Dietary Supplements Report Essay Example for Free

Dietary Supplements Report Essay Dietary supplements are products intended for ingestion as supplements to the diet. Dietary supplements can have vitamins, herbs, enzymes, extracts, plant substances, amino acids, botanicals, and concentrates. Supplements are beneficial to the body because they can enhance the nutrients in foods, aid in weight loss, provide energy, cure illnesses, optimize health, and protect against diseases. If a person does not consume enough nutrients because of a disease or eating habits dietary supplements are extremely beneficial. There are certain groups that benefit most from dietary supplements; pregnant women, vegetarians, dieters, and the elderly. An increase of folic acid and iron is needed to reduce the risk of defects and prevent anemia. Vegetarians should take vitamin B12 because they do not eat animal foods which contain more vitamin B12 than any other food source. If a person eats less than 1200 calories when on a diet, they will not get the amount of nutrients needed. If dieters take a multi-vitamin they will meet the daily recommendations for nutrients. Anyone over the age of 50 should take calcium, Vitamin D, and B12 to maintain a healthy life. Calcium and vitamin D will help keep the bones strong, lower blood pressure, and prevent diseases like osteoporosis and multiple sclerosis. Vitamin B12 will promote heart health and fight fatigue. There are many risks when taking dietary supplements. Dietary supplements are not regulated or tested by the U. S. Food and Drug Administration (FDA) for side effects before they are available to consumers (â€Å"The skinny on dietary supplements,† 2008). Dietary supplements are also harmful because they contain chemicals that can be harmful. Some supplements contain non-essential hormones and enzymes. Dietary supplements may cause medications, over-the-counter or prescribed, to work differently or not at all. When taking any supplement it is important to read the label and ask a physician before taking the supplement to reduce chances of toxicity. Many people think dietary supplements provide all the nutrients needed to support a healthy diet; they are only part of a ealthy diet (Grosvenor, 2006). As stated earlier, the government does not regulate dietary supplements as they do other foods and drugs (U. S. Food and Drug Administration: Dietary Supplements, 2013). In 1994 the government created the Dietary Supplement Health and Education Act of 1994 (DSHEA). The act states manufacturers are responsible for ensuring the product is safe before it is put on the market. If the product is unsafe after it is on the market the FDA is respon sible for taking action to correct the issue. The FDA is responsible for providing product information and literature. It is the manufacturer’s responsibility to ensure all ingredients are listed on the labels of the product and the information is true. The manufacturer has to submit reports for any supplement that has any type of negative reaction. The FDA implemented a Dietary Supplement Current Good Manufacturing Practice (CGMPs) that all personnel in the company must follow to ensure quality control. Supplements are needed by people with life-threatening diseases like kidney failure. People that have kidney failure, depending on the type of dialysis they use, peritoneal or hemodialysis. Peritoneal dialysis uses osmosis and diffusion through the peritoneal cavity to remove waste and fluid; this process causes a lack of potassium, magnesium, and phosphorus. Hemodialysis uses an artificial kidney to remove wastes and fluids from the blood; this process causes a lack of phosphorus, iron, and epogen. The common bond between both types of dialysis is the lack of phosphorus. Phosphorus supplements are used to strengthen the bones of dialysis patients, prevent renal bone disease, and keep the heart healthy. The dose varies from patient to patient, depending on the food intake. If the patient does not take the prescribed dose they experience many different effects. If too much of the phosphorus supplement is ingested, itching will occur. If not enough phosphorus is ingested, weakness will occur and bones will begin to get brittle causing them to break.

Oscar Wildes Aestheticism Essay Example for Free

Oscar Wildes Aestheticism Essay Though Oscar Wilde is the incarnation of the aestheticism schools, we can’t afford to ignore the other artists of the aesthetes. It is imperative that we should give a general introduction to aestheticism in the following paragraphs. Aesthetics is a branch of philosophy that studies the principles of beauty especially in art. Aestheticism is the collection of all the fruits of aesthetics. â€Å"The word ‘aesthetic’ was first found in Aesthetica, appearing as a Latin word, which is the name of two books written by Alexander Baumgarten, 17141762. †(Williams, 2005: 31) Baumgarten believes beauty can be defined as aesthetic, but when it is related to art, the most important part of Baumgarten’s translation of beauty is that beauty is not abstract but can be felt by people through their senses. This translation is the same as the Greek word â€Å"aisthesis†, the original meaning of which is the power of uniting mentally the impressions conveyed by the five physical senses. And in the middle of the 19th century, aesthetic is understood as â€Å"the beautiful†, which is generally related to art. In 1880, the word â€Å"aesthete† was used in a wide range, but contained a derogatory sense. Both the principle and the practice of the aesthetic movement led by Walter Pater were criticized at that time. But the British decadent writers were deeply influenced by Walter Pater. The artists and writers of the aesthetic movement held the view that sensuous pleasure should be provided by arts, not moral or sentimental messages. As a consequence, they did not accept John Ruskin and Matthew Arnold’s utilitarian conception of art as something moral or useful. Instead, they believed that art did not have any didactic purpose; it needed only be beautiful. The aesthetes developed the cult of beauty, which they considered the basic factor in art. In Britain, Oscar Wilde is famous as one of the best representatives of the aesthetes. He believes that art represents nothing but itself, and that art has its own life just as thoughts do.

