Need 2 comment responses

Unit 1-Exploring Economics

Reply Instructions: I need 300 words (each) minimum response back to 2 peer’s comments (See attachment). Help them identify some additional costs or benefits from responding to their incentive. Comment on their analysis of the outcome. Outside sources should be used in the DISCUSS section and must reference cite APA. Each Discuss post should include at least 300 words. Comments such as “I agree” or “Good ideas” will not be considered sufficient. Do not simply re-state classmates’ posts. Your posts should be thorough, thoughtful, and pertaining to the analytical tools from the on-line text provided. Responses should be complete and free from grammatical or structural errors. No more than 10 percent of a post should be direct quotes. Must provide 100% original work. Absolutely no plagiarism!

1. “An incentive is something that motivates an individual to perform an action” (Wikipedia, 2016). A situation in which I responded to an incentive was during a search for a new car stereo. I get excited when I am able to get a great deal on a car stereo that gives me features that will allow me to experiment. One of the features were navigation. Normally, making a purchase on a new car stereo with this feature can be very expensive. This time I was able to get the product at a cheaper price than normal. I was very motivated to buy the item due to the feature that would have been very pricey in the beginning, now it was on sale and very inexpensive.

The benefits was being able to purchase a new car stereo that had navigation as one of the features at a lower price. This motivated me to search for warranty on the product which was also available at no cost. “Positive incentive that either reduced costs or increases benefits” (Sexton, 2012).

“Opportunity cost is the highest valued opportunity lost” (Sexton, 2012). Seeing that the car stereo was not expensive, especially with the navigation feature is a good reward. The value of the product for me was worth paying the cheaper price that was listed. When there is an opportunity to make a purchase of a product that is of a lower price than normal, it is best to take the advantage. This is an opportunity for me as a customer to reap the benefit of positive incentive and also make the best of the high valued feature at this low cost.

The benefits out weighted the cost of the product. Navigation on a car stereo does get very pricey depending on the brand that we as customers may purchase. Whenever there is an opportunity to make the purchase of the packaged deal, it is best to take advantage of the rewards that are available and make the purchase of the item that is presented.

Reference:

Incentive. (n.d.). Retrieved December 27, 2016, from https://en.wikipedia.org/wiki/Incentive

Sexton, L. Roberts (2013). Exploring Economics, South Western, Cengage Learning.

2. The author noted that incentives induces people to respond to a reward or a punishment (Sexton 2012). The most recent situation that I have responded to an incentive was two months ago at local women store. My friend (an employee) sent me a text they were processing markdowns and there were items that were up to sixty percent off the original price. I wasted no time driving to the store and filling the shopping cart with all the clothing desires my heart could take. As an added bonus I was able to utilize my friend’s employee discount and received an additional 10 percent off the entire purchase.

By my friend informing me of the storewide markdowns prior to the store opening for the day. I was able to get there as soon as they opened and had first pick of limited marked down clothing items in my size. Opportunity cost is defined as the cost of a missed opportunity. It is opposite of the benefit that would have been gained had an action not taken been taken-the missed opportunity (Burton 2012). In this case my opportunity cost was worth it, as to my knowledge there no other stores offering equal or greater discounts for clothing along with an additional ten percent off the entire purchase. For me it was important to purchase these clothes at that particular time than to wait for another opportunity of a markdown sale event to come again.

The benefits of this purchasing expedition were greater than the cost. I was able to purchase more clothing with less money with the discount and markdowns. It was indicated on the receipt that 350.00 worth of merchandise was purchased for 110.00. I was able to purchase a variety of seasonal clothing adding additional pieces to my work and leisure wardrobe.

References:

Sexton, R (2012). Exploring Economics. Mason, OH: Cengage Learning.

Opportunity Cost. (2011). In V. L. Burton, III (Ed.), Encyclopedia of Small Business (4th ed., Vol. 2, pp. 927-928). Detroit: Gale. Retrieved from http://go.galegroup.com.bethelu.idm.oclc.org/ps/i.do?p=GVRL&sw=w&u=tel_a_bethelc&v=2.1&it=r&id=GALE%7CCX2343700411&asid=7b8956767244c92f52f457cd4c82a284

Francis