Perceptual Mapping free essay sample

A detailed explanation of how perceptual mapping works, what it does, and what are its critical assumptions †¢An application of how perceptual mapping was used, i. e. , describing an application of the tool in detail, focusing on procedure, calculations, results, and interpretation. Background Branding; is defined by Charles W. Lamb, co-author of Marketing: sixth edition; as a name, term, symbol, design, or combination thereof that identifies a seller’s product or service and differentiates them from competitors’ products. Perhaps, the successful of many businesses has been attributed to the positioning of a product or service associated to a brand that consumers would easily grasp and differentiate from other products within a category. Understanding how consumers store information in memory is essential in brand development, according to Dawn Iacobucci, editor of Kellogg on Marketing. A product or service â€Å"brand† might have three types of associations: attributes, people, and occasions. â€Å"Attributes are physical characteristics of a product such as its color, size, and flavor. We will write a custom essay sample on Perceptual Mapping or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page People and occasions together are regarded as image. Most brand positioning involves a combination of attributes and image. Perhaps, consumers typically do not make decisions on the basis of attributes or image alone. Rather they use a combination of both to infer some benefit, adds Iacobucci. A benefit is an abstract concept such as convenience, pleasure, or fun. The rationale for a benefit is the fact that it has some attributes or that certain people use it on particular occasions. An example is how the beer industry emphasize the taste benefit supported by specifying the brand’s choice by showing young adults enjoying it at social gatherings, sports, or at home with friends. Therefore, perceptual mapping has become essential in the development or repositioning of a product or service for any marketing manager. Since perceptual mapping, according to Dr. Zafar Iqbal PhD professor of marketing at DePaul University, is a special representation in which customer perceptions for competitors’ brands are represented in a Euclidean space. Consequently, the use of perceptual mapping as a marketing tool allows marketing managers to identify and visualize a map of the marketplace in which the brands are positioned against one another vying for the spot in which consumers desire the most. Perceptual Mapping In order to create a reliable visual representation of the market input from customers or the target market are key. Perhaps, perceptual mapping provides a visual representation of customer’s perceptions. Consequently, perceptual maps are useful for deciding product positioning or repositioning; comparison between companies’ views of product positioning with customers’ perceptions; or identifying a competitive set(s). To develop the map, at least four focus group needs to be conducted in order to identify which are the attributes of the products or services that are characteristics and relevant. The attributes and products would vary according to the objective of the study. Perhaps, the study could have a strategic positioning or tactical positioning objective. Subsequently, once all attributes are identified, the development and implementation of a survey is essential in order to obtain perception data. The survey would ask consumers using the attribute rating method (AR) and overall similarity method (OS). The AR method would ask consumers to rate a list of attributes for each product or service. Once the perception data is obtained through the survey. Using factor analysis, the data would be reduced without significant loss of information and find systematically underlying patterns and inter-relationships among variables (attributes). Moreover, the use of factor analysis would allow the individual(s) to use the input (brands x attributes) to create a matrix of standardized scores for each brand and attribute, as long as the rotation sums of squared loading of the total variance explained for the second component (attribute) together with the first is equal or above 60 per cent. Moreover, the through factor analysis would provide a rotated component matrix (VARIMAX) for each of the attributes assigning coordinates, allowing the individual to plot each of them into the perceptual map. Additionally, a component score matrix would be posted as two additional columns to the original data, providing coordinates for each of the brands. By plotting the coordinates for both brands and attributes in their respective quadrants, the perceptual map is, simultaneously, being drawn. Hence, other brands could be group by competitive clusters and positioning to which the brand at study could be compared in relation to other base on preference. Moreover, the map would provide good and bad gaps, and recommendations could be made as how to occupy good gaps and avoid to fall into bad gaps base on which attributes or perceptions to improve and/or communicate. Additionally, recommendations can also be made according to which positioning is desire, according to which exact quadrant to move into and exact location on the map. However, the recommendations and positioning strategy are based on a set of three assumptions. Since it is based on a snapshot of costumers’ current perceptions. Assumptions I. It pair-wise distances between product or service alternatives directly indicated by perceive similarities or differences between any pairs. Perhaps, the distance between brands is determined by the perception in the costumers’ mind and whether the products are similar or different from each other. For example, the costumers’ perception of American Eagle clothes is similar to Abercrombie Fitch. Therefore, both brands would be positioned closer than if it is compare with Tommy Hilfiger. II. The attributes, described as vectors on the map, indicate both magnitude and direction. Perhaps, the brands could fall under different points on the preference line. Nonetheless, the magnitude in which one brands is preferred over other cannot be measured nor can be estimated. Every decision would have to be taken by inference according to the map. III. The brands would be positioned according to the coordinates and the place in the axes of the maps would represent or suggest the underlying dimensions (or factors) that best characterize how costumers differentiate between alternatives. The manufacturers or engineers could perceive their product very different from others; however, customer’s perceptions could be very different and associate the product with another one. Case Study: United Color of Benetton United People Problem: United Color of Benetton wants to reposition themselves as the preferred clothing store for young professionals in the United States. Attributes:Quality, Trendy, Comfortable, Business-Casual, Bold Colors, Preference, Accessible, Low-cost (Price), attracts looks, wrinkle free The table above represent the averages of the responses obtain from the survey, which use a scale from one to seven, one being strongly disagreed and seven being strongly agree. Once the data is collected, based on the perception of individuals for each of the brands and attributes. The following step is, to perform a factor analysis to reduce the data without significantly loosing to much information and systematically find the inter-relationships among the different variables (attributes). The outcome of the factor analysis indicates that the total variance explained with two attributes have a rotation sums of square loading of 66. 78 per cent, which the standard by the industry must be above 60 per cent. The study positioned United Colors of Benetton (Benetton) in the complete opposite position in which Benetton wants to be (See Graph A). The brands that are leading the market that Benetton would like to enter are: Tommy Hilfiger, Banana Republic, and Hugo Boss – listed on order of preference according to the study. These brands have been clustered as the I’m a Young Professional group (See Graph B). Based on the desire of Benetton to reposition itself as the preferred clothing store for young professionals in the United States. Benetton would have to move into one of the three open spaces, in the consumers’ minds, that falls under the direction of preference and the desired position of Benetton. (See Graph C) Based on the desired repositioning of Benetton and its current position, I suggest that Benetton should develop their marketing strategies to position itself into Space A. Since moving into Space B or Space C, which are, at the moment, to far out of the current state that it would be to costly at the moment.

