A Report on Establishing a Company and Recommendations for Someone Starting an Engine Company - Free Essay Example

Sample details Pages: 8 Words: 2442 Downloads: 10 Date added: 2017/06/26 Category Business Essay Level High school Did you like this example? A Report on Establishing a Company and Recommendations for Someone Starting an Engine Company Introduction Homer wants to open a small business as he designs and builds V-engines for other companies andhas recently leased a large warehouse with offices. He is not sure whether to run his business as a sole trader or to obtain limited liability.The establishment of a business has many factors involved as well as legal responsibilities that the owner has to adhere to. This report will highlight the different types of business Homer may operate as, including coverage of legal responsibilities and the advantages and disadvantages of each type. Don’t waste time! Our writers will create an original "A Report on Establishing a Company and Recommendations for Someone Starting an Engine Company" essay for you Create order The report will also highlight any regulations that Homer must adhere to when setting up the company as well as any responsibilities he may have as a director and how this title may be taken away from him. Main Body Companies can be created by registration under the Companies Act, by statue, or by Royal Charter (Macintyre, 2012). A company may be private which is usually the case when someone is starting their own business such as a corporation, sole proprietorship or partnership as their shares are traded privately. It can be a public company where its shares are sold in a public market such as the London Stock Exchange (enabling them to raise capital quicker) and they must inform shareholders of any changes to take place, such as financial performance, management actions and company operations (Allbusiness.com, 2014). It must be made clear when registering whether the company is public or private (Macintyre, 2012). Public companies must have an allotted share capital of at least  £50,000 and at least one quarter must be paid up, however if things go wrong the public company can sell its shares on the stock market. On the other hand a private company can be limited by guarantee which means that the directors and shareholders will financially support the organisation up to a specific point if something were to go wrong, acting as guarantors. Examples would be clubs, sports associations, and students unions (Companiesmadesimple.com, 2014). Unlike public companies, private companies are not required to publically disclose financial information and file an annual report documenting their performance in great detail. Public companies can go private by having the owners buy back shares from the shareholders, whether they are members of the public, another company, an individual, or a small group of investors (Allbusiness.com, 2014). The Companies Act 2006 was established to improve the UKs competitiveness by providing a sound, flexible framewor k for UK company law and make it easier for companies to be established. The majority of companies are created by registration under the companies Acts via Companies House for a low cost and by submitting certain documentation and a Memorandum of Association. This document is a statement made by each subscriber confirming their intention to form a company and become a member of that company. If the company is to have a share capital on formation, each member also agrees to take at least one share (Companieshouse.gov.uk, 2014). They are then presented with a certificate of incorporation. The application must state; Company Name Registered office in England, Wales, Scotland or Northern Ireland Liability of the members to be limited and whether by share or guarantee Public or private company Statement of share capital and initial shareholdings or statement of guarantee Statement of companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s proposed officers Intended address and registered address Statement of any proposed articles of Association Once registered, the company must establish Articles of association which are rules about running the company that shareholders, directors or the secretary have to agree. The majority of companies will use standard model articles but they can be written by the company as long as there are no laws broken. For example the role of shareholders in decision making within the company with regards to expansion and changes in location. Macintyre (2012) states that a company is a legal person in its own right, meaning it has a legal identity of its own which is separate from the legal responsibility of its owners. This principle was established by the House of Lords in Salomon v Salomon and Co Ltd [1897]. This case shows that the owner of the business was not liable for the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts as the business went into liquidation. This is an example of a limited company and is how most companies are registered. A limited company is an organisation that can be established to run a business and is responsible for everything it does but its finances are separate. Therefore if the company were to go into liquidation, the owners or shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ personal income would not be affected. Every limited company has members, who are