Effect of Humorous Advertisements on Customer Behavior

Effect of Humorous Advertisements on Customer Behavior Humor has a universal language. It doesnt need degrees in obscure languages, hardly ever in Clinical Psychology and it is one of the few devices used to make people smile and think at the same time. Humor has been widely used in advertising. However, while humor has attained popularity in advertising, its use is continuously being debated. The reason for this debate is that there are a number of both positive and negative effects which can be attributed to the use of humor. The purpose of this research paper is to answer following questions:- The impact of gender age on the degree of affection to the ads. The effect of humor appeal in Ads, on the consumers buying decision. To develop the conclusions exploratory descriptive research designs are used. Primary data are collected with the help of Focus group technique questionnaire method data is analyzed with the help of various statistical techniques. The conclusions of this paper help in clarifying the dilemma of humorous advertisements. Introduction: Advertising is one of the critical marketing variables which marketers use to differentiate products in a cluttered marketplace. In order to increase the effectiveness of advertising for a product, advertising messages should be unique and meaningful. This concurs with the von Restorff effect, which concludes that interference is minimized by the presentation of a unique item in a group of similar items. Companies have attempted to use many vehicles to create this differentiation effect. One such vehicle is the employment of humor. In order to have a better understanding, we need to further explore the world of advertisements, the appeals used, the targeted decision making components and the effects of Ads on the targeted consumer as a whole. There are two main components advertisers aim to effect; the affective component, where affective message strategies are applied by invoking feelings and trying to match them with the product or service offered in an effort to increase the likeability of the product, and also the cognitive components, where the Ad focuses on the attributes and benefits of the product, encouraging the consumer to buy it. Such components are affected by the leverage points in an Ad; these are the features in the Ad that helps the consumer transfer the advertised message into personal value. In order to achieve that, over the years, advertisers have attempted a wide variety of advertising approaches, there are seven main ones; fear, humor, sex, music, rationality, emotions and scarcity. Advertisers use one or combine several of these appeals to ensure that their targeted audiences receive their message. However, nowadays, humor appeal is being used extensively sometimes combined with others, but most of the time it is strong enough to be used solely. Humor in advertising constitutes billions of dollars in spending each year (Campbell et al. 44). A variety of benefits have been suggested for humorous appeals including: 1) Humor attracts attention. 2) Humor can increase retention of the advertising message. 3) Credibility of the source can be enhanced with humor. 4) Attitude toward the ad can be enhanced with the use of humor. 5) Counter arguments may be minimized with the use of humor because it acts to distract the audience from making cognitive responses. Furthermore, the popularity of humor is evident in the fact that 24.4% of television advertisements attempt to be humorous (Alden Hoyer 29). However, while humor has attained popularity in advertising, its use is continuously being debated. The reason for this debate is that there are a number of both positive and negative effects which can be attributed to the use of humor. Throughout the literature of this paper, the debatable effect of this appeal is discussed. Literature Review: There has been numerous researches proving that advertisement with humorous appeal can gain consumers likability. A strong positive correlation is also found between the degree of how well an advertisement is liked with the likability to the brand advertised (e.g., Gelb Pickett, 1983; Haley Baldinger, 1991; Weinberger Campbell, 1991; Zhang, 1996). In short, adding humorous elements can enhance ones likability of an advertisement and eventually increase liking to the brand advertised. Defining Humor Humor has been widely used in advertising. It has been suggested that 24.4% of prime time television advertising in the U.S. is intended to be humorous (Weinberger Spott, 1989). Regarding to advertising budget, 10% to 30% out of the total expenditure of $150 billion in the U.S. national media, is paid for the placement of advertisements that are having humorous content (Spotts, Weinberger Parsons, 1997). Operationally. humor is defined, according to Sternthal and Craig (1973), as heightened arousal, smiles, and laughter exhibited by an audience in response to a particular message (p.13). Moreover, humor can be defined in terms of how well the audience perceive the level of humor and it can be administered by pencil and paper test to measure how the audience perceive a particular message is humorous and funny or not. Humor in Advertising and Its Effect The reason why humor has been widely used in advertising is due to its power of create liking towards the advertisement by from the consumer. It has been found by Weingerber and Spotts (1989) that advertising practitioners coming from the U.S. and U.K. are generally favor in the use of humor on advertising. A couple of reasons are found and supported by many other researches that humor