Financial Services Industry: Insurers, Agents, and Brokers
Changes in the Financial Services Industry
The financial services industry has undergone significant changes, including:
- Consolidation: The number of firms has declined due to mergers and acquisitions.
- Convergence: Financial institutions now sell a wide variety of financial products that were previously outside their core business area.
Types of Private Insurers
In 2010, the insurance market comprised:
- Life and Health Insurers (1061): These insurers sell life and health insurance products, annuities,
Key Economic Indicators and Concepts: Definitions and Impacts
Nominal Gross Domestic Product (NGDP)
NGDP measures the total value of goods and services produced in an economy at current prices, without adjusting for inflation.
Real Gross Domestic Product (RGDP)
RGDP measures the total value of goods and services produced in an economy, adjusted for inflation using base-year prices.
Unemployment Rate
The unemployment rate is the percentage of the labor force that is unemployed and actively looking for work.
Problems with the Unemployment Rate
The unemployment rate
Read MorePricing Strategies and Distribution Channels in Marketing
Understanding Pricing in Marketing
Price is the amount of money a person needs to obtain a product or service. All products and services have associated costs, including those offered for free. In marketing, pricing focuses on the “how” and the consequences of this criterion.
Types of Prices
- Gross Price: The price before discounts are applied.
- Net Price: The price used when offering two or more products or services together.
- Discount Price: The price perceived by the consumer as indicating a lower-quality
Business Structures, PESTEL Analysis, and Porter’s Five Forces
Limited Liability Companies (S.L.)
The Sociedad Limitada (S.L.) is the preferred legal form for small and medium-sized enterprises (SMEs) in Spain. The capital is divided into participaciones (holdings), and there are limitations to the free transfer of shares. The minimum capital for its establishment is €3,000. The Sociedad Limitada Unipersonal (S.L.U.) is formed by a single partner. It is governed by the Ley de Sociedades Limitadas.
Public Limited Companies (S.A.)
The Sociedad Anónima (S.A.)
Read MorePrice Discrimination Strategies and Prerequisites
Chapter 5: Price Discrimination
Introduction
Why discriminate prices? Because this allows to skim off individual willingness to pay. Reservation price: is the maximum amount an individual is willing to pay for a product.
Conditions for Sustainable Price Discrimination
- Customer willingness to pay for a good is varying.
- Customer groups can be distinguished in the market.
- Low prices still exceed marginal cost.
- Differences in quality.
- Products available at different times or locations.
Types of Price Discrimination
- Perfect
Understanding Market Dynamics and Marketing Strategies
Market Activities
A market involves the joint purchase of a product, conducted by buyers and sellers.
Types of Markets
Perfect Competition
Perfect competition occurs when the following conditions are met:
- Homogeneity of Product: The product offered by one seller is the same as that offered by others.
- Many Different Buyers and Sellers: One seller’s decision has little influence on the total market.
- Total Knowledge of the Market: Participants have full information on market conditions.
- Freedom of Entry and