Injured Athletes Use of Self-Talk

Injured Athletes Use of Self-Talk A sports injury can be serious and cause profound physical and emotional distress. The physical aspects of the injury can even contribute to loss of a sports career. The emotional stress of a sports injury can result in affects such as anxiety and depression which result in obstacles to healing and future performance (Myers, Peyton Jensen, 2004). After injury most athletes will suffer from a change in their mood for a short length of time. This change in mood will manifest as anger, depression, tension, and low energy levels. Normally the athlete returns to their pre-injury mental status once they are on their way to recovery (McDonald Hardy, 1990) Sports injuries can have a devastating impact on athletes and the search for effective psychological rehabilitation methods have been ongoing. One study using the open-ended Sports Injury Survey found that athletes that healed the fastest engaged in more positive self-talk, goal setting and healing imagery than slower healing athletes. It was found that the mental strategy of goal setting was the most productive technique and scientists believe the reason for this is that it is easy to learn and is within the athletes control. The results of the study would suggest that there are numerous psychological factors that play an important role in injury recovery. A number of other studies have demonstrated that speed of recovery was effected by goal setting, attitude, imagery, social support, and coping skills (Ievleva Orlick,1991). One study demonstrated that imagery can be helpful in injury rehabilitation. Imagery is used often in training and competition, but athletes dont use it as of ten for recovery from healing and need to be reminded of its efficacy (Sordoni, Hall Forwell, 2000) It has been found that an athletes inability to return to pre-injury performance levels was due to psychological factors and stressors rather than physical ones (Evans, Harding Fleming, 2000). One of the factors with an impact on performance levels post-injury is the athletes perceived inability to demonstrate the same skills they enjoyed pre-injury. One example of this isa rugby player who returned to the game after suffering a shoulder injury. He favoured the injured shoulder and used the other shoulder more frequently. The result of this behaviour was that he put extra pressure on the one shoulder setting himself up for future injuries (Evans et al., 2000). When an athlete returns to the game before they are truly ready the risk for more injures or re-injury is increased. Even if an athlete has been told by his sports physician that they can return to competition they may not be ready psychologically (Evans et al., 2000). Cupal (1998) claims evidence exists that indicates when an athlete returns to the sport before they are psychologically ready they increase the risk of more injuries There are different approaches to explaining how an athlete responds to injury. One of these approaches is designated the cognitive appraisal approach. This approach focuses on the athletes perception of the injury and it offers an explanation for individual differences in responses to injury and their perception of the injury (Brewer, 1994). Brewer (1994) believes that one of the positive aspects regarding the cognitive appraisal approach is that it offers explanations for the diverse responses to injuries unlike other methods that dont provide such insight. There are a number of influencing factors with cognitive appraisal. The individual personality characteristics of the athlete that remain constant over time are a factor. Another factor is the athletes changeable situation which they have no control of. One example of this is time of season of the injury (Gayman Crossman, 2003). A study of the psychology of season ending injuries amongst skiers from the USA Ski Team was conducted (Gould, Udry, Bridges Beck, 1997a; Gould, Udry, Bridges Beck, 1997b). This study included lengthy interviews and revealed different factors of the injury experience. Researchers discovered that some athletes received what they perceived were benefits from the injury. If they had a problem with the stress of the competition they may see this injury as a blessing in disguise and a way out. Performance anxiety can be another reason why an athlete sees the injury as beneficial. Also, rehabilitation can be physically painful and emotionally trying (Gould et al., 1997a). Other factors researchers uncovered were the sources of stress, social support systems, and coping strategies. In some instances a severe injury can interfere with social activities especially if they are sports-oriented (Bianco, Malo, Orlick,1999). Bianco et al. (1999) interviewed skiers from the Canadian Alpine Ski Te am. What they learned was that there was an early phase when the athlete is injured or ill and then they move into a phase of rehabilitation where they begin to recover, and the last phase is when they are fully recovered and back to pre-injury activity. Every one of these phases included a set of events that influenced the emotional and cognitive responses (Granito, 2001, pg. 63). Researchers looked to cognitive appraisal to explain why some athletes suffer from greater psychological distress following an injury than others (Brewer, 1994). What they found was that the manner in which an athlete perceives the injury experience plays an important role in how well they recover and are able to return to pre-injury performance levels (Brewer, 2001, as cited in Gayman Crossman, 2003). The time of the year when an athlete is injured may determine how well and fast they recover and return to competition. For example, one athlete may be distraught and stressed over being injured post-season because after all his hard work and team effort he will not be able to participate in the play-offs. Another athlete may regard the injury as beneficial because they can get out of a horrendous season where the team didnt do very well. The athlete who perceives the injury in a more positive light will have an easier time of recovery than the athlete who experiences more negative emotions surrounding the injury (Gayman Crossman, 2003) Pre-season is important because after a break from sports the athletes are ready to get back in the game again and are looking forward to try-outs. An injury sustained pre-season can be regarded in different ways. The more severe the injury is the greater the athletes frustration and disappointment (Gayman Crossman, 2003). An injury that isnt serious enough to keep the athlete out for the entire season may not be as devastating for some because they become motivated to heal and spend the rest of the season in the game. Different factors enter the picture for mid-season injuries. An