people or organisations that own shares in the company as well as directors who are responsible for running the company. It is up to the shareholders to appoint the director or board of directors who will be running the company and this is set out in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s articles of association (Macintyre, 2012). Gov.uk (2014) states that as a director of a company the legal responsibilities are as follows; Try to make the company a success, using your skills, experience and judgment Follow the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s rules Make decisions for the benefit of the company Tell other shareholders if there is a personal benefit from a transaction the company makes Keep company records and report changes to Companies House and HM Revenue Customs Make sure the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s accounts accurate and not altered Register for Self Assessment and send a personal Self Assessment tax return every year The only requirement stated to become a director is the person must be at least 16 years old. Below is a number of ways a director can be disqualified through the enforcement of a court order or bankruptcy order (Gov.uk 2014); Allowing a company to continue trading when it canà ¢Ã¢â€š ¬Ã¢â€ž ¢t pay its debts Not keeping proper company accounting records Not sending accounts and returns to Companies House Not paying tax owed by the company Using company money or assets for personal benefit A sole trader is someone that is running their own business as an individual and are able to retain business profits after taxes have been paid. Barberà ¢Ã¢â€š ¬Ã¢â€ž ¢s shops are usually sole traders as they are small and easy to set up as little capital is required. They are able to hire staff however they are personally responsible for any losses the business makes, keeping accurate records of business sales and spending and any bills for things bought such as equipment and stock (Gov.uk, 2014). The drawbacks to being a sole trader are that there are long hours and there is no one to share the responsibility of running the business, such as the accounting while at the same time carrying out the trade responsibilities for a handyman. There is also the risk of unlimited liability, where by the sole trader will be responsible for the debts of the company and may have to sell some personal assets to cover the business debts (Worthington and Britton, 2009). Partnerships are relat ionships which occur when common business is carried out with a view of profit and are usually owned by two or more people. A contract known as a deed or article of partnership sets out how much capital each party has contributed and how profits and losses will be calculated. There is no legal requirement to draw this document up, but they are common in partnerships. A partnership can also be implied and can be created informally according to Macintyre (2012) once all the contractual requirements are met, such as an offer, acceptance, intention to create legal relations and consideration. Partners are liable for each other unless they are limited partners, but one partner has to have unlimited liability (Macintyre, 2012; Unit 78 QA Recording 2014). The main advantage of a partnership is the shared responsibility and therefore specialisation of skills will be possible. For example in the Barberà ¢Ã¢â€š ¬Ã¢â€ž ¢s shop, one of the partners can concentrate on cutting hair while the other partner who may have a better business background can concentrate on the finances and marketing. This advantage however is also the main disadvantage as disputes can arise when the partners do not agree and there can also be a dispute on the amount of profits that is to be distributed. Other advantages include additional start-up capital and therefore more flexibility in running the business. Partners like sole traders also have unlimited liability which would mean personal assets may be needed to cover the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts (Worthington and Britton, 2009). The Limited Liability Partnerships Act 2000 introduced the concept of limited liability partnerships (LLPs) in order to keep the partnerà ¢Ã¢â€š ¬Ã¢â€ž ¢s personal assets separate from those of the business (Hartley, 2014). Therefore if the Barberà ¢Ã¢â€š ¬Ã¢â€ž ¢s Shop were a LLP and became insolvent, the partners would lose money they invested in starting the company, but they will not have to pay the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts unless as occured (Macintyre, 2012). The LLP is a separate legal entity and although the LLP will be liable for the full extent of its assets, the liability of the members will be limited (Gov.uk, 2014). Like a company, the LLPs are required to provide annual returns and accounts, notify any changes to the LLPà ¢Ã¢â€š ¬Ã¢â€ž ¢s membership, address and Registered Office address. The Company Directors Disqualification Act 1986 applies to both members of a partnership and any shadow members (silent partners), therefore if a partner was disqualified as a director previously they would not be able to become a partner and would be committing a criminal offence which would make them liable without limit for the LLPà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts (Macintyre, 2012). Incorporated companies are larger companies that have legally declared they are