The advances in technology have brought about enhancement in window shopping and making a virtual demand for products online. Through virtual storefront that is accomplished through design and market tactics, companies find it easier to generate a new brand through product and web design and captivate the demand for the products to the consumer through a well-structured design of the products.
According to Salvatores (2011) article, the challenges connected to market demand and virtual shopping especially in the process of estimating the demand for goods and services since some consumers might just behave in a stalking manner to provoke the production companies in the way of overestimating the market demand and, yet they are not in need of the products. Also, the aspect of using the method of elasticity and demand for complementary goods has become a difficult task to do hence it is difficult to base the measurement of demand by the rate of consumption of substitute goods in the economy.
How much is saving necessary for a household and the economy and how much should be saved
According to Proverbs 30:25which says, the ants are not strong creatures, yet they prepare their food in the summer shows that savings in the time one acquires money is an essential aspect of life since it is like an anticipation for future well-being. Savings also save an economy from suffering huge debts the way US economy deteriorated in 2007 due to unbalanced debts showing that the Americans lacked the necessary knowledge of the Proverbs 30:25 ants. From, the incidents that happened in the US, it is therefore essential to note that savings help enhancing security in case there is an inevitable downfall in the economy. Savings also help when unexpected occurrence sets up in the economy or families like a sudden layoff and health emergency.
Accounting for at least 20% of ones salary as savings can help accumulate enough money that can be used whenever the unexpected sets up. Citing Donnelly,Iyer & Howells (2012) article, an assessment of money managers, materialism, well-being and ones personality are the factors that can streamline one to maintaining their own saving formula. However, ones salary should be calculated to ensure that as much as one opts to saves, they should not let themselves to live in poverty while anticipating for a better future. 50% of ones salary should cater for needs, 30% for wants and the remaining 20% should cater for savings.
References
BibleGateway.com: A searchable online Bible. (n.d.). Retrieved March 18, 2014, from http://www.biblegateway.com
Donnelly, G., Iyer, R., & Howell, R. T. (2012). The Big Five personality traits, material values, and financial well-being of self-described money managers. Journal of Economic Psychology, 33(6), 1129-1142. Retrieved from http://www.sciencedirect.com/science/article/pii/S0167487012000876
Salvatore, D. (2011). Managerial economics in a global economy (7th ed.). New York, NY: Oxford University Press. ISBN: 9780199811786. Retrieved from http://elib.unikom.ac.id/download.php?id=113380
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