can enhance ones favorable attitude towards an advertisement. It is reviewed by Weingerber and Gulas (1992) that ten advertising studies and seven non-advertising studies report a positive effect of humor on liking while only two advertising studies and three non-advertising studies report neutral or mixed findings. Objective: The purpose of this research paper is to answer following questions:- The impact of gender age on the degree of affection to the ads. The effect of humor appeal in Ads, on the consumers buying decision. Research Methodology (a) Research Design: To have a better understanding about the issue exploratory research design was used. Two focus groups (i.e. one for each gender) were conducted to get the in depth insights about the topic. Each group consisted of 7 persons. Further descriptive research design was used to get the primary data with the help of close ended questionnaire. (b) Sample Design: 70 respondents were selected through convenience sampling. (c) Analysis: The data collected was analyzed with the help of various statistical tools like Chi-square test, ANOVA etc. Analysis Interpretations Exploratory research results: (I) Focus Group (A) It consisted of 7 males who were asked to provide views on the issue. It was a general opinion that to make the ad interesting creative there is in no harm in using humor appeal in ad but one also considered it purely offensive. They were also agreed on the fact that some time they buy the product because of Ad effect but product attributes are also equally important. (II) Focus Group (B) It consisted of 7 females who were asked to provide views on the issue. A contradiction in views was seen; half of them believed that humor appeal increases the liking of ads while rest treated it offensive or unaffected. 70% of them said that advertisements dont affect the purchase decision. (b) Descriptive research results: 54% of the respondents were male rests were female. 24% of the respondents were from less than 30 years age group 76% were from more than 30 years age group. 55% of the respondents admitted that their intuition or the way they feel about the product finalize their decision of purchasing the product, 35 % considered advertisement of product as the basis of purchase decision and rest purchase the product because of the attributes of product. 62% indeed admitted that they have purchased the product just because they liked the commercial. Both results indicate the affect of advertisements on the purchase decision of customers. When asked what they look for in an Ad; 45% believed the most important attribute of an ad is creativity, followed by 26% who believed it was the endorsers used how they relate to them. 56% of the respondents believed that, the use of humor content in advertisements is acceptable for products as long as its within certain limits. 27% found it offensive rest said that humor appeal increases the creativity of ads. Four print advertisements containing humor appeal (Refer Appendix) were shown respondents were asked to disclose their views. The results were as follow:- Response Ad 1 Ad 2 Ad 3 Ad 4 Total Percentage Offensive 0 7 0 12 19 7% Interesting 11 16 16 16 59 21% Creative 24 5 36 19 84 30% Really Nice 29 29 10 10 78 28% Unethical 0 7 6 13 26 9% Unaffected / Bored 6 6 2 0 14 5% Total 70 70 70 70 280 100% 58% of the customers found the advertisements Creative nice while very few respondents treated it offensive or unethical, which indicates that respondents are taking advertisements in positive manner. Majority of Respondents (i.e. 75%) replied that they would purchase the product based on the advertisements the humor appeal used in ads changed their purchase decision. (c) Hypothesis Testing: H01 = There is no association between degree of affection to the ads gender of respondents H11 = There is an association between degree of affection to the ads gender of respondents. Gender Degree of Affection Total Smart / Creative Inappropriate / Unethical Correct where needed Male 8 8 22 38 Female 4 11 17 32 Total 12 19 39 70 à Ã¢â‚¬ ¡ 2 test Calculated Value Degree of Freedom Level of Significance Tabulated Value 1.94 2 5% 5.99 The result of the study shows that the null-hypothesis holds to be valid thus there is no association between degree of affection to the ads gender of respondents. H02 = Degree of affection towards the ads will be the same irrespective of the age of respondents. H12 = Degree of affection towards the ads will not be the same irrespective of the age of respondents. Age Degree of Affection Total Smart / Creative Inappropriate / Unethical Correct where needed 1 11 5 17 >30 Years 11 8 34 53 Total 12 19 39 70 ANOVA (F-ratio) Calculated Value Degree of Freedom Level of Significance Tabulated Value 1.66 (1,2) 5% 18.501 The analysis supports the null-hypothesis that degree of affection towards the ads will be the same irrespective of the age of respondents. In other words age was found to have no significant differences on the degree of affection to the ads. H03 = Humor appeal doesnt affect the buying decision of respondents. H13 = Humor appeal affects the buying decision of respondents. Product Purchase Decision Change Total Agree Disagree Yes 102 107 209 No 19 52 71 Total 121 159 280 à Ã¢â‚¬ ¡ 2 test Calculated Value Degree of Freedom Level of Significance Tabulated Value 10.52 1 5% 3.841 The analysis provides enough evidence to reject the null Hypothesis. In other words Humor appeal affects the buying decision of respondents. Conclusions: It is a big question in marketing area that how the Humor appeal used in advertisements, is perceived by respondents. In the same line this research