar value you can assign to having someone else talk positively about you, your company, and your services (Nacht, Chaney, 2006, p. 64). † This realization comes from the consideration that companies also has to rely on wor d of mouth communication because in several instances, the public/consumer is not interested or affected anymore by commercials and are instead more interested in word of mouth communication. Internet-Based Word of Mouth Seen by Consumers as a Fresh Alternative versus Product/Service Commercials There are many reasons why people find the internet-based word of mouth tools like blogs and forums more reliable, dependable and useful for information gathering. One of the possible reasons is that individuals are already tired, fed up or already calloused by the traditional commercials that they are not as affected anymore as in the past in being exposed to product commercials in television and print media. The feeling of being detached and impersonal by these commercials only improves its quality as something that is feigned and artificial, and because people wanted more, particularly something more personal and more genuine, word of mouth via the internet communication became the suitable answer to this consumer need. â€Å"Instead of fake artificial commercial messages, people can now get real-life comments from peers on anything they want (Nacht, Chaney, 2006, p. 64). † II. Word of mouth and the Internet. Word of mouth was a social phenomenon even before the age of Internet. But in the entry of the internet in the social structure and global culture, word of mouth communication, no doubt, was influenced by this new technology. â€Å"The development of the Internet has led to the appearance of new forms of word-of-mouth communication (Schindler, Bickart, 2005, p. 35). † Today, the internet and word of mouth is connected with each other; online word of mouth communication is expected by experts to increase as long as the users of the internet continue to increase. As online word of mouth communication increases, so is the power and influence of online word of mouth to affect consumer behavior and buying attitude, making word of mouth dependent on its online breadth for its power and influence, and the internet's source of power dependent in part in how individuals like consumers utilize this medium and give it power by exercising the newfound consumer power (word of mouth communication) through the internet and its features. â€Å"The importance of online WOM increases as access to and usage of the Internet continues to grow (Schindler, Bickart, 2005, p. 35). † Understanding how word of mouth works is one thing. But making word of mouth result favorably towards a particular product or item is more complicated. And with this knowledge, companies ensure that their initial task is not to make the most out of the word of mouth phenomenon by manipulating it in the onset; but rather to ensure that any marketing strategies outside word of mouth considerations do not become a source of negative publicity which in turn would be a potential negative feedback that can be fed in the word of mouth network and would generate more negative publicity and blow the problem out of controllable proportion. The companies’ task is the fine tuning of the advertising strategy driving the demand using sugarcoated advertising claims but paying attention not to initiate negative word-of-mouth effects (Takahashi, Sallach, Juliette, 2007, p. 109). † In the age of internet-based word of mouth, this is a task which is not as difficult as controlling a publicity crisis that went public and became the subject of many blogs and forums that can devastate and destroy the reputation of a product; there is just no ethical way to stop the bloggers from publishing online what they think and feel and how they respond to negative publicity, regardless of the notion that â€Å"bad publicity is still publicity. There is just too many bloggers, blog sites, forums and chat rooms in the information highway that controlling what comes from it is impossible, but making sure bloggers cannot say anything bad about the product, compared to the earlier task, appears more doable, workable and possible. At least through that, companies can hope that they have something they can use to attempt to equalize the impact of internet-based word of mouth communication. In this line of thought, it is easy to see that one of the effects of the powerful internet-based word of mouth communication is forcing companies to either make something flawless and good all in all, or be good in covering up foul ups and problematic aspects that can be used as topics to start communication threads and negative word of mouth streams of conversation that can be devastating. Simply said, this situation can translate to better quality control, with companies trying to play it fair with the consumers as much as possible, lest someone notices how things do not add up and publish it in the internet and create an online buzz that can negatively affect the image of the product and the company. Traditional or through the internet, word of mouth among customers and the consumer is a very powerful aspect of the mechanism of marketing and consumerism. Being able to understand this aspect is critical especially for market strategists and for the company themselves, so that they can, in turn, prepare for the possible trend in the word of mouth phenomenon, how it will affect the product and how they would hand this situation in a manner that benefits them more than harms them. Clemmer, Sheehy (1994) explained what the Washington, D. C. based group TARP or Technical Assistance Research Program found out, particularly that â€Å"while only a small percent of your unhappy customers bother to tell you about their dissatisfaction, they are eager to tell lots of your