separate from their owners. Incorporation involves drafting a document known as an Article of Incorporation which list s the primary purpose of the business, its location, number of shares and class of stock being issued, if any. The advantages of incorporation are as follows; it protects the owners assets against the companys liabilities; allows for easy transfer of ownership to another party; achieves a lower tax rate than on personal income; receives more lenient tax restrictions on loss and can raise capital through the sale of stock as they are usually large companies. As appose to being focused on a single person or a small group, ownership of an incorporated business is spread out among stockholders, who have the right to vote on key business decisions and they are usually listed on stock exchanges, such as the London Stock Exchange (LSE), and anyone can access a wide range of financial and operational data about each company (Veldman, Willmott, 2013). The drawbacks to corporations are that the income is taxed from the company and the stockholders and executives must also pay tax on their own income. There is also the possibility of the original company founders losing all management control through the voting power of stockholders (Veldman, Willmott, 2013). Recommendations and Conclusions As Homerà ¢Ã¢â€š ¬Ã¢â€ž ¢s business requires him to build engines, he has a duty of care to the companies he works with to build the engines at a good quality and standard and to ensure his premises are safe for visitors and staff as he also owes them a duty of care. Should one of the engines go wrong he will be considered negligent and could be prosecuted under Tort Law. If Homer were to hire some employees he will need to be aware of the various legislations that will affect his type of work, such as the Health and Safety at Work Act 1974 which places duties on manufacturers and also with regards to the working conditions in the factory where the engines are built and ensuring staff are able to work in a safe environment. Homer needs to be aware that he has vicarious lia bility over the actions of his staff and also needs to provide them with adequate insurance to cover foreseeable damage such as accidents at work and potential damage through their own negligence (Macintyre, 2012). So if a vehicle was to crash as a result of a poorly built engine, Homer would be liable and ensuring he has the right insurance will mean his company could continue to operate. In regards to the recently leased premises as this contract was made before the formation of the business, this would not be included within the limited liability and Homer would be responsible for this debt. Homer should aim to ratify any contracts made before establishing the business (Macintyre, 2012) and he should talk to the landlord of the premises and seek to re-negotiate under the grounds that the company is responsible for the rent of the premises and not Homer himself. If Homer were to set up the business as a sole trader, it would be easier as he would be able to start the busines s immediately, however he would be liable for the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts, therefore it would be beneficial for Homer to operate as a limited company or a limited liability partnership to ensure that he is not liable should the company have any financial or legal issues. Homer has to be careful to ensure he submits his documentation such as annual return and looks to improve the business in order to avoid disqualification and not partake in illegal activities such as fraud, retaining company assets illegally and insider trading (Macintyre, 2012). Once Homer has made the decision to create the limited company, it is then his responsibility to ensure he registers the company via Companies House and files annual returns. References Allbusiness.com, (2014).Public vs. Private Companies: How Do They Differ? | Company Activities Management Company Structures Ownership from AllBusiness.com. [online] Available at: https://www.allbusiness.com/business-planning/business-st ructures/2304-1.html [Accessed 13 Jul. 2014]. Companieshouse.gov.uk, (2014).Memorandum of Association. [online] Available at: https://www.companieshouse.gov.uk/infoAndGuide/faq/memorandumOfAssociation.shtml [Accessed 13 Jul. 2014]. Companiesmadesimple.com, (2014).Private Company Limited by Guarantee. [online] Available at: https://www.companiesmadesimple.com/company-formation-limited-by-guarantee.html [Accessed 13 Jul. 2014]. Gov.uk, (2014).Choose a legal structure for a new business GOV.UK. [online] Available at: https://www.gov.uk/business-legal-structures/limited-company [Accessed 13 Jul. 2014]. Gov.uk, (2014).Company director disqualification GOV.UK. [online] Available at: https://www.gov.uk/company-director-disqualification [Accessed 13 Jul. 2014]. Hartley, S 2014, Limited liability partnerships,Estates Gazette, 1374, p. 15, Business Source Complete, EBSCOhost, viewed 13 July 2014. MacIntyre, E. (2012).Business law. 1st ed. Harlow, England: Pearson Education . Small Business Chron.com, (2014).What Is an Incorporated Business?. [online] Available at: https://smallbusiness.chron.com/incorporated-business-365.html [Accessed 13 Jul. 2014]. Worthington, I. and Britton, C. (2009).The business environment. 1st ed. Harlow, England: FT Prentice Hall.

Comedy is an important aspect in Thomas King’s short...