was conducted and following conclusions were drawn:- Humor appeal was not taken in negative manner by respondents if it was used in a limit for the relevant products to make the ad creative. Exploratory research shows that there is a thin line difference between the opinion of males females but as per the chi-square there is no significant difference in the views of males females towards the advertisements. Respondents of every age group having the same views on the issue. Humor appeal used in advertisements motivated the respondents to purchase the product but attributes of the product also plays a significant role in buying decision. References: Journal of Legal, Ethical and Regulatory Issues  /  Jan-July, 2006 Ethics in advertising: sex sells, but should it? by Jessica Dawn Blair, Jason Duane Stephenson, Kathy L. Hill, John S. Green The Ethical Dilemma of Advertisements By: May Abd El Latif El Hattab http://www.ukessays.com/essays/marketing/sexual-appeals.php http://www.articleswave.com/advertising-articles/types-of-advertising-appeals.html

An Analysis and Study of Information Systems with Their Related Terms and Concepts

â€Å"An analysis and study of Information systems with their related terms and concepts† Deepak Sharma Research Scholar ,Mewar university Rajasthan Mob. 9639916009 E-mail: [email  protected] com Abhishek Singh Bhatanagar Student MCA, Subharti University Meerut Mob. 9897008522 E-mail: [email  protected] com Abstract: This paper is written as a weapon to know about information systems in depth. As tomorrow's managers, entrepreneurs, or business specialists, business students need to know how to use and manage information technology in today's networked enterprises and global markets.In this dynamic environment, they will rely on interconnected networks of information systems for end user collaboration, including communications and computing among end user work groups and teams, and enterprise wide computing, including communications and information processing for business operations, managerial decision making, and strategic advantage. So this paper is a great assets in kno wing about information system in brief. Keywords: information, system ,management ,DSS ,TPS etc. 1. Introduction:An Information System is any combination of information technology and people's activities using that technology to support operations, management, and decision-making. In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. The focus of Info Systems is on the development of solutions for business problems rather than simply describing them. 1. 1 Functions (benefits) of information Systems: 1. It helps in increasing employee productivity. . It Help users to become information’s competent, that means find it easy to organise their information, search for information, analyze their information and using old information to create new information. 3. For providing better support to managers for effective decision making. 4. Information systems strongly focus on explain ing empirical phenomena of the real world. [pic] †¢ 1. 2 Categories of Information system: 1. Transaction Processing Systems (TPS) 2. Decision Support Systems (DSS) 3. Expert Information Systems (EIS) . Management Information Systems (MIS 5. Office Automation Systems (OAS) 1. 2. 1 Transaction Processing System: It processes business transaction of the organization. A Transaction Processing System or Transaction Processing Monitor is a set of information which process the data transaction in database system that monitors transaction programs Transaction can be any activity of the organization. Transactions differ from organization to organization. For example, take a railway reservation system .Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization 1. 2. 2Decision Support Systems (DSS): Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organi zational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.Typical information that a decision support application might gather and present would be: †¢ Accessing all of your current information assets, including legacy and relational data sources, cubes, data warehouses, and data marts †¢ Comparative sales figures between one week and the next †¢ Projected revenue figures based on new product sales assumptions †¢ The consequences of different decision alternatives, given past experience in a context that is described 1. 23 Expert information systemAn expert information system with which a decision maker in the construction, or a related industry, can generate a decision record and related control instructions in a facile manner without significa nt omissions while ensuring that substantially all of the options available for making the decisions have been considered. The expert system includes a microcomputer which executes a system control program to select information units from the expertise of a data base and to concentrate individual information units until an entire decision record has been generated.The process is enhanced by a multiwindowed display which displays possible selections from the expert data base while contrasting that data with data in another window having a list of data indicating the decisions or selections already made. A display pointer with a controllable position is employed to select lines and phrases of the expert information from that portion of the data base displayed in the selection window. The selection of such information causes the line or phrase from the data base, an information unit, to be transferred to the decision record and to the display of the selected decisions window. . 2. 