I want to talk about two things about economics in real life.
One of the important purposes of analyzing an economy in my opinion is to earn money. To win a competition among tons of other suppliers, knowing the customers exactly would be crucial. The customer analysis now becomes an essential part not only in marketing but also in economics. For example, let’s think about casual clothing retail store, Gap. Gap Inc. has grown from one brand to five differently characterized brands; Gap, GapKids, babyGap, GapMaternity, and Gapbody. Clothing and accessories in Gap are targeting the customers who seek casual and less-expensive products. Usually, teenage and college students are more likely to be the main customers, so the atmosphere and decoration in the clothing shop is pretty bright and cool. On the other side, it could be thought that GapKids and babyGap must target primarily for babies and kids, so their inside-decoration and shop atmosphere should be built for small children’s interest and convenience. Actually, it should not be. The real customers for the brands are parents of the small children. In economist’s point of view, it is important to think where the money actually comes from.
The other interesting topic is counter-signaling. Let’s say you have doctoral degree from Harvard University and you do not tell about it specifically to people you recently know. You can show off your degree by talking about “Harvard,” but it would have greater impact on people by not emphasizing the fact and let people know naturally. Counter-signaling is showing off by not showing off. Senders may not explain in details about what they want to brag so that receivers can assume certain things from additional information that the senders inferred signal. It is also applied in familiar situation about a millionaire who only wears casual clothing. People are more surprised by his/her humbleness after they found out the fact. Therefore, counter-signaling is good way to upgrade your mysterious specialty.
One of the important purposes of analyzing an economy in my opinion is to earn money. To win a competition among tons of other suppliers, knowing the customers exactly would be crucial. The customer analysis now becomes an essential part not only in marketing but also in economics. For example, let’s think about casual clothing retail store, Gap. Gap Inc. has grown from one brand to five differently characterized brands; Gap, GapKids, babyGap, GapMaternity, and Gapbody. Clothing and accessories in Gap are targeting the customers who seek casual and less-expensive products. Usually, teenage and college students are more likely to be the main customers, so the atmosphere and decoration in the clothing shop is pretty bright and cool. On the other side, it could be thought that GapKids and babyGap must target primarily for babies and kids, so their inside-decoration and shop atmosphere should be built for small children’s interest and convenience. Actually, it should not be. The real customers for the brands are parents of the small children. In economist’s point of view, it is important to think where the money actually comes from.
The other interesting topic is counter-signaling. Let’s say you have doctoral degree from Harvard University and you do not tell about it specifically to people you recently know. You can show off your degree by talking about “Harvard,” but it would have greater impact on people by not emphasizing the fact and let people know naturally. Counter-signaling is showing off by not showing off. Senders may not explain in details about what they want to brag so that receivers can assume certain things from additional information that the senders inferred signal. It is also applied in familiar situation about a millionaire who only wears casual clothing. People are more surprised by his/her humbleness after they found out the fact. Therefore, counter-signaling is good way to upgrade your mysterious specialty.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.