Cognitive Behavior Therapy - 1349 Words

Cognitive Behavior Therapy Developed by Dr. Aaron T. Beck, Cognitive Therapy (CT), or Cognitive Behavior Therapy (CBT), is a form of psychotherapy in which the therapist and the client work together as a team to identify and solve problems. Therapists help clients to overcome their difficulties by changing their thinking, behavior, and emotional responses. A System of Psychotherapy Cognitive therapy is a comprehensive system of psychotherapy, and treatment is based on an elaborated and empirically supported theory of psychopathology and personality. It has been found to be effective in more than 400 outcome studies for a myriad of psychiatric disorders, including depression, anxiety disorders, eating disorders, and substance abuse,†¦show more content†¦The Goal of Cognitive Therapy The goals of cognitive therapy are to help individuals achieve a remission of their disorder and to prevent relapse. Much of the work in sessions involves aiding individuals in solving their real-life problems and teaching them to modify their distorted thinking, dysfunctional behavior, and distressing affect. Therapists plan treatment on the basis of a cognitive formulation of patients’ disorders and an ongoing individualized cognitive conceptualization of patients and their difficulties. A developmental framework is used to understand how life events and experiences led to the development of core beliefs, underlying assumptions, and coping strategies, particularly in patients with personality disorders. A strong therapeutic alliance is a key feature of cognitive therapy. Therapists are collaborative and function as a team with patients. They provide rationales and seek patients’ agreement when undertaking interventions. They make mutual decisions about how time will be spent in a session, which problems will be discussed, and which homework assignments patients believe will be helpful. They engage patients in a process of collaborative empiricism to investigate the validity of the patient’s thoughts and beliefs. Cognitive therapy is educative, and patients are taught cognitive, behavioral, and emotional-regulation skills so they can, in essence, become their own therapists. This allowsShow MoreRelatedCognitive Behavior Therapy And Therapy1201 Words   |  5 PagesThere are many that have contributed to cognitive behavior therapy or CBT throughout the years but we are going to focus on the founders of modern day CBT, Albert Ellis and Aaron Beck. Ellis is responsible for the Rational emotive behavior therapy, the first of the CBT in the 1960’s. The bases of REBT is suggest that a patient’s emotional distressed stems from their thoughts about a traumatic event, and not the event itself. Ellis developed this approach as a means to get over his personal problemsRead MoreIs Cognitive Behavior Therapy? Essay1593 Words   |  7 PagesIs Cognitive Behavior Therapy (CBT) effective in reducing negative body image for adolescent females? The approach that was used to answer the practice question had been to use three different search engines: Google Scholar, PsycINFO, and ProQuest. The search terms used to find sources included body image, cognitive behavior therapy, adolescent female, effective, and treatment. Other search terms included eating disorder, body dysmorphic disorder, and intervention. The criteria used to determineRead MoreCognitive Behavior Therapy1617 Words   |  7 Pages Cognitive Behavior Therapy started as Behavior Therapy in 1966 by ten behaviorist who did not agree with the Freudian psychoanalytic model. Behavior Therapy really begins in the early 1900s during the behaviorist movement starting with Pavlov, Watson, Skinner, Thorndike, and Hull along with many other scientists that were primarily dealing with behavior and the observation of behavior. The 1950s two research groups in South Africa were on the way to making behavior therapy a science based therapyRead MoreCognitive Therapy ( Cbt ) Or Cognitive Behavior Therapy963 Words   |  4 PagesCognitive Therapy (CT) or Cognitive Behavior Therapy (CBT) is a psychotherapy approach to counseling that aims at replacing faulty, unrealistic, or negative thinking patterns and self-defeating beliefs with more accurate, constructive and optimistic patterns that lead to effective understanding and problem solving. CBT like Solution Focused Therapy is a short-term, goal-oriented talk therapy that takes a hands-on, practical approach to problem-solving. CBT perceives problems as stemming from commonplaceRead MoreCognitive Behavior Therapy And Mental Therapy865 Words   |  4 PagesThe cognitive behavior therapy initially treated depression, but extensive research has demonstrated that cognitive behavior therapy works to treat many other psychiatric disorders (Corey p.307). For example, phobias, eating disorders, anxiety, panic disorders, borderline personality, posttraumatic stress disorder etc. Additionally, there is evidence from neuroimaging research that CT therapy reduces the activity in the amygdalohippocampal subcortical region and increase the activity in the frontalRead MoreCognitive Behavior Therapy ( Cbt )857 Words   |  4 Pagesabout a combination of cognitive therapy with behavioral therapy to form CBT (Hansen, 2008). Cognitive behavior therapy (CBT) was developed by Aaron Beck in 1967 (field, Beeson, Jones, 2015). In the late mid-1980s, people were still very res istance to the combination of the two therapies, despite the great works of Ellis and Beck (Hansen, 2008). CBT proposed that dysfunctional emotional and behavioral responses were caused directly by dysfunctional thinking, known as cognitive distortions. CBT isRead MoreCognitive Behavioral Theory Of Cognitive Behavior Therapy1756 Words   |  8 PagesTheoretical Analysis Cognitive Behavioral Theory Several prestigious and monumental contributors commenced the development of cognitive behavioral therapy. The four main catalysts have been Albert Ellis, Aaron Beck, Judith Beck, and Donald Meichenbaum. Each of these trailblazers lead a different aspect of cognitive behavior therapies. While working through his own personal fears and anxieties, Albert Ellis developed what is now termed rational emotive behavior therapy (REBT) and is the firstRead MoreCognitive Behavior Therapy (CBT)1559 Words   |  7 PagesAssumptions and Definition Cognitive Behavior Therapy (CBT) addresses dysfunctional emotions, maladaptive behaviors, and cognitive processes. This is an effective treatment for patients who are dealing with anxiety and depression. CBT refers to a group of psychotherapies that incorporate techniques from cognitive therapy and behavior therapy. Albert Ellis and Aaron Beck are the two psychologists who came up with therapies. Beck developed the cognitive therapy (CT) that focuses on changing theRead MorePsychology : Cognitive Behavior Therapy Essay1333 Words   |  6 Pagesthis assignment, I was very curious to more about the cognitive behavior therapy (cognitive behavior therapy). The video that we will be referring has Dr. Donald Meichenbaum as the therapist and Beverly who is the client and has anxiety. Before Dr. Meichenbaum started the session with Beverly, Dr. Diane and Carlson introduced Dr. Meichenbaum on the show and discussed about cognitive behavior therapy. Dr. Diane describes cognitive behavior therapy that has an empirically based approach. This approachRead MorePsychology : Cognitive Behavior Therapy1322 Words   |  6 PagesRunning head: Cognitive Behavior Therapy 2 Cognitive Behavior Therapy Case manager has been working with Ms. Tabitha, who has one child by the name of Michelle, currently 25 years of age, and two deceased twin daughters, as well. Tabitha was diagnosed with having an anxiety disorder, and is taking medication’s to help with her anxiety. Recently, Tabitha failed her housekeeping inspection, and has six months to improve her housekeeping situation, and if she doesn’t, will be evicted from