4 Ma nagement information system (MIS) It is the organized approach to the study of information needs of a management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement man-machine procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner. Modern, computerized systems continuously gather relevant data, both from inside and outside the organization.This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. 1. 2. 5 Office automation system Office automation systems (OAS) are configurations of networked computer hardware and software. A variety of office automation systems are now applied to business and communication functions that used to be performed manually or in multiple locations of a company, such as preparing written communications and strategic planning.In addition, functions that once required coordinating the expertise of outside specialists in typesetting, printing, or electronic recording can now be integrated into the everyday work of an organization, saving both time and money. 2. Information systems for Business operations: Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders. They are contrasted with project management, and consist of processes.The outcome of business operations is the harvesting of value from assets of a business. Assets can be physical or intangible. An example of value derived from a physical asset like a building is rent. An example of value derived from an intangible asset like an idea is a royalty. The effort involved in â€Å"harvesting† this value is what constitutes business operations. Information technology plays a major role in reengineering business processes.The speed, information processing power, and ease-of-use of modern computer hardware, software, and networks can dramatically increase the efficiency of business processes, and communications and collaboration among the people responsible for their operation and management. IT is a strategic requirement for agile product development and delivery. Information systems provide the information people need to support agile operations, as well as the information built into products and services 2. 1 Information system for strategic advantage:Information systems can be used to implement a variety of competitive strategies. These include the five basic competitive strategies (differentiation, cost, innovation, growth, alliance), as well as other ways that companies can use information systems strategically to gain a competitive edge. For example: 1. Lower Costs 2. Differentiate 3. Innovate 4. Promote Growth 5. Develop Alliances 6. Improve quality and effici ency Conclusion: So finally we can conclude that information system is a greatest tool by which our organization can take more and more liberties in future to achieve their goals.It increases the accuracy and reliability of information that is much needed by today’s organizations. References: 1. â€Å"Definition of Application Landscape†. Software Engineering for Business Information Systems (sebis). Jan 21, 2009. Retrieved January 14, 2011. 2. O'Brien, J A. (2003). Introduction to information systems: essentials for the e-business enterprise. McGraw-Hill, Boston, MA 3. Alter, S. The Work System Method: Connecting People, Processes, and IT for Business Results. Works System Press, CA 4. www. google. com 5. www. sciencedaily. com 6. www. wikipedia. com [pic][pic][pic]

Higher Education At State Colleges And Universities Should...

Higher education at state colleges and universities should be free for all American citizens. American citizens who attend State Colleges and Universities at no cost, will not solved all of the nation’s problems that we face today, but maybe a good start. Supplying our citizens with free higher education is one of the best investments that our nation can make; these students will become the next generation of leaders, engineers, doctors, intellects, musicians and artists. They will be equipped with the knowledge, skills and abilities to keep our nation prosperous and innovative. If America wants to continue its supremacy, as the leader of the free world, our government better take a serious look at this issue. â€Å"In 2016 the total outstanding student loan debt in the U.S was $1.2 trillion dollars, that’s the second highest level of consumer debt behind mortgages; the debt owe to the federal government is $40 million†; According to Market Watch. â€Å"70 percent of the students, who graduated with a bachelor’s degree in 2015, were in debt; the average student debt exceeding over $35,051; that’s the most in history†. According to Edvisors. The most important resource that a government has is their human resources, which is the person. If we keep indebting the people; it is going to be detrimental to our society. It is only be in a matter of time; when those resources will no longer be a resource. To keep passing the debt through generations is not wise. 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Furthermore, with the increase in concern of the topic many people have wondered why doesn’t the United States or most importantly, all counties provide free college tuition and that is because in order to provide free college there has to be a change in the economic

Accounting Services for Small Businesses 2019