athlete who is out due to injuries during mid-season can be more stressed because by this time the team members are bonding. The athlete will also have lost some of their physical abilities that are important to the game. The team has been traveling and playing many games together by mid-season and the injured athlete will feel that they are missing out on the camaraderie and fun (Gayman Crossman, 2003). When an athlete is injured end of season the success of the entire team may be hindered and this is a source of great stress and disappointment for the athlete. If its the athletes last year of college, for example, the injury could end his career in sports. If the injury is severe enough regardless the season; it is devastating for the athlete and requires different and more intense coping techniques (Gayman Crossman, 2003). Finally, the playoffs are important because the team has bonded and worked hard together for an entire season to get that far. Injuries sustained during this time could hamper efforts for the championship title not to mention the personal satisfaction of success (Gayman Crossman 2003) How an athlete reacts to their injury may be based on how they personally view the situation. For instance, injury in pre-season may be regarded more negatively by one athlete than another. It all depends on how they perceive the situation (Gayman Crossman, 2003). There are different factors in the injury recovery process. One of those factors is gender differences. One study found there were differences in the perceptions of male and female injured athletes. It was found that male athletes had reported a more positive relationship with their coaches than the females. Males also were more apt to have a special person in their lives that they received emotional support from. It was discovered that female athletes were more apt to worry about how their injuries would affect their future health than the males (Granito, 2002). Regardless of male or female, it would appear that a good social support network and positive relationships with coaches are important when an athlete sustains an injury. There are, however, more factors involved in the success of an athletes rehabilitation and recovery than that of emotional support from others. Other interventions and coping mechanisms involve goal setting, imagery, and self-talk (Ievleva Orlick, 1991) There are numerous psychological intervention strategies for rehabilitation from sports related injuries. Oftentimes the athletes erroneous thoughts about intervention strategies keep them away from getting the help they need to recover more quickly and fully. The interventions could help them return to competition not only physically ready but psychologically ready as well. Due to a lack of knowledge and understanding leading to faulty beliefs about intervention strategies the athlete doesnt always get the help they need. The efficacy of any post-injury therapy or treatment depends on the ability of the athlete to accept and receive different techniques and strategies (Myers et al., 2004). One of the strategies in treatment for sports injuries that isnt fully understood is that of positive self-talk. Self-talk in injury recovery is even less understood than other techniques and strategies even though athletes do use it for performance improvements. Athletes have used both self-talk that is instructional in nature and self-talk that consists of positive affirmations (Van Raalte, Cornelius, Brewer, Hatton, 2000). Self-talk has been recognized as an effective tool for improvements in performance but unfortunately, has not been given as much thought as a strategy for recovery from injury. One reason that has been given to explain why there is a lack of knowledge regarding self-talk and its importance to recovery from injury has to do with understanding the fundamentals behind performance improvement in sports (Hardy, 2005) There is a relationship between performance improvements and self-talk. It has been suggested that its the aspect of self-talk that involves functionality that sheds light on its relationship with performance. This includes the cognitive and motivational aspects of self-talk (Hardy, Gammage, Hall, 2001a). Theodorakis, Weinberg, Natsis, Douma Kazakas (2000) investigated the efficacy of self-talk with athletes using positive self-talk in proportion to the specific demands of their physical activity. Instructional self-talk was used for the technical demands and motivational self-talk was used for less technical demands such as the athletes strength and stamina. The researchers expected that instructional self-talk would be more effective when the demands of the activity involved skills and accuracy and the motivational self-talk would be more effective when the demands involved strength and stamina. The results demonstrated that instructional self-talk for technical demands met the r esearchers expectations, however when the demands were for motivational self-talk the results werent as expected (Hardy,2005). The researchers discovered that both types of self-talk generated an increase in performance in the activity of leg extensions but not in the activity of sit-ups which requires stamina. Theodorakis et al. (2000) believe one reason for this outcome is that there wasnt an equal distribution of males and females for the study thus affecting the results. Theodorakis et al. rightly calls for more research in order to determine why positive self-talk (or negative) impacts athletic performance (Hardy, 2005). One factor that may impact the effectiveness of self-talk on an athletes performance is how they interpret their self-talk as far as it relates to motivation. The athlete may regard their self-talk in either a negative or positive light (Hardy, Hall, Alexander, 2001b). If an athlete regards their self-talk asde-motivating it certainly not help them recover faster and can even keep them from getting back to pre-injury performance levels. Theodorakis et al.