Battle of Empress Augusta Bay in World War II

Battle of Empress Augusta Bay in World War II Battle of Empress Augusta Bay- Conflict Date: The Battle of Empress Augusta Bay was fought November 1-2, 1943, during World War II (1939-1945).    Battle of Empress Augusta Bay - Fleets Commanders: Allies Rear Admiral Aaron Tip MerrillCaptain Arleigh Burke4 light cruisers, 8 destroyers Japan Rear Admiral Sentaro Omori2 heavy cruisers, 2 light cruisers, 6 destroyers Battle of Empress Augusta Bay - Background: In August 1942, having checked Japanese advances at the Battles of the Coral Sea and Midway, Allied forces moved to the offensive and initiated the Battle of Guadalcanal in the Solomon Islands.   Engaged in a protracted struggle for the island, numerous naval actions, such as Savo Island, Eastern Solomons, Santa Cruz, Naval Battle of Guadalcanal, and Tassafaronga were fought as each side sought the upper hand.   Finally achieving victory in February 1943, Allied forces began moving up the Solomons towards the large Japanese base at Rabaul.   Situated on New Britain, Rabaul was the focus of a larger Allied strategy, dubbed Operation Cartwheel, which was designed to isolate and eliminate the threat posed by the base.   As part of Cartwheel, Allied forces landed at Empress Augusta Bay on Bougainville on November 1.   Though the Japanese had a large presence on Bougainville, the landings met little resistance as the garrison was centered elsewhere on the island.   It was the intention of the Allies to establish a beachhead and construct an airfield with which to threaten Rabaul.   Understanding the danger posed by the enemy landings,  Vice Admiral Baron Tomoshige Samejima, commanding the 8th Fleet at Rabaul, with the support of Admiral Mineichi Koga, Commander-in-Chief of the Combined Fleet, ordered Rear Admiral Sentaro Omori to take a force south to attack the transports off Bougainville. Battle of Empress Augusta Bay - The Japanese Sail: Departing Rabaul at 5:00 PM on November 1, Omori possessed the heavy cruisers Myoko and Haguro, the light cruisers Agano and Sendai, and six destroyers.   As part of his mission, he was to rendezvous with and escort five transports carrying reinforcements to Bougainville.   Meeting at 8:30 PM, this combined force then was compelled to evade a submarine before being attacked by single American aircraft.   Believing that the transports were too slow and vulnerable, Omori ordered them back and accelerated with his warships towards Empress Augusta Bay.   To the south,  Rear Admiral Aaron Tip Merrills Task Force 39, consisting of Cruiser Division 12 (light cruisers USS  Montpelier, USS Cleveland, USS Columbia, and USS Denver) as well as Captain Arleigh Burkes Destroyer Divisions 45 (USS  Charles Ausburne, USS Dyson, USS Stanley, and USS Claxton) and 46 (USS Spence, USS Thatcher, USS Converse, and USS Foote) received word of the Japanese approach and departed their anchorage near Vella Lavella.   Reaching Empress Augusta Bay, Merrill found that the transports had already been withdrawn and began patrolling in anticipation of the Japanese attack. Battle of Empress Augusta Bay - Fighting Begins: Approaching from the northwest, Omoris ships moved in cruising formation with the heavy cruisers in the center and the light cruisers and destroyers on the flanks.   At 1:30 AM on November 2, Haguro sustained a bomb hit which reduced its speed.   Forced to slow to accommodate the damaged heavy cruiser, Omori continued his advance.   A short time later, a floatplane from Haguro inaccurately reported spotting one cruiser and three destroyers and then that the transports were still unloading at Empress Augusta Bay.   At 2:27 AM, Omoris ships appeared on Merrills radar and the American commander directed DesDiv 45 to make a torpedo attack.   Advancing, Burkes vessels fired their torpedoes.   At approximately the same time, the destroyer division led by Sendai also launched torpedoes. Battle of Empress Augusta Bay - Melee in the Dark: Maneuvering to avoid DesDiv 45s torpedoes, Sendai and the destroyers Shigure, Samidare, and Shiratsuyu turned towards Omoris heavy cruisers disrupting the Japanese formation.   Around this time, Merrill directed DesDiv 46 to strike.   In advancing, Foote became separated from the rest of the division.   Realizing that the torpedo attacks had failed, Merrill opened fire at 2:46 AM.   These early volleys severely damaged Sendai and caused Samidare and Shiratsuyu to collide.   Pressing the attack, DesDiv 45 moved against the northern end of Omoris force while DesDiv 46 struck the center.   Merrills cruisers spread their fire across the entirety of the enemy formation.   Attempting to steer between the cruisers, the destroyer Hatsukaze was rammed by Myoko and lost its bow.   The collision also caused damage to the cruiser which quickly came under American fire.    Hampered by ineffective radar systems, the Japanese returned fire and mounted additional torpedo attacks.   As Merrills ships maneuvered, Spence and Thatcher bumped but sustained little damage while Foote took a torpedo hit that blew off the destroyers stern.   Around 3:20 AM, having illuminated part of the American force with star shells and flares, Omoris ships began to score hits.   Denver sustained three 8 hits though all of the shells failed to explode.   