How do economic incentives affect social preferences and behavior essay

Luft The recent growth of for-profit activities-in medical care has led to concern about the growth of a "new medical-industrial complex" Relman, ; see also Caper, ; Saward and Sorensen,

How do economic incentives affect social preferences and behavior essay

Purchase decision Post-purchase behavior. In the case of imported automobile, it is usually beyond the need as the simple, cheap, made in the country can fits the need, whereas this imported automobile is a luxury product and so it's more of the wants, desire and fashion or trend.

People buy an automobile because they need it, but then they choose the brand, model, etc. However, to studying the correctness of the above model does not really interest the researchers but it's the factors that influence on the generic model that would work.

Influences on Decision-making Group such as culture, family, friends, the referrer Environmental factors such as time, temperature, etc. Internal factors Lifestyle, personality, decision making process, motivation, etc.

Word of mouth According to East et al. However, it is not clearly identify if the people received the message would reconsider, knowing that the referrers are incentivized.

Demographic factors Kotler mentioned that demographic factors influenced customer's buying decision are the internal factors including gender, age, income, education level and family size. Kotler commented that the market is divided based on factors like age, gender, income, occupation, education, family size, and religion, race, generation, nationality and social class.

These factors are the basic factors to differentiate customer groups as the customer wants, preferences and usage are usually involve demographic factors. Age Age is one of the demographic variables that often use to divide the market segment as it helps marketers to understand and keep themselves up to date of the changing life cycle of each generation Dibb et al.

According to Flynnage is a very important demographic factors that influences on the decision making process on the purchase because natural factor, easy to measure and use it a lot of social science theories. Kotler mentioned that the different needs and wants are different in different age groups.

People of different age have different needs and wants and buy different goods and services over their life time.

Gender Education level Skinner has mentioned that educated customers tend to find more information on the product they are purchasing and demand better quality products and so education becomes one of the factors that influences the decision making process.

Solomon stated that the level of education might be related to the income level and occupation as the certain education level will be accepted by a certain social class in which education is also one of the factors that's being use to identify the social class in some area.

According to Dunne and Luschthe accomplishment in the education field is the most reliable index for the income potential, attitudes and the way of spending of a person. For example, graduate students have different buying behavior comparing to the undergraduate students even though they might stand in the same age group.

They are more conscious of the quality, price and services. Occupation In accordance with Kotler and Armstrongthe purchase made for goods and services are affected by a person's occupation. Identifying the occupational groups according to the interest in their products is an important thing for the marketers to do as a company will be able to focus on the target customers or even specialize on a certain products that will fit with the customers' needs.

Hawkins, Best and Coney mentioned the differences in consuming the products and services among the different occupational classes, whether it would be normal grocery like soap or food or even the electronic products like mobile phone or computer.

It's not just the differences in the consumption, but also the media preferences and shopping patterns. Income According to Stattincome is one of the variables that is used to identify the status of a person.

It is considered to be one of the most important socio-economic status variable as the quantification can be easily done and compel the entry to some markets.

Peter and Oslon have indicate that the different in the income level of people has influences on the value, behaviors and lifestyles. In agreement with Solomonthe buying power and market potential is also define by income of a person, as people obtain goods and services that they need to show their choices, in which more money will be required to do so.

Culture According to Solomonculture is a society's character that includes theoretical ideas like values and ethics and physical matters and services like automobile, clothes, food, sports, etc, that are delivered or respect by a society. In the other word, it's a set of belief, norms, values and traditions that share among the members.

Culture is being learned and has a long effect on the behavior of an individual.

How do economic incentives affect social preferences and behavior essay

As an example of cultural influences, consider how the salesperson in a car showroom in England should approach the different couples of customers that visit as in some cultures the husband will be the one making the decision, while in the other it's the wife.

Social Class This can be simply defined by set of factors like income, family background and occupation. As Phile saw, class is also a matter of what one does with one's money and how one defines his rold in society".

Solomon However, it is mentioned in Solomon as one wealthy woman observed when she was asked to define social class: Where you send your children to school.

The hobbies you have. Skiing, for example, is higher than the snowmobile It can't be [just] money, because nobody ever knows that about you for sure. It involves measuring consumer' major AIO dimension activities work, hobbies, shopping, sports, social eventsinterest food, fashion, family, recreationand opinions about themselves, social issues, business, products.

People from the same family, social class, or income level can have totally different lifestyles. Types of buying decision behavior According to Kotler and Armstrongthe process of buying differs from each product or service, a bottle of shampoo, a tennis racket, an expensive mobile phone or computer and a new car.

The harder the decision, it's usually the more expensive the product is and therefore require mostly more people and time to consider before making the decision.Every politico-economic system generates a set of incentives. The real issue is whether a particular set of incentives is “right” or “wrong,” i.e., whether it is appropriate to attain the goals sought or claimed for it by those implementing the political and economic policies.

The influence of short-term financial incentives on social norms and behaviors we develop and test a conceptual model to explain how short-term incentives can affect pro-social behavior in the long run, emphasizing the role of social norms.

The economics . Conditional preference: i prefers to conform to R in situations of type S on the condition that: How Expectations Affect Behavior • a. Empirical expectations: i believes that a sufficiently large subset of P conforms to R in situations of type S, and either: b.

This information might affect the agent’s social preferences which in turn affect the agent’s behavior. Second, incentives provide situational cues for appropriate behavior.

Finally, incentives may lead to a crowding out of intrinsic motivations. Social norms are implicit or explicit behavioral expectations or rules within a society or group of people (Dolan et al., ), and they are an important component of identity economics, which considers economic actions to be the result of both monetary incentives and people’s self-concepts (Akerlof & Kranton, ).

Our preferences are not. Social norms are implicit or explicit behavioral expectations or rules within a society or group of people (Dolan et al., ), and they are an important component of identity economics, which considers economic actions to be the result of both monetary incentives and people’s self-concepts (Akerlof & Kranton, ).

Our preferences are not simply .

Economic Incentives and Clinical Decisions - The New Health Care for Profit - NCBI Bookshelf