Malaysias Luxury Goods Sector

Malaysias Luxury Goods Sector Chapter 1: Introduction 1.1 Introduction In the 80s, luxury goods that used to belong to the upper class became visible, recognizable, and accessible to the public. Hence, the market for luxury goods went through an enormous demand growth spurt, and developed into a significant economic sector in the 90s (Roux and Floch 1996). Louis Vuitton reported sales of nearly 2.5 billion Euros, increasing its net income by 80% between 2002 and 2004 (LVMH 2005). LVMH Moà «t Hennessy Louis Vuitton, the worlds leading luxury group, achieved revenue of 4 billion euros in the first quarter of 2008. Organic revenue increased by 12% compared to the same period in 2007, which was also a period of strong growth. As a result of the negative impact of exchange rates, reported revenue growth is 5%. All business groups recorded double-digit organic revenue growth in the period, with the exception of Wines Spirits. The Group continued to record excellent performances in Asia, the US and Europe. A good attains the label â€Å"luxury† when it has the particular design, quality, performance or durability that is remarkably superior to the comparable substitute. Luxury goods have a lot to do with the consumers psyche and how it makes the person feel. In generally, luxury goods are considered to be the highest quality, and price in the market. Brand consciousness among the Malaysian society has been increasing over the past few years, especially with the young generation who are now appetite for the luxury goods and brands especially from college, university students and young working adults. The population of the youth for aged between 20 and 29 aged is 20% which nearly make up the entire population in Malaysia. Understanding the consumer behavior in this age group would be pivotal in ensuring luxury brands can better position themselves in the market and will be useful in marketing building brands. It makes good reason that research on the factor influences generation Y on the purchasing decision of luxury goods. 1.2 Background of Research â€Å"Asia is considered by many international brands as a major sales region, with the improving personal financial status of Asian consumers and with the opening up of various developing markets, there is huge room for growth in the luxury sector,† said Karen Watson, Chief Communications Officer, ACNielsen Company(Consumer and Designer Brands , April 2008). In Malaysia, the luxury goods sector has been growing along with the rest of the world over the past ten years. We can see that some of the shopping complex such as Kuala Lumpur City Center (KLCC) Mall that sell luxury goods and for up market. Over the years, the setting up for the up market such as Pavilions, The Garden and Star Hills have catered to the increasing demand of luxury goods. â€Å"In Malaysia the apparel industry has undergone great transformation with more and more brands entering the market, and the recent past years have seen the entry of numerous international brands. The apparel industry is worth RM 3.26 billion (approximately USD 1.1 billion) (Protà ©gà © Associates‟ Independent Market Report (2007)† (Khan and Khan, 2008) The study on consumer behavior in relevance to luxury goods has gained a lot of interest over the course of the decades. Early research on a framework to define luxury and that of luxury seeking consumers started in the 19th century by Rae (1834). The early research was showed that a summary of the luxury seeking consumer behaviour which can be seen by Vigneron and Johnson (1999) where the values are conspicuous, unique, social and quality. Conspicuous and quality could be seen in the summary luxury seeking framework by Vigneron and Johnson (1999) who presented the luxury value perceptions., It has been stated as the notion of â€Å"buying to impress others† by concerning the motives for consuming luxury goods (Wiedman, Hennigs, Siebel, 2007). Other researches were instrumental on other factors which influence purchase decisions, Khan and Khan (2005) provided the result by showing how reference groups influence on purchase decisions. It focuses on reference groups which are groups that individuals refer when making a purchase. From a consumer behaviour perspective, reference groups are important because they inform and make individuals aware of specific products and brands; provide individuals with opportunities to compare their own thinking with the attitudes and behaviour of the group; and influence individuals to adopt attitudes and behaviour that are consistent with the norms of the group (Khan and Khan, 2005). Aesthetics appeal on purchasing decision also gained the attention of the researchers. Researchers such as done by Virginie, Irina and Pierre (2009) and Dubois, Laurent, Czellar (2001) influence the purchase decision on luxury goods. 1.3 Research Question Most of the consumers purchase the luxury goods for one of the following reasons. Purchasing decisions could be influence by the social factor example noted by (Khan and Khan, 2005).Other factors that should be taken into consideration include brand image, conspicuous and quality value which effect the purchase decisions before making the purchase. Aesthetics are also playing a crucial role influence on purchase of luxury goods Based on the Literature Review in Chapter 2, which provides a detailed look at all the factors and variables above, the research questions at hand has to do with the present variables and the purchase decisions. The questions addressed in this research are: What are the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) influence generations Y in purchasing decision of luxury goods in Malaysia? Is there any interaction between critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) and generation Ys purchase decision on luxury goods in Malaysia? How the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) have impacts on generation Ys purchasing decision on luxury goods in Malaysia? 1.4 Research Objective This study aims to address the following objectives of the study: Main Objective: To determine and identify the factors influence generation Y in purchasing decision of luxury products in Malaysia. Specific objectives: To identify the critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) influence generation Y in purchasing decision of luxury products in Malaysia. To determine relationship between critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) and generation Ys purchasing decision of luxury goods in Malaysia To determine the effect of critical factors (reference groups, perceived conspicuous, perceived quality, brand image and aesthetics) on purchasing decision of luxury goods in Malaysia. 1.5 Significant of the Study The luxury goods market is growing rapidly and it is important for research to be done to understand the factors and variables that influence Generation Y purchase luxury goods in Malaysia. The research is important for a number of reasons. The factors influence purchasing decision or consumer behaviours toward luxury goods research has been done in American, Europe or Asia but there is a lack of research regarding purchase decisions on luxury brand products in Malaysia. The only research has been done was by Khan and Khan (2005). The research was about the gender differences in the purchase of luxury goods and covered with social influences and marketing influences. 1.6 Scope of the study In this research, the research will be conducted under the scope of the purchasing of luxury goods. The research will investigate the factors that influence the generation Y in purchasing decision of luxury goods in Malaysia. This research is going to focus on generation Y which includes males and females in Malaysia. The age the range of this research on generation Y between 20 to 29. This group of generation Y was chosen because they are college students, university students and young working adults. They are the consumers that showing the greatest purchasing power in the luxury goods market. Questionnaire will be given to the generation Y to know the factors that influence them in purchasing decision on luxury goods. 1.7 Organization of the Research Project The outline of this thesis can be divided into three main parts. Chapter 1 would be the introduction to the paper, where an understanding of the luxury goods market would be presented, along with the trends the market is heading. A background of the study is also provided, citing the work done by past researchers and their findings. This chapter also provides a clear understanding of the problem statements as well as the objectives of this research paper. Chapter 1 would also justify the need for this research to carried out and provide a summary of the research methodology used to carry out the survey. Chapter 2 would provide a review on the findings and results of past researchers. Chapter 2 titled literature review would be the assessment on research topics of interest to the researcher, such as topics concerning the factors that influence the purchase of luxury goods. Factors or variables that are being discussed in this chapter include the social influences, perceived conspicuous value, perceived quality value, brand image and aesthetics Onwards to chapter 3 which is titles research methodology, this chapter would detail the relationships of all the variables present with the theoretical framework. The development of the research hypotheses would also be presented in this chapter along with the sampling design and procedures that would be used in the data collection process. Chapter 3 would then round up by pointing out the methods that would be used for data analysis as well as the variety of tests that would be used to test the hypotheses. Chapter 4 is the â€Å"Data Analysis†, presents and analyses the raw data collected from the survey. After that, SPSS (Statistical Package for Social Science) will be used to present the most accurate statistic data and graph. Chapter 5 explains the outcomes of the testing of the hypotheses determined from Chapter 4: Data Analysis. The acceptance or rejection of the hypothesis is discussed as well. Additionally, the concluded results of the hypothesis testing from this study are compared with results from previous researches to identify the differences and similarities. 