(2000) explains that the lack of differences across groups in his study is that there are motivational aspects to the instructional self-talk and some of the self-talk used by the athletes may have been either motivating or de-motivating. Self-talk is supposed to be positive for the athlete. The attitude of the injured athlete is important to their recovery. If the athlete is optimistic their chances of recovery are greater and they have better coping mechanisms. Suggestions to encourage the athlete are for them to use only positive words, language and tone, during the rehabilitation-in and out of the clinic (Mind, Body, pg.1). Examples of positive self-talk are: I will get through this I will recover fully I will get back to playing my sport, better than I was before I will get 115 degrees of flexion today (Mind, Body, 2005, pg. 1). These self-talk strategies will create a more positive and healthy mind set in the injured athlete (Mind, Body,2005). In a study with tennis players it was found that instructional self-talk had a positive outcome on performance but not on self-efficacy (Landin Hebert, 1999). It is suggested then that practitioners determine if the athlete finds self-talk is to be de-motivating or motivating. An athlete can learn to perceive themselves in a healthier and more self-affirming manner by engaging in positive self-talk (Hardy, 2005). The speed with which an athlete recovers from injury can be increased by using certain mental strategies. It is up to the athlete and their physician to determine, in light of the patients situation and personal preferences, what would be the best strategy to ensure a rapid and full recovery from injury. The athlete and their sports doctor can be creative in coming up with what techniques seem to fit. Special attention should be given to the psychological state of the athlete and the seriousness of the injury. A comprehensive approach to injury management has been proven to be successful through research suggesting that by using more goal setting, positive self-talk, and imagery, athletes recover more quickly from injuries (Mind, Body, 2005, pg. 1) Self-talk is useful for injury recovery and quite often for the management of physical pain and distressing emotional states. Self-talk is described as, .the endless stream of thoughts that run through your head every day (Chronic Pain, 2005, pg. 1). This self-talk or automatic thinking can be positive or negative and based on logic and reason (Chronic Pain, 2005, pg. 1). There are times when self-talk can be negative and based on faulty perceptions due to inadequate information. In order for self-talk to be effective for recovery from injury the faulty thinking must be recognized and changed. In order to recognize the faulty thinking its important to recognize the different categories of non-productive thinking. One method of thinking that is not positive self-talk is generalizing. An example of this is when the individual regards one event as a trigger for a never ending series of negative events. As the pain continues the individual thinks they will not be able to carry on as befo re and they begin to devalue themselves. Another example of negative thinking is when the individual thinks in terms of catastrophes. With this type of thinking the individual imagines the worst case scenario. For example, they imagine that the pain from the injury will become a problem and they will become embarrassed if out in public or with friends (Chronic Pain, 2005). Another example of catastrophic thinking is when the athlete thinks things will never change and they will never get any better (Lake, 2005). Polarizing is another thinking style that leads to negative self-talk. This is when the individual sees everything as black and white, good or bad, positive or negative. They cannot concede that there is oftentimes a place in the middle. One of the more serious consequences of this thinking is that the individual feels they have to be perfect or else they are a failure; there is no acceptance of the fact that they are human like everyone else and can make mistakes while not seeing themselves as losers. Filtering is when the individual looks at the negative thoughts in a situation through a magnifying glass and minimizes the positive thoughts. One example given of this is when the individual did a great job at work that day but when they get home they realize they forgot to do one thing. The entire evening is ruined because the individual sits there and ruminates on that one task they failed to do. All the accolades they received that day from boss and co-workers is forgotten and only the negative is focused upon. Another negative thinking pattern that leads to unhealthy self-talk is that of personalizing. When something unpleasant, unfortunate, or bad happens the individual thinks that they are blame, even if its something out of their control and has nothing to do with them. Emotionalizing is thinking where the heart rules the head. Objectivity is pushed aside for irrational thinking. One example of this is if an individual feels they are dull or stup id and therefore they believe that is what they are (Chronic Pain, 2005). This type of thinking is dangerous for the athlete especially one who is recovering from an injury. The athlete must recognize the negative thinking and begin the exercise of positive self-talk. An interesting rule of thumb regarding the process of positive self-talk is as follows: Dont say anything to yourself that you wouldnt say to someone else Be gentle and encouraging. If a negative thought enters your mind, evaluate it rationally and respond with affirmations of what is good about yourself. Eventually your self-talk will automatically contain less self-criticism and more self-acceptance. Your spontaneous thoughts will become more positive and rational. (Chronic Pain, 2005, pg. 1) What people say to themselves all too often sets the stage for how they look at life and what they do about it. One example of this is when the individual comes home after a day of working and says, I dont want to exercise today. Its cloudy outside, theres no one to walk with, and besides, Ive already exercised twice this week (Managing Your Pain, 2005, pg.1). A more positive way to respond to this situation is to say, I dont feel like exercising today, but I know Ill feel better afterward and have an easier time falling asleep (Managing Your Pain, 2005, pg.1). These examples are very important in retraining the mind to engage in positive self-talk. The self-talk one engages in can literally change the way an individual experiences physical pain. Negative messages can lead to increased pain, while positive messages can help distract you from pain (Managing Your Pain, 2005, pg. 1) There are several steps to take in order to change negative self-talk that leads to increased pain into positive self-talk which speeds up the healing process and leads to decreased pain. The first of these steps is for the individual to make a list of all negative self-talk engaged in. The second step is to change each negative statement on the list into a positive statement. One example would be the following, Im tired and dont feel like attending my support group tonight, but if I dont go I might miss out on some good tips like the ones I learned last month. I can always leave the meeting a little early (Managing Your Pain, 2005, pg. 1). The third step is to practice the positive self-talk. Even though it doesnt come naturally and may take some time to become comfortable with keep at it until it becomes second nature (Managing Your Pain, 2005, pg. 1).