Outsourcing. Here is a business buzzword for the new millennium that brings hope to the beleaguered small businessman and strikes fear into national economists. At the small business level, it means turning to outside specialists. At the national level, it means tens of thousands of jobs moving offshore to other countries. For years small businesses have turned to outside sources for tax preparation. With the advent of todays information technology, using outside sources for daily and weekly accounting functions is beginning to make as much sense as the yearly tax returns. There are hundreds if not thousands of local accounting firms that provide off site accounting services for small businesses. There are also national firms that provide the same service to local businesses on a franchise basis. Seemingly the most popular small business accounting service is payroll preparation and book keeping. Many small businesses will have an accounting service prepare their biweekly payroll checks and handle the deductions and the payments to the government that are required over the course of the year. This task is easily separated from the daily accounting functions of a business that has purchasing, sales and invoicing occurring every business day. It also provides the accounting service with a head start on preparing the businesss annual taxes. With the appropriate software, accounting services can also handle a firms invoicing and accounts payable in relatively seamless fashion. Done properly it requires some networking and it requires standardized forms so that the business staff in the front office understand what the accounting service is doing. Similarly, the accounting service has to understand what accounts payable are coming to them and how they should be categorized as a business expense. This part of an electronic outsourcing system requires some data input as bills roll into the business office and must be standardized as payables for the accounting service. .u31a6bb278229b9acb454aeef8f8b47bc { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u31a6bb278229b9acb454aeef8f8b47bc:active, .u31a6bb278229b9acb454aeef8f8b47bc:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u31a6bb278229b9acb454aeef8f8b47bc { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u31a6bb278229b9acb454aeef8f8b47bc .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u31a6bb278229b9acb454aeef8f8b47bc .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .u31a6bb278229b9acb454aeef8f8b47bc:hover .postTitle { text-decoration: underline!important; } READ Business Associate, Engineering, Computer Science, and Education Graduates Currently in Highest DemandSome accounting services provide a complete accounting service that includes collecting daily information from the business on a standardized form and developing a sophisticated database on every aspect of the clients finances. The accounting service will provide work document forms that standardize the process. They will also handle deposits, banking records and pay the bills. The small businessman is provided a duplicate copy of the check in order to track the activities of his accounting service. Some of these full service accounting services will manipulate the financial data they have collected for the business and provide customized reports. They also supply weekly reports of financial activities. One of the values of a service like this is for businesses sufficiently large that they loose track of overdue accounts. A weekly report on the financial activity in the business will provide a weekly reminder of the phone call that needs to be made to the delinquent customer. .u0cad30fb1269fb8c8fcc909c32650c6d { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u0cad30fb1269fb8c8fcc909c32650c6d:active, .u0cad30fb1269fb8c8fcc909c32650c6d:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u0cad30fb1269fb8c8fcc909c32650c6d { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u0cad30fb1269fb8c8fcc909c32650c6d .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u0cad30fb1269fb8c8fcc909c32650c6d .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .u0cad30fb1269fb8c8fcc909c32650c6d:hover .postTitle { text-decoration: underline!important; } READ Associate of Applied Business Evening and Weekend Business DegreesAccounting services can also reduce employee requirements within the business structure. The key is finding the right balance of on site staff with off site services so that financial activities flow smoothly and the ability to analyze and project is one of the end results of the accounting procedure that has been developed. Related ArticlesBuy and Sell Accounting BusinessesEarn an Accounting Degree OnlineSmall Business Accounting Software from MicrosoftNew Hampshire Colleges and Universities Pursuing Online and Campus Based Education in New HampshireAccounting Training Can Add Up to a Brighter Future for YouHow to Start Your Own Accounting Business

Analysis Of Othello By William Shakespeare - 913 Words

Playwrights generally write plays that are inspired by and based on real life events and/or issues that allow them to communicate their points of view as well as the opinions of involved parties. Plays written in the Elizabethan era are categorized as comedies, histories, or tragedies to make it easier for their audience to understand difficult and emotional themes. Although modern plays may follow classic Elizabethan structures, dramatists may adapt it to appeal to a broader audience and to reflect similar issues that may have evolved. For instance, audiences can easily identify with tragedies since they exhibit a downfall as a direct result of a fatal flaw that leads up, often times, to the death of a beloved character. Tragic heroes serve as a mirror for the audience in that as a tragedy progresses, the audience may see their personal experiences and views within it. William Shakespeare’s representation of a moor in his play, Othello, is a personification of a classical tra gic hero, whereas Troy Maxson, the protagonist in Fences by August Wilson, serves as an example of a modern tragic hero. Shakespeare and Wilson utilize characteristics of tragic heroes— hamartia, hubris, peripeteia, nemesis, and catharsis—as a literary device to convey an archetypal theme of the hazards of passing judgments to their audience. Although the argument could be made that Othello and Troy are not descendants of noble bloodlines, Shakespeare and Wilson have expanded the quintessentialShow MoreRelatedOthello Analysis : Othello By William Shakespeare1115 Words   |  5 PagesRiley Thompson Professor Grill LIT 200 2 November 2014 Othello Analysis Assignment Othello, a play that was written in 1604 by William Shakespeare, is an example of a type of story called a â€Å"tragedy.