1.8 Conclusion This chapter has laid the foundation for the entire research. A background of the study was also given to show the progress made by past researchers on the topic at hand. An understanding of the luxury goods industry was presented along with the research questions and objectives this research intends to meet. Thus, the research question, research issues, limitations of the research and outline of the research have been presented, which will provide a guideline for the research. The above information can work as a base and lead into the detail interpretation on the research afterwards. Chapter 2: Literature Review 2.0Definition of Luxury Goods The word ‘luxury can be defined as state of life in which has uses things that please the senses or pleasing to have but not essential. â€Å"A good attains the label as a â€Å"luxury† when it has a particular design, quality, performance or durability that is remarkably superior to the comparable substitutes† (Snapshot of U.S Luxury Good Market, 2007). Dubois, Laurent and Czellar (2001) and Survanasuddhi (2007) stated a definition of the nature and characteristics of the concept of luxury. The six facets are excellent quality, very high price, scarcity and uniqueness, aesthetics and polysensuality, ancestral heritage and personal history and superfluousness. Luxury goods are rising in popularity especially as consumers buying behavior is becoming more symbolized. Consumers feel that by owning luxury products can express their personality and set them apart. Thus, â€Å"luxury goods have been defined as goods for which the mere use or display of a particular branded product brings prestige on the owner, apart from any functional utility† (Nia and Zaikowsky,2000) The term ‘prestige was defined as it consists of consumers motivations for chasing technical superiority, uniqueness, signaling wealth and status well as aesthetics appeal (Vigneron and Johnson, 1999). ‘Prestige and ‘luxury are used synonymously in the VIgneron and Johnsons research. Vigneron and Johnson (1999) categorized three types of prestige brand as upmarket brands, premium brands and luxury brands, respectively in an increasing order of prestige. Hence, it was expected that people would have different perceptions of the level of prestige for the same brands, and that the overall prestige level of a brand would consider the prestige perceptions from different people. â€Å"Luxury brands can be described as premium priced brands that consumers purchase for their psychological values (symbolic and hedonic), and not predominately for their economical and functional value† (Nueno and Quelch 1998; Stegeman, 2006). However, the definition of luxury goods or brands cannot be fully recognized. The definition of luxury will be different and may not be the same for another researcher. Chadha Husband (2006) definition limits itself in that it only pertains to luxury fashion goods instead there are other luxury goods that are also both universally available and accepted as luxury. The definition of luxury brands have been defined as fashionable and high quality consumers goods made by reputed luxury brands which contained wearable fashion goods such as handbag, wallet, shoes and belt (Chadha and Husband, 2006; Heinemann, 2008). Fashion can be reflection of the social, economic, political and artistic forces of the time. Accoding to Gao, Norton, Zhang, To (2009), â€Å"luxury fashion goods are apparel, accessories, handbags, shoes, watches, jewellery, and perfume for which use or display of particular branded products brings prestige to owners, apart from any functional utility†. Snapshot of U.S Luxury Good Market (2007) stated fashion group represent the major product sector in the luxury goods market. It is important to know that the survey showed that â€Å"one sixth (16%) of the worlds consumers claim to buy designer brands† (ACNielsen, 2008). For this research, the term luxury goods can be defined as the brands that are defined as luxurious in the annual â€Å"Consumer and Designer Brand Report 2008† by the global Nielson firm which the survey is the largest and it identified the following goods as the luxury fashion goods. Calvin Klien Giorgio Armani Celine Ralph Lauren Louis Vuitton Ferragamo Diesel Burberry Chloe Chanel Versace Marc Jacobs Christian Dior Prada Gucci Givenchy DKNY Emporio Armani Valentino Hermes Fendi Yves Saint Lauren Max Mara The fashion goods that show above are not the only goods that are stated as luxury in this research. Consumers allow to evaluate and include other brands which they think is luxury fashion goods for them. Furthermore, there are many opinions and views of luxury from different leaders viewpoint stated in KPMG research (Managing Luxury Brand Growth, 2006). Luxury is explained in the table below as following: Leaders Name and Company Definition 1. Guy Salter Private Investor, Deputy Chairman of Walpole, the British Luxury goods organization Because luxury matters in a way that didnt matter before. Increasingly, luxury is big business: the luxury segment is growing and according to most projections it will continue to grow for the next ten to fifteen years. 2. Belinda Earl, Jaeger Groups chief executive Jaeger is a luxury British brand renowned for designing stylish, innovative and superb quality womenswear, menswear and accessories. None of us are in the business selling necessities; luxury is the business of creating and satisfying desires. 3. Richard Purdey of gun makers James Purdey and Sons Famous British gun maker of London, and the name is synonymous with the very finest sporting shotguns and rifles. Purdeys hold or have held numerous warrants of appointment as gun and rifle makers to the British and other European royal families. A real luxury brands has got to have total integrity. It has to be the buyer that says ‘this is luxury. 4. Theo Fennell Theo Fennell is the jewellery maker by using his name for his company ‘Theo Fennel in London Luxury is something that everyone wants and nobody needs. 5. Joseph Wan of Harvey Nichols CEO of retailer Harvey Nichols Harvey Nichols is an international luxury lifestyle store, renowned both in the UK and internationally for the breadth and depth of its exclusive fashion merchandise. It offers many of the worlds most prestigious brands in womenswear, menswear, accessories, beauty, food and home. Luxury is about history. A luxury brand is a lifestyle concept and to be sustainable it has to have history, including a history of quality merchandise and of real luxury customers.. 6. Raphael le Masne de Chermont, of Shanghai Tang Executive Chair of Shanghai Tang Shanghai Tang is the first luxury brand emerging design from Chiana It is not in the price, it is in the pleasure you give to the customer. It is to do with creativity, a harmonious aesthetic with attention to details. 7.Christian Hafner Head of Branding at Swarovski Luxury is about history, authenticity, depth and being a partner. Buying a luxury product is like a love affair. 2.1Generation Y Generation Y are also referred as the Millennial Generation or Generation Next or Net Generation describes the demographic cohort following Generation X. Its members are often referred to as Millennials or Echo Boomers. According to Shareef Mahdavi (2008), Generation Y is the term used to describe children of the Baby Boomer generation, typically born between 1977 and 1995. McCrindle (2008) described the generation Y born in between 1980 and 1994. They are also referred to as ‘Millenials and ‘Echo Boomers in the western society, especially American Society. Generation Y are individuals who born between 1977 to 1994 that have a free spending spirit and consist of 71 million 8 to 25 year olds (Horovitz, 2002; Sriviroj 2007). The wealthiest groups of people are between the ages of 19 to 25 year olds who are either employed in full time jobs or part time work even though there are group amount of generation Y consumers. The greatest purchasing power in the Generation Y college student takes place within the part-time student, who spends over $400 monthly on discretionary purchases while often maintaining full-time employment (Gardyn, 2002). Those who are either part time or at full time work are college students (Martin Turley, 2004). Students always work as part time work to find extra funding for their excessive spending during the university hopdays or breaks. There are average 80% of students attending college or university are employed (Martin Turley, 2004). The financial knowledge of the average Generation Y consumer also earns them the awareness and respect of marketers even though their spending power alone is enough reason to pay significant attention to this group of consumers. The financial knowledge of the average Generation Y consumer also earns them the respect of marketers today. Generation Y consumers have a remarkable amount of disposable income due to the increasing of greater level in the economy over the past decade (Martin Turley, 2004). Besides that, the research suggested that â€Å"Generation Y has more discretionary income than the previous generations and prefer to spend it on themselves rather than others. A reason for this may be because they are starting families later in life and therefore are able to spend their income on themselves without having to worry about others† (Angela Hughes, 2008) The important