Comedy is an important aspect in Thomas King’s short story, â€Å"A Short History of Indians in Canada†, as well as Ernest Hemingway’s short story, â€Å"A Clean, Well-Lighted Place.† The differing purposes of humour in these two short stories are what separates them in terms of the effect comedy has on the writing. Thomas King integrates satire, a form of humourous ridicule, to convey the inability of the Native population to adapt to white civilization and the demeaning, yet normal opinion that the white men have regarding this issue. Similarly, Jennifer Wallace’s article, â€Å"Tragedy and Laughter† contributes to King’s comedic strategy, as she acknowledges that a serious matter can be presented in an amusing way that allows the audience to gain†¦show more content†¦King uses the comical phrase â€Å"Looking for some excitement?† (203) to express that the white men view this problem as an unusual form of pleasure, w hich seems outrageously nonsensical at first but gives the basis of the principle that will be revealed more noticeable as the story commences. Although a moral involving unfortunate racial stereotypes does not appear to be a comical subject, Wallace presents in her article, â€Å"The definition of tragedy is also determined by the audience response,† (203) which offers insight into King’s subtle, yet effective comedic strategy that allows his audience to engross themselves in the humour of the issue before contemplating the tragic theme. In fact, many writers have articulated the struggles that Natives have experienced since the arrival of Europeans to Canada, but King’s short story has a uniquely creative and clever style that communicates a long running issue in Canada in an amusingly successful manner. Had King presented his goal frankly and non-metaphorically, the audience likely would have responded in a somber way, and would treat the writing just like an y other historical literature they have ever read. Therefore, the strategy of not presenting the context in a tragic matter truly gives the reader an opportunity to realize how comically impractical the stereotyping of Natives really is, and how it should not continue in society. It may not be literally comical, but thisShow MoreRelatedLogical Reasoning189930 Words   |  760 PagesLogical Consequences and Counterexamples ..................................................... 361 3-Valued Logic................................................................................................................................ 362 History of Sentential Logic ........................................................................................................... 367 Review of Major Points ..........................................................................................

The Analysis of Three Research Approaches

Question: Discuss about literature review on business and management research? Answer: Introduction: Two very common yet very useful research approaches are Quantitative research and Qualitative research approaches. Both the methods though commonly considered, differ fundamentally. However, their goals and their applications are different in numerous ways. Qualitative research focuses to achieve quantification of data. Quantitative research gives the opportunity of generalizing the results from a chosen sample to the total available respondents and the evaluation of the event of several ideas and opinions on the basis of a structured research instrument. On the other hand, qualitative research is applicable for achieving an in-depth observation of underlying causes and motivations. The primary objective of the qualitative research approach is to develop ideas and hypotheses for future quantitative research works. Major differences between these two research methodologies are their respective processes of data collection method, data analysis method and outcomes (Al 2013). Data colle ction methods in qualitative research method are seldom based on semi-structured, but methodologically flexible techniques like individual interviews and group discussions. These methods are absolutely perfect for collecting comprehensive views in depth. Quantitative research, on the other hand, uses highly organized and rigid techniques such as online questionnaires, interviews (public interviews or telephone interviews). Quantitative research method is different from qualitative research method as it allows unlimited expressions from participants. The response of the participants depends on the pre-formed questions (Eaton 2013). In case of data analysis, qualitative data analysis follows non-statistical methods. Its methodological approach is guided by the theories, models and other existing materials. On the other hand, in quantitative research, the sole approach of data is statistical and takes place in the form of tabulations. Findings are basically descriptive in nature although conclusive only within the numerical framework. This assignment will focus on describing these two research methods in depth to find out different methods and procedures used in each of these methods (Klassen et al. 2013). Literature Review: Qualitative research method: Qualitative research focuses to gain a detail understanding on definite organization or incident rather than explanation of a bulky sample population. It has the aim of providing an unambiguous representation of the structure, order and wide patterns found in the group of participants. Qualitative research method is also known as field research or ethnomethodology that collects data from groups of people in specific social or organizational settings. This