Observation Essay †The Clown -- Observation Essays

Observation Essay – The Clown He’s a young man, the clown, with white socks striped in black, and black suspenders over a white T-shirt. White face, red nose. His MO is to follow people and imitate their motion without their noticing, to the glee of the sizeable, ever-changing audience. We’re sitting here on the steps of the Museum, hot and sweaty, watching the show. The clown can follow anyone: a slinky woman wearing pink ruffles, a kid with a mountain bike, a muscle-shirted dude talking Spanish on a cell phone, an old man walking his schnauzer, a big gray pigeon bobbing this way and that in search of food, and then taking flight. Now he slides behind high-school girlfriends, floppy-sandaled flirts leaning toward each other and flinging back their hair with unthinking charm, the clown their vampy shadow. When he bids them goodbye, he flourishes a soft, velvet-bodied top hat, and you can see his head is shaven, except for a forelock. Now he’s got a routine with a bottle of water. It’s stuck in his mouth and silently he implores a guy to get it out for him. He has a way of getting sudden spurts of water to cascade from it, while he looks surprised and delighted at once. I have persuaded my friend Kati to leave me here for an hour in the afternoon sun while she completes her tour of the Impressionists inside. She’s in New York this once, visiting from Hungary, while I live in Philadelphia and can come back any time I choose. I became hot and dizzy while standing on a Rouen street, basking in the sun before Monet’s Cathedral. A red tide rose inside my eyeballs. Kati found me clinging to a bench in front of Seurat’s Circus Sideshow and hauled me off to the Ladies’ Room, where she sprinkled cool water on my neck an... ...e gently, informing me that I have a virus, melodramatic old fool that I am. The clown has taken his place at the foot of the stairs and conducts us spectators like an orchestra, getting us to applaud in counterpoint. Then he mimes a family, three kids, all of whom need to eat and drink, and proffers his floppy hat for our sustenance. When I hold out two dollars, he comes over and mimes opening the doors of his chest, so that the heart within flutters out to me. Kati comes and we head home, our minds full of the art we saw today. As I rise from my spot on the steps, I see the clown shadow a man walking six dogs all at once, working his body back and forth on the leash of the unruliest, a sheep-dog. Then he takes a bottle of water offered by a vendor and puts it in his ear. Water squirts from his mouth, and he smiles, looking briefly skyward, one hand on his hip.

Initiation Story Essay -- essays papers

Initiation Story "A&P", written by John Updike, is based on a moment in the life of a cashier. He was known as Sammy and he referred to his position in the grocery store as a slot checker. Sammy spent his time watching and wondering about customers. One day, while working, three girls dressed in bikinis entered the store and attracted his attention. He describes the three girls movements and watches them as they roam throughout the store. Eventually, the girls work their way to Sammy's cashier station to purchase the item which they have selected. Then Lengel, the manager of the store, enters and embarrasses the girls for their attire. As a result, Sammy quits his job at the A&P. This short story is an example of an initiation story through its use of characterization and plot. Sammy, the slot checker, at the "A&P" evolved throughout the story. Initially, he was only a cashier who was using his idol time to critique the customers who came passing through. His job was beneath his mental capabilities and so this was the only way he could keep himself bu...

Essay --

Along with the development of science technology and popularity of computers and internet, network becomes an important tool in interpersonal communication. We are studying in the university and we need computers to enrich our minds. Computers can not only make us fit into a new environment faster, but also can provide convenience to us. What else, they can also help us learn more abilities and new technology. So in my opinion, computers should be allowed to bring to school when we are freshmen. Firstly, computers can make us get news about the new environment and be part of it faster. We may get worried when we are in a new school. The feeling must be much stronger if this is the first time we leave our parents. We do not know where we can find a bank, a restaurant, etc . But if we have a computer, we will find them on the computer maps. What else, we can know the important information which is announced by our school at the first time. We live in the world which is full of information, so we should develop the ability to use the useful information for ourselves. I... Essay -- Along with the development of science technology and popularity of computers and internet, network becomes an important tool in interpersonal communication. We are studying in the university and we need computers to enrich our minds. Computers can not only make us fit into a new environment faster, but also can provide convenience to us. What else, they can also help us learn more abilities and new technology. So in my opinion, computers should be allowed to bring to school when we are freshmen. Firstly, computers can make us get news about the new environment and be part of it faster. We may get worried when we are in a new school. The feeling must be much stronger if this is the first time we leave our parents. We do not know where we can find a bank, a restaurant, etc . But if we have a computer, we will find them on the computer maps. What else, we can know the important information which is announced by our school at the first time. We live in the world which is full of information, so we should develop the ability to use the useful information for ourselves. I...