of this group of consumers has taken on the greater level of meaning for marketer. â€Å"While the Baby Boomers grew up with television advertising influencing how they were marketed to and how they bought products, Generation Y has many different mediums that they grew up with, which is what makes marketing to them so much more difficult† (Angela Hughes, 2008). Marketers are playing the large part influence consumers behaviour through the knowledge of fashion. The reason is that teenagers are concerned about fashion value more than any other age groups (Koester and May,1985; Sriviroj 2007). One of the most influencers is the media because of media consist of a wide range of technology such as television, internet, mobile phone and DVD. (Angela Hughes, 2008, Sriviroj 2007). The internet has permanently changed the way that this generation shops by giving the information about products than the companies give the consumer. According to Angela Hughes (2008), he in ternet is also a powerful tool for this generation in spreading opinions about products to their peers. The largest differences between Generation Y and those that preceded them are Generation Ys tremendous awareness and confidence. Generation Y is more likely than any previous generation to look up information before purchasing a product. Generation Y is more desirable to own the products that they know their peers will accept just to show they are part of the group. On the other hand, in the research of Sriviroj (2007) stated that television is strongly influence these generation which affect them as they will reflect their perceptions in â€Å"reality† as they have seen in television world. â€Å"Of the paid advertising channels of online, outdoor, newspaper, magazine, radio, TV and Theatrical, TV and newspaper are the most trusted media† (Nielsen Global Online Consumer Survey, 2009). â€Å"Generation Y is poised to take over as the largest and most lucrative consumer group for marketers, a position that has long been held by the Baby Boomer generation† (Angela Hughes, 2008). In order to understand the generation Y consumers, it is important to think about factors that motivate these individuals towards the purchasing of luxury goods. 2.2 Social Influence Previous research shows that group influences play an important role in influencing the purchase decisions (Brinberg and Plimpton, 1986; Martin and Bush 2000; Mascareches and Higby, 1993). The group members have been recognized as determinant of behavior. The fact that the people act in accordance with a frame of reference produced by the group to which they belong is a long accepted and sound premise (Merton and Rossi, 1949). However, many individuals did not behave like the majority of people in their recognized group (e.g., social class or educational level).The casual observation showed perplexing contradictions between group membership and behaviors. According to Merton and Rossi (1994), â€Å"a partial solution was found in the concept of â€Å"reference group†, which recognizes that people frequently orient themselves to other than membership group in shaping their behaviors and evaluations and that reference groups can perform a diversity of functions.† Reference groups are generally defined as â€Å"actual or imaginary institutions, individuals, or groups conceived of having significant relevance upon an individual‟s evaluations, aspirations, or behavior† (Lessig and Park, 1975; Pertina, Prybutok, Zhang, 2008). Besides that, reference group also can be defined as â€Å"a group of people that significantly influence an individuals behavior† (Bearden and Etzel, 1982). Reference group are important because they make the individual aware to a specific goods or brands and influence individuals to adopt attitude and behaviour that are consistent with the norm of the group. The normative and informative social influences are the most widely accepted influence. Normative social influence is based on the tendency to conform to the expectation of others while informational influence is based on the desire to make informed decisions and optimize the choice (Stephen Yang and He, 2009; Khan and Khan, 2005). Berden and Etzel (1982) examined that the reference group influence by product and the brand purchase decision. Previous research studied group influences in marketing strategy and consumers purchasing behaviour. Specifically, three types of group influences are studied which is information, utilitarian and value expressive influences (Stephen Yang and He; Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Pertina, Prybutok, Zhang, 2008). Informational influence is reflected when an individual perceives enhancement of knowledge and ability to cope with environment when using information from opinion leaders, experts, or product users. Utilitarian influence manifests through the process of compliance with those who can exercise reward or punishment power. Value-expressive reference group function is based on the identification process whereas an individual who associates oneself with a group to enhance self-concept adopts this groups consumption patterns. Reference groups have been found to specify what the desirable and undesirable goods are (Bristol and Malengburg, 2005; Khan and Khan, 2005). Many researchers have argued that individuals are more susceptible to reference groups influence when the goods is conspicuous and publicly consumed (Bearden and Etzel, 1982; Makgosa and Mohube, 2007; Batra, Homer, Kahle, 2009; Morris and White, 2009). The influence of a reference group on consumer behavior can be done in one of two ways, either directly or indirectly. In the research Stephen Yang and He (2009), reference groups refer the group that individual has frequent contact with (such as family members, work associates, classmates, friends, etc.). These group is refers to the groups used by an individual to direct one purchasing behaviour in particular situation. These are generally referred as direct reference group (Schiffman and Kanuk, 1994). On the other hand, it included â€Å"the groups that does not have the membership in or direct contact with, such as certain expected groups or people in a certain social level (Stephen Yang and He, 2009). Based on the work of Khan and Khan (2005), the direct reference group influence was illustrated as â€Å"families, friends, co-worker, formal social groups and other leisure groups†. This differs from the indirect reference groups comprise of â€Å"individuals and groups t hat influence consumers purchase intentions without having and direct contact such as celebrities and sport personalities† (Khan and Khan, 2005). 2.2.1 Direct Reference Groups Direct reference groups can be defined as direct contact from the individual or groups with the consumers. With the reference from †¦.., it showed that families, friends, co-worker, formal social groups and other leisure groups are under this categories. A person has several reference groups for various subjects or different decisions normally. For example, â€Å"a woman may consult one reference group when she is purchasing a car and a different reference group for lingerie† (Consumer Behaviour, no date).These direct reference groups are the one who frequently contact with the consumers, It can be seen that the groups views from direct reference groups whether purchase the goods in order to be like group members, believing in group members decisions or a sign of wanting to fit in the group. The previous researchers have carried out the investigations on how the role models (parents, relatives, peers) influence teenagers purchase intentions and behavior (Martin and Bush; Subramanian and Subramanian, 1995)) and how parents and peers influence various products and brands purchase decisions (Bearden and Etzel, 1982). Researcher has shown that overt family communication can and often does influence younger consumers attitudes toward purchases and their consumption patterns (Martin and Bush). Consumers always do not feel confident enough to evaluate alone. They will consult a friend or partner by inviting them along to a potential purchase can enhance the process. â€Å"Having a peer present meant that shop assistants become largely irrelevant and that evaluation of a brand centered largely on initial peer reaction to fit, style and price-based decisions† (Guy W.Mullarkey, 2001). â€Å"It is also interesting to note that of all the three direct reference groups, friends tend to exert the greatest influence where individuals purchase brands because they identify themselves with their peers† (Khan and Khan, 2005). From the numerous researches that have been done, direct reference groups influence make an immediate impact to the consumers. Therefore, it can be concluded that direct reference groups play a significant role in providing relevant information, deemed necessary to make a purchase and conform the group norm. 2.2.2 Indirect Reference Groups Indirect reference groups is the group that influence consumers purchase decisions without having any direct contact with the consumers such as celebrities and sport personalities. Khan and Khan (2005) defined celebrities as â€Å"individuals who are well known to the public for their advertisements in areas other than product class endorsed† and that they represent â€Å"an idealisation of life†. In luxury goods industry, it will be much easier by connecting the brand to a celebrity and is even viewed, in some instances, as a necessity. This is because a luxury goods company is in the business of building and selling dreams, and nothing is more helpful in making such dreams concrete and thus more believable in the eyes of the consumer, than communicating it through a famous personality. Celebrities are being increasingly used in marketing communication by marketers to lend personality to their products in India (Matrade Chennai, 2005).