Research Methods Of Quantitative Research - 1087 Words

Week 2 Assignment Adam Morrison PSY 326 Research Methods Jessica Lee Qualitative researchers are focused on interpreting and making sense out of what they observe rather than trying to simplify and quantify these observations by collecting and observing people, places and things in their natural setting. In doing this, researchers are able to investigate hypothesis with more freedom and rigidity while accepting the fact that they relinquish their ability to control direct and indirect elements of their query. What the lose in predictability, they gain in individuality. To put it simply, qualitative research is aimed at watching and explaining in order to develop a complete understanding of whatever phenomena they are†¦show more content†¦(Patrick/Hagtvedt, 2011) Qualitative research is considered to be particularly suitable for gaining an in-depth understanding of underlying reasons and motivations. It provides insights into the setting of a problem. At the same time, it frequently generates ideas and hypotheses for later quantitative research. In the first study of their research, â€Å" One hundred and twenty undergraduates participated in a study designed to investigate the differential influence of the â€Å"don’t† versus â€Å"can’t† framing on actual choice of attempting item via the mediating role of feelings of empowerment. A secondary purpose of the study was to illustrate that this effect is observed for individuals for whom healthy eating is a relevant goal. In other words, the study was designed to illustrate that empowered refusal framing motivates goal-directed behavior.† (Patrick/Hagtvedt, 2011) The design of this study is an example of the common criteria employed in qualitative research. The main differences between quantitative and qualitative research consist in respect to data sample, data collection, data analysis, and last but not least in regard to outcomes. (Newman, 2016) Data collection in qualitative research is not seldom based on unstructured or semi-structured, but methodologicallyShow MoreRelatedQuantitative Research Methods For Research1077 Words   |  5 PagesQuantitative research methods are typically concerned with measuring criminological or criminal justice reality. There are a number of different quantitative research methods available to researchers, most of which fall under the rubric of a research design, which can be defined as the plan for a study that includes the exploratory, descriptive, explanatory and evaluative of an investigation. Purpose of exploratory research is to identify context, issues and concerns whereas descriptive is to provideRead MoreResearch Methods Of Quantitative Research Essay2390 Words   |  10 Pages3.1. Resear ch Methods There are two types of research methods, which are qualitative, and quantitative each of which is focused towards diverse aspect. It is noticed that qualitative research method is used for the studies that are dependent on the use of theoretical data or content instead of collecting statistical or empirical evidence to support the discussion. The aim of this method is to consider the use of general data or theories to make sure that research aim and objectives are evaluatedRead MoreQuantitative And Quantitative Research Methods1520 Words   |  7 PagesResearch is a process that is systematic and gathers, analyzes and interprets data collected about a specific subject with the objective of better understanding and meeting a goal (Leedy Ormond, 2010). Before initiating the research process the researchers need to have a clear understanding of the question and the goal of what is going to be studied or investigated. The development of a plan designed with specific methods needs to be included to acquire relevant data. The research should be guidedRead MoreQuantitative research methods1913 Words   |  8 PagesQuantitative Research Methods Quantitative means quantity which implies that there is something that can be counted. Quantitative research has been defined in many ways. It is the kind of research that involves the tallying, manipulation or systematic aggregation of quantities of data (Henning, 1986) John W. Creswell defined quantitative research as an inquiry into a social or human problem based on testing a theory composed a theory composed of variables, measured with numbers, and analysed withRead MoreQuantitative And Quantitative Methods Of Research3747 Words   |  15 Pages â€Æ' 3. Method 3.1 Research Approach Although there are two types of research approaches that can be used by researchers depending on the type of research study which are qualitative or quantitative study, however, a quantitative research method will be used in order to acquire the useful information. The research design mentions to the general approach that is selected to assimilate the different mechanisms of the research in an intelligible and rational way, thus, safeguarding that it will efficientlyRead MoreQualitative Quantitative Research Methods1047 Words   |  5 PagesQualitative amp; Quantitative Research Methods PSY 326 Dr. Willow Aureala March 29, 2011 Qualitative amp; Quantitative Research Methods There are two types of research methods: qualitative and quantitative. Qualitative research methods are complex meaningful analyses characterized by processes and meanings that are not measured in terms of mathematical measurements. Quantitative research however, relies and builds on mathematical procedures and methods, such as frequency, quality, amountRead MoreQualitative And Quantitative Research Methods936 Words   |  4 PagesQualitative and quantitative research methods are two alternative applications for research methods. Both are very different in how data is collected, what data is collected, and how data is measured. Both of these research methods are utilized amongst the major areas of psychology and the social sciences. This paper will provide a brief description of qualitative and quantitative methods, provide the differences between the two approaches along with the terminology used for both; I will alsoRead MoreQualitative And Quantitative Research Methods1285 Wor ds   |  6 PagesQualitative and