Marriage practices

In the Cooper Eskimos area, the prospective son-in-law worked as a servant for the girl's father for a period of three or four years, generally before she reached puberty. Bride service among the Cooper Eskimos was often Supplemental, and sometimes replaced by payments of valuable articles† (Dams, Divide Demographic Aspects of Central Eskimos Marriage Practices. American Ethnologist, Volvo. 2. No 3 (Gauge 1975). Up. 409-413. Http//www. ASTOR. Org/page/info/about/policies/ terms. Jsp). The three major groups of Eskimos were first designated as tribes by members of the fifth Thule Expedition and these three groups are Guilt, Entitles, and Cooper.Information from Nineteenth and early twentieth century describes that each of the tribal units are relatively discreet. With trade routes that intersect in Central Artic Contract between different tribes is most likely very short. There was intermarriages between Mackenzie Eskimos woman marrying into the Cooper Eskimo tribes. There have also been cases of intermarriages between Flimflamming Eskimos and Entails Eskimos and there also hostility between these two groups also. The Entitles had four cases of polygamy compared to two cases of polyandry. However, the census said otherwise.The Census shows there were three cases of polygamy to two cases of polyandry. â€Å"Rasmussen (1931 : 195) believed that two woman would be more compatible in sharing a husband than two men in sharing a wife. This explanation begs the question of the nature of Eskimo personality. † ( Dams, David. Demographic Aspects of Central Eskimos Marriage Practices. American Ethnologist. Volvo. 2 No. 3 (Gauge. 1975). Up 409-413. Http://www. ASTOR. Org/ page/ info/ about/ politics/ terms. ]SP). The Jewish ethnic traditions has some marriage practices that differ from other traditions. The Mishap's generally are observant and religious.According to Zionist ideology, ethnic intermarriages is a means of creating a single, unified cultures among Jews in Israel ( Risen 1982). Migrate couples were less educated than those of the mixed couples. They usually married with in the Shaken tradition. In the Shaken community the ones who were less educated, married Migrate would Join the next generation. The group of Shaken education is relatively higher than it probably would be if they didn't do the mixed marriages. Education plays a large role in whether they marry into the Shaken or less economically advantaged Mishap's.Patterns of intermarriage are thus challenging concepts of race and ethnicity and are leading to complex views of ethnic and racial boundaries (Harris and Simi 2002; Hiroshima 2003; Roquefort and Brunets 2002). Jews can trace their roots in Israel past their grandparent's generation. In Israel context, the assimilation hypothesis suggest that the greater contact of educated Migrate with Shamanism has led to the erosion of their Migrate ethnic consciousness, more frequent intermarriages, the consequent concentratio n of Migrate ethnicity in the lower classes (Ben-Rafael 1982).A well-off educated Migrate would marry a poorly educated Shaken. Jews consider marriages to be the ideal state of personal existence, when you have a woman without a man and a man without a wife they consider it to be incomplete. Their engagement of marriage was usually brought about by a third person, which was also known as a match-maker. Although the marriages were the concerns of their parents, the children were not forced into marriage over their objections.When they are at the ceremony for marriage, the groom is given the ring and says his declaration, the bride does not have to respond, and she Just accepts the ring from the groom and then closes her hand to show that she accepts. Then the bride and groom drink a glass of wine together. After the ceremony is over the groom steps on glass, the broken pieces of glass is supposed to tell them how many years the marriage will last between the couple. The Jews and Eski mos had some things that each culture's did for their marriage practices that were alike and some that were different.In the Jew culture they married off the girls at a very young age. The parents usually had their children's marriages arranged by a matchmaker. They had confidence that the matchmakers would bring a proper spouse for their daughter to marry. Back then the father could marry off his daughter between the ages of three and twelve years of age, which was known to be called cetacean (little one). Which was completely subject to her father's authority and could arrange the marriage without daughter's approval. The marriages without the daughter's saying â€Å"l want this one†, was considered effective gal marriages.Now the daughters have a say if they want to marry the guy that's picked out for them. If it's not who they want then they go out and find who they want. The Eskimos parents also made marriage arrangements for their daughters. Their marriages were sought through kinship. They were also married off at a young age, married before they had their first menstrual period and began bearing children three to four years later. The men in the two cultures were not able to marry the girls till they could prove they could support them and have a home for them.The Eskimo sys were forced with different sets of requirements, they were not old enough for marriage till they proved themselves capable as hunter and providers. Also had to be able to build a snow house or hunt large game unassisted, he was not considered mature enough to take on and support a wife if he couldn't do them. After they proved those steps then before marriage they had to Join the father in laws house hold. During the trial marriage period they worked for the father in laws for three to four years or until the young couple was mature enough to establish a separate house hold.In the Jews culture the young men Just had to be able to provide a home for their soon to be wife's. O nce the marriages were completely arranged the wedding plans began. The two cultures to me seem to actually have a lot of common marriage practices. Kind of shocking how closely they do things even being two separate cultures. I feel that the children should be able to have a say into who they marry and spend the rest of their lives with. The two cultures that were described in this paper lead to finding regarding the marriage practices of the Jews and Eskimos.