Recognizing that the Japanese were having some success, Merrill laid a smoke screen which badly limited the enemys visibility.   Meanwhile,   DesDiv 46 focused their efforts on the stricken Sendai.    At 3:37 AM, Omori, wrongly believing that he had sunk an American heavy cruiser but that four more remained, elected to withdraw.   This decision was reinforced by concerns about being caught in daylight by Allied aircraft during the voyage back to Rabaul.   Firing a final salvo of torpedoes at 3:40 AM, his ships turned for home.   Finishing off Sendai, the American destroyers joined the cruisers in pursuing the enemy.   Around 5:10 AM, they engaged and sank the badly damaged Hatsukaze which was straggling behind Omoris force.   Breaking off the pursuit at dawn, Merrill returned to aid the damaged Foote before assuming a position off the landing beaches.    Battle of Empress Augusta Bay - Aftermath: In the fighting at the Battle of Empress Augusta Bay, Omori lost a light cruiser and destroyer as well as had a heavy cruiser, light cruiser, and two destroyers damaged.   Casualties were estimated at 198 to 658 killed.   Merrills TF 39 sustained minor damage to Denver, Spence, and  Thatcher while Foote was crippled.   Later repaired, Foote returned to action in 1944.   American losses totaled 19 killed.   The victory at Empress Augusta Bay secured the landing beaches while a large-scale raid on Rabaul on November 5, which included the air groups from USS Saratoga (CV-3) and USS Princeton (CVL-23), greatly reduced the threat posed by Japanese naval forces.   Later in the month, the focus shifted northeast to the Gilbert Islands where American forces landed Tarawa and Makin. Selected Sources: World War II Database: Battle of Empress Augusta BayBattle of Empress Augusta Bay - Order of BattleHistory of War: Battle of Empress Augusta Bay

Finance Questions Essay Example | Topics and Well Written Essays - 250 words

Finance Questions - Essay Example Enron established several limited liability special purpose entities which kept inflating its stock price untill the scandal was discovered. Similarly, Satyam, an Indian IT firm was found guilty of forging account books by creating fictitious assets in a sister company. 3. The concept of time value of money can be used to calculate the monthly installment to be paid for a mortgage for a given time period. Similarly, if a person can’t pay more than a certain amount per month, the number of years of payment of mortgage can be calculated using the time value of money. 4. The primary risk for investment in bonds in interest rates. Hence, in a rising interest rate scenario, bonds will give lower returns. Higher inflation also makes bonds less attractive. Other risks associated with bonds are default risk of the issuer, lack of liquidity in the market and provision of call back (Hofman, 2010). 5. Zero coupon bonds pay the entire interest at maturity unlike other bonds and generally give maximum yields. High net worth investors looking for long term investments generally invest in these bonds. Banks and big corporations are interested in these bonds. 6. Risk is incorporated in capital budgeting by either by using a higher discount rate or by requiring a higher annual return on the project. Systemic and unsystemic risks are included by using Beta and standard deviation of the returns. Hofman, Julian. 2010. Bond risks and rewards. Retrieved online 07 February, 2012 from

The Government System of the State of Nebraska Term Paper

The Government System of the State of Nebraska - Term Paper Example Politically, the agitation for statehood was largely by Republicans who were also behind the drafting of the constitution. Early amendments were undertaken such that the most formal definition of the Nebraska Constitution is the document written and approved in 1875, which makes it the 17th oldest state constitution (Miewald, Longo and Schultz, 2010). Â  A good number of changes have been made to the constitution of the state of Nebraska such that it is nearly unrecognizable from the 1966 draft as it has been amended 228 times (Gless, 2008). Throughout its timeline and amendments, perhaps, the most notable and significant moment is the conversion of the state's legislature to unicameral one in 1934. After 68 years of traditional bicameral-senate and house of representatives-legislature, the people of Nebraska voted in the unicameral legislature with the first session being held in 1937. The change took effect after observing on-goings in Queensland Australia, which had itself adopted the unicameral legislature ten years earlier. The proponents in Nebraska observed that the bicameral legislature was based on the British system where there is the presence of the House of Lords, which was deemed as undemocratic. To date, Nebraska remains the only state in the USA with a single-house legislature (Foran, 2002). Â  This consists of six officers, a number of departments, several governmental agencies and several state bodies (Heineman, 2010). The six executive officers are the governor, lieutenant governor, secretary of state, auditor of public accounts, treasurer and the attorney-general. The supreme executive power of the state is vested in the governor, with their duty being to ensure the constitution is protected, and the state is run efficiently.

