Problem Recognition Process for the Consumer Assignment

Problem Recognition Process for the Consumer - Assignment Example Thus, realizing that the desired state was a much bigger TV that would be suitable for the interest of both the children and her husband, Alice decided to go for the 32-inch Panasonic flat screen TV, although it cost her considerably. However, the need for a bigger TV was not so urgent, until Alice and her family moved into a bigger house, when they realized that the TV appeared too small for the comfort of watching from the situated sitting positions within the living room. According to the Ordinal utility theory of consumer behavior, situational influences may cause a consumer to realize an existing difference between the real and ideal situation (Lantos, 22). Thus, the movement from one house to the other was a situational factor that caused the need for a new TV to become more urgent. The problem recognition stage was followed by the information search stage, which entailed assessing the available information related both to the different sizes and brand of TVs. The information search stage also entailed evaluating information related to the choice between the purchase of a new TV or a secondhand TV. Thus, Alice had to consult her family, most especially her husband, regarding the most appropriate TV set that should be purchased to replace the small one. Alice also contacted some of her friends in order to here different options available for the range of money she intended to spend on the TV. Evaluation of alternatives entailed low effort processing in evaluating information related to the desirable TV, since advertisement messages were not important considerations in reaching the TV purchasing decision (Roth, 72). Under the evaluation of information, the consideration was the appropriateness of a secondhand TV vs. a new TV, in which the second hand TV appeared to be riskier compared to a new TV, especially regarding quality and durability.

Management Accounting and Traditional System Appraisal Essay

Management Accounting and Traditional System Appraisal - Essay Example In reality, different drivers of factory overheads such as machine setups, special storage, unique inspections and special handling drive the cost. Thus, it is difficult to allocate cost to the diverse activities undertaken in meeting the diverse customer demands using a single activity of machine hours consumed. Similarly, containing all the costs incurred in undertaking the diverse activities in a single cost to allocate the costs by dividing with machine hours used in the production process is erroneous under the traditional system applied by the firm (Gediehn, 2010). The approach gives an average rate to be employed in the different products despite of the complexity and number of activities performed. This is a misleading approach to allocating the costs since the diverse customer specifications do not correlate (Gediehn, 2010). The use of a general average rate in allocating the overhead costs under the traditional management system misleads the management in determining the cost of the product per customer demand. The response that is derived from the results given under the traditional system has a high potential of being wrong due to the performance measures it generates (Bragg, 2013). Furthermore, the traditional system used by the firm has the potential of failing to motivate enviable behaviors. This is because it has the tendency of strengthening vertical controls and bureaucracy (Macintosh & Quattrone, 2009). The requirement for the staff to fill the time they spend in running the machine is a bureaucratic act that has the potential of attempting the staff members to inflate the hours to earn more salary. Thus, employees of the organization will not be motivated to act in the interest of the company. Similarly, the traditional system under use has the potential of causing the management to be disconnected from the strategic plan of the firm. This is because the managers will be obsessed in  achieving the correct numbers that can cause the strategic purpose of the budgeting process to be missed.