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The death penalty SOURCE: WIKIPEDIA Capital punishment or the death penalty is a legal process whereby a person is put to death by the state as a punishment for a crime. The judicial decree that someone be punished in this manner is a death sentence, while the actual process of killing the person is an execution. Crimes that can result in a death penalty are known as capital crimes or capital offences. The term capital originates from the Latin capitalis, literally â€Å"regarding the head† (referring to execution by beheading). 1] Capital punishment has, in the past, been practised by most societies (one notable exception being Kievan Rus);[2] currently 58 nations actively practise it, and 97 countries have abolished it (the remainder have not used it for 10 years or allow it only in exceptional circumstances such as wartime). [3] It is a matter of active controversy in various countries and states, and positions can vary within a single political ideology or cultural region. In the European Union member states, Article 2 of the Charter of Fundamental Rights of the European Union prohibits the use of capital punishment. 4] Currently, Amnesty International considers most countries abolitionist. [5] The UN General Assembly has adopted, in 2007, 2008 and 2010, non-binding resolutions calling for a global moratorium on executions, with a view to eventual abolition. [6] Although many nations have abolished capital punishment, over 60% of the world's population live in countries where executions take place, such as the People's Republic of China, India, the United States of America and Indonesia, the four most-populous countries in the world, which continue to apply the death penalty (although in India, Indonesia and in many US states it is rarely employed).Each of these four nations voted against the General Assembly resolutions. [7][8][9][10][11][12][13][14][15] Contents [hide] 1 History 1. 1 Ancient history 1. 2 Ancient Tang China 1. 3 Middle Ages 1. 4 Mod ern era 1. 5 Contemporary era 2 Movements towards humane execution 3 Abolitionism 4 Contemporary use 4. 1 Global distribution 4. 2 Execution for drug-related offences 4. 3 Juvenile offenders 4. 3. 1 Iran 4. 3. 2 Somalia 4. 4 Methods 5 Controversy and debate 5. 1 Human rights 5. 2 Wrongful execution 5. 3 Retribution 5. 4 International views 6 Religious views 6. 1 Buddhism 6. 2 Christianity 6. 2. 1 Roman Catholic Church 6. 2. 2 Protestants 6. . 3 Mormonism 6. 3 Hinduism 6. 4 Islam 6. 5 Judaism 7 See also 8 References 9 Further reading 10 External links 10. 1 Opposing 10. 2 In favour 10. 3 Religious views History Execution of criminals and political opponents has been used by nearly all societies—both to punish crime and to suppress political dissent. In most places that practise capital punishment it is reserved for murder, espionage, treason, or as part of military justice. In some countries sexual crimes, such as rape, adultery, incest and sodomy, carry the death penalty, as do religious crimes such as apostasy in Islamic nations (the formal renunciation of the state religion).In many countries that use the death penalty, drug trafficking is also a capital offence. In China, human trafficking and serious cases of corruption are punished by the death penalty. In militaries around the world courts-martial have imposed death sentences for offences such as cowardice, desertion, insubordination, and mutiny. [16] Anarchist Auguste Vaillant guillotined in France in 1894 The use of formal execution extends to the beginning of recorded history. Most historical records and various primitive tribal practices indicate that the death penalty was a part of their justice system.Communal punishment for wrongdoing generally included compensation by the wrongdoer, corporal punishment, shunning, banishment and execution. Usually, compensation and shunning were enough as a form of justice. [17] The response to crime committed by neighbouring tribes or communities included formal apology, compensation or blood feuds. A blood feud or vendetta occurs when arbitration between families or tribes fails or an arbitration system is non-existent. This form of justice was common before the emergence of an arbitration system based on state or organised religion. It may result from crime, land disputes or a code of honour. Acts of retaliation underscore the ability of the social collective to defend itself and demonstrate to enemies (as well as potential allies) that injury to property, rights, or the person will not go unpunished. â€Å"[18] However, in practice, it is often difficult to distinguish between a war of vendetta and one of conquest. Severe historical penalties include breaking wheel, boiling to death, flaying, slow slicing, disembowelment, crucifixion, impalement, crushing (including crushing by elephant), stoning, execution by burning, dismemberment, sawing, decapitation, scaphism, necklacing or blowing from a gun.The Christian Martyrs' Last Pray er, by Jean-Leon Gerome (1883). Roman Colosseum. Islam on the whole accepts capital punishment,[19] and the Abbasid Caliphs in Baghdad, such as Al-Mu'tadid, were often cruel in their punishments. [20] Nevertheless, mercy is considered preferable in Islam,[citation needed], and in Sharia law the victim's family can choose to spare the life of the killer, which is not uncommon. citation needed] In the One Thousand and One Nights, also known as the Arabian Nights, the fictional storyteller Sheherazade is portrayed as being the â€Å"voice of sanity and mercy†, with her philosophical position being generally opposed to punishment by death. She expresses this through several of her tales, including â€Å"The Merchant and the Jinni†, â€Å"The Fisherman and the Jinni†, â€Å"The Three Apples†, and â€Å"The Hunchback†. [21] The breaking wheel was used during the Middle Ages and was still in use into the 19th century. Ancient historyElaborations of tribal arbitration of feuds included peace settlements often done in a religious context and compensation system. Compensation was based on the principle of substitution which might include material (for example, cattle, slave) compensation, exchange of brides or grooms, or payment of the blood debt. Settlement rules could allow for animal blood to replace human blood, or transfers of property or blood money or in some case an offer of a person for execution. The person offered