Johnny Ch Lok

Consumer Behavioral Economic Consumption Research Johnny Ch Lok

This case concerns how to apply incentive economic theory to solve day care center children parents' arriving to pick up their childen late challenge. If a day care center charges penalty for children's parents disobeying " on time arriving day care center to pick up their children behavioral rules", can It brings bad behavior to parents or reverse effect or economic benefit of earning more penalty? For example, $40 penalty or more can bring threat influence to raise parents' arriving to pick up their children on time or otherwise, $40 penalty is more penalty can influence they feel not happy to cause they choose another day care center to help them to take care their children. For example, $40 penalty or more or less amount, which amount is actually an incentive to achieving the threat on time arriving aim or reducing day care center parents number. Incentives are an important concept in economics. In childhood, we quickly learn about incentives, e.g. parents buy computers to their children if they can pass the examination present incentive case or fine incentive to society case, such as if the person cross on the red light or the driver drive his car when the person is walk on the green light. Can this fine incentive reduce traffic accidnet occurrence in societies? This is a kind of social inventive to avoid traffic accident occurrencem, but whether how much fine can have threat function to any people when they need to go through road or they need to drive cars on the road. In this incentive penalty case to day care center, if incentive amount is small, it can threaten the child's parent to avoid arrive the day care center late often or if the incentive amount is too much, it can influence the day care center parents choose another day care center. Sometimes, frequent on time arriving to the day care center, this effect is one good judgement whether the penalty is incentive to day care center's parents on time arriving or it will bring incentive to influence them to choose another day care center to replace current day care center. The penalty amount can be judged whether the amount can increase many parents' on time arriving to the day care center number or the amount can not increase many parents' on time arriving on the day care center number, even it can influence many parents choose another day care center to replace current day care center effect. Then, it may explain this amount is reasonable penalty to threaten the day care every child's parent. This case is such as blood donation incentive case, if the blood donation organization can pay an attractive reward to compensate any blood donation people, e.g. when the blood donation person can donate more than three bags blood. Then, every additional blood bag is donated from the same donator, he can earn $100 extra reward So, if he can donate 5 bags blood, he can earn $ 200 reward. In these cases explain incentive may bring encouragement or discouragement to any consumers or social people in business or social environment. This case concerns how to apply scarcity to increase coffee cafe drinkers number. How can influence coffee drinking consumers choose to go ro coffee cafes to drink coffee to replace to go to supermarkets to buy coffee or go to hotels to drink coffee? In any coffee cafes, the cost may involve the coffee beans purchase, coffee equipment, such as an espresso machine is needed. Also, the costs of electricity, coffee cups and the labor of the waiters. However, these expenses is relatively less. Such as Pacific coffee cafe can still charge cheap price. But when Pacific coffee cafe is located at stations, airports and shopping malls in center of city. So, rent may be expensive to influence some coffee cafes' expenditure.