potential customers about the problems they have had dealing with you (Clemmer, Sheehy, 1994, p. 15). † This is just one of the many proofs that customers talk to each other, share each other’s experiences, and more often than not, take to heart the input they receive from other people and use it to affect their future decision making when it comes to buying or p atronizing a product or item. Through word of mouth phenomenon, many things come into play and not just patronage of products – sometimes the success of the new things being offered to the public is also dependent on word of mouth, regardless of whether or not the outcome resulting from the word of mouth is good or bad publicity for the product. â€Å"Favorable WOM has been found to be positively related to new-product diffusion†¦ Even negative WOM is found to increase credibility (Krishnamurthy, 2004, p. 273). † Increased Role of Word of Mouth Today. As years go by and as the attitude of consumerism increases around the world, the power of consumer input through different channels including the use of word of mouth communication (WOMC) also increased in significance. Partly, this is one of the means by which both the consumers and the companies in need of genuine product, service and performance appraisal can have real, first hand information about how the public as consumers really feel about a product, service or item sold to them. Word of mouth has become one of the gauges, not just of product appraisal but of the performance as well, of the companies to be able to deliver to the public what the public genuinely needs, and not what the companies want the people to need. â€Å"In the past decade, word of mouth and its more formal manifestation found in many consumer and industry protection movements have been playing a much bigger part in broadcasting what kind of service/quality a company is consistently delivering as perceived by its customers (Clemmer, Sheehy, 1994, p. 5). † The increase in this trend is due largely to the growth and increase in customer participation. â€Å"The influence of blogs and podcasts is increasing due to fast expansion of the audience and contributors (Swoboda, Morschett, Rudolph, Schnedlitz, Schramm-Klein, 2008, p. 9). † Word of mouth has become an important point of concern for marketing. This is because at the entry of the internet and the weakening hold of traditional advertising and marketing effort to influence the public, the consumers found in the World Wide Web a new source of information, as well as a place where they have the chance to speak about their experience as consumers, in the process empowering consumers and making them not just mere recipients of the messages of the advertising and marketing strategies but also a source of information that can seriously compete and challenge traditional marketing and advertising when it comes to reaching and affecting the consciousness of the audience. Professionals know about this already, but they are careful not to openly admit how consumers of today rely on word of mouth in the internet blogs and forums. How they are very cautious not to make internet-based word of mouth push their carefully and delicately laid out advertising and marketing plans out of order by making sure that even the consumer has fully ignored the commercials, the word of mouth results still puts a particular product in a positive light. Nacht and Chaney (2006) quoted Paul Beelen who said that a positive comment is very important, more important compared to commercials or print ads especially if the comment was something that came from â€Å"someone you know and trust (Nacht and Chaney (2006, p. 64). † Beelen, as quoted by Nacht and Chaney, went on to explain by stressing that word of mouth became more potent now than it was before because of the fact that â€Å"millions of consumers are now also publishers (Nacht, Chaney, 2006, p. 4)† and the traditional word of mouth that was once left in the party huddles now jumps off and lives on longer and extends towards a wider audience via â€Å"the World Wide Web, in the form of podcasts, wikis, forums, and most importantly: blogs (Nacht, Chaney, 2006, p. 64). † Word of Mouth Marketing and the Power of the Internet Why is word of mouth very powerful? One of the reasons is that because it happens as part of a very simple and common human experience. It i s an important part of constant everyday interaction between individuals. Because the efficacy found in the word of mouth phenomena is the fact that there is a sense of commitment and the value of trust and credibility that people are willing to put on the line, making people trust the appraisal of the person who have already used a particular product. This power is a very important power that marketing strategists need to have if they want to be able to control and predict the outcome of buying attitudes and consumer preferences, the result more favorable to the product they intend to sell to the market. For example, the traditional word of mouth phenomenon happens between friends, between relatives or peers in the house, in the neighborhood, in the office or in locations where human verbal interaction is possible. A housewife may rant to a neighbor and fellow housewife how the recent upholstery stain remover did not work for her and how it messed the sofa more. Of course, housewife #2 do not have any way of finding out if this was true or if the worsening of the condition was caused by other factors (i. e. wrong use of the cleaner, etc), but there is a very large possibility that housewife #2 will shy away from the particular brand being discussed and select another brand (not unless the brand being talked about is something that housewife #2 has already used in the past and depended on for quality and performance). Nonetheless, this illustrates what is in play in the word of