Escaping the Cage of Marriage in Henrik Ibsen’s A Doll’s House Essays

Escaping the Cage of Marriage in A Doll House      Ã‚  Ã‚   A bird may have beautiful wings, but within a cage, the beautiful wings are useless. Within the cage, the bird is not fulfilling the potential for which it was created - it is merely a household decoration.   In Ibsen's symbolic play A Doll House, Nora is the bird, and her marriage is the cage. Externally, Nora is a beautiful creature entertaining her husband with the beautiful images of a docile wife, but internally, she is a desperate creature longing to explore her potential outside the cage of her marriage. In a society dominated by the expectations of men, Nora must choose between the obligations determined by her role as wife in opposition to the obligations of self, in determining her true identity. Within the context of love, she commits forgery, and through this deception, discovers her marriage is nothing more than an illusion, and she nothing more than a doll within Torvald's house. In Act I, the Christmas tree symbolizes the Helmer's marriage. Externally, the tree is beautifully decorated, but internally it is dying because the tree has no roots to feed it. Nora and Helmer are playing the roles that society has taught them. He is the strong provider and protector; Nora is the helpless little woman who depends on him. Like the Christmas tree, the Helmer's marriage is just an image of beauty, dying on the inside. After Krogstad informs Nora that he intends to blackmail her, she tells the maid to bring her the tree and set it in the middle of the floor (center stage) (1581). Nora begins to decorate the tree:    [I'll put c]andles here [and] flowers here. That terrible creature! Talk, talk, talk! There's nothing to it at all. The tree [is] going to be lo... ...ond the cage, the beautiful wings carry the bird into a life worth living. A life where the birds have the opportunity to accomplish the obligations of their creation is the only life worth living.    Works Cited Baruch, Elaine Hoffman. "Ibsen's Doll House: A Myth for Our Time." The Yale Review 69 (1980): 374-387. Gray, Ronald, ed. Ibsen-A Dissenting View: A Study of the Last Twelve Plays. Cambridge: Cambridge UP, 1961. Ibsen, Henrick. A Doll House. The Bedford Introduction to Literature: Reading, Thinking, Writing. 5th   ed. Ed. Michael Meyer. Boston: Bedford/St. Martin's, 1999. 1564-1612. Northram, John. "Ibsen's Search for the Hero." Ibsen: A Collection of Critical Essays. Ed. Rolf Fjelde. Englewood Cliffs, NJ: Prentice-Hall, 1965. 107-113. Templeton, Joan. "The Doll House Backlash: Criticism, Feminism, and Ibsen. PMLA   104.1(1989): 28-40. Escaping the Cage of Marriage in Henrik Ibsen’s A Doll’s House Essays Escaping the Cage of Marriage in A Doll House      Ã‚  Ã‚   A bird may have beautiful wings, but within a cage, the beautiful wings are useless. Within the cage, the bird is not fulfilling the potential for which it was created - it is merely a household decoration.   In Ibsen's symbolic play A Doll House, Nora is the bird, and her marriage is the cage. Externally, Nora is a beautiful creature entertaining her husband with the beautiful images of a docile wife, but internally, she is a desperate creature longing to explore her potential outside the cage of her marriage. In a society dominated by the expectations of men, Nora must choose between the obligations determined by her role as wife in opposition to the obligations of self, in determining her true identity. Within the context of love, she commits forgery, and through this deception, discovers her marriage is nothing more than an illusion, and she nothing more than a doll within Torvald's house. In Act I, the Christmas tree symbolizes the Helmer's marriage. Externally, the tree is beautifully decorated, but internally it is dying because the tree has no roots to feed it. Nora and Helmer are playing the roles that society has taught them. He is the strong provider and protector; Nora is the helpless little woman who depends on him. Like the Christmas tree, the Helmer's marriage is just an image of beauty, dying on the inside. After Krogstad informs Nora that he intends to blackmail her, she tells the maid to bring her the tree and set it in the middle of the floor (center stage) (1581). Nora begins to decorate the tree:    [I'll put c]andles here [and] flowers here. That terrible creature! Talk, talk, talk! There's nothing to it at all. The tree [is] going to be lo... ...ond the cage, the beautiful wings carry the bird into a life worth living. A life where the birds have the opportunity to accomplish the obligations of their creation is the only life worth living.    Works Cited Baruch, Elaine Hoffman. "Ibsen's Doll House: A Myth for Our Time." The Yale Review 69 (1980): 374-387. Gray, Ronald, ed. Ibsen-A Dissenting View: A Study of the Last Twelve Plays. Cambridge: Cambridge UP, 1961. Ibsen, Henrick. A Doll House. The Bedford Introduction to Literature: Reading, Thinking, Writing. 5th   ed. Ed. Michael Meyer. Boston: Bedford/St. Martin's, 1999. 1564-1612. Northram, John. "Ibsen's Search for the Hero." Ibsen: A Collection of Critical Essays. Ed. Rolf Fjelde. Englewood Cliffs, NJ: Prentice-Hall, 1965. 107-113. Templeton, Joan. "The Doll House Backlash: Criticism, Feminism, and Ibsen. PMLA   104.1(1989): 28-40.

The Paradox of Prison-Based Economic Development in Rural America :: Free Essays Online

The Paradox of Prison-Based Economic Development in Rural America Introduction Whereas prison facilities were once viewed with aversion as threats to a community’s well-being, prisons today are the focus of competitive bids by rural communities desperate for economic stability. As non-metro economies deteriorated and prison populations exploded over the last two decades, rural America and prison facilities have developed a symbiotic relationship. This paper investigates whether prison-based economic development policies in rural America provide benefits that exceed their costs. Proponents of the prisons-as-development strategy contend that prison jobs offer better wages and create more stability than the few industries that remain in non-metro America. Yet, critics cite higher crime rates and reduced property values as the social externalities and economic drawbacks that result from prison siting. Impact studies of prison-based development strategies, although far from conclusive, suggest that the truth may lie somewhere in the middle. However, it is also clear that the varied impacts this strategy has, both good and bad, are rarely if ever considered in the prison siting process. Nonetheless, the prison-as-development approach continues as a tactic to create jobs and to bring hope to the struggling communities of non-metro America. Two Trends: Rural Economic Deterioration and Rising Prison Populations Prison siting as a form of economic development resulted from the convergence of two unrelated trends in America: the economic downturn in rural America and the increase in U.S. prison populations. Over the last several decades, economic distress was brought on to non-metro regions as family farms were consolidated and manufacturing industries found cheaper labor elsewhere; Almost all sources of well-paying employment drained out of rural America. The consequence, as Huling identifies, was that the poverty rate of working rural families actually increased in the 1980s (4). With demoralized populations and stagnant economies, non-metro America looked to all but vanish by the end of the century. One of the few economic development strategies that remained was the acceptance of generally undesirable industries and facilities to create jobs. Samara suggests that rural communities were â€Å"priced out of contests to attract manufacturers, as local development agencies in more prosperous areas offer[ed] aggressive packages of tax breaks, cheap loans, free land and more† (27).