research method mostly uses observation as its data collection method. This is done by selecting and recording the behaviors of people in their respective environments. This method strongly believes that observation is useful for collecting depth description on organizations or on events, for collecting data and information that are inaccessible otherwise. This method is used when other methods become inadequate for collecting derived data (Mitchell and Jolley 2013). Observation includes taking notes about the behaviors of the participants, setting, purpose, social and organizational behavior and the frequency and duration of singularities. Non-verbal communications, verbal communication and physical phenomenon can be used to complete an observation. While doing a qualitative research an observation must include the following characteristics (Thomas 2013). Observation must follow the formulated research purpose Observation and its methods must relate with the existing literature and theories Observation should be planned in a systematic manner While collecting data, again organized and systematic methods must be used Collected data is refined into general propositions and hypotheses While doing qualitative research method, it is important to keep in mind six important factors namely proper choice of a site and description of indicators, concepts and problems, proper strategy to start the research, selecting people and events to observe that can provide desired data, develop an amicable relation with the participants, analyze the observation in every stage and final analyze and interpretation (Wang and Mao 2012). While conducting qualitative research it is important toask questions like: who is doing or involved in something, how is it done, for what kind of reasons, what is done, what kind of steps are followed and in what kind of order, what kind of strategies are used, what are the consequences of doing or not doing something, why is this like this, wherefore is it done and why. Quantitative research method: Quantitative research method is known as an Explaining phenomena by collecting mathematical data that is analyzed using arithmetical methods. While conducting a quantitative research work, the primary goal is to decide the connection between a dependent variable and an independent variable of the research area. Quantitative research method strictly follows either descriptive method or experimental method (Alvesson and Sandberg 2013). In case of descriptive methods, subjects are measured only once but in experimental methods subjects are considered earlier and after an action. A descriptive study is said to establish only associations between variables, on the other hand, experimental study established casualty. Quantitative research focuses on numbers, logic and an objective stance. It does not follow different ways of thinking which is defined as the development of a bunch of ideas regarding a research problem in an unstructured and free flowing manner (Brown and Stowers 2013). It follows numeric and staticata and comprehensive, convergent calculation. The characteristics of quantitative research method are mentioned below, Use of organized research instruments is necessary to gather data in quantitative method. Comparatively larger sample sizes are collected to find a result. The sample size depends on the population and number of participants. Using clearly defined research questions, objective answers are sought. Various aspects of the study are designed before data collection procedure. Various instruments such as survey questionnaires, IT tools are used to collect the numerical data. Mixed research method: This methodology is used for conducting research that includes collecting, analyzing and integrating quantitative and qualitative research. Quantitative method includes experiments and surveys and qualitative method includes focus groups and interviews. When neither qualitative nor quantitative method can provide desired data on a problem or on a topic, then this mixed method is used to fulfill the purpose of a research (Chandra and Sharma 2013). The combination of the qualitative and quantitative research approaches provide the opportunity of achieving broader and indepth understanding and justification at the time of offsetting the weaknesses of the individual approaches. The most significant advantage of using this method is the possibility of triangulation. This method can use several means like methods, data sources and researches to examine a particular phenomenon (Mertens 2014). This method can be used when, It becomes important to validate or corroborate the results collected from other methods. When using one method like qualitative method, becomes important to describe and organize the other method like quantitative method. When findings from one method like qualitative method demands the help of the other method like quantitative method to reveal the depth meaning. Discussion: In order to discuss the practical application of the three research processes, three journal articles have been chosen. The three articles are selected from the Journal of Marketing. The three articles are written by following the quantitative, qualitative and the mixed method of research individually. Qualitative research methods: Qualitative research is used for seeking a descriptive answer of the research questions. The different methods used in this type of research works are observation, in-depth interviews and focus groups. Observations are used for collecting the data from the natural behavior of the respondents. In depth interviews are