† Throughout the course of the work, Othello proves himself to be very easily misled, despite his heroic status. This causes him to lose his ability to make good judgments and decisions. Even though Othello had a reputation as a hero, he ends up being one of the most gullible characters in the play whenRead MoreAnalysis Of Othello By William Shakespeare Essay2413 Words   |  10 Pagesprocess, such as a process known as Classical Conditioning. Mind manipulation has been presented by villains throughout movies, novels, and even plays. 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Marxist and Neoclassical Economics Free Essays

Marx’s economic theories mainly deal with the comparison and contrast between Marxism and Capitalism. Karl Marx had many theories that dealt with many different aspects of society. This concept deals with the exploitation of workers and the components involved in production. We will write a custom essay sample on Marxist and Neoclassical Economics or any similar topic only for you Order Now The first part of Marx’s value of labour theory deals with commodities. Commodities are defined as an object outside of us, a thing that by its properties satisfies human wants of some sort or another (Miliband, 1977, 243). These commodities have different values and according to Marx every commodity has two values: exchange value and use value. The use value of a commodity refers to the fact that is has some sort of use; it serves some purpose or meets some want. Every commodity must have a use or it has no value and is not a commodity. Exchange value refers to the ratio at which a commodity can be exchanged with another. In certain quantities all commodities can be exchanged for other commodities (Miliband, 1977, 254). Even the most worthless commodity, when taken in big enough quantities, can be exchanged for the most valuable of commodities. For example, a large quantity of corn or apples can be exchanged for a diamond. The next part of Marx’s theory deal with the values of the labour. Marx argued that what commodities all have in common is the fact that they are all products of human labour. It is human labour that has created them and it is the amount of human labour that goes into them that determines value. Karl Marx’s labour theory of value asserts that the value of an object is solely a result of the labour expended to produce it. According to this theory, the more labour or labour time that goes into an object, the more it is worth. Marx defined value as â€Å"consumed labour time†, and stated that â€Å"all goods, considered economically, are only the product of labour and cost nothing except labour†(Parekh, 1982, 386). One crucial element of classical political economy that was eventually displaced in the neoclassical revolution of the nineteenth century was the idea that labour was a primary or even exclusive determinant of value. Now, readings of Marx that posit him either as the last of the great classicals or as the leading left-wing critic of classical political economy often share the claim that Marx extracted from the classicals the view that labour is the sole source of value. Marx is applauded for his consistent formulation of a labour theory of value and, thus, for his adherence to the view that social relations of production determine the distribution of social labour and the value and exchange-value of commodities. That is, as for many other Marxists, the fact that individuals may desire beings and motivated in their economic behaviours by instinct, affection, emotion, and so forth is relegated to the status of secondary phenomena insofar as the determination of value, the social allocation of labour, and the distribution of income and wealth are involved. For many Marxists, the essential causes of economic activity are labour and production. Thus, the labouring body, rendered in some versions of this story as a truly trans-historical corporeal entity, is given pride of place in establishing the conditions for that which is uniquely human and thereby economic. This ‘productionist’ bias of Marxists has constituted the grounds by which Marxism has discursively ignored or excluded libido, excess, and true expenditure in the economic theory to which it has given rise. (Resnick, 2001, 56-60) Contemporary Marxian critics in the field of economics, then, often prefer to resurrect the nineteenth-century debates over the correct attribution of value to either ‘subjective’ desire or ‘objective’ labour. Their critique of neoclassical theory devolves on the claim that the bourgeois individualism, naturalism, and arcane abstraction consequent upon the use of axiomatic formulations in neoclassicism obscure the true (McCloskey, 2003, 12-14) conditions under which economic activities and institutions arise. Whereas production is viewed as ubiquitous across epochs and geographical boundaries, desire and utility maximization are seen as limited in historical importance to capitalist societies and, even