The Unknown Prevalence of Youth Gambling Essay -- Gamble Winning Win E

The Unknown Prevalence of Youth Gambling A child’s motivation to begin gambling is obvious. Even at an early age children are trained to idolize winning. They are taught the tortoise is the best because he wins the race. From this elementary lesson, children develop a tendency to idolize the winners and discount the losers. Children observe gambling and have an inclination to see the player raking in armfuls of chips, not the player across the table slowly losing a week’s pay at the black jack tables. They see Las Vegas portrayed in the media as a place to go to win money. They do not see the gamblers who leave the town with an empty bank account and a potential inability to provide for their families. By looking at the gambling culture in this idealized way, children are inclined to gamble when the opportunity presents itself. They may begin innocently by entering into their father’s office pool or wagering on baseball games with their friends, but the fact is many of these children will find t hemselves facing a gambling problem in years to come. I began gambling when I was thirteen with sports pools and friendly wagers with friends. Only four years later I found myself immersed in the culture of gambling; risking my money four nights a week in poker games. When I had started gambling, the stakes were only fifty cents, but now thirty and forty dollars were up for grabs. By the time I was eighteen, even these stakes were no longer enough for me. I decided that the casinos in Atlantic City were the only venues with payoffs large enough to satiate my hunger for gambling. On nothing more than an impulse I set off on a three hour drive, bound for certain victory. I found a seat at the black jack tables in Bally... ...tions. However, the nation will not take action any time soon, not without a push. As members of a society we must do our part to increase awareness about this issue. We must make an effort today to see the adolescents don’t gamble their tomorrow away. Works Cited Eckart, Dennis. Advancement of an Emerging Science. 2003. National Center for Responsible Gaming. 10 Sept. 2003 . Moiduddin, Adil. Gambling Impact and Behavior Study. 2003. The National Opinion Research Center. 10 Sept. 2003 . Willenz, Pamela. Pathological Gambling More Prevalent Among Youths Than Adults, Study Finds. 2003. American Psychological Association. 11 Sept. 2003 .

Determining Justification for Rfid Technology

Running Head: DETERMINING JUSTIFICATION FOR RFID TECHNOLOGY Determining Justification for RFID Technology Bahram Izadi, Master Student of Business Management, University of Isfahan, Isfahan, Iran and John Boyd, BASc, Computer Engineering, University of Ottawa, Ottawa, Canada Abstract â€Å"What are  the  benefits? † is a  common question for any organization considering implementing a new  technology. This is an especially  important question  for small or developing companies, where an error in  investment could  result in unrecoverable  operating capital loss. As Radio Frequency Identification (RFID) systems are making  deep and impressive  improvements in manufacturing, distribution, and supply chain management and military logistics, it is time to consider  the  quantifiable financial and operational benefits  of RFID in  an organization's competitive strategic plans. This article will review the benefits of RFID implementation against its costs, and demonstrate  how the introduction of an RFID system can reduce production, distribution, and warehousing costs, while increasing  the operational efficiency of an organization. Through financial metrics, value equations, and numerical  analysis this article  will demonstrate  how  RFID implementation  can improve not only an  organizations bottom line, but also  intangible benefits such as internal focus, industry  leadership, and differentiation from its competitors. A sample business case study will be presented to demonstrate to the reader valuable insight to both real-world advantages and limitations associated with RFID adoption. 1. Introduction The focus of this paper is how to develop an RFID strategic plan to quantify RFID justification through return on investment (ROI). RFID offers strategic advantages for businesses, private or state organizations because it can improve efficiency, cost savings, and yield greater returns  in virtually all areas of business processes and operations. However due to the complexity associated with an RFID system, its uncertain proven capabilities, and high costs of implementation, it is crucial to create solid a business case and justification in terms of ROI, either quantifiable or intangible, which offer the greatest benefit to the company. 2. Background – What is RFID? Radio frequency identification, or RFID, is a wireless automatic data collection technology which uses electronic tags for data storage. An RFID system consists of an RFID tag, a reader/writer unit with antenna, and a computer, as shown in Figure 1. [pic] Figure 1 RFID System The reader/writer emits radio signals from its antenna to power the tag, and can read or write data to the tag without a direct line of site. Reader/writer units are available in various shapes and sizes depending on requirement or application. Similarly RFID tags are available to suit most any application or environment from unobtrusive paper thin tags suitable for traditional barcode applications, to large heavy-duty brick sized tags to track heavy machinery. The computer or middleware allows communication between the RFID hardware and system applications. 3. RFID Benefits and Costs RFID offers strategic advantages for businesses because it can improve productivity, efficiency, cost savings, and yield greater returns in virtually all areas of business operations. As an example, Air Canada was losing $2 million USD worth of food carts per year. This initial problem of asset tracking resulted in the deployment of RFID systems which yielded a 2% reduction in total inventory, 5% reduction in maintenance costs, 20% to 50% in trucking charges, 80% reduction in shrinkage, 100% reduction in costs for auditing yearly inventory counts and ROI within 18 months. [Internet, 4] In general some of the main advantages of RFID usage are: †¢ Reduced warehouse and distribution labor costs due to increased data automation †¢ Reduced inventory by omitting inventory errors Improved forecasting and planning due to improvements in visibility of supply chain †¢ Reduced theft by tracking the products point to pint †¢ Reduced out-of stock conditions via better RFID product tracking RFID is used for everything from tracking cows and pets to triggering equipment down oil wells. The most common applications are payment systems, toll collection systems, access control, track people, assets and products without the need for human intervention or direct line of site. [Internet, 5] All of the applications listed have been deployed because they haven proven ROI. . RFID Costs When considering RFID costs a company must consider the total cost of ownership rather than just the initial RFID hardware and tags costs. A complete RFID system includes not only hardware infrastructure, but also service such as design, development, deployment, maintenance, ongoing support, and training. Also to consider are the future costs as the system is scaled beyond its initial pilot or trial phase. Costs should also be associated with restructuring or introducing new business practices. 