Quantitative Research Ravi Teja Mora Dr. Jimi Peters Research Methods Stratford University â€Æ' Qualitative and Quantitative Research Introduction There has been a widespread of debate in recent years regarding the quantitative and qualitative research methods, wether one or the other has to be emerged as superior. Although there have been so many theories and conclusions, this paper intends to discuss on the similarities and differences between the qualitative and quantitative research methodsRead MoreStatistical And Quantitative Research Methods1150 Words   |  5 PagesJSB273 CRIME RESEARCH METHODS ASSESSMENT ONE - ESSAY Qualitative and Quantitative Research Methods Jaimee Baird N9155465 Lecturer: Claire Ferguson Thursday 11am – 1pm C405 In submitting this work I declare that, unless otherwise acknowledged, this work is wholly my own. I understand that my work may be submitted to SafeAssign and consent to this taking place. Word Count: Declaration of Authorisation â€Æ' Introduction Qualitative and quantitative research methods are two most commonRead MoreQuantitative And Qualitative Research Methods Essay1218 Words   |  5 Pagesindividuals are confused about or not aware of the differences between quantitative and qualitative research methods. Some think those terms can be used interchangeably. Describe the key features (up to 5) that distinguish quantitative research from qualitative research. Provide examples to demonstrate your main points. Firstly, qualitative and quantitative research methods are used for different purposes. Quantitative methods try to explain and make predictions, confirm and validate an existing

Product Life Cycle Theory Free Essays

string(148) " of product life cycle is important to marketers because via this analysis they can manage their product well and prevent it from incurring losses\." The product life cycle theory is used to comprehend and analyze various maturity stages of products and industries. Product innovation and diffusion influence long-term patterns of international trade. This term product life cycle was used for the first time in 1965, by Theodore Levitt in an Harvard Business Review article: â€Å"Exploit the Product Life Cycle†. We will write a custom essay sample on Product Life Cycle Theory or any similar topic only for you Order Now Anything that satisfies a consumer’s need is called a ‘product’. It may be a tangible product (clothes, crockery, cars, house, gadgets) or an intangible service (banking, health care, hotel service, airline service).Irrespective of the kind of product, all products introduced into the market undergo a common life cycle. To understand what this product life cycle theory is all about, let us have a quick look at its definition. Product Life Cycle Definition A product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated! This cycle is split into four different stages which encompass the product’s journey from its entry to exit from the market. Product Life Cycle StagesThis cycle is based on the all familiar biological life cycle, wherein a seed is planted (introduction stage), germinates (growth stage), sends out roots in the ground and shoots with branches and leaves against gravity, thereby maturing into an adult (maturity stage). As the plant lives its life and nears old age, it shrivels up, shrinks and dies out (decline stage). Similarly, a product also has a life cycle of its own. A product’s entry or launching phase into the market corresponds to the introduction stage. As the product gains popularity and wins the trust of consumers it begins to grow.Further, with increasing sales, the product captures enough market share and gets stable in the market. This is called the maturity stage. However, after some time, the product gets overpowered by latest technological developments and entry of superior competitors in the market. Soon the product becomes obsolete and needs to be withdrawn from the market. This is the decline phase. This was the crux of a product life cycle theory and the graph of a product’s life cycle looks like a bell-shaped curve. Let us delve more into this management theory. Introduction Stage After conducting thorough market research, the company develops its product. Once the product is ready, a test market is carried out to check the viability of the product in the actual market, before it can set foot into the mass market. Results of the test market are used to make correction if any and then launched into the market with various promotional strategies. Since the product has just been introduced, growth observed is very slight, market size is small and marketing cost are steep (promotional cost, costs of setting up distribution channels). Thus, introduction stage is an awareness creating stage and is not associated with profits!However, strict vigilance is required to ensure that the product enters the growth stage. Identifying hindering factors and nipping them off at the bud stage is crucial for the product’s future. If corrections cannot be made or are impractical, the marketer withdraws the product from the market. Read more on types of market research. Growth Stage Once the introductory stage goes as per expected, the initial spark has been set, however, the fire has to be kindled by proper care. The marketer has managed to gain consumers attention and now works on increasing their product’s market share.As output increases, economies of scale is seen and better prices come about, conducing to profits in this stage. The marketer maintains the quality and features of the product (may add additional features) and seek brand building. The aim here is to coax consumers to prefer and choose this product rather than those sold by competitors. As sales increase distribution channels are added and the product is marketed to a broader audience. Thus, rapid sales and profits are characteristics of this stage. Read more on marketing tools. Maturity StageThis stage views the most competition as different companies struggle to maintain their respective market shares. The cliche ‘survival of the fittest’ is applicable here. Companies are busy monitoring product’s value by the consumers and its sales generation. Most of the profits are made in this stage and research costs are minimum. Any research conducted will be confined to product enhancement and improvement alone. Since consumers are aware of the product, promotional and advertising costs will also be lower. In the midst of stiff competition, companies may even reduce their prices in response to the tough times.The maturity stage is the stabilizing stage, wherein sales are high, but their pace is slow, however, brand loyalty develops imparting profits. Read more on marketing plans. Decline Stage After a period of stable growth, the revenue generated from sales of the product starts dipping due to market saturation, stiff competition and latest technological developments. The consumer loses interest in this product and begins to seek other options. This stage is characterized by shrinking market share, dwindling product