mouth phenomena. It becomes more credible because people believe that the appraisal/assessment of a product/service is based largely on true, first hand experience without any manipulative motive from the source of information besides the need to share the experience with another individual. The same effect marketing and PR professionals try to produce everytime they use common or ordinary looking individuals to comment on their products or everytime they use the everyday man random interview wherein the individual endorses a product based on his/her own true experience, which some individuals may not easily believe knowing that actors in paid ads are mere puppets and totally unreliable sources of information in a pseudo-word of mouth approach. This traditional word of mouth model is no different from how word of mouth communication and word of mouth marketing happens today in the online world or through the internet. â€Å"In recent years, the opportunity for consumers to generate WOMC (word of mouth communication), and the rate at which it is disseminated, has increased significantly due to penetration of the Internet (De Carlo, Laczniak, Sridhar, 2003, p. 225). Bloggers talk about items they recently bought or thinking of buying, and more often than not replies to the subject thread will generate different opinions about the product being talked about, and this series and streams of ideas racing back and forth between individuals involved in conversation through blogging affect the perception not just of the bloggers involved but also those who come across the blog site and gets to read it (i. . those who searched for the particular product in the search bar to get more information about the item, who will soon have dif ferent notions and particular mindset about the item which was unknown to the person prior to reading the blog and message threads that influenced the individuals thinking and perception about the product). Word of mouth marketing and communication placed in the plateau or realm of the internet is more influential and powerful as it is more dangerous because the spreading of word of mouth through the internet is easier and can target and reach more individuals compared to traditional word of mouth experiences. Because of this, marketing strategist are all the more concerned about the power of the internet-based word of mouth phenomenon. â€Å"Chat rooms and message boards, for example, allow individuals to share experiences with relative ease (De Carlo, Laczniak, Sridhar, 2003, p. 225). † For example, talking about a particular product or item in a chat room with 50 listed participants (something which is not impossible or difficult to achieve, especially with the growth of social networking via the internet that links more and more people together in a tightly knit web of online community that connects one to another in many different links) already puts the source of the information in a position wherein he/she can influence 49 different individuals, especially if the topic/item/product is about something that is of common interest to everyone in the chatroom (i. . the newest electronic entertainment gadget among young individuals or a particular product or item among hobbyist, like the newest GPRS gadget among outdoor enthusiast). Imagine the impact of influencing 49 individuals, something that is not easy to do traditionally since it is not easy to gather 50 individuals in one location on a particular time only to rant about product appraisal (not unless its the a nnual Tupperware Party, where the preferences of the individual on a particular common interest is already a given). Manipulating Internet-Based Word of Mouth Communication Because of the power of online word of mouth communication, there are several efforts to cheat word of mouth communication by planting individuals that will act as sources to create a stir in the internet and in the process allow people to talk about a particular product or item in the internet through blogs and forums and chat rooms, in the process creating word of mouth communication and marketing the product/item/service to the consumer. A perfect example is what happened in the internet during the effort to create popularity for a former pop star. â€Å"Students hired to post questions and comments on teen-oriented chat rooms and bulletin boards generated discussion and interest in pop singer Christina Aguilera (Schindler, Bickart, 2005, p. 35). † The power of word of mouth found in internet tools is very potent that companies are also trying to find ways on how to combat the presence of negative inputs directed at company products resulting from online word of mouth communication. Trademark owners may be able to suppress or excise negative word of mouth (Goldman, 2008, p. 404). † This can be also considered as manipulating online word of mouth, largely to protect the interest of companies who are in danger of bad publicity and bad public standing if word of mouth in the internet is not properly handled. Because of the power of online word of mouth and the collaboration of the word of mouth culture with the internet technology, several changes happened. One of which is the challenging the traditional market cycle power players. Experts believe that online and offline word of mouth communication functions differently. And because of that, control is something that companies are struggling with as word of mouth in the internet increases. â€Å"Offline, trademark owners have a fair amount of control over consumer perceptions of their brands. Online word of mouth undermines that control (Goldman, 2008, p. 04). † Challenging the Traditional â€Å"Expert-Review† Notion Another important characteristic of word of mouth communication in the internet that makes it very influential and significant in the consumer reception and patronage of