5. Creating Justification for RFID The potential applications and benefits of RFID are only constrained by a company’s level of innovation. However, before rushing to adopt RFID technology a company can ensure the greatest rate of return and success by having in place a comprehensive strategic plan which quantifies all encompassing aspects of RFID including technology and business processes in order to deliver its benefits for maximum value. In order to justify the costs of an RFID system it is vital a companies RFID strategic plan contains quantifiable  metrics assigned to values of each area which RFID impacts. Therefore when a company does decide to implement RFID, such a strategic plan will allow them to proceed confidently to their strategic objective while ensuring the maximum potential value areas are achieved. By contrast a poor RFID strategic plan without careful and insightful study, risks to dilute the focus and resources of the business and may prove to be detrimental and wasteful, instead of beneficial. Each RFID deployment will have its unique application varying with the application of the company and the company’s goals so there is no single ROI or total cost of ownership criteria for RFID. On the other hand, ROI in many cases is not only found financially but also in intangible factors. For example a distribution center may place value on increasing efficiency throughput in order to save money on labor and reduced shipping errors, where a hospital or healthcare center would place value on increasing visibility of surgical equipment so to have a better chance to save a persons life due to increased response time – economic cost would not be so much as a constraint in this case, but rather the service is of more importance than straight financial justification. . Creating a RFID Strategic plan to determine ROI justification As previously mentioned, there are often uncertainties and reservations when an organization first considers introducing RFID, such as concern of high price or hesitation at the risks of being an early adopter and risking mistakes and learning costs. This is usual behavior in small companies and especially in developing countries where  an er ror in  investment could  result in  unrecoverable  operating capital loss. To overcome this uncertainty and to proceed confidently with the company-wide acceptance of RFID deployment, a plan must include strategic thinking and financial justification. [Sweeney, Patrick J II, Chapter 16] By thinking strategically, we uncover the hard data and information that enables members of organization to make informed decisions and to communicate the rationale of RFID deployment effectively. Performing an ROI study on RFID will allow a company to become reacquainted with current business processes and to identify opportunities for optimization (if RFID is decided to be used or not. Through analysis and calculations, in this process we examine every RFID affected area and assign to them associated value metrics in terms of quantifiable or intangible returns. However in order to obtain the information and data necessary to perform ROI calculations and value equations it is necessary to create a solid and detailed rich strategic plan comprised of but not limited to the fo llowing sections, Figure 2. [pic] Figure 2 Involved Steps of an RFID Strategic Plan 6. 1 Form Business Team Since an RFID implementation will affect business process as well as technological change, it is beneficial that the business team includes internal management personnel capable of RFID analysis from all related functional departments. Internal team members, working closely together with external experts and consultants, will be able to offer valuable procedural insight to the development and design of an RFID system. 6. 2 Define Scope and Assumptions A strategic plan should clearly define how RFID will affect the business and define key elements of RFID operation. A clear understanding of affected processes, departments, and areas of coverage, is essential. Assumptions are necessary to ensure a common understanding of how the RFID system will be implemented and what processes will be affected. 6. 3 Identify Strategic and Economic Benefits Benefits represent one of the most important factors in building an RFID business case. To determine justification and feasibility of an RFID system a company must summarize its expected strategic impacts and quantifiable benefits obtained through more efficient RFID enabled processes. Since strategic or intangible benefits can not be easily quantified, it is important for the company to articulate why an RFID introduction is important to business and have a clear understanding of its associated value. This is especially important for companies which place value on product or data visibility. Examples of strategic benefits include internal focus, industry  leadership, and differentiation from its competitors, and product visibility. Quantifiable economical benefits can be tested through metrics and measured with calculations. Quantifiable benefits will vary with industry and RFID application but will generally be attributed to time or process improvements through automation and improved efficiency. 6. 4 Develop Business Process Models Process modeling consists of creating business-flow diagrams and use-cases to determine and quantify how RFID will impact those processes and associated applications. Adoption of RFID technology will most likely create new additional processing steps, and therefore modified business use cases will be introduced to reflect optimized RFID use. Some sub processes might get streamlined and thus provide efficiency gains, whereas some other sub processes might need to include additional processing steps, which might impact their efficiency rates. The use cases associated with the impacted and newly introduced processes can then be analyzed for benefit [Lahiri, Sandip, Chapter 8]. 6. 5 Determine Costs When considering ROI, one must consider the total cost of ownership rather than just the initial RFID hardware and tags costs. A complete RFID system includes not only hardware infrastructure, but also service such as design, development, deployment, maintenance, ongoing support, and training. Also to consider are the future costs as the system is scaled beyond its initial pilot or trial phase. Costs should also be associated with restructuring or introducing new business practices. 6. 6 Create an Implementation Road Map An implementation roadmap breaks up the complete RFID solution into a series of objective milestones within set time-frames. The main tasks involved in completing this step are developing a scale of implementation from trial or pilot stages to full deployment, and assigning associated metrics of costs and benefits with each stage of milestone. 6. 7 Create Business Case Finally all information should be compiled to form a business case. Each benefit should be associated with a level of impact and time to realization. The level of impact takes three factors into account: whether a benefit generates revenue, mitigates risk, or reduces cost. We may assign low-impact to benefits that meet one factor and high-impact to benefits that meet two or more factors. Time frame is a time period in which the business will see benefit. Short term could be one to two years and long term three to five years. It is difficult to forecast beyond five years. 7. Criteria and Justification Metrics to Justify ROI In order to justify the costs an RFID system it is vital a company complete RFID strategic plan contains quantifiable  metrics assigned to values of each area RFID impacts on including procedures and personnel to ensure  RFID investments yield the greatest  rate of return. Through study numerical analysis value equations and modeling, the  value of various RFID systems can be made apparent and determined to be financially feasible or  cost prohibitive. It is important to present a cost benefit analysis in order to justify the investment in an RFID system and establish a clear ROI. Upon the completion of the strategic plan, the quantified figures and resultant findings can be processed through value equations to justify and determine feasibility of an RFID system. However, ROI in many cases is not only found financially but also through intangible factors. In this case, VOI (Value of Investment) should also be considered. Value of Investment is much more holistic approach to the benefits delivered and includes, next to the hard costs figures, the soft and difficult to measure benefits such as improved quality, staff moral and service perception, and customer loyalty. 8. Sample of RFID Justification through Case Study 8. 1 Introduction This example will show the Return on Investment (ROI) of an RFID solution for a company which sends shipments from its manufacturing plant to its distribution center. The system will be closed loop which means that the tags and their data will be limited to internal company use and will not be used beyond the limited area of distribution center. RFID technology will be used to help automate the transfer process. The overall objectives are: †¢ Demonstrate how RFID technology may be utilized to improve the efficiency of the transfer of shipments. Demonstrate a case which is justifiable in cost due to positive ROI analysis. 