there, they are more a consequence of a hegemonic false consciousness imposed by the self-promotion of the bourgeoisie (for example, to hide the ‘fact’ of exploitation or to explain away the waste and inefficiency of unplanned markets) than the objective conditions of life under capitalism. The modernism of much Marxism consists, at least partly, in its insistence in finding an ontological referent for the essential cause – labour – that emerges in Marxian economics as the source of value. The labouring body and the conditions of work, then, take precedence in everything from determining the nature of subjectivity (the individual who produces him/herself in the course of participating in social labour) and estimating the ‘good life’ (the elimination of alienation in work) to the primacy of certain struggles in the movements to transform and move beyond capitalism. Comparison and Contrast Karl Marx set the wheels of modern Communism and Socialism in motion with his writings in the late nineteenth century. In collaboration with his friend, Fredrich Englels, he produced the Communist Manifesto, written in 1848. Many failed countries’ political and economic structures have been based on Marx’s theories. That is why he is known as on of the most influential people of the history of the world. Marxism in its various forms has affected the world greatly throughout time. Both World Wars have involved communist countries to a great extent. Communism has gone wrong in many countries, with the state turning into an authoritarian one, with a few people at the top abusing their power for their own personal gain, at the expense of the other members of the public. (England, 1993, 37-53) Rather than codifying the classicals’ labouring body as a first principle, Marx can be said to have disrupted the order of the body established in classical political economy and in much Marxism. For us, Marx is not the inventor of a new anthropology (his work, we believe along with Althusser, represents a sharp rupture from the humanist anthropology that preceded – and, in the pretensions of the early neoclassicals, followed – him). Briefly stated, we view Marx’s contributions to be more along the lines of presenting the human body as a register of class and other economic and social processes, a place where the effects of capitalism are largely inscribed, rather than the site of the privileged origin (through labour) of subjectivity, agency, or socioeconomic relations. In other words, the body that Marx presents in his writings is over determined and has no centre or essential unity other than that which is the effect of the historical conditions of production, consumption, circulation, distribution, and so forth. In this sense, the body in Marx’s work is closer to some current neoclassical renditions, at least insofar as it is differentiated, dispersed, and brought to temporary unity by specific productions rather than by the presumption of its essentiality. (Cohen, 1978, 110-14) The problem, then, for some of the Marxian critics of neoclassical theory is that the story they prefer revives a view of the body and subjectivity that are fully part of the modernist project to promote an overarching and exhaustive notion of ‘man’. In this regard, the post-modern moments of Marxism are suppressed and the affinity that Marxists may have with other developments within which the humanism of the classicals is finally displaced is largely ignored. (Blaug, 1992, 319-22) To put this otherwise, the retention of the labouring body as prime cause of social and economic relations does little to undermine the humanist essentialism that, purportedly, many Marxists have been at pains to attack over the course of the last century. While recent neoclassicals and Marxists may make absurd bed mates, there is a sense in which Marxists can augment rather than blunt their attacks on bourgeois social order by acknowledging the fragmentation of the human body and the dismemberment of theoretical humanism that may have been accomplished by some neoclassicals. (Ollman, 1995, 201-10) A similar issue confronts post-Keynesian critics of neoclassical economics. Instead of using their trenchant questioning of the notions of certainty (and of probabilistic certainty), rationality, and much else that still abounds within neoclassical theory, together with their own exploration of the significance and effects of uncertainty, as the initial steps in decentring the body, post-Keynesian economists have largely resisted such a move. As we see it, the ‘radical uncertainty’ (de Marchi, 2001, 86-90) originally focused on by Keynes and now embraced by post-Keynesian economists has the potential of disrupting the modernist unity of the body, for example, by severing the necessary connection between, the presumed sequence of, some set of initial anticipations and the actions of economic agents as well as by ‘relativizing’ even the recognition of the degrees and forms of certain and uncertain knowledge on the part of those agents, making uncertainty into a variable and heterogeneous constituent and effect of bodily capabilities and orders. (Amariglio, 1994, 7-35) Conclusion Up to the end of the nineteenth century, the sensible presence of the monetary substance (gold, silver) which guaranteed more or less directly the value of the circulating sign, could lead us to forget that money was also a sign. The gold-standard system implied the circulation of gold by itself or the free convertibility of bank-notes into gold. And this, according to a creed which was almost unanimously shared by all economists and statesmen of the nineteenth century, regardless of their