Consumer Behaviour - Learning Theory Essay Example | Topics and Well Written Essays - 500 words

Consumer Behaviour - Learning Theory - Essay Example Looking at this advert, emotions are aroused making it so attractive and appetising especially when the viewer combines what he sees with environmental experiences with sausages or his perception of just how delicious this breakfast dish looks like. As such, cognitive, emotional and environmental influences as well as prior experiences all play a part of how understanding is acquired and knowledge and skills retained and ultimately how this advert could be received. Learning theory proposes that individuals learn in different ways and styles and how they perceive the information. Cognitive conditioning embraces situations where a learner’s behaviour is studied rather than studying his environment. As a result, in these adverts, cognition conditioning becomes very important as they target the psychology of the viewer thereby persuading him to looking for the dish or outfit described in the adverts. The conditioning looks beyond behaviour to consider how human memory works to promote learning. The advertisement is designed in such a way that it enhances the memory of the audience. It is usually argued that pictures speak more than words – a picture is worth a thousand words (Vakratsas & Ambler, 1999). The images used in both advertisements are, therefore, intended to ensure that the information is captured and retained by the intended audience. While attracting more of the potential clients, the advents’ cognitive potential ensures that they retain the actual clients of the brand. Cognitive conditioning explains social role acquisition int elligence and memory in regards to age. Consumers store information on products or a print advert of the product in their brains which they later would retrieve. Retrieval of information is assisted by clues which may be self generated or external and may take forms of images, shapes and Colour (Rothschild & Gaidis, 1991). The Company needs to focus on

Financial management Essay Example | Topics and Well Written Essays - 3000 words - 2

Financial management - Essay Example The theory acknowledges the use of both equity and debt financing of the firm operations. It holds that each firm has an optimal capital structure at which it maximizes the value of the firm, which is the point when the attractiveness of each additional debt unit declines, upon balancing its costs and benefits it brings to the firm (Ghazouani, 2013). By this the theory links a firm’s financial leverage to its profitability and optimum debt ratio. Proponents of the theory argue that debt financing can enable firms to achieve maximum profitability and value by making a trade off of the accrued benefits and cost. Financing firms with debt has the advantages of corporate tax benefits of the debt, but also suffer risks from bankruptcy and agency costs, which create financial distress for the firm. Tax shields are firm specific factors that influence firms financing decisions. Firms may choose to take additional debt with increases to tax shield offered. According to Chen, â€Å"the trade-off theory predicts that firms will increase their debt level to capture fully tax benefits until the expected marginal benefits are equal to the expected marginal costs of debt† (2012, p. 1). The higher the tax rate the greater the firm’s leverage and effectively a higher enterprise value. By maximizing the use of debt, firms on the other hand become more prone to losses due to increasing risks of bankruptcy. The firm’s over-borrowing could result to failure of paying the principle, chances of defaulting, and in the event of financial distress are unable to get extended credits from financial institutions, failure to pay dividends or attractive for investment (Kim, Heshmati and Aoun, n.d.). In turn they affect the firm’s profitability, performances and its value. Holding other variables constant, a point comes when a further debt increment becomes inversely and directly proportional to its marginal profits and costs,