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Economic Model: Economic model of consumer behaviour is a consumer decision making model based
Under the model, CB is one dimensional. Buying decisions
are based on the concept of utility. Assuming that a human being is always rational,
he will make his purchase decision with the intention of maximizing his utility. It is
based on certain predictions of buying behavior:
Price-effect- lesser the price of the product, more the qty.
purchased( this model doesnt take into consideration diminishing
marginal utility)
Lesser the price of substitute product, lesser will the qty. of the
original product bought. This is called substitution effect.
More the purchasing power, more will the qty. purchased i.e.
income effect.
It doesnt take into consideration effective component of human mind and it doesnt
take into consideration the products having no substitute like life saving medicines.
on the view of the economic man.
doesnt take into consideration internal traits of an individual according to the trait
theory.
Functions of NABARD
The full form of NABARD is National Bank for Agriculture and Rural Development. The
major functions of NABARD are as follows:
1.
It acts as an apex body for meeting the credit needs of all types of agricultural and rural
development.
2.
3.
It co-ordinates all agricultural and rural development activities with the objective of tying
them up with planned development activities in the rural sector.
4.
It provides short-term, medium-term and long-term credit to SCBs, LDBs, RRBs and
approved financial institutions.
5.
6.
7.
PROJECT FEASIBILITY
A feasibility study is an analysis of the ability to complete a project successfully, taking into
account legal, economic, technological, scheduling and other factors. Rather than just diving into
a project and hoping for the best, a feasibility study allows project managers to investigate the
possible negative and positive outcomes of a project before investing too much time and money.
A Feasibility study of project includes
Market analysis.
Technical analysis.
Financial analysis.
Economic.
Ecological analysis
Market Analysis: The first step is to estimate the potential size of the market for the
product proposed in the project and get an idea of market share that is likely to be
captured. Market and demand analysis are concerned with two broad issues: What
is the likely aggregate demand for the product/service? What share of the market
can be captured
Steps in a sample survey are: Define the target population. Select the sampling
scheme and sample size. Develop the questionnaire. Recruit and train field
workers. Collection information from the sample of respondents. Scrutinizing the
information. Analysis the information Interpreting the results.
Problems:
Heterogeneity of the country. Multiplicity of language. Design of questionnaire.
Step (4): Characterization of the market: Based on the secondary sources and
market survey the market for the product may be described in terms of :
Breakdown of demand Price Methods of distribution and sales promotion
Consumers Supply and competition Government policy
Step (5) : Demand Forecasting:
After gathering information about various aspects of the market from primary and
secondary sources an attempt may be made to estimate future demand. Demand
Forecasting means estimating or predicting the future demand or future sales for
the product of a firm using quantitative and qualitative methods
Step 6: Marketing plan: A marketing plan usually has the following components:
Current market situation Opportunity and Issue analysis Objectives Market
Strategy Action Programme.
Location and site:
Location refers to Broad area like city, industrial zone and Site refers to Specific
area or piece of land where the project would be set up. The choice of location
would depend on: Proximity to raw materials. Proximity to market Availability
of infrastructure
power, transportation, water, communication
Labour
availability Governmental policies Other factors (Climate, Living conditions,
Pollution, Ancillary units) The site selection would depend on the cost of site. Two
or three alternative sites must be considered and evaluated with respect to cost of
land and cost of site preparation and development