nationality, their religious beliefs, or philosophical opinions: ‘banknotes have value only because they represent gold’. Marx himself denied the possibility or the legitimacy of money which would be a mere sign. For him, the backing by commodity-money (produced by a certain amount of labour) is necessary. Nowadays, the direct representational possibility of monetary signs is suspended not only for circumstantial reasons, but completely suppressed, as we know, for reasons that became structural. Thus, we passed from a monetary regime where gold circulated in presencia to a regime where money was a sign representing gold; and finally to money which is a pure sign, without any reference to a gold-value, a regime of complete non-convertibility. The logical relationship between the non-convertibility of money and the dismissal of the labour theory of value by neoclassical economists and mainstream economics has been stressed. Post-Keynesians, however, tend to emphasize the extradiscursive ‘brute nature’ of uncertainty, reducing it to the limits on knowledge imposed by an unforeseeable future. Their view is that neoclassical economists (and, with them, others such as new Keynesian economists), by emphasizing certain (or, again, probabilistically certain) knowledge, have simply exaggerated the role and possibilities of rational calculation and diminished the ‘animal spirits’, ‘spontaneous optimism’, and other nonrational, corporeal determinants of economic behaviour. In this sense, post-Keynesian economists seek to reinscribe a more ‘balanced’ human body – one which, if not exactly derivative of the classicals, both recognizes the limitations of the body (for example, in terms of the ability to gather and process information) and recovers the kind of profusion of sentiments and emotions, conventions and habits, that were seen to be central to the activities and practices of economic agents prior to the marginalist revolution. It is this body which, for post-Keynesians, serves both to replace the ‘sterility’ of disembodied neoclassical decision-makers and to avoid the ‘nihilism’ occasioned by the post-modern decentring of the body. References Amariglio, J. and Ruccio, D. F. (1994) ‘Postmodernism, Marxism, and the Critique of Modern Economic Thought’, Rethinking Marxism 7 (Fall): 7-35. Blaug, M. (1992) The Methodology of Economics; Or How Economists Explain, Cambridge: Cambridge University Press; 319-22. Cohen, G.A. Karl Marx’s Theory of History. Princeton University Press, Princeton. 1978. 110-14 de Marchi, N. (2001) ‘Introduction’ in N. de Marchi and M. Blaug (eds) Appraising Economic Theories, Aldershot: Elgar. 86-90 England, Paula (1993) ‘The Separative Self: Androcentric Bias in Neoclassical Assumptions’, in Marianne A. Ferber and Julie A. Nelson (eds) Beyond Economic Man: Feminist Theory and Economics, Chicago: University of Chicago Press, 37-53. McCloskey, D. N. (2003) ‘The Rhetoric of Economics’, Journal of Economic Literature, 21 (June) 12-14 Miliband, R. Marxism and Politics. Herron Publishing Inc., New York. 1977. 250-59 Ollman, B. Grolier’s Encyclopedia, Karl Marx and Marxism. Grolier Electronic Publishing Inc. 1995. 201-10 Parekh, B. Marx’s Theory of Ideology. The John Hopkins University Press, Baltimore. 1982. P.386 Resnick, Stephen A., and Wolff, Richard D. (2001) Knowledge and Class: A Marxian Critique of Political Economy, Chicago: University of Chicago Press. 56-60 How to cite Marxist and Neoclassical Economics, Essay examples

Changing Role of Managerial Accounting in a Dynamic Business Environment free essay sample

Managerial accountants more and more are considered business partners. B. Managerial accountants often are part of cross-functional teams. C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. D. In a number of companies, managerial accountants make significant business decisions and resolve operating problems. E. The role of managerial accountants has changed considerably over the past decade. The day-to-day work of management teams will typically comprise all of the following activities except: A. decision making. B. planning. C. cost minimizing. D. directing operational activities. E. controlling. Answer: C LO: 2 Type: RC 3. Which of the following functions is best described as choosing among available alternatives? Which of the following functions best describes this process? A. Decision making. B. Planning. C. Coordinating. D. Controlling. E. Organizing. Answer: D LO: 2 Type: N 7. Which of the following is not an objective of managerial accounting? A. Providing information for decision making and planning. We will write a custom essay sample on Changing Role of Managerial Accounting in a Dynamic Business Environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page B. Assisting in directing and controlling operations. C. Maximizing profits and minimizing costs. D. Measuring the performance of managers and subunits. E. Motivating managers toward the organizations goals. Answer: C LO: 3 Type: RC 8. The role of managerial accounting information in assisting management is a(n): A. inancial-directing role. B. attention-directing role. C. planning and controlling role. D. organizational role. E. problem-solving role. Answer: B LO: 3 Type: RC 9. Employee empowerment involves encouraging and authorizing workers to take initiatives to: A. improve operations. B. reduce costs. C. improve product quality. D. improve customer service. E. all of the above. Answer: E LO: 3 Type: RC 10. The process of encouraging and authorizing workers to take appropriate initiatives to improve the overall firm is commonly known as: A. planning and control. B. employee empowerment.