popularity and plummeting profits. This stage is a very delicate stage and needs to be handled wisely. The type of response contributes to the future of the product. The company needs to take special efforts to raise the product’s popularity in the market once again, by either reducing cost of the product, tapping new markets or withdrawing the product. Read more on: †¢Marketing Services †¢Marketing Mix †¢Marketing Tips It is important to note that, not all products go through the entire life cycle. Just as how not all seeds sown germinate, not all products launched into the market succeed. Some flop at the introductory stage, while some fail to capture market share due to quick fizzling out.Moreover, some marketers quickly change strategies when the product reaches decline phase and by various promotional strategies regain the lost glory, thereby achieving cyclic maturity phases. Application of product life cycle is important to marketers because via this analysis they can manage their product well and prevent it from incurring losses. You read "Product Life Cyc le Theory" in category "Life" A well-managed product life cycle leads to rise in profits and does not necessarily end. Product innovations, new marketing strategies,etc. keeps the product appealing to customers for a very long period of time.Hope this article on product life cycle theory was informative and helpful! The product life-cycle theory is an economic theory that was developed by Raymond Vernon in response to the failure of the Heckscher-Ohlin model to explain the observed pattern of international trade. The theory suggests that early in a product’s life-cycle all the parts and labor associated with that product come from the area in which it was invented. After the product becomes adopted and used in the world markets, production gradually moves away from the point of origin.In some situations, the product becomes an item that is imported by its original country of invention. [1] A commonly used example of this is the invention, growth and production of the personal computer with respect to the United States. The model applies to labor-saving and capital-using products that (at least at first) cater to high-income groups. In the new product stage, the product is produced and consumed in the US; no export trade occurs. In the maturing product stage, mass-production techniques are developed and foreign demand (in developed countries) expands; the US now exports the product to other developed countries.In the standardized product stage, production moves to developing countries, which then export the product to developed countries. The model demonstrates dynamic comparative advantage. The country that has the comparative advantage in the production of the product changes from the innovating (developed) country to the developing countries. Contents [hide] †¢1 Product life-cycle o1. 1 Stage 1: Introduction o1. 2 Stage 2: Growth o1. 3 Stage 3: Maturity o1. 4 Stage 4: Saturation o1. 5 Stage 5: Decline †¢2 References [edit]Product life-cycle There are four stages in a product’s life cycle: introduction ?growth ?maturity ?saturation ?decline The location of production depends on the stage of the cycle. [edit]Stage 1: Introduction New products are introduced to meet local (i. e. , national) needs, and new products are first exported to similar countries, countries with similar needs, preferences, and incomes. If we also presume similar evolutionary patterns for all countries, then products are introduced in the most advanced nations. (E. g. , the IBM PCs were produced in the US and spread quickly throughout the industrialized countries. ) [edit]Stage 2: GrowthA copy product is produced elsewhere and introduced in the home country (and elsewhere) to capture growth in the home market. This moves production to other countries, usually on the basis of cost of production. (E. g. , the clones of the early IBM PCs were not produced in the US. ) The Period till the the Maturity Stage is known as the Saturation Period. [edit]Stage 3: Maturity The industry contracts and concentrates — the lowest cost producer wins here. (E. g. , the many clones of the PC are made almost entirely in lowest cost locations. ) [edit]Stage 4: Saturation This is a period of stability.The sales of the product reach the peak and there is no further possibility to increase it. this stage is characterised by:  ¦ Saturation of sales (at the early part of this stage sales remain stable then it starts falling).  ¦ It continues till substitutes enter into the market.  ¦ Marketer must try to develop new and alternative uses of product. [edit]Stage 5: Decline Poor countries constitute the only markets for the product. Therefore almost all declining products are produced in developing countries. (E. g. , PCs are a very poor example here, mainly because there is weak demand for computers in developing countries.A better example is textiles. ) Note that a particular firm or industry (in a country) stays in a market by adapting what they make and sell, i. e. , by riding the waves. For example, approximately 80% of the revenues of H-P are from products they did not sell five years ago. the profits go back to the host old country. ?†¦ trade theory holding that a company will begin by exporting its product and later undertake foreign direct investment as the product moves through its lifecycle ? As products mature, both location of sales and optimal production changes ?Affects the direction and flow of imports and exports ?Globalization and integration of the economy makes this theory less valid ?Trade implication ? ?Increased emphasis on technology’s impact on product cost ? Explained international investment ?Limitations ?Most appropriate for technology-based products ?Some products not easily characterized by stages of maturity ? Most relevant to products produced through mass production Marketing gt; Product Life Cycle The Product Life Cycle A product’s life cycle (PLC) can be divided into several stages character ized by the revenue generated by the product.If a curve is drawn showing product revenue over time, it may take one of many different shapes, an example of which is shown below: Product Life Cycle Curve The life cycle concept may apply to a brand or to a category of product. Its duration may be as short as a few months for a fad item or a century or more for product categories such as the gasoline-powered automobile. Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, changes in the marketing mix usually are equired in order to adjust to the evolving challenges and opportunities. Introduction Stage When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such announcements also alert competitors and remove the element of surprise. Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters. During the introductory stage the firm is likely to incur additional costs associated with the initial distribution of the product. These higher costs coupled with a low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implications of the introduction stage: †¢Product – one or few products, relatively undifferentiated †¢Price – Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly.In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly. †¢Distribution – Distribution is selective and scattered as the firm commences implementation of the distribution plan. †¢Promotion – Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward early adopters. The introductory promotion also is intended to convince potential resellers to carry the product. Growth Stage The growth stage is a period of rapid revenue growth.Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm’s product is better than that of the competition.During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows: †¢Product – New product features and packaging options; improvement of product quality. †¢Price – Maintained at a high level if demand is high, or reduced to capture additional customers. †¢Distribution – Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product. †¢Promotion – Increased advertising to build brand preference. Maturity Stage The maturity stage is the most profitable.While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors’ customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products.During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Marketing mix decisions may include: †¢Product – Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced. †¢Price – Possible price reductions in response to competition while avoiding a price war. †¢Distribution – New distribution channels and incentives to resellers in order to avoid losing shelf space. †¢Promotion – Emphasis on differentiation and building of brand loyalty. Incentives to get competitors’ customers to switch.Decline Stage Eventually sales begin to decline as the market becomes saturated, the product becomes technologically obsolete, or customer tastes change. If the product has developed brand loyalty, the profitability may be maintained longer. Unit costs may increase with the declining production volumes and eventually no more profit can be made. During the decline phase, the firm generally has three options: †¢Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product. †¢Harvest it, reducing marketing support and coasting along until no more profit can be made. Discontinue the product when no more profit can be made or there is a successor product. The marketing mix may be modified as follows: †¢Product – The number of products in the product line may be reduced. Rejuvenate surviving products to make them look new again. †¢Price – Prices may be lowered to liquidate inventory of discontinued products. Prices may be maintained for continued products serving a niche market. †¢Distribution – Distribution becomes more selective. Channels that no longer are profitable are phased out. †¢Promotion – Expenditures are lower and aimed at reinforcing the brand image for continued products.Limitations of the Product Life Cycle Concept The term â€Å"life cycle† implies a well-defined life cycle as observed in living organisms, but products do not have such a predictable life and the specific life cycle curves followed by different products vary substantially. Consequently, the life cycle concept is not well-suited for the forecasting of product sales. Furthermore, critics have argued that the product life cycle may become self-fulfilling. For example, if sales peak and then decline, managers may conclude that the product is in the decline phase and therefore cut the advertising budget, thus precipitating a further decline.Nonetheless, the product life cycle concept helps marketing managers to plan alternate marketing strategies to address the challenges that their products are likely to face. It also is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle. Marketing gt; Product LifecycleThe Product Cycle and its Implications Let us begin by reviewing Vernon’s principal points regarding the technological and geographical transitions of industries. His product-cycle paradigm suggested that an industry’s competitiveness will go through a predictable series of stages: To begin with, U.S. -controlled enterprises generate new products and processes in response to the high per capita income and the relative availability of productive factors in the U nited States; they introduce these products or processes abroad through exports; when their export position is threatened they establish overseas subsidiaries to exploit what remains of their advantage; they retain their oligopolistic advantage for a period of time, then lose it as the basis for the original lead is completely eroded. (1971: 66)While Vernon’s main objective was to explain the causes and consequences of foreign investment, the stages that he identified also implied that an industry’s perspective on trade policyComment on Deardorff 2 will evolve. Industries can be expected to favor open markets when they are competitive and to favor protection when they are not. Deardorff’s analysis is largely consonant with this cycle, but brings into closer consideration the role of developing countries’ exports in challenging the developed countries’ industries.While I am largely in agreement with the basic points raised by both Vernon and Deardorff, I would suggest two adjustments. The first is that a different policy question may be in order. To paraphrase, Deardorff’s question seems to be, â€Å"Will developed countries respond to increased competition from developing countries by erecting new barriers to trade? † I would instead ask, â€Å"How will the intere sts of declining industries in developed countries affect the pace and form of new trade liberalization? † While I understand the usefulness of the simplifying assumption that the two countries in the model â€Å"are initially engaged in free trade† (ibid. 3), I think it is equally simple and more realistic to begin with the assumption that restrictions to trade already exist. It would be a great exaggeration to claim that the WTO rules are so watertight as to prevent countries from imposing any new restrictions on trade, but I would quarrel with the suggestion that we â€Å"simply assume that [increased import competition will] lead the North to implement a tariff on imports† (ibid. : 9). The track record for both legislated protection 1 and safeguards cases 2 suggests that protectionist industries have had little success in winning support from government.The clear trend of the past half century has been towards the reduction of tariffs and (more recently) the replacement or elimination of quotas. In an environment of declining tariff barriers, the best that most protectionist industries can hope for is to secure a pledge that their products be exempted from reductions. Even when one acknowledges the continuation of â€Å"peak† tariffs in some industries and the mischief that can be done with antidumping duties and other instruments of pro tection, the fact remains that markets are much more open today than they were in decades past.Moreover, the rules are more comprehensive and enforceable under