a product in the shelf is because of what experts believe as the shift of credibility from the traditional â€Å"product experts† to the everyday, everyman blogger in the internet where word of mouth is mostly prevalent. Even if companies pay for the opinion of respected â€Å"product experts,† it hardly matters now because it seems like individuals who want information about a product read about what other individuals like themselves has to say about the product before creating their own mindset and perspective about the item. â€Å"Nowadays, customer reviews posted in different forums or virtual communities, web blogs and podcasts are much more powerful and believable than expert product reviews (Swoboda, Morschett, Rudolph, Schnedlitz, Schramm-Klein, 2008, p. 8). † This is good news for those who will be affected by word of mouth in a positive manner, especially those whose appraisal that was transferred via word of mouth through blog(s) commend the product and encourage other people to use it, because this phenomena evens out the impending failure in credibility of perceived product experts. This can also spell doom and worst case marketing crisis management for those which were appraised negatively in the blogosphere. Word of Mouth as a Source of Important Information One of the sources of power of word of mouth is because people rely on it, generally for information. In this age where there are many things being offered to them, each type of item available in different brands, customers wanted to have more information until they are satisfied that they know what they need to know after making the purchase. â€Å"A second source for consumers to learn about a new product is through word-of-mouth (Krishnamurthy, 2004, p. 273). † This was true during the pre-internet age, and still holds true now that Internet became part of the social culture and took an important part in how word of mouth is undertaken today. Word of mouth, particularly internet based word of mouth communication has been an important source of information that some believe that it has already overtaken the significance of the traditional mass media platforms when it comes to consumer preference on where to find the information that they want to know. Take for example, the case for the diffusion of new products in the market. Some experts believe that in this particular area, word of mouth is very important factor in how the sales and marketability of the new product will turn out after consumer reception to the product is gauged. Awareness of new products primarily came from personal communications, with mass media only consulted when more information was desired (Krishnamurthy, 2004, p. 273). † That people rely heavily on the input of other people rather than the impact of mass media advertising and marketing strategy only points to the idea that large sections of the items, services and other things for sale – particularly those which is in its initial launch level – depend the level of consumer saturation based on how the consumer and their preferences and buying habits will react to the input of word of mouth in their consciousness. Some studies have shown that innovators engage in more WOM communication than do imitators†¦ and are more dependent on WOM (Krishnamurthy, 2004, p. 273). † III. The Internet and the consumer One of the best things that happened to the world is the internet, as much as the internet is one of the best things that happened to consumers because of many different reasons. First, the internet improved purchasing, making the buying and selling of things faster and more convenient both for the vendor and the customer. Online purchasing is also now an option to consumers, thanks to the internet. Another important impact of the internet in the world of consumers is how the internet gave the consumers the power by providing consumers with a new platform for word of mouth communication. In the past, the consumers are left with very little options and chances for their opinion and thoughts to be heard by the companies that sell items, by their fellow consumers and by the rest of the world. With the entry of the internet, the consumer section is once again empowered because they have now, through the internet, what they did not have when the transfer of information was controlled largely by manufacturers and vendors. â€Å"Using the internet, consumers can now easily publish their opinions, providing their thoughts, feelings, and viewpoints on products and services to the public at large (Schindler, Bickart, 2005, p. 35). † A place to speak and influence other consumers through online word of mouth was made possible by the internet, and the consumers are now not merely the end-recipients of the products of capitalism and manufacturing. Consumers, with a more powerful type of word of mouth communication through the internet, can make people boycott brands and products and seriously affect the sales of different items simply by convincing individuals through blogs and forums and chats why such products should not be patronized. Consumers will never see fellow consumers as someone with an agenda, and because of this, they will take the input of fellow consumers and allow it to seriously influence them. Influencing Brand Perceptions Through the use of the internet, the consumer is not only provided with a new way to purchase goods and items, but also given the chance to influence other consumers towards brand perception. â€Å"The broad reach of online word of mouth gives consumers tremendous power to influence brand perceptions (Goldman, 2008, p. 404). † The Power of the Internet in Consumer World There are many proofs of the power of the internet in the consumer world. Some of the proofs include the fact that through the internet, consumers are connected with each other. â€Å"The Internet helps create