used for collecting the data by asking research related questions to the respondents. Sometimes the data can also be collected by observing the group activities of people. This is called the focus group method of collecting the data of a research work (Bryman and Bell 2015). The article Belief in a Just World: Consumer Intentions and Behaviors Toward Ethical Products written by Katherine White, Rhiannon MacDonnell, John H. Ellard is about consumer behavior. The research work was conducted by following the qualitative research technique. The method used for the data collection as the observation of the natural activity of the participants. The activities of the behavior of total 147 customers were observed for gathering the data about the perception of the customers. There were 95 women and 52 men among the chosen population. An article was given to the customers and they were told to imagine a particular situation and take a proper decision. Decisions of each of the participants were collected and analyzed to understand the psychology of the customers (White, MacDonnell and Ellard 2012). Sampling in qualitative research: There are two popular methods for the sampling process in the area of marketing research. They are probability sampling technique and non-probability sampling technique. Generally the qualitative research works are conducted by following the non-probability sampling technique where the numbers of respondents are less and they are chosen as per the choice of the researchers. In this case, the number of population was huge that was used for the data collection. The probability sampling technique was used in this case. The 147 customers were selected randomly from the total population available at the time of the research work. Data analysis in qualitative research: The collected data are generally analyzed by applying deep observation and analysis. In this case, this process is used for analyzing the perceptions of the customers chosen as the respondents of the research study (Taylor, Bogdan and DeVault 2015). Quantitative research methods: Quantitative research methods are used where the data can be analyzed through the use of mathematical or statistical tools. The most popular method used for collecting the data of the quantitative research work is the survey method. The article chosen for understanding the practical application of the quantitative research work is Generating Sales While Providing Service: A Study of Customer Service Representatives Ambidextrous Behavior written by Claudia Jasmand, Vera Blazevic, Ko de Ruyter. The research work was conducted by using two online surveys about the activities of CSRs. The total population used for the survey was 119 CSRs where 68 were female respondents. The responses were collected and then summarized for analyzing them through the use of statistical method for understanding the overall result of the survey conducted for the research work (Jasmand, Blazevic and de Ruyter 2012). Sampling in quantitative research: Generally the probability sampling technique is used for conducting the quantitative research work. In this case also, the probability sampling technique was used. Simple Random Process of the probability sampling technique was used in this research work. The 119 CSRs were chosen randomly for from 25 different teams. On an average 4.76 respondents were chosen from each of the teams. The respondents were chosen almost equally from two call centers (Jasmand, Blazevic and de Ruyter 2012). Data analysis in quantitative research: The statistical analysis is used for analyzing the data gathered in the quantitative research works (Zikmund et al. 2012). The computerized statistical tools were used in the case of the chosen research work. The data is summarized in a tabular format and the statistical analysis was applied on the data. Percentage analysis and some other descriptive statistics were used for the analysis of the data (Jasmand, Blazevic and de Ruyter 2012). Mixed research methods: Mixed research method is nothing but the hybrid of the quantitative and qualitative research approaches. Go Green! Should Environmental Messages Be So Assertive? written by Ann Kronrod, Amir Grinstein, Luc Wathieu, is journal article where the mixed research method is used for conducting the research work. The online survey and the observation both are used for the research work for understanding the impact of the environmental messages. The data analysis of the whole research work is done by following the statistical analysis and the observation method as per the type of the data collected in the mixed research method of the research study (Kronrod, Grinstein and Wathieu 2012). Conclusion of the findings: The main difference between the quantitative research and qualitative research methods is about the flexibilities. Normally, quantitative methods are quite rigid. The survey questionnaires used in the quantitative research approach uses the same procedure for all the respondents. Generally close ended questions are used for the survey methods of the quantitative research works. The benefit of this rigidness is that it provides the opportunity of conducting meaningful comparisons of the responses of the respondents and studying sites. Qualitative research works are conducted by using the observation method which can be different for different respondents. Mixed method gives strengths for minimizing the individual weaknesses of quantitative and qualitative research approaches. However, this method also has some disadvantages too. As it uses both qualitative and quantitative method, the execution of