8. 2 Background A company’s distribution center is plagued by errors and inefficiencies when receiving shipments from the manufacturing plant. Especially problematic areas are delay in receiving pallets and loss of pallets to be returned. 8. 3 Assigning Metrics to Processes Estimation time to completion (ETC) of items entering the distribution center, wit hout and with RFID is described as in Table1. |No. Process |ETC |Process with RFID |ETC with RFID | |- |- |- |Precondition – RFID tags are|0 sec | | | | |affixed to pallets and | | | | | |individual items at the | | | | | |manufacturing plant. | |1 |Personnel scans barcode on pallet|30 sec |Pallet is placed in RFID |5 sec | | |to validate order and manually | |reader portal and scanned | | | |compares to expected manifest | |along with all contained | | | |list. | |items. Order is checked | | | | | |automatically. | | |2 |If pallet is valid expected |3 min |If pallet is valid but found|3 min | | |personnel enters pallet as | |to have exception it is | | | |received and breaks open the | |broken own, all items are | | | |pallet | |automatically scanned and | | | | | |noted, and extra item is | | | | | |brought to return area. | | |3 |Else pallet is invalid it is |4 min |Else pallet is invalid it is|4 min | | |moved to return area. | |moved to return area. | |4 |Personnel scans all individual |6 min |- |- | | |bar-coded items to validate the | | | | | |pallet contains all ordered items| | | | |5 |If item is invalid personnel |2 min per item |- |- | | |manually notes this and places | | | | | |item in return section. | | | | |6 |Else item is valid and is placed |6 seconds per item|Else pallet valid and all |1 min | | |into received area to be moved | |contained items are present,| | | |into inventory section. (Pallet | |entire pallet is placed in | | | | contains 20 individual items. ) | |received area to be moved to| | | | | |inventory. | | |Time to unload a pallet with no |11min, 30sec |- |1min, 5sec | | |invalid items | | | | Table 1 Estimated time to completion to process pallet at distribution center From Table 1, the estimated completion times (ETC) of Time to unload a pallet with no invalid items is 11min, 30sec without RFID, compared to 1min, 5sec with an RFID system. 8. 4 RFID Solution and Process Detail Placing RFID reader portals at the distribution centers dockside gate allows for automatic identification of all pallets and included pallet items to be scanned upon arrival. This would eliminate the manual steps of unpacking and checking each individual item separately before adding to inventory. An additional processing step of placing RFID labeling on items and pallets before them leave the manufacturing plant would be occurred; however this would not affect distribution center processing time. 8. 5 RFID Benefits Incorporating RFID into the distribution center process provides the following quantifiable and intangible benefits: †¢ Quantifiable benefits include: Pallet processing time increased of 90%, Reduction of loss as all pallets due to total visibility, Labor savings, and Reduced keyboard entry errors †¢ Intangible benefits: Neater docking area, Improved work atmosphere 8. 6 Risks and complexity Potential risks and complexity associated with RFID implementation may include Tag Misread due to damaged tag, moisture on the pallet tag, or proximity to metal surfaces. Site evaluation and proper RFID technology can minimize this risk as well as running barcodes in parallel with the RFID tags. 8. 7 RFID Components and System Costs The proposed RFID system will require estimated infrastructure and services consisting of the following: |Description |Costs Low $ |Costs High $ | |Hardware/Software | | | |RFID gate portal reader (4) |28,000 40,000 | |RFID handheld readers (4) |6,000 |8,000 | |Accessories: Cables, etc |1,000 |1,000 | |Servers and Accessories (5) |10,000 |15,000 | |Software |30,000 |50,000 | |RFID tags (10,000) – Closed loop system, tags can be recycled |2,000 |5,000 | | | | | |Integration | | | |Engineering, Installation and Integration services, training, |60,000 |100,000 | |maintenance (60 person days) | | | | | | | |Business Process Modification | | | |RFID tag application retooling at the manufacturing plant |35,000 |55,000 | | | | | |Total |172,000 |274,000 | Table 2 Estimated RFID Costs 8. 8 Summary of Results Through RFID implementation if you compare the pallet processing times of Table 1, you can see that a savings of 10min, 25secs can be realized per pallet. This is equivalent to a 90% increase in processing throughput times with the condition of a valid pallet and items. If the distribution center receives 500 pallets per day it can realize investment between 10 and 16 months depending on RFID costs, with assumed personnel costs of $10 hour and a 261 working-day per year calendar. If the distribution center is free of invalid pallets 95% of the time return on investment can be seen as in Table 3, as follows: Pallets received per|Savings per day |Savings per day |Savings per year |ROI with low RFID costs|ROI with high RFID costs | |day | |(in $USD) |(in $USD) |(in months) |(in months) | | |(in hours) | | | | | |300 |49. 5 |495 |129,140 |16 |26 | |500 |82. 5 |824 |215,234 |10 |16 | |700 |115. 5 |1155 |301,328 |7 |11 | Table 3 Time to ROI Sample calculations are as follows for 500 pallets received per day: 11min,30sec * 500 pallets = 690sec * 500 = 345000sec. 1min,30sec * 25 pallets = 690sec * 25 = 17250sec. 1min, 5sec * 475 pallets = 65sec * 475 = 30875sec 17250+30875 = 48125sec 345000sec – 48125sec = 296875sec 296875sec/3600 = 82. 46hr, round to 82. 5hours 82. 46hr*$10=$824. 65/day , round to $824 824. 65*261=$215,233. 65/year 215,234. 38/172,000=1. 27 0. 79*12=9. 58, round to 10months 215,234. 38/$274,000=0. 799 1. 27*12=15. 27, round to 16months Once RFID familiarity has been gained and estimated metrics have been realized, RFID may be moved to other areas of the company such as the picking from inventory at the distribution center, or some other RFID application at manufacturing center itself. However, the processes, equipment, results, and lessons learned will be applicable to other distribution centers, and acquired knowledge may be applied to other potential cost saving areas. 9 Conclusion The capabilities and limitations of RFID much be understood on a technical level, but also on a business procedural level to determine how RFID will ultimately impact on business. The decision to implement an RFID system must be carried out diligently with ROI equations. Also important to consider is intangible value which may not be apparent on a balance sheet. RFID is ultimately a business tool like many other IT options and to access its maximum capability, a company must have solid business procedures and plans in place. References Lahiri, Sandip (2005, August). RFID Sourcebook. Prentice Hall PTR. ISBN: 0-13-185137-3 Larsson, Bjorn & Qviberg, Ola (2004, December). Evaluation and Justification of an RFID Implementation Pilot at IKEA Customer Distribution Centre. Master thesis LiTH-EKI-EX—04/083—SE Institute of technology – Linkoping University Department of Management and Economics Industrial Engineering and Management Sweeney, Patrick J. II (2005). RFID for Dummies. Wiley Publishing, Inc. ISBN: 0-7645-7910-X Ustundag, A. Cevikcan, E. (2007, October). Return on Investment Analysis for Evaluation of RFID Implementation on Cargo Operations, Istanbul Tech. Univ. , Istanbul; Appears in: RFID Eurasia, 2007 1st Annual Publication Date: 5-6 Sept. 007 ISBN: 978-975-01566-0-1 INSPEC Accession Number: 9777002 Digital Object Identifier: 0. 1109/RFIDEURASIA. 2007. 4368145 Date Published in Issue: 2007-10-29 Internet 1 Association for Automatic Identification and Mobility. What is RFID? Retrieved September 2, 2008 from http://www. aimglobal. org/technologies/RFID/what_i s_rfid. asp 2 Axios Systems. (2007, March) Return on Investment: Fact or Fairy Tale? White Paper. Version 1. 1. 0 Retrieved September 5, 2008 from http://www. axiossystems. com/six/shared/downloads/pdf/ROI_fact_or_fairy_tale. pdf 3 Miles Technologies. Common Applications Using RFID for Asset Tracking and Other Applications. Retrieved September 5, 2008 from