new word of mouth content and disseminate word of mouth to new and previously unreachable audiences (Goldman, 2008, p. 404),† while another significant proof of the power of the internet in the consumer world is the entry of internet and how it impacted trademark law, â€Å"Online word of mouth poses the most important challenge to Internet trademark law (Goldman, 2008, p. 04). † These proofs of the power of the internet in the consumer world particularly through the internet-based word of mouth only highlights the limitations found in traditional and/or offline word of mouth communication. â€Å"Offline, consumer word of mouth plays a major role in the marketplace by disciplining some brands and rewarding others, but a person’s views typically reach only a limited number of people (Goldman, 2008, p. 404). † Proof of the Power of Internet-Based Word of Mouth The effects of word of mouth among customers and consumers have been studied extensively for years. Ever since market analyst identified the power of word of mouth in the market value and market success of products and other things for sale to the consumers, many entities like TARP have undertaken studies in order to understand more how word of mouth works and how it actually affects things. â€Å"TARP has studied the ripple effects of dissatisfied customers and word of mouth testimonials. The results will rock anyone concerned about sales and marketing (Clemmer, Sheehy, 1994, p. 15). But studies are not just the sole proof that can validate the claim that internet-based word of mouth is effective and is being seriously used today in aggressive marketing. Other proofs may include the cases in the past that pointed to the role and power of internet-based word of mouth and how it influenced the outcome of consumer/public patronage and support. Other proofs of the power of the internet -based word of mouth communication are identified by experts by naming instances wherein internet-based word of mouth communication was important in the marketing and in the ensuing success of the product/item/services for sale to the public. One of the industries that depend on positive public acceptance of what they sell for them to survive and sustain themselves is the entertainment industry, particularly movie making. In the past, many different movies saw what the Internet-based word of mouth can do for particular movies to make it big in the silver screen, including popular titles like the hit Blair Witch Project. â€Å"After the success of the use of Internet buzz in promoting the movie The Blair Witch Project, studios are increasingly relying on online WOM to develop interest in new films (Schindler, Bickart, 2005, p. 5). † The movie acted as a perfect case study that indicate the impact of internet-based word of mouth and how it can create a stir among consumers that can lead to consumption of the product (in this case, leading the people to watch the movie). Because of this, many other marketing strategists of other film outfits followed suit, including this particular formula in the overall marketing str ategy to guarantee the success of the movie based on patronage and public support. The same was the case in the more recent movies, like the global smash hit epic trilogy The Lord of the Rings which, according to Schindler and Bickart (2005), relied on the role and impact of the internet and how it can diffuse word of mouth information via its many different features. â€Å"New Line Cinemas encouraged the development of unofficial web sites about the movies, providing these sites with interviews with the film’s director in order to generate discussion and excitement about the movies (Schindler and Bickart, 2005, p35). Blogs – a Powerful Internet-Based Word of Mouth Communication Tool The creation of blogs and the blogosphere, and how the consumers were quick to embrace and utilize this new, internet-based form of interpersonal interaction is one of the main reasons why the internet has become a very potent source for word of mouth communication, word of mouth marketing and advertising, and word of mouth communication that can either seriously improve or damage a particular product or brand. While blogs are not exclusively focused on product and services analysis, it is easily noticeable how the traditional trend occurring between neighbors who chat and compare their thoughts on different products and services (in the process producing word of mouth communication) transformed into online neighborhood chat. Only this time, the people involved in the conversation of product and services comparison are bigger in numbers and not limited to geographical boundaries. An American youth can blog about his assessment of the latest mobile phone or media player, which can get different reactions from other individuals who may or may not be directly related or connected with the blogger from as far as Asian or European countries. They can converse via their entries and replies in the blog and talk as if they are next door neighbors even when offline they are mere strangers to each other and live thousands of miles away. It is for this particular power to â€Å"spread the word† that marketing strategies and companies make sure that they make sufficient consideration and leg room to accommodate the possible input of blogs and word of mouth communication in the internet in their overall market strategy and the overall performance of the product they are trying to sell. Generally, what every company can hope for is that the bloggers in the blogosphere have mostly good words to tell to each other when it comes to appraising the product/services that they are trying to sell to the public. â€Å"Not only will consumers talk to you via your blog, they also will talk to one another. Your readers can become your best brand-building evangelists, helping you to spread