Consumption function and constituency analysis, Management Theories

Consumption Function:

A function capturing the dependent  relationship  between customer spending and income, where changes in customer spending are directly proportional  to changes in profits, but these changes do not occur in a one to one fashion. This means that if a person were to get a profitable, he or she would not spend the entire increase on services and products existing in the economy, but would spend some of it.

Constituency Analysis:

This involves identifying detailed groups and subgroups within a community at huge. These groups are characterized by certain individuality that will influence how they receive and interpret an outer communication message about an organization. The goal with constituency analysis is to first identify who the constituency really is, then determine what their attitude is toward the organization, and then determine what they previously know about the communication in question. It is not always evident who the main constituency is, and subgroups with various characters will also likely exist. Thus, the analysis of relevant constituents is important because it ultimately determines the nature of your message.

 

 

Posted Date: 10/15/2012 8:30:43 AM | Location : United States







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