mixed method is very complex. This method consumes more time and resources to plan and i mplement. Besides, it is difficult to resolve discrepancies that arise while evaluating the findings. References: Al, S. 2013. Interpretive research design: concepts and processes. International Journal of Social Research Methodology, 16(4), pp.351-352. Alvesson, M. and Sandberg, J. 2013. Constructing Research Questions. London: SAGE Publications. Brown, J. and Stowers, E. 2013. Use of Data in Collections Work: An Exploratory Survey.Collection Management, 38(2), pp.143-162. Bryman, A. and Bell, E., 2015.Business research methods. Oxford University Press, USA. Chandra, S. and Sharma, M. 2013. Research methodology. Oxford: Alpha Science International Ltd. Eaton, S. 2013. The Oxford handbook of empirical legal research. International Journal of Social Research Methodology, 16(6), pp.548-550. Jasmand, C., Blazevic, V. and de Ruyter, K., 2012. Generating sales while providing service: A study of customer service representatives' ambidextrous behavior.Journal of Marketing,76(1), pp.20-37. Klassen, A., Creswell, J., Plano Clark, V., Smith, K. and Meissner, H. 2012. Best practices in mixed methods for quality of life research. Qual Life Res, 21(3), pp.377-380. Kronrod, A., Grinstein, A. and Wathieu, L., 2012. Go green! Should environmental messages be so assertive?.Journal of Marketing,76(1), pp.95-102. Mertens, D.M., 2014.Research and Evaluation in Education and Psychology: Integrating Diversity With Quantitative, Qualitative, and Mixed Methods: Integrating Diversity With Quantitative, Qualitative, and Mixed Methods. Sage Publications. Mitchell, M. and Jolley, J. 2013. Research design explained. Australia: Wadsworth Cengage Learning. Taylor, S.J., Bogdan, R. and DeVault, M., 2015.Introduction to qualitative research methods: A guidebook and resource. John Wiley Sons. Thomas, J. 2013. Empathic design: Research strategies. Australasian Medical Journal, 6(1), pp.1-6. Wang, S. and Mao, H. 2012. The Strategy Research of Modern Service Industry Development. Asian Social Science, 8(2). White, K., MacDonnell, R. and Ellard, J.H., 2012. Belief in a just world: Consumer intentions and behaviors toward ethical products.Journal of Marketing,76(1), pp.103-118. Zikmund, W., Babin, B., Carr, J. and Griffin, M., 2012.Business research methods. Cengage Learning.

Services Consumer Behaviour

There are five stages that a customer goes through before making the ultimate decision to make a purchase. These stages as noted by Lantos (2011) are problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behaviour.Advertising We will write a custom essay sample on Services Consumer Behaviour specifically for you for only $16.05 $11/page Learn More Each consumer passes all these stages until a purchase is made. The essay is an attempt to describe how I progressed through the named stages of decision making while purchasing a tourism service. In addition, the essay explores how the concept of risk is perceived and managed while purchasing a tourism service. Moreover, the implications of the concept of risk with regard to the service provider of the tourism equation have been discussed. Prior to making a decision to purchase the tourism service, I followed the five stages of need recognition, problem awareness , information search, alternatives evaluation, service purchase and post-purchase evaluation (Lantos, 2011). The stages are represented in the diagram below as described by Tyagi and Kumar (2004). Figure 1: Stages of the decision process for purchase Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More During the problem recognition stage, the need to go on holiday triggered my desire to go on vacation. The desire to travel as a tourist was important as it aroused the need to search for important information on my impending tourism adventure. The information search phase is important as it helps the consumer in making wise decisions (Tyagi Kumar 2004). To acquire the necessary information, different sources such as personal sources, commercial sources, public sources and experience sources are used. In my case, I searched for the necessary information from commercial sources such tourist servi ce provider websites, major hotels, and tourist agencies. Since it was my first tourism adventure, it was important also to get more information from friends and relatives. Other sources of information that proved to be useful include newspapers, tourist magazines, catalogues, and internet advertisements. After information search, it was time to undertake an alternative evaluation. During this stage, I compared different tourist destinations and hotels. The comparison was based on the expected service quality, perceived risk, cost to be incurred, price offered, anticipated satisfaction, and any discounts offered. I compared different features of tourist destination based on the tourist services offered. After searching for alternatives, it was time to make the purchase decision. This involved the actual buying of the tourism service which was based on different factors. Some of the factors that I had to take into account during the purchase of the service include the opinions of fam ily and friends, recommendations and perceptions, available income, services offered by tourist agencies, and discounts offered.Advertising We will write a custom essay sample on Services Consumer Behaviour specifically for you for only $16.05 $11/page Learn More The final stage involved in service purchase decision making was post-purchase behaviour (Lantos 2011). In this stage, consumers experience concerns after the