Recession Or Boom….Consumers Always Have Alternatives!

Recession is heading north as unemployment grows, energy prices soar and property prices nosedive. I had a strong feeling that during a recession, people tend to hold back assets than cash. However, the slump in property prices across Europe and its ripple effects in Asia have dented the confidence of investors in Asia. Consequently, consumer spending also took a beating in retail, services, entertainment and others.

An economic downturn represents breakaway growth opportunities for those clever enough to help consumers feel good about migrating to “inferior goods” by enabling them to justify their decisions in terms other than affordability. A status-conscious car owner would not feel bad about trading his/her Accord or Teana or Camry for a more economical Toyota Prius, because he can boast of saving the environment.

So, how does a common man like me, (provided he is aware of the global crisis and weighs its implications on an individual level) would have a shift in spending behavior? Basically, as a consumer, the following factors would prompt me to buy a new product:

1. Dissatisfaction with a current product
   
2. The Need/Want for a new substitute
   
3. Availability of the substitute
   
4. Market price
   
5. Utility factor of the new substitute
   
6. Post-buying evaluation

Among these factors (in trying circumstances), I would give utmost importance to the utility factor and see if the product is living up to my constantly changing set of expectations.

This shift of my buying behavior for different kinds of products and services is technically termed as preference for “inferior” goods. Well, I am happy with it, what else do I need? Whether it is “inferior” or “cheap”, I look into the utility of the product in the near-term, enough to weather away the recession storm. What is noteworthy here is that companies with smartly cultivated “inferior goods” in their portfolio will ensure repurchase of its premium products.

In these situations, marketing holds the key, because in an age of pressure consumption, insights and understanding of marketers can make all the difference. Sooner or later the economy will bounce back. So, with my amateur marketing know-how I would suggest that companies should remain focused on consumer behavior dynamics rather than blunt selling, for a consumer is the best judge.

Debanjan

Blood In The Name Of Religion

Sathish Andricks

It’s been more than 60 years since India attained independence and it is hard for me to digest that even today there is bloodshed in the name of religion. I am amazed at the fact that in a country which boasts of “Unity in diversity,” secularism is today just a word in our constitution. It is indeed an irony that India is being congratulated by the world leaders on the one hand for reaching an important mile stone by signing the nuclear treaty with the US, while on the other hand the same leaders are questioning our Prime Minister on the violence happening in Kashmir, Kandhamal and Karnataka.

Even though I am a Christian by birth I am not being biased towards what has happened to my brothers and sisters in the violence affected states, but I do strongly feel as a rational human being that by harming people from other religions you are not going to attain whatever your goal is. I do agree as a Hindu or a Muslim or even Christian one has a duty to spread the word of god to all people irrespective of their faiths but please follow the virtuous paths shown by the religious leaders of the past. These leaders were known for the services they rendered to mankind and not by their religion. Today’s religious heads unfortunately are busy in creating more controversies by throwing oil into troubled waters.

If these atrocities do not stop we may have more and more hot-blooded youth alienating themselves from mainstream society and taking to the path of violence and terrorism as is seen in the recent instances of “Jihad” in the name of religion. I know that luckily the majority of fellow-Indians share my sentiment and are secular in their outlook. But unfortunately this majority chooses to be passive and the small voices of sanity are drowned in the cacophony of violent slogans. I am raising my voice against the radicals from all religions, an issue which is threatening to tear the secular fabric of this glorious nation. Most of us have become so passive to the happenings around us that we don’t even bother to react to atrocities as long as they don’t directly affect us. In our busy modern lifestyles where we don’t have time for our families, where are we going to have time for others?

This is indeed a sad state as we do not realize that if we don’t unite now to tell these radical Indians that the majority of us do not endorse their views, it may be too late tomorrow. If India is to take its rightful place in today’s world, it has to be a united and secular country. O fellow Indians please raise your voice against atrocities committed against any religion because I personally believe that no religion in this world preaches bloodshed. It is people with vested interests who twist the preachings to suit their selfish needs and to gain money, power or even position. Ours is the only country in the world which does not have a national religion and boasts of people of all religions. So my dear Indians please believe in “Unity in Diversity” because India is not about Hindus or Muslims or Even Christians but it’s a a beautiful mixture of race, color and religion, - JAIHIND

People!!! No Thank You

Vijai G

With shrinking margins, it’s now the turn of IT & ITES companies to go the way all other industries have gone in the past---- Amused, yes that’s the truth

Bangalorean’s would probably remember the tale of the three great cotton spinning mills, which provided employment to thousands of people and helped many families to survive, but which are no more. They were Binny mills, Minerva mills and Raja mills, which were the Infosys, Wipro & TCS of yesteryears. But today, they are nowhere and most of us do not know what happened to these spinning mills

Even though it may seem irrelevant to make a mention of this information in this article, I feel it is important for you to know, how these mills were considered by people living in Bangalore. Landlords would be ready to lease their houses if the person was working in these mills, bridegrooms who worked in these mills would be preferred over others and would also be assured of all kinds of luxuries. Such was the clout that these mills had in the past.

As organizations conclude their mid year performance appraisals at work and revise their goal sheets for the year ahead for each of their employees, they are also keeping a closer watch on employee productivity and making strategic moves by doing more with less people, I mean, less resources

Bear in mind the downward spiral that the US economy is heading into…Lehman Brothers is gone…Goldmansachs and Morgan Stanley have other plans and the trust on US companies is slowly eroding…what would come next is always a question…every day there is some news that sends shockwaves down the spine

So, what would be the strategies servicing organizations would follow in these troubled times…?

“Lean” also called as “Lean Manufacturing” or “Lean Production” is the latest buzzword in the services-based organizations today. Few companies have already adopted Toyota motors’ renowned lean production concept to its services. Lean is about eliminating waste by continuously analyzing every step to see if it adds value to the end product. Toyota, the inventors of this method, is said to have even determined an optimum method for how bolts are tightened…surprising right, yes that’s the way they work

However, you might feel how this can be implemented into IT & ITES sectors, yes it can be implemented, remember the time-sheet, which we casually fill up, that is the Brahmastra of this production system. It would help the top level management, to pull out even daily reports

Then comes automation, which helps in reduction of 40 -50% of the usual time. It also helps in fewer defects from the team.

It is better for us to wait and watch and be alert to see what comes next…

Please comment on what you think of this