your message and your presence throughout their networks (Nacht, Chaney 2006, p. 64). † Being able to get an online ally and brand evangelist (directly or indirectly) is important because it does not only make one’s product or services look good, but it also helps in selling the product/service to the people. As what most experts believe, what people read in the online blogs focused on product and services assessment and appraisal greatly affect the individual in what he or she might want to buy in the very immediate future. â€Å"For consumers, blogs are like customer reviews on Yahoo! ocal or Amazon, which are helpful in making decisions about what to buy and whose services to use (Nacht, Chaney, 2006, p. 65). † This is the needed push so that consumers can take it to the next level – to actually buy an item, and to start the foundation of a long lasting brand patronage and to trigger the start of new word of mouth by using the new consumer as the new source of information for other people whom the consumer can convince to either try the brand or opt for something else. Of course, marketing and advertising people have since made it their task to provide that necessary push to (1) make the consumer buy, (2) start the foundation of brand loyalty, and (3) make the consumer new sources of information that can influence other consumers and expand the network of word of mouth communication that delivers a very positive message favorable to the product/service being sold to the public. Today, experts believe that this task is something that advertisers and marketing professionals cannot achieve solely by themselves and their efforts. Internet-based tools like blogs provide the crucial word of mouth communication that heavily influences consumers. Blogs, one of the most popular and user-friendly internet-based tool for word of mouth communication, is proving that it is one of the forces to reckon with, flexing extensive power that dictates the movement in consumer attitude. â€Å"Blogs are word of mouth supercharged (Nacht, Chaney, 2006, p. 64)! † Add to this trend the consideration that most people outside of the marketing and advertising business is fast catching up with what advertising and marketing is trying to do. They sense the artificial push given to consumer and in the process, making consumers less and less dependent on advertising and more and more difficult to be influenced by advertisements especially when it comes to consulting other people about product input to affect buying attitude and preference. With internet-based tools like blogs, consumers feel like they are genuinely talking to another person who would give them an honest, first hand, experience-based opinion without any motive or agenda to influence the consumer’s buying preference other than to provide information. It is something that most believe they do not actually get from advertisements and marketing campaigns geared at making brands look good and pleasing to the senses and covering up areas which maybe problematic or undesirable for the consumer in real life. In their book, Nacht and Chaney (2006) used as an example the result of a North Carolina survey, and wrote that â€Å"one third of all consumers would prefer to receive product information from friends and specialists rather than from advertising (Nacht and Chaney, 2006, p. 65). The idea of â€Å"friends† in this particular idea would likely include peers and contacts in the online/internet network of an individual. The exchange of information between â€Å"friends† to substitute the information gathering from advertising-based sources most likely happens online, including the use of blogs through writing blogs or reading other people's blogs about the product, in this case blogs act, according to PR strategist Steve Rubel, as a â€Å"24/7 focus group that's transparent and out in the open (Nacht, Chaney, 2006, p. 64). Companies also understand the significance of blogs and have a particular role for blogs to play in how consumerism works, in the hope that blogs can assist them in making sure consumerism and its related socio-economic conditions interact together favorably for the company and its products and items it sells to the public. â€Å"Smart businesses will pay attention to blogs, using them as kind of informal network of consumer opinion. Blogs have become a word-of-mouth marketing channel that allows companies to keep a pulse on their marketplace (Nacht, Chaney, 2006, p. 4). † The Internet Versus the Traditional Tri-Media So how does the internet and its features (i. e. websites, blogs etc) actually become another important source of word of mouth marketing and in the process have the capacity to influence the buying attitudes and preferences of the consumers? The internet, like the radio, print media and the television are all platforms used for the movement of information. The f irst three types of information platforms – the tri-media – nearly had the similar effect that the internet has. While the tri-media, no doubt, had immense effect on buying attitude and preferences and overall marketing, there is something that the internet has managed to give to the target consumers that the tri-media failed to provide them: interactivity. Because the websites and the blogs and the podcasts feature interactivity by allowing ordinary individuals to have a say on products or items for sale, people listen to what they have to say more. And because the internet is an accessible and available platform for discussion between and among customers (something that is not available for the other tri-media since the information direction here is one way – from the companies to the target audience), consumers who tried the product or service feels good that they have an avenue where they as ordinary consumers can appraise and assess a product, without the restrictions