the WTO than they were under the GATT. The second important departure is that the range of options is not limited to a dichotomous choice between â€Å"free trade† or â€Å"protection. † Beyond the almost trivial point that there are many degrees of openness, representing every step from zero barriers to confiscatory levels of protection, discrimination is an equally important consideration. Here the rules of the GATT and WTO have been permissive.Free trade agreements (FTAs) and customs unions are allowable exceptions to the general rule of universal most-favored-nation treatment (provided that they meet the requirements of GATT Article XXIV), and preferential trade programs such as the Generalized System of Preferences (GSP) are granted waivers. While each of these options provide for more liberal trade, and many extend special treatment to developing countries, they are widely seen as a â€Å"second-best† alternative to nondiscriminatory liberalization.For reasons that I explore below, however, the increasing use of these discriminatory instruments can also be portrayed as a natural consequence of the product cycle. 1 Although there have been many efforts since the Hawley-Smoot Tariff Act of 1930 to enact bills imposing tariffs or quotas on imports, no major bills have been enacted over a presidential veto. There have been several instances, however, in which presidents felt obliged to make concessions to protectionist demands in order to win congressional approval of some other market-opening initiative (especially new grants of negotiating authority or the approval of a trade agreement).In other words, some of the rare steps backward have been price for making two steps forward. 2 Petitioners have succeeded in winning import protection in only 23 of the 70 cases considered in the quarter century since enactment of the current safeguards law (section 201 of the Trade Act of 1974). Comment on Deardorff 3 Implications of the Product Cycle for Trade Policy The product-cycle model could be used to explain any one of three approaches to trade policy.Depending on how one views the interests of firms and the responses of government, the cycle could be predicted to encourage more open markets, more protection, or more discrimination. Under the benign view that seems implicit in Vernon’ s analysis, the product cycle can be portrayed as a progressive mechanism. A country with an efficient process of â€Å"creative destruction† could theoretically sustain a permanent free-trade orientation, with few or no exceptions for specific industries. Vernon’s views were similar to those of Schumpeter (1936), who believed that a combination of entrepreneurial innovation and periodic depressions provided just such an engine of progress. A real free-trading country would regularly produce a new crop of innovators, while firms that lost their competitiveness would either find new lines of work or be swept away when the business cycle swung downward. The survivors favor open markets. This Darwinian optimism is challenged, however, if firms and workers in a declining industry refuse to go quietly into that good night.A more pessimistic interpretation is that old firms and their workers do not always conveniently disappear or get reabsorbed into the economy, but instead seek ways to keep alive even after they pass their prime. Deardorff’s analysis falls into this second category. He concludes that factor owners in the developed country will respond to a competitive challenge by demanding and receiving protection. I offer yet a third alternative, in which the product cycle encourages the reduction of trade barriers but does so in an increasingly discriminatory fashion.My adaptation of Vernon’s model, which is illustrated in Figure 1, departs from the original in two ways. First, I believe that a wider range of stages should be represented in the model. Second, I more explicitly state what the trade (in addition to the investment) preferences of an industry will be as it passes through these stages. My adaptation recognizes that the policy options available to industries and countries are not limited to opening or closing the market, but also allow for discriminatory initiatives that better lend themselves to manipulation on behalf of specific firms or trading partners.The stages might respectively be termed pre-competitive, semi-competitive, competitive, and post-competitive. The distinctions between industries in stages 2, 3, and 4A are particularly important. Each one of these stages is â€Å"pro-trade,† but they favor different emphases in both the objectives and form of trade agreements. Only the Stage 3A industry is the pure free-trader. Industries in stages 2, 3B, and 4A each take a more qualified approach to open markets, and may be reluctant to support universal liberalization.An industry’s most critical choice comes in the fourth stage, when it must choose between retreat into the domestic market or relocation of its production offshore. The initial decision to invest overseas might have been made in an earlier stage, prompted by such diverse objectives as gaining or maintaining access to a large and protected foreign market, taking advantage of lower wage rates and less restrictive regulatory environments, or reducing transportation costs. When an industry’s competitiveness declines, however, it could decide to shift most or all of its production offshore.Those firms that become multinational producers (Stage 4A) acquire interests and preferences very different from those that do not (Stage 4B). A multinational producer will be much more favorably disposed towards open markets than a â€Å"mature† domestic industry, but will not inevitably be a paragon of free-trade purism. These producers may perceive a strong incentive to support discriminatory options, especially if they create sanctuary markets at home or abroad. Home | About | Privacy | Reprints | Terms of UseCopyright  © 2002-2010 NetMBA. com. All rights reserved. This web site is operated by the Internet Center for Management and Business Administration, Inc. Search NetMBA Site Information Home About Privacy Reprints Terms of Use Marketing Accounting Economics Finance Management Marketing Operations Statistics Strategy ? ?In recent years an extensive theoretical literature has been offered examining the implications of the product cycle (PC) model of trade (Hirsch 1967; Vernon 1966). 