Kodak Strategy Essay Example for Free

Kodak Strategy Essay The first Kodak camera led to the creation of their first slogan: â€Å"You press the button – we do the rest†. He named the brand of camera Kodak because it was short, it would not be mispronounced, and the name was unique in the business. (Gartrell, n. d. ) By the late 19th century and early 1900’s, advertising played a major role in Kodak’s marketing and promotion strategy. As a result, Kodak became a household word. Today, the Kodak name has become entrenched in home town America. It is known for being very American since its photo spots can be seen at iconic patriotic hot spots like Disneyland. In addition â€Å"Kodak Moments† help make it a household name for photography and imaging. (Wikinvest, 2007) Kodak has always dominated the â€Å"holy trinity of film†; film, paper and chemicals. (Upbin, 2000, para #8) Kodak’s big concern is to remain competitive in the market place. The Eastman Kodak company had to take on some strong competition, such as Polaroid, who is famous for instant photography. Kodak began to sell their version of the instant camera in June 1976 to expand its market. The camera was called the Pronto which spit out a picture card which formed into a picture before the photographers eyes. The idea was successful and although Kodak’s ten picture pack of film was more expensive than Polaroid’s, several Japanese companies made cameras that used the new Kodak Film. (Time Magazine, 1976) Soon after, the disposable camera became popular. According to statistics, U. S. sales of disposable cameras grew 30% a year. Kodak sells more than anyone else, allowing Kodak to have sufficient cash flow to invest in a digital future. In the mid 1990’s Kodak’s innovators began to dabble with digital photography. In fact, they invented the first digital camera and realized that digital technology would transform their business. By the year 2000, Kodak had sunk more than $5 billion into digital investments during the 1990s, but received only $20 million in digital earnings in 1999 to show for it. Daniel Carp, the latest Chief Executive at Eastman Kodak stated that â€Å"digital can generate half of revenue and quarter of profits by 2005†. (Upbin, 2000, para. #3) So why wasn’t Kodak getting a return on their investment? One of the main issues that plagued the Eastman Kodak Company was not their innovation, but their timing in their marketing strategy and their assessment of the adaptability of its consumers. Kodak missed out on several holiday seasons where digital camera growth was high and failed to get a leg up on the competition back in 1996. The company was unable to â€Å"wean itself† from traditional film business. They have three major customer bases. The first is the Photofinishing Group which makes up almost 1/3 of sales. This group is made up of Kodak’s traditional film products and services that the average customer uses, plus products used by the film industry to reproduce and distribute motion pictures. The second group, not formed until 2003, is the Graphic Communications Group (GCG). It’s Kodak’s largest division which includes document imaging and digital printing services for businesses. The third group relates to healthcare services and is called the Health Group. This group specializes in healthcare imaging products such as x-ray devices and specialized films. To catch up to their competition, Kodak created a fourth group, the Consumer Digital Group, to change their main product line from traditional film to digital products. They turned their focus to digital cameras and printers, photo kiosks (like at CVS and Wal-Mart) and online photo sharing. Wikinvest, 2007) The problem was they did not react to the market until almost 2 years after their fierce competitors, such as Hewlett Packard, Canon, and Sony began to overtake the business. The irony is that although Kodak created many digital products that were ahead of their time, such as the Photo CD and high-end digital cameras, Kodak continued to focus their marketing strategy on the investor rat her than the customer. It is unfortunate because many of the digital imaging products that Kodak introduced, and that we still use today, did not get the commitment they deserved from their creators. Because of their own corporate reluctance to replace their main base of income (traditional film), many investors questioned whether it was too late for Kodak to join the digital age. (Nikondigital. org, 2007, para. #2) Timing was not the only problem. Kodak had digital competition from the evolution of the internet, the Sony Corporation, Hewlett Packard, and Canon, to name a few. Despite the invention of the digital camera, Kodak fell behind in efficiency profit margins and sheer sales. The company failed to market other media devices leaving Hewlett Packard and Lexmark to dominate the printer industry. Kodak is now trying to catch up in that area. Kodak needed to make several adjustments in their marketing strategy, develop their product line, promote their product, rethink their distribution efforts and develop a pricing strategy to steal market shares from industry leaders. With a new management philosophy and marketing strategy, Kodak realized the need to adjust its consumables. Most of Kodak’s traditional photography was based on their services, their paper and ink. With the addition of digital imagery, that had to change. Chemicals, to produce the photos were no longer needed for digital photography. How could Kodak compensate for the changing technology? Putting their innovators to the test, Kodak came up with the EasyShare family of cameras. It became one of Kodak’s biggest successes. Even today, it is still the â€Å"simplest way to get started in digital† photography. (Nikondigital. org, 2007, para. #7) Kodak developed this type of camera by studying how camera users take and print pictures and how it fits into their daily lives. Their research paid off. Kodak focused on low-priced, easy-to-use cameras that would appeal to women, who take the majority of snapshots. In 2004 the competition with Sony, the largest digital camera maker, paid off with a rise from a 5% market share in 2000 to a 19% share in 2004. (Hansell, 2004) In addition to the EasyShare system, category expansion has increased Kodak’s consumer base. One of the ways they accomplished this is by developing effective partnerships. To compete with some of the industry leaders, Kodak developed the â€Å"Kodak Gallery† an online photo sharing site which allows consumers to upload their photos and share them with friends and family. This competes with sites like Shutterfly and Photobucket. It recently partnered with Martha Stewart, Apple, Microsoft, and Amazon. com. (Wikinvest, 2007) Kodak has also planned investment in Lucky Film, Co. Ltd which will strengthen its position in Asia, and has increased its interest in medical markets. They have acquired PracticeWorks, a leader in digital dental imaging, and have improved their economic performance with Kodak Directview PACS System 5 for radiologists. (Eastman Kodak Company, 2004) To promote their products, Kodak has used the traditional advertising as well as some creative promotion techniques. Kodak wants to develop the customers of traditional cameras into future consumers of digital products. One of the ways they are doing this is donating 5,000 traditional cameras to those provinces in China that are not familiar with photography. As China’s rural areas become more economically independent, Kodak hopes to capture the market. This allows Kodak to continue its traditional (bread and butter) line of products to third world nations while focusing the digital sales to the United States, Canada and some European countries. (China Daily, 2004) One way to focus those sales in the U. S. is Kodak’s distribution to direct marketers who want to customize their flyers or retail changes that need variable posters. Digital technology makes it possible to economically print custom copies of anything and at almost any volume. They want to â€Å"elevate print and other visual communications for creativity and commerce†. (Sherburne, 2007, para. #3) Kodak is introducing the MarketMover Network, designed to focus on small business in a similar fashion that the Kodak Creative Network does, where the consumers create the photo books, calendars and flyers. Finally, Kodak’s pricing strategies had to be dramatic. One of the best things we hear about Kodak is the â€Å"quality of their service†. The problem is the competition is rapidly meeting Kodak’s quality standards. In 2007, Kodak developed KOS, the Kodak Operating System to streamline the production system and incorporate that into all aspects of Kodak’s operations. It changed their management philosophy. This had some effect on not only their marketing strategies, but their pricing strategies. In the past, companies were willing to sacrifice profits on the â€Å"durable† portion of their product – the printer, to make money on the â€Å"consumable† portion – printer cartridges. In February of that year, Kodak announced a new pricing strategy. It was a long term competitive dynamic disruption strategy. The strategy was aimed at reducing the cost of printing photos for the average consumer. Consumers will have to change their behavior to focus on printing costs instead of hardware costs. (Neff, 2007) In addition, the new printers will not have as many features as Hewlett-Packard printers currently have. This could corner an aging market that has not wanted to purchase â€Å"fancy† printers due to the challenge of technology. However, there is a growing share of private label recycled ink cartridges. Kodak will need to maintain their focus not only on the pricing of their ink cartridges, but they should reinforce the â€Å"quality† aspect of their product. During the past two decades, the Eastman Kodak has struggled with the advent of digital photography. What sets Kodak apart? Kodak is not a computer company, nor is Kodak a company which dabbles in several industries. They are focused on print products and photography.