of companies and without the marketing scripts and paid appearances by individuals posing as ordinary consumers in the tri-media marketing which, as years went by, became passe and hardly credible a style for word of mouth marketing to convince the consumer/audience. Blogs and the websites has proven that it is a fresh new approach that meant empowering the consumers, allowing them not only to be informed but also to speak about the products and services they bought. The absence of pretentiousness and feigned positive approval in the world of blogging has made it a very influential tool because people speak based from their own appraisal of the product or services. And if the appraisal is good, then this type of word of mouth marketing can indeed help a product to gain more followers and patrons. Similarly, the bloggers who are not impressed by something they bought may speak about the product negatively. This is a serious threat to the market power and credibility of the product. Since the time of television, print and radio advertisements, marketing personnel are already conscious of the impact of having an â€Å"ordinary and common† individual talk about the product. This is why many brands have opted to pick someone that is not popular, someone that represents the common folk, to speak positively about the product as if what they are saying in the television, print or radio advertisement is a genuine personal appraisal and not a scripted one. Of course, to be able to get a space in television, radio or print media, one has to pay a hefty sum, and because of that, it is impossible an d impractical for the real common folk to talk to the masses via the avenues of mass communication about how he or she felt about a particular detergent brand or hamburger chain. The internet, through personal websites and blogs, is a very cheap way to make one’s own assessment of products through product reviews. In this particular sphere, the genuine essence of the idea of word of mouth is maximized because blogging meant that the entire worldwide communities hooked in the internet are talking to each other. This explains the idea that an important aspect of word of mouth marketing information transfer traffic is highly dependent on how the need to interact with peers and friends is facilitated and consumed by the consumers themselves. â€Å"Interaction with peers triggers new customer needs and alters buying attitude (Swoboda, Morschett, Rudolph, Schnedlitz, Schramm-Klein, 2008, p. 8). By blogging, people can influence other people not just about particular brand preferences. They can also influence other people about starting to want to buy something which an individual did not know or want in the past prior to the onset of the influence of the input of blogging or of a particular blog article. Through blogs they tell each other what products they find best and what products they find disappointing. They talk to each other, and the speed by which their messages are sent to each other is something that the traditional tri-media cannot match, making the bloggers and what they say to each other more powerful and more influential. Conclusion How the world is recognizing the true impact of the optimization of a potential of the internet as a powerful tool in marketing particularly through word of mouth marketing today just goes to show that, similar to the case of the traditional tri-media during its early years, new information platforms are always important avenues that affect the people and the different aspects of their lives, one of which is buying attitude and buying preferences. Add to the fact that compared to the era of the early years of the traditional tri-media, the world today at the apex of the influence of the internet on modern day life is also characterized vis-a-vis by the heightened sense of consumerism and capitalism that more and more people are investing in businesses that create new things to sell to the people because they can make people believe they need to buy these things. As products and brands compete for the limited budget of consumers, elbowing each other to be able to find a place in the grocery or shopping bag, what peers in the internet world has to say to each other about particular items and brands is an important word of mouth marketing hinged on electronic/digital medium of information dissemination that should be consistently studied so that they can have the knowledge on how they can use this tool for their own advantage, marketing-wise. This endeavor has, no doubt, started. But the study of this phenomena brings to light the prospect that the media and platforms of information and interactivity will always be an important tool to shape social attitudes, including consumer attitudes towards buying, brand preference and item selection. â€Å" The social effects of the social media are, by and large, a fascinating research area and a field most likely to shape future consumer or even human behavior (Swoboda et al, 2008, p. 9). May it be traditional word of mouth phenomena or online, internet-based word of mouth, what serves as a constant truth is that word of mouth remains an important and influential aspect of social interaction that affects market power of items for sale because word of mouth affects the buying attitude and consumer preferences. â€Å"It appears that electronically transferred or face-to-face WOMC has the potential to alter carefully planned marketing communication programs, depending on how consumers process such information (De Carlo, Laczniak, Sridhar, 2003, p. 225). † This leans towards the understanding that marketing strategies should always take into consideration word of mouth experiences and its impact and how word of mouth can be controlled to favor a particular product and act as a usef ul support mechanism in a marketing strategy.