1) Emphasizing knowledge transfers, Krugman (1979) constructed a general equilibrium model consisting of an innovating North country and an imitating South country. (2) A key implication of the PC is that the North must continually innovate in the face of the South’s ability to eventually imitate each new product. The flying-geese (FG) theory (inter alia, Akamatsu, 1935; Kojima, 2000, 2003; Ozawa, 1993, 2001, 2005) elaborates on the mature stage of the PC by examining conditions under which an initially imitating South country itself looses the comparative advantage in producing the mature product due to rising labor costs.The loss in comparative advantage results in the further and sequential transfer of production to less developed other South countries and the accompanying recycling of the North’s import market among themselves, a phenomenon that can be called â€Å"market or comparative advantage recycling† (Ozawa, 1993; United Nations Conference on Trade an d Development, 1995). ?This article specifically examines one particular mature PC import, TV sets, in the U. S. arket and its changing pattern of exporting economies from East Asia–first, from Japan and then from the Newly Industrializing Economies (NIEs) (Hong Kong, Singapore, Taiwan, and South Korea), from the Association of Southeast Asian Nations-4 (ASEAN-4) (Thailand, Malaysia, Indonesia, and the Philippines), and more recently, from China. ?True, technological progress continues in the TV set industry (e. g. , digitalization, flat-panel sets, and high definition TV [HDTV]), but set manufacturing has practically disappeared in the United States (Chandler, 2001).Incremental innovations are now being introduced mostly in the South/follower countries themselves, especially in Japan and South Korea. East Asia has emerged as the world’s largest concentration of consumer electronics production. (3) In this sense, TV sets are certainly a â€Å"mature† product for the United States (too mature to be retained). In short, our study examines the phenomenon of PC-based imports and market recycling as witnessed in the United States and explores policy implications for both North and South countries in the age of globalization. There have been several tests for the existence of the PC. Tsurumi and Tsurumi (1980) found support for the PC by determining that the U. S. price elasticity of demand for color TV sets increased over time as U. S. consumers chose between domestic- and Japanese-produced color TV sets. Audretsch (1987) also found support by determining that growth industries tend to be more R ; D oriented while mature industries allocate fewer resources to this activity. Cantwell (1995) concluded that over time the share of patents of multinational corporations located abroad increased for most countries from 1920 to 1990, which supported the internationalization of investment by technological leaders. Gagnon and Rose (1995) found that a trade surplus (deficit) of a commodity is likely to persist over a long period of time, a trend that is counter to the PC and more consistent with factor proportions theory (which closely parallels the FG theory). ?Econometric tests for the FG theory have been limited.Dowling and Cheang (2000) found support for the FG theory by utilizing both Balassa’s â€Å"revealed† comparative advantage index and foreign direct investment (FDI) ratios for East Asian countries. Using Spearman rank correlation coefficients and examining three periods (1970-95, 1970-85, and 1985-95), they found that economic development trickled down from Japan to the NIEs and then to ASEAN-4. Cutler et al. (2003) analyzed labor-intensi ve trade data from Japan, the NIEs, the ASEAN-4, and China to the United States and found support for the FG theory (market recycling). In this article, we are interested in testing for the dynamics of the combined PC-FG framework. Using annual data from 1961 to 2002 for TV sets, we use cointegration techniques to estimate a system of multiple cointegrated vectors representing the sequential transfer of the U. S. TV import market from Japan to the NIEs, to the ASEAN-4, and finally to China. We develop a methodology of interpreting both the cointegrating vectors and the speeds of adjustment as a technique to test for the recycling of the U. S. import market among the East Asian economies. We argue that our analysis has implications for the emerging HDTV and flat-panel TV sets’ markets as well as patterns of behavior in lower developed South countries such as China, Vietnam, and India as these countries are actively pursuing inward FDI in higher value-added industries. ?Section II presents the theoretical framework, and section III provides the data and background information about the region’s TV set manufacturing. Section IV discusses the empirical techniques and results of the analysis. Section V touches on policy implications and offers conclusions. ?II.CONCEPTUAL FRAMEWORK ?Electronics is an R D-based industry where new products and processes are constantly innovated and competitiveness shifts from one product to another sequentially, an industry that is characterized by short PCs. The Schumpeterian concept of â€Å"creative destruction† aptly applies to innovators’ home markets. A fast pace of technological standardization and maturity for a given new product leads to an equally swift outward shift of production from the innovators’ (North) country to overseas, as conceptualized in the PC theory of trade and investment.In the early developmental phase of electronics, the United States was the dominant source of innovations, as seen in the original PC theory (Hirsch, 1967; Vernon, 1966), but other countries in Europe and East Asia also soon emerged as active innovators, as presented in the revised version (Vernon, 1979). Nonetheless, the United States still continues to play the major roles of both technology and market providers to East Asian economies.Yet, as described in the original PC theory, conventional TV sets and many other mature electronic products have followed the typical pattern of a sequence from U. S. domestic production to exports, to overseas production, and to imports. (4) These imports come mostly from East Asia. ?What is equally interesting is that once an electronic product becomes a mature â€Å"commodity,† whose competitiveness is basically determined by labor costs, its production shifts from one South country to another in the persistent search of lower cost labor.This development is facilitated especially when lower echelon South countries liberalize their trade and investment regimes so as to attract production from higher developed South countries. Such a successive transmigration of production of a standardized product therefore exhibits a changing pattern of production over time within the South countries, while the United States remains the major import market.This phenomenon of production transmigration down the intraregional hierarchy of South countries differentiated in terms of the stages of economic development and the levels of technological sophistication is captured in the FG model. ?Viewed in the above light, the PC theory and the FG model complement each other, a s schematically illustrated in Figure 1. A new product is innovated first in a high-income (high-wage) country like the United States and initially manufactured and exported from the innovator’s home country (i. e. , the â€Å"introduction† and â€Å"growth† stages, from †¦ ? How to cite Product Life Cycle Theory, Essays

Holiday and Comfort Zone free essay sample