purchase decision has been made based on cognitive dissonance (Tyagi Kumar 2004). During this stage, I experienced mixed reactions on whether I had made the right decisions in purchasing the tourism service. To my consolation, the market of the tourism service pointed out that I had made the right decision as regards the purchase. After this experience, I can now recommend the service that I purchased to others. How Concept of ‘risk’ is perceived and managed Perceived risk can be described as the level of uncertainty while m aking a purchase decision relative to the outcome realized (Mitchell 1999). As a tourist, the concept of risk played an important role in the purchase decision making process. Given that it was my first time to undertake a tourism service purchase, the level of risk perception was very high. According to Dickson and Dolnicar (2004), perception of risk is very high among consumers especially in the tourism industry. In addition, risks perceived are influenced by social cultural aspects like demographics and level of income. In my case, family recommendations played an important role in reducing the perceived risks. During the purchase, the perceived risk was related to price, anticipated satisfaction and value for money. The question of whether the decision made is the right one always arises during the decision making process.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Based on the rational choice theory, all consumers make rational decisions to maximize on purchased services or product. With respect to my tourism purchase, all potential risks were evaluated to achieve maximum satisfaction from the purchase. Perceived risk is managed through the use of available information on a particular service or product (Cunningham Gerlach, Harper 2004). This is normally high in service marketing because unlike products, services are intangible. As noted by Cunningham, Gerlach, and Harper (2004), availability of information on the services provided helps in the management of perceived risks. With respect to the purchase, availability of adequate information on the tourism service purchased reduced the perceived risks. In addition, information from friends and relatives reduced the perceived risks and aided in the decision making process. Availability of information through adverts and other media outlets aids the consumer in making a purchase decision withou t postponing (Cunningham et al. 2004). In the second and third stages, a consumer relies on personal recommendations and any available information that can reduce the perceived risk before a purchase is made. The aforementioned factors played an important role in managing perceived risks while I made decisions related to the purchase. Implications risk hold for service providers in tourism / hospitality Perceived risks hold some implications to the suppliers of tourism services. For instance, high levels of risk perception by consumers reduce the number of sales made by tourism providers. As noted by Dickson and Dolnicar (2004), risks play an integral role in the tourism industry since they enable service providers to offer the best services. In addition, risks enable service providers in the supply side of tourism and hospitality equation design high valuable brands which increase the level of trust (Mitchell, 1999). The higher the perceived risk of a certain product or service the lower the chance of the consumer purchasing that product or service. This affects the sales volumes of the product or service in question. Cunningham, Gerlach, and Harper (2004) opine that â€Å"an extremely high level of perceived risk can cause a consumer to postpone or avoid a purchase entirely† (p. 23). This means that if a consumer perceives the risk associated with a particular service will be high, and the consumer has the likelihood of postponing or avoiding the purchase. With respect to the service providers in hospitality or tourism sector high risk would make consumers avoid or postpone a purchase. Avoiding or postponing a purchase reduces the level of service sales and market share. In addition it exposes service providers to losses and low level of income. Conclusion The decision making process while purchasing a product or service entails different stages namely; need recognition and problem awareness, information search, alternatives evaluation, service purcha se ad post-purchase evaluation. Perceived risk is important as it assists the consumer to make effective decisions in order to maximize utility and achieve the anticipated satisfaction. Risk perception is managed through information search from multiple sources. In addition, personal recommendations assist consumers manage perceived risk in second and third stages. High level of risk reduces sales as it makes consumer avoid a purchase or postpone it. Reference List Cunningham, D F, Gerlach, J Harper, M D, 2004, ‘Assessing perceived risk of consumers in internet airline reservations services’, Journal of Air Transportation, vol. 9, no.1, pp. 21-35. Dickson, T Dolnicar, S, 2004. No risk, no fun – the role of perceived risk in adventure tourism. Sydney, University of Wollongong Press. Lantos, G P 2011, Consumer behavior in action: real-life applications for marketing managers, Sharpe, Armonk. Mitchell, V, 1999, ‘Consumer perceived risk: Conceptualisations an d models’, European Journal of Marketing, vol. 33, no. 1/2, pp. 163-195 Tyagi, C L Kumar, A 2004. Consumer behavior, Atlantic, New Delhi. This essay on Services Consumer Behaviour was written and submitted by user Artur0 to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.