Anti-Defamation League Essay -- Race Racial Ethnicity Essays

Anti-Defamation League Lawyer Sigmund Livingston in Chicago, IL started the ADL in 1913, with the mission: "to stop, by appeals to reason and conscience, and if necessary, by appeals to law, the defamation of the Jewish people. . . to secure justice and fair treatment to all citizens alike. . . put an end forever to unjust and unfair discrimination against and ridicule of any sect or body of citizens." The ADL has gone from having a small office in Chicago to 30 regional offices as well as international offices in Moscow, Jerusalem, and Vienna. The ADL, as a well-respected political interest group, has been active in influencing United States foreign policy in Middle East countries, such as Israel. Today, under the leadership of National Chair, Howard P. Berkowitz and National Director Abraham Foxman, the ADL remains as the leading opponent of anti-Semitism and they continue to expose all forms of injustice, prejudice, and bigotry. ADL’s primary goals as a religious organization are to bring about social change through the elimination of bigotry and hatred by influencing government legislation. Specifically, one piece of legislation the ADL is working against is the implementation of school vouchers. It is ADL’s position that by using government funds to support vouchers, the quality of education at the public schools will decrease. I completely agree with this position. Education reform doesn’t mean destroying one institution that helps a large majority to promote elitist institutions that only benefit a small minority. The ADL is very large organization with vast influence benefiting millions of people around the globe, and according to Olson’s collective action problem members could be dissuaded from parti... ...ias. The ADL’s religious interests are mainly to promote the interest and betterment of Jews. So to listen to ADL and make legislative changes accordingly is to create a hierarchy among religions that shouldn’t be a part of the government. Even though, I may not agree with everything the ADL says, I think that what they are trying to do is incremental in bringing about the change necessary to improve our society. Works Cited: Bahrampour, Tara & Anthony Ramirez (2001). New Monitor For Hate Groups [Electronic version]. New York Times, B5.1. Falconer, Matthew (1999). Filter blocks hate-promoting Web sites [Electronic Version]. Boston Globe, A40. Olson, Mancur (1965) from Nivola, Pietro S. and David H. Rosenbloom (1990), Classic Readings in American Politics, 2nd Edition, pages 225-240. New York: St. Martin’s Press, Inc.

Comparison of Healthcare Policies between France and the US

Introduction This essay aims to critically discuss social policies on healthcare between France and the US. Similarities and differences on the social policies of these two countries will be discussed. The first part of this essay aims to explore how public funding for healthcare services in both countries address health inequalities. A critical discussion on healthcare services available in both countries and the extent to which universal access to healthcare services is practiced shall also be made. The second part presents the challenges that both countries face in addressing healthcare issues. Healthcare policies that address these issues will also be critically appraised. The third part provides an analysis on whether France and USA are ‘converging’ or following ‘path dependence’ on their healthcare policies. A brief conclusion summarising key points raised in this essay will be presented in the end. Healthcare Services and Public Spending for Healthcare The healthcare system in France is described as a mix of private and public insurers and providers (Cases, 2006). This means that almost the whole population is covered by public insurance, which in turn are funded by employers and employees. In addition to public health insurance, a minority also purchases private insurance to complement existing public health insurances. Private providers support outpatient care while public providers provide inpatient care in hospital settings (Cases, 2006). France enjoys relatively good health compared to the US. The Organisation for Co-operation and Development (OECD, 2013) Health Statistics in 2013 reveals that life expectancy in France is high at 82.2 and is currently ranked third amongst OECD countries. In contrast, life expectancy in the US is amongst the lowest at 78.7 (OECD, 2013). The difference in life expectancy in both countries is a cause of concern since the US has one of the most expensive healthcare systems in the OECD and yet fares worse in health outcomes, including life expectancy(Baldock, 2011). The OECD (2013) notes that compared to France and other large OECD countries, the US spends twice as much per individual on healthcare. Interestingly, public health expenditure for health is highest in the US compared to all OECD countries. However, it does not practice universal healthcare coverage with the public supporting only 32% of the total healthcare cost (OECD, 2011). Individuals eligible for Medicaid include the elderly, families with small children and those with disabilities (Rosenbaum, 2011). Approximately 53% of the US population is covered through the Patient Protection and Affordable Act or Obamacare (Rosenbaum, 2011). Under this Act, employers are required to purchase health insurances for their employees. Only a small portion of businesses pays for full coverage with majority requiring their employees to share in the cost of their health insurances (Rosenbaum, 2011). The OECD (2009a) states that 46 million people in the US are left without public or private health insurance. This could place a significant burden to the US healthcare system that is struggling in providing equitable access to healthcare services in the country. The World Health Organization (2014) explains that equitable access is achieved when individuals, regardless of their socioeconomic status, enjoy the same type and quality of healthcare. This is not achieved in the US where statistics (OECD, 2009a) continues to show that high-income groups enjoy better health and appropriately covered by healthcare insurances while those in the lower socioeconomic status continue to have poorer health status. This disparity in health status and healthcare insurance coverage continues to be a challenge in the US. Public spending per capita in the US continues to be the highest in the OECD countries even with the increased participation of the private sector in financing healthcare in the country (OECD, 2013). In recent years, the OECD (2013) observes that public spending across OECD countries continue to decline. On average, healthcare spending of these countries only grew by 0.2% in the last 4 years. While there is a variation on the decrease of public spending, the major reason for the slowdown is due to drastic