for execution did not have to be an original perpetrator of the crime because the system was based on tribes, not individuals.Blood feuds could be regulated at meetings, such as the Viking things. [22] Systems deriving from blood feuds may survive alongside more advanced legal systems or be given recognition by courts (for example, trial by combat). One of the more modern refinements of the blood feud is the duel. Giovanni Battista Bugatti, executioner of the Papal States between 1796 and 1865, carried out 516 exec utions (Bugatti pictured offering snuff to a condemned prisoner). Vatican City abolished its capital punishment statute in 1969. In certain parts of the world, nations in the form of ancient republics, monarchies or tribal oligarchies emerged.These nations were often united by common linguistic, religious or family ties. Moreover, expansion of these nations often occurred by conquest of neighbouring tribes or nations. Consequently, various classes of royalty, nobility, various commoners and slave emerged. Accordingly, the systems of tribal arbitration were submerged into a more unified system of justice which formalised the relation between the different â€Å"classes† rather than â€Å"tribes†. The earliest and most famous example is Code of Hammurabi which set the different punishment and compensation according to the different class/group of victims and perpetrators.The Torah (Jewish Law), also known as the Pentateuch (the first five books of the Christian Old Testa ment), lays down the death penalty for murder, kidnapping, magic, violation of the Sabbath, blasphemy, and a wide range of sexual crimes, although evidence suggests that actual executions were rare. [23] A further example comes from Ancient Greece, where the Athenian legal system was first written down by Draco in about 621 BC: the death penalty was applied for a particularly wide range of crimes, though Solon later repealed Draco's code and published new laws, retaining only Draco's homicide statutes. 24] The word draconian derives from Draco's laws. The Romans also used death penalty for a wide range of offenses. [25][26] Ancient Tang China Although many are executed in China each year in the present day, there was a time in Tang Dynasty China when the death penalty was abolished. [27] This was in the year 747, enacted by Emperor Xuanzong of Tang (r. 712–756). When abolishing the death penalty Xuanzong ordered his officials to refer to the nearest regulation by analogy when sentencing those found guilty of crimes for which the prescribed punishment was execution.Thus depending on the severity of the crime a punishment of severe scourging with the thick rod or of exile to the remote Lingnan region might take the place of capital punishment. However the death penalty was restored only 12 years later in 759 in response to the An Lushan Rebellion. [28] At this time in China only the emperor had the authority to sentence criminals to execution. Under Xuanzong capital punishment was relatively infrequent, with only 24 executions in the year 730 and 58 executions in the year 736. [27]Ling Chi – execution by slow slicing – in Beijing around 1910. The two most common forms of execution in China in the Tang period were strangulation and decapitation, which were the prescribed methods of execution for 144 and 89 offences respectively. Strangulation was the prescribed sentence for lodging an accusation against one's parents or grandparents with a ma gistrate, scheming to kidnap a person and sell them into slavery and opening a coffin while desecrating a tomb. Decapitation was the method of execution prescribed for more serious crimes such as treason and sedition.Interestingly, and despite the great discomfort involved, most Chinese during the Tang preferred strangulation to decapitation, as a result of the traditional Chinese belief that the body is a gift from the parents and that it is therefore disrespectful to one's ancestors to die without returning one's body to the grave intact. Some further forms of capital punishment were practised in Tang China, of which the first two that follow at least were extralegal. The first of these was scourging to death with the thick rod which was common throughout the Tang especially in cases of gross corruption.The second was truncation, in which the convicted person was cut in two at the waist with a fodder knife and then left to bleed to death. [29] A further form of execution called Li ng Chi (slow slicing), or death by/of a thousand cuts, was used in China from the close of the Tang dynasty (around 900) to its abolition in 1905. When a minister of the fifth grade or above received a death sentence the emperor might grant him a special dispensation allowing him to commit suicide in lieu of execution.Even when this privilege was not granted, the law required that the condemned minister be provided with food and ale by his keepers and transported to the execution ground in a cart rather than having to walk there. Nearly all executions under the Tang took place in public as a warning to the population. The heads of the executed were displayed on poles or spears. When local authorities decapitated a convicted criminal, the head was boxed and sent to the capital as proof of identity and that the execution had taken place.In Tang China, when a person was sentenced to decapitation for rebellion or sedition, punishment was also imposed on their relatives, whether or not t he relatives were guilty of participation in the crime. In such cases fathers of the convicted under 79 years of age and sons aged over 15 were strangled. Sons under 15, daughters, mothers, wives, concubines, grandfathers, grandsons, brothers and sisters were enslaved and uncles and nephews were banished to the remotest reaches of the empire. Sometimes the tombs of the family's ancestors were levelled, the ancestors' coffins were destroyed and their bones scattered. 29] Middle Ages In medieval and early modern Europe, before the development of modern prison systems, the death penalty was also used as a generalised form of punishment. During the reign of Henry VIII, as many as 72,000 people are estimated to have been executed. [30] Despite its wide use, calls for reform were not unknown. The 12th century Sephardic legal scholar, Moses Maimonides, wrote, â€Å"It is better and more satisfactory to acquit a thousand guilty persons than to put a single innocent man to death. He argued that executing an accused criminal on anything less than absolute certainty would lead to a slippery slope of decreasing burdens of proof, until we would be convicting merely â€Å"according to the judge's caprice. † Caprice of various sorts are more visible now with DNA testing, and digital computer searches and discovery requirements opening DA's files. Maimonides' concern was maintaining popular respect for law, and he saw errors of commission as much more threatening than errors of omission. [31]