The scorching hot sun was beating down on my bare pale skin, the warm light breeze gently brushed through my blonde hair and the cool, shimmery, turquoise water soothed my skin. The smell of coconuts and pina coladas whirled in from the snack bar and the fresh salty air made my whole body calm and relaxed. This is just how the vacation of my lifetime would start and It would soon be my favorite place in the world to visit. My vacation in Mexico brought many exciting adventures and new experiences that brought a positive insight in me as it made me break out of my comfort zone, made me want to travel the world more often, and also to get involved and make a difference in the world. As I glanced out the window on the bus ride to the resort, I couldn’t help but stare at the beautiful scenery that was surrounded all around me. We will write a custom essay sample on Holiday and Comfort Zone or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I was ecstatic because I was looking at the most alluring scenery I have ever seen in my life and I knew at this moment I never wanted to go back home. In the whistling wind, the palm trees swayed side to side while brushing against each other and slightly hitting my window. I heard a screeching, loud noise from the brakes and then I finally realized we had arrived at our final destination. As I stepped off the bus, I could smell the salty, clean and fresh air right away and an empty but warm breeze blew against my face. â€Å"Taylor wait for us! We don’t want you to get lost! † My family yelled as I had already started running over to the lobby in excitement. When we got assigned our room we walked around the resort and that’s when it all had hit me. With my mouth wide open, all I could say was, â€Å"this place is absolutely breathtaking. † As we went around to the back, there were 4 fairly large pools on both sides of me, and chairs directly around each of the pools. In the blink of an eye I noticed the beach up ahead of me and I have never seen something more beautiful, serene and relaxing. The sinking feeling as my feet step into the fine, white sand as it started to burn the soles of my feet, I dragged myself over to the shoreline and stepped into the water while it soothed my feet. The beach was a scorching furnace, as I felt it slowly burn my body and my face and the sweat on me was a river running down my forehead. As the day ended, I lay myself in my bed and my thoughts were consumed by all of the stunning scenery that I had witnessed that day in this beautiful and enchanting location and I started to think about it more and more and it made me realize that when I’m older I want to travel the world and witness all the different locations and the beautiful scenery they have to offer and learn about different cultures. I woke up the next morning and jumped out of my bed as I was thrilled to start off the day with a bunch of fun and adventurous activities that I’ve never experienced before. â€Å"Taylor, would you like to swim with the dolphins today and go zip lining? † my mom said as my eyes were wide open and had the biggest smile on my face, I couldn’t help but scream â€Å"YES! †. As we got our stuff packed and soothed the sunscreen all over our body, we were set to go. The water was splashing against our legs and the warm breeze whistled through our hair and the smell of the salty clean air overhead as we walked over to the hut where I would soon experience one of my most memorable moments. As we got into the water, Melanie the dolphin came gliding across the water as we all lined up and pet her. The best part of this whole experience was getting a ride on the dolphin while I held onto her fins and she glided across the whole water.. Dolphins are definitely the most graceful and intelligent sea creatures and the way they interacted and understood us was absolutely outstanding. Also, it was really interesting and heartbreaking learning about the dolphins and how not many of them are surviving because they are being slaughtered and they are dying from toxic exposure. As a result, the dolphins made a huge impact on my life because once I heard what was happening to the dolphins it touched deep into my heart and made me want to make a difference in the world and stop the cruelness of people slaughtering and taking advantage of them. Afterwards, we went over to the zip lining and I couldn’t help but have that stomach drop feeling as we got there. I was standing at the very top and almost ready to go and my fear of heights was almost sickening me out but I knew I had to experience this. My feet lifted off of the platform and I felt pretty comfortable as I felt like I was a superhero for a couple of minutes. I was soaring over the stunning beach and the palm trees just below me and all I could say in my head was, â€Å"this view is just outstanding† and I wish I could stay in that moment forever. For the most part, today I took a leap of faith out of my comfort zone as there was a huge adrenaline rush in me as I was about to soar really high, but being able to experience this made me want to go out and try new things that I could eventually overcome my fear of because life begins just beyond your comfort zone. A day to remember, I will never forget these astonishing experiences that I spent with the lovely dolphins and zip lining over the most gorgeous view. The climate in Mexico made it the best part because without it I wouldn’t have enjoyed the memorable and adventurous activities that I will cherish forever. Since we were in Mexico in February it was sunny almost every day and when it did rain it would only rain for a short period of time during the day. Since it was hot and sunny most of the time, we got a much better experience with the friendly dolphins, zip lining over a tremendous view and other adventurous activities that we will never forget. Also, with this weather I got a golden brown tan from the beaming rays of the sun. However, some days the humidity was really high and it felt as humid as a steam room, as the moist heat stuck to my body. By the middle of the day temperatures can reach up to about 40 degrees, where the sun is just scorching on my body. Without the beautiful weather, my experiences and memorable moments wouldn’t be enjoyed as much and I got a nice golden brown tan. Also with this being said, the bright, warm and sunny summer days encouraged me to think about traveling to a numerous of warm climate places and also experience other vacations where the climate is different. Early in the morning, we exhaustingly started to pack our bags and head off to the airport and as soon as I got on the plane my mind was filled with reflections from my unforgettable vacation. My vacation in Mexico brought many exciting adventures and new experiences that brought a positive insight in me as it made me break out of my comfort zone, made me want to travel the world more often, and also to get involved and make a difference in the world. The lovely scenery made me want to stay in this gorgeous place forever, experiencing new activities in a different location made for a lot of memorable moments that I’ll remember forever, and without the comfortable climate I wouldn’t have enjoyed the trip as much as I did.