cuts in health expenditures. In France, the Statutory Health Insurance (SHI) currently covers almost all residents. Until 2000, SHI covered 100% of all residents (Franc and Polton, 2006). Today, almost all of the residents are still covered under SHI. However, a few have purchased private health insurances to complement SHI. Public spending for healthcare is 77.9% while France spends 11.9% of its GDP in healthcare (OECD, 2011). This is in contrast with the US where public spending for healthcare accounts to only 47.7% but spends 17.9% of its GDP on healthcare (OECD, 2011). Interestingly, SHI covers both legal and illegal residents in France. This is opposite in the US where illegal residents are not covered by publicly funded healthcare insurance. There are approximately 21 million immigrants in the US with most having an illegal resident status (Moody, 2011). Health coverage remains to be a concern for this group since they work on jobs that pay very low wages and with no healthcare coverage. Hence, this group is three times more likely to have no healthcare coverage (Stanton, 2006). Currently, this group comprises 20% of the total uninsured population in the US (Moo dy, 2011). The lack of universal coverage in the US suggests that healthcare policies in the US may not be inclusive as opposed to France where almost all residents have private or public health insurance coverage. Rosenbaum (2011) explains that the Patient Protection and Affordable Act or Obamacare is expected to boost healthcare coverage for legal immigrants who are in low paying jobs. However, only legal immigrants who have been in the US for at least five years could qualify for Medicaid or purchase state-based health insurances. Currently, all states in the US have expanded Medicaid coverage to low-income groups. Specifically, a family of four with a combined annual income of $33,000.00 and an individual with $15,800.00 yearly income are now eligible for Medicaid. This legislation provides health coverage to approximately 57% of the uninsured population in the US (CDC, 2011). For legal immigrants who have not reached five years of stay in the US or are earning more than the Medicaid limit are allowed federal subsidy when purchasing state-based health insurances (CDC, 2011). As opposed to France where illegal immigrants enjoy the same healthcare coverage as legal immigrants and citizens, those in the US on illegal status remain uninsured and could not purchase state-based health insurances (CDC, 2011). Healthcare access for this group is limited to community health centres across the country. It is noteworthy that only 8,500 community health centres are in existence today and yet they cater to at least 22 million people each year (CDC, 2011). Almost half of those who access primary health centres are the uninsured. While hospitals are required by law to provide emergency care for all individuals regardless of their resident status, those who are uninsured do not have health coverage to sustain their long-term healthcare needs (Rosenbaum, 2011). Current healthcare policies in the US might actually promote health inequality since it only provides primary basic healthcare services (CDC, 2011) to the marginalised group, which may include low-income and ethni c groups. In France, The Bismarckian approach to healthcare has been used for several decades but in recent years, there is now an adoption of the Beveridge approach (Chevreul et al., 2010). In the former, health coverage tends to be uniform and concentrated while in the latter, the single public payer model is promoted. In the Bismarckian approach, everyone should be given the same access to healthcare services while the Beveridge model allows for stronger state intervention (Chevreul et al., 2010). This also suggests that tax-based revenues are used to finance healthcare. The mix of both models is necessary to respond to the increasing demands for healthcare in the country and to regulate the increasing cost of healthcare. Chevreul et al. (2010) emphasise that the SHI is now experiencing deficit due to increasing rise of healthcare expenditure in the country. The French parliament, through the Ministry of Health regulates expenditure by enacting laws and regulations. Importantly, France regulates prices of specific medical procedures and drugs (Chevreul and Durand-Zaleski, 2009). This development is crucial since failure to regulate prices could further drive up healthcare costs. However, regulation of prices of medical devices remains to be poor. In a survey (OECD, 2009b), expenditures for medical devices is high and amounts to ˆ19 billion annually. Although it comprises 55% of the pharmaceutical market, increased demand for medical devices have also increased SHI expenditures on these devices (Cases and Le Fur, 2008). It should be noted that only 60% of the medical devices are covered by SHI (Cases and Le Fur, 2008). Regulation of the prices of these medical devices is not as strong as the market for drugs and other major medical equipment. This implies that increasing healthcare costs of medical devices could have an impact on publ ic health spending policies in France. Healthcare Issues and Challenges One of the major issues in both countries is the rising healthcare expenditure. As noted by the OECD (2013), there is a disparity between healthcare expenditure and rising healthcare costs in OECD countries. The average increase in healthcare expenditure only amounts to 0.2% and yet healthcare cost continues to rise. In France, this disparity has promoted the Ministry of Health to increase private insurance of its members to help cover healthcare services not normally covered by the SHI. In the US, the debate on Obamacare and the reluctance of the government to cover illegal residents continue to be a challenge in providing equitable healthcare Meanwhile, high costs of medicines could have an impact on healthcare, especially amongst those who are covered by Medicaid and those who could barely afford state-subsidised healthcare insurances (Moody, 2011). This is in contrast to France where cost containment is in place for medicines. To illustrate the lack of healthcare costs regulations, the US spends more on developing medical technologies, which only benefits a few of the patients. The country is also burdened with high administration and pharmaceutical costs. Doctors in the country are also amongst the highest paid in the OECD countries (Greve, 2013). Moody (2011) argues that cost containment remains to be a problem since lowering down prices of medicines or healthcare costs for beneficiaries of Medicaid would lead to doctors’ reluctance to treat Medicaid patients. The lack of priorities in healthcare spending in the US has resulted in higher spending on certain areas and low spending on others. However, this does not translate to better health outcomes for the whole population. Elderly care is one area where there is high spending but the amount of spending does not necessarily translate to better health outcomes. As noted by Haplin et al. (2010), the elderly are more vulnerable to chronic healthcare conditions, such as dementia, cardiovascular diseases, type 2 diabetes. Hence, healthcare costs for this group are relatively higher compared to other members in a community. In a report published by Stanton (2006), approximately 40% of US healthcare expenditure is devoted to elderly care, but this group only comprises 13% of country’s population. It is projected that in the succeeding years, healthcare cost for this group will continue to rise with the ageing of the US population (Stanton, 2006). The same issue is also seen in France, where increasing healthcare cost for the elderly is also expected in the succeeding years (Franc and Polton, 2006). Both countries also lack coordination of care and gatekeeping for the elderly. Although there is an emphasis on elderly care in both countries, lack of continuity of care often leads to poor quality care, duplication of healthcare, waste and over-prescription (Franc and Polton, 2006; Evans and Docteur and Oxley, 2003; Stoddard, 2003). In France, this issue was first addressed through the creation of provider networks and increasing the gate-keeping roles of the general practitioners (GPs). However, the latter was largely unsuccessfully and finally abolished with the introduction of the 2004 Health Insurance Act (Franc and Polton, 2006). In this new legislation, patients have the freedom to choose their own healthcare providers or primary point of contact. Most of the primary points of contact are GPs. This scheme is successful in F rance due to incentives offered to the patients and GPs. This scheme has been suggested to improve the quality of care received by the patients since there is more coordination of care between GPs and specialists (Naiditch and Dourgnon, 2009). This scheme also drives up the cost of visits to specialists and could have influence healthcare financing policies (De Looper and La Fortune, 2009; Naiditch and Dourgnon, 2009). Another issue common to both countries is the competition between hospitals for patients who can afford private healthcare. Consumer demands for healthcare in the US have increased. Hospitals respond by increasing their services to separate them from their competitors (Moody, 2011). For instance, by-products of this competition results to increasing the size of the patient rooms and providing in-house services such as full kitchens, family lounges and business service. All these have not been related to improved health outcomes of the patients. In France, the differences in healthcare costs between publicly funded hospitals and private for-profit hospitals spark a debate on whether common tariffs are the solution to cost containment (Chevreul et al., 2010). Despite the implementation of common tariffs, there is still a growing difference on the healthcare costs between the private and public sectors. Currently, the reform plan Hospital 2007 (Chevreul et al., 2010) states that the obj ective of introducing a common tariff for public and private hospitals has been withheld until 2018. This shows that healthcare policies respond to current trends in health provision in France. ‘Convergence’ and ‘Path Dependence’ Starke et al. (2008) explain that history and institutional context all play a role in influencing healthcare policies in a welfare state. Healthcare policies that tend to be resistant to change illustrate institutionalist or ‘path dependence.’In the event where changes are needed, those that follow ‘path dependence’ change their policies but do so within the boundaries set in the original healthcare policies. On the other hand, healthcare policies that follow the ‘convergence’ pathway or functionalist perspective tend to integrate best practices and are more responsive to social, political and economic changes. Healthcare policies in France and the US tend to follow the ‘convergence’ pathway. The historical context of France reveals that a unitary presidential democracy was established in 1958 (Cases, 2006). In this system, the central government retains sovereignty and policies implemented in local or regional levels are approved by the central government. Despite the practice of central dirigisme, many regions in France have practiced coordination and decenstralisation. Political parties elected to the French government all have a common goal in financing the healthcare system in France. It practices cost-containment by regulating healthcare costs, reducing healthcare demands and restricting healthcare coverage (Chevreul and Durand-Zaleski, 2009). All these cost-containment policies have generally been met with public discontent. In recent years, the introduction of Supplementary Health Insurance enabled the French government to still deliver quality care at reasonable cost. Further, the introduction of direct payment, although reimbursable, also discourages wasteful consumption of healthcare (Chevreul and Durand-Zaleski, 2009). Although changes in healthcare policies tend to be restrictive more than three decades ago, France is now taking the ‘convergence’ pathway in its healthcare system. This suggests that healthcare policies are more responsive to social and economic changes. France also regards its people as equal but retain their freedom to choose a healthcare provider and hospital. The manner of healthcare financing in France allows service users to choose from competing healthcare professionals. Service users could also access specialists due to little gatekeeping in the country (Naiditch and Dourgnon, 2009). All these changes in the France’s healthcare system reflect ‘convergence’ rather than ‘path dependence’. Convergence in healthcare is also shown in both countries through its policies on increasing personal contributions of service users for healthcare (Mossialos and Thomson, 2004). There is also an increasing reliance on private health insurers to bridge the gap in public healthcare delivery. The increasing public-private mix exemplifies convergence. There is also a trend towards community healthcare and decentralisation of healthcare (Baldock, 2011; Chevreul et al., 2010; Blank and Burau, 2007). This trend relies on community healthcare practitioners to provide care in home or community settings. This has been practiced in other developed countries where patients with chronic conditions receive care in their own homes (Chevreau et al., 2010). This approach is also applied when caring for the elderly. Similar to other Welfare states, the US and France are experiencing population ageing. The proportion of the elderly in both countries is expected to rise in the succeeding years (Chevrea u et al., 2010). As mentioned earlier, this translates to increases in health expenditures and cost for this group. Marked increases in health expenditures