Case Analysis for Virgin Mobile Essay

VIRGIN MOBILE USA – ‘FIRST PRICE’ STRATEGY (An analysis of the Pricing Decision alternatives that Virgin has to undertake to create an alternate customer segment and monetize their buying power)VIRGIN XTRAS – OVERVIEWThe Virgin Mobile USA service involved content, features and entertainment, called â€Å"Virgin Xtras†.Collaboration with MTV networks as it was the most recognized youth brands in the country and unparalleled reach forthe under-30 market segment: Exclusive, multiyear content and marketing agreement. MTV network to deliver music, games and other MTV-, VH1-, and Nickelodeon based content to Virgin Mobile subscribers. Subscribers would have access to MTV- branded accessories and phones, graphics, ring tones, text alerts and voice mails. Promotional airtime on MTV’s channels and website. Virgin mobile subscribers to vote for their favorite videos on a few MTV shows.Other Virgin Mobile services that aimed to appeal to the youth market , generate additional usage and create loyaltywere: Text Messaging Online Real- Time Billing Rescue Ring Wake- Up Call Ring Tones Fun Clips The Hit List Music Messenger MoviesTraditional Channel Virgin’s ChannelServices sold at own proprietary retail outlets, kiosks in Services sold where youth shop especially consumermalls, high-end electronic stores, speciality stores etc. electronic goods in stores like Target, Sam Goody music stores, Best Buy. High-touch sales people who were paid high sales Products packaged in consumer electronics packaging, placedcommission to ensure hands-on service. on a bright red clamshell, which gave it visibility and no salesperson was required.Cost per handset from Nokia, Motorola, Samsung etc. – Cost per handset from Kyocera- $60-$100. Lesser subsidy$150-$300. Entailed substantial subsidy from the entailed by the company.handset makers, a component of acquisition cost.Distributors’ industry avg. Commission- $100/phone Distributors commission- $30/phone.The availability of the phones were not as segment Phones available at 3000 retail outlets in USA, and availabilityspecific as Virgin targeted included at retailers such as Sam Goody, Circuit City, Media Play, Virgin MegastoreBilling is monthly Billing is to be real-time and with online avenues PRICING DECISIONS:-CUSTOMER PERSPECTIVESThe company tried to distinguish itself from the competitors standpoint by playing on the fact that t he targeted segment‘did not trust  the prevalent pricing points’ in the industry that hinged on the credit worthiness . The main practicesprevalent were:- 90% of all subscribers had contractual agreements for a period of 1 year-2 years Required rigorous credit check Plans established â€Å"buckets† of minutes, on extra usage users penalized heavily. Charged less for off-peak than on-peak minutes, but the off-peak period had shrunk. An additional fee was charged to add to the monthly bill, which included taxes, service charges. Per minute Charge (Y-axis, in cents) for the bucket of minutes contracted (X-axis) 180 160 140 120 100 80 Per minute Charge for the bucket of minutes andcontracted (X-axis) 60 40 20 0 0 20 40 60 80 100 120 140The bold line represents the cost per minute charged for a valid contract (which is shown by the arrows). The higher costin the vent of under-utilization of the contract is due to the high fixed cost (like the subsidization of hand sets,, contractcharges etc.)The higher limit in the vent of exceeding the contract is due to penalizing.PRICING DECISIONS – COMPAN Y PERSPECTIVESVirgin Mobile USA had to fix all these problems prevalent in the industry while taking a pricing decision. The mainconstraints it faced was that the prices should be competitive and profitable without triggering of competitive reactions.There were 3 options available:OPTION 1- ‘Clone the Industry Prices’ The message would go to customers that they were priced competitively with few advantages like differentiated applications [MTV] and superior customer service. Better off-peak hours and fewer hidden fees would be the selling point but the total pricing structure would still depend on off-peak and peak categorization as well as contacted minutes. Easy to promote as this strategy of â€Å"buckets† was already prevalent in industry. But risks alienating the target base as they already did not make the required cut for the credit worthiness. OPTION 2- ‘Price below the Competition’ Similar pricing structure as rest of industry, with actual prices slightly below those of competition only within the highest frequency range. Better off-peak hours and fewer hidden fees could also be given.OPTION 3- ‘A Whole New Plan’ Entirely different pricing structure. Eliminate contracts and going for prepaid pricing structure. However the nature of the American cellular market with operator dedicated handsets ad prohibitive pricing followed by the competitors due to high churn rates Cost of Acquisition Subsidization of Advertisement Sales handsets . Break even analysis and Life  time Value for cellular subscribers:- As already, stated in the current scenario, most mobile companies amass working capital by going for long term contracts. Compared to a US$ 100 acquisition cost for a prepaid connection, the equivalent historical cost of acquisition for a post paid consumer is US $ 370. Assuming that we stay with the post paid plan due to industry imperatives, we find that the average calling rate is around 10-30 cents per minute for a average bucket usage of 100-300 minutes (this is the target usage range that Virgin is aiming to target in the second option) Hence, average cost incurred by the company for a customer = US$ (0.1 x 300) =US$ 60 (The most promising aspect in the relevant range) Acquisition cost = handset subsidy given to hand set manufacturers (US$ 60 -100) + advertisement costs ( US$60 million budget spread over an estimated 1 million subscribers = US$60)+ sