Conceptual Framework: Rising Cost of Goods

Conceptual  Framework Assignment Instructions

Although the terms conceptual and theoretical frameworks have been used interchangeably at times they do refer to two different things.  A theoretical framework is a study based on an existing theory or theories where as a conceptual framework is something the author develops based on the theory. select a conceptual or theoretical framework to explore that will align with this problem statement:

Rising cost of goods

The general problem to be addressed is the rising cost of goods. The rising cost of goods reduces the market of the product or service being rendered. Having a small market means that the demand for the good significantly reduces, thereby affecting the product’s production and distribution channels. Rising costs of the goods are usually affected by the raw materials, thereby increasing production and distribution costs (Lambert & Enz, 2017). The specific problem is rising costs of goods ultimately lead to a reduction in the availability of the market, thereby affecting all the factors of supply chain management.

Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16.

Complete the below items for this project:

1. Explain the rationale for using Conceptual Framework on the problem statement above.
2. Explain why the selected framework is important and how it can guide research.
3. Provide a basic example of your selected framework (See Examples Below).

Example

Conceptual Framework

Theory: Theory of Planned Behavior (Ajzen, 1991)

Premise: The Theory of Planned Behavior states that attitude, subject norms, and perceived behavioral control, together shape an individual’s behavioral intentions and behaviors (Ajzen, 1991)

 ANSWER

Rising Cost of Goods- Conceptual Framework

Increased cost of goods typically leads to a lower demand since the customers tend to react to price changes. The price elasticity of demand examines how much demand for a product will fall relative to the changes price. When it is clear that the cost of a good affects the quantity demand, the expectations about the future price or increase in price may affect the demand. According to the law of supply and demand, when the price of a good rises, the quantity tends to decrease (Lambert and Enz, 2017). Therefore, there is a connection between the cost of a good and the demand.

Increased cost of production leads to high prices since the firm tends to include the cost of production and profit desired when setting the price of a product (Alicke, Rexhausen and Seyfert, 2017). Pricing a product has to be in line with the cost of the product which is the amount that is used to produce it. Therefore, when the distribution and production costs tend to increase, the price of the product will also have to increase.

The conceptual framework lives at the center of an empirical study since it serves as a guide to research (Varpio, Paradis, Uijtdehaage and Young, 2020). The conceptual framework is essential since it helps in identification and clarification of what one knows, they value, care about as the central aspects of the study and try link these with different aspects and influences of the research. The conceptual framework focuses on the rising cost of goods and how the costs are influenced by production and distribution costs as well as how the rising cost of goods relates with the market demand of the goods. The conceptual framework has created a bridge between the theory, context and the structure of the study in connection to all the mediating and contextualizing influences.

Conceptual Framework Example

References

Alicke, K., Rexhausen, D., & Seyfert, A. (2017). Supply Chain 4.0 in consumer goods. Mckinsey & Company, 1-11.

Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16.

Varpio, L., Paradis, E., Uijtdehaage, S., & Young, M. (2020). The distinctions between theory, theoretical framework, and conceptual framework. Academic Medicine, 95(7), 989-994.