for this group would mean further reduction on public spending or cost containment. All these could have an impact on public spending in the future and might increase insurance premiums of individuals. There is also the possibility of raising SHI contributions in France or reducing healthcare coverage of Medicaid in the US. Both strategies could fuel public discontent, increase the gap between the rich and the poor and promote health inequalities (OECD, 2008; Starke et al., 2008; Stanton, 2006). Since the main aim of the policies in both countries is to achieve optimal health for all, the realisation of this aim might be compromised with an ageing society. It is also noteworthy that since public funds are bankrolled by taxes, increasing number of elderly could mean reduction in number of employees who are economically productive. This could also lead to lower tax collections and decreased public funding for healthcare. As shown in both countries, healthcare policies are becoming more responsive to the social and economic changes. This does not only suggest a direction towards ‘convergence’ but suggests that this pathway could be the norm for many OECD countries. Conclusion Healthcare policies in the US and France have been influenced by social and economic changes in recent years. Although both aim to achieve universal coverage, it is only France that has achieved this with almost 100% of its citizens covered with healthcare insurance. The US is struggling to meet the healthcare needs of its citizens with almost 46 million still uninsured. Its Obamacare is still met with criticism for its failure to provide public healthcare coverage for most of its citizens. Only the poor and those unable to afford basic healthcare services are covered under Medicaid. In Obamacare, those with marginal incomes could purchase federal-subsidised healthcare insurances. Both countries are also faced with the challenge of an ageing society. The inequitable allocation of healthcare services to this group also promotes social discontent. Almost half of public expenditure is channeled to the elderly, which only comprises 13% of the whole population. The heightened demand for e lderly care, lowered public expenditure on healthcare and increasing healthcare costs have all influenced healthcare policies in the US and France. Finally, the recent changes in the healthcare policies of this country suggest convergence rather than path dependence suggesting that healthcare policies continue to be influenced by social and economic changes in both countries. It is recommended that future research should be done on how ‘convergence’ helps both countries respond to increasing complexities of healthcare in both countries. References: Baldock, J. (2011). Social policy, social welfare and the welfare state. Oxford: Oxford University Press. Blank, R. & Burau, V. (2007). Comparative health policy. London: Palgrave. Cases, C. (2006). ‘French health system reform: recent implementation and future challenge’. Eurohealth, 12, pp. 10-11. Cases, C. & Le Fur, P. (2008). ‘The pharmaceutical file’, Health Policy Monitort, May [Online]. Available from: http://www.hpm.org/survey/fr/all/2 (Accessed: 27th April, 2014). Center for Disease Control and Prevention (2011). NCHS Data Brief: Community Health Centers: Providers, Patients and Content of Care [Online]. Available from: http://www.cdc.gov/nchs/data/databriefs/db65.htm (Accessed: 27th April, 2014). Chevreul, K., Durand-Zaleski, I., Bahrami, S., Hernandez-Quevedo & Mladovsky, P. (2010). France: Health System Review 2010. France: The European Observatory on Health Systems and Policies, WHO Regional Office for Europe, World Bank, European Commission, UNCAM, London School of Economics and Politic Science, and the London School of Hygiene & Tropical Medicine. Chevreul, K. & Durand-Zaleski, I. (2009). ‘The role of HTA in coverage and pricing in France: toward a new paradigm?’. Euro Observer, 11, pp. 5-6. De Looper, M. & La Fortune, G. (2009). Measuring disparities in health status and in access and use of healthcare in OECD countries. Paris: OECD (Health working paper 43) [Online]. Available from: http://www.oecd-ilibrary.org/social-issuesmigration-health/measuring-disparities-in-health-status-and-in-access-and-use-of-healthcare-in-oecd-countries_225748084267 (Accessed: 27th April, 2014). Docteur, E. & Oxley, H. (2003). Health-care systems: lessons from the reform experience. Paris: OECD (Health working paper 9) [Online]. Available from: http://www.irdes.fr/Publications/Qes/Qez133.pdf (Accessed: 27th April, 2014). Evans, R. & Stoddard, G. (2003). ‘Consuming research, producing policy?’, American Journal of Public Health, 93, pp. 371-379. Franc, C. & Polton, D. (2006). ‘New governance arrangements for French health insurance’. Eurohealth, 12, pp. 27-29. Glyn, A. (2006). Capitalism unleashed. Oxford: Oxford University Press. Greve, B. (2013). Routledge Handbook of the Welfare State. London: Routledge. Halpin, H., Morales-Suarez-Varela, M. & Martin-Moreno, J. (2010). ‘Chronic disease prevention and the new public health’. Public Health Review, 32, pp. 120-154. Moody, K. (2011). Capitalist care: Will the coalition government’s ‘reforms’ move the NHS further toward a US-style healthcare market?’. Capital and Class, 35(3), pp. 415-434. Mossialos, E. & Thomson, S. (2004). Voluntary health insurance in the European Union. Copenhagen, WHO Regional Office for Europe on behalf of the European Observatory on Health Systems and Policies [Online]. Available from: http://www.euro.who.int/__data/assets/pdf_file/0006/98448/E84885.pdf (Accessed: 27th April, 2014). Naiditch, M. & Dourgnon, P. (2009). The preferred doctor scheme: a political reading of a French experiment of gate-keeping. Paris: IRDES. OECD (2013). Health at a glance 2013: OECD Indicators, Europe: OECD Publishing [Online]. Available at: http://dx.doi.org/10.1787/health_glance-2013-3n (Accessed: 27th April, 2014). OECD (2011). Human Development Index and its components. Europe: OECD. OECD (2009a). Society at a Glance 2009: OECD Social Indicators. Europe: OECD. OECD (2009b). Health data 2009. Paris: OECD. OECD (2008). Are we growing unequal[Online]. Available at: www.oecd.org (Accessed: 17th April, 2014). Rosenbaum, S. (2011). ‘The Patient Protection and Affordable Care Act: Implications for Public Health Policy and Practice’. Public Health Reports, 128(1), pp. 130-135. Stanton, M. (2006). The high concentration of U.S. healthcare expenditures: research in action, issues 19. Rockville, MD: Agency for Healthcare Research and Quality. Starke, P., Obginer, H. & Castles, F. (2008). ‘Convergence towards where: in what ways, if any, are welfare states becoming more similar?’. Journal of European Public Policy, 15(7), pp. 975-1000. World Health Organization (WHO) (2014). Health Systems: Equity [Online]. Available at: http://www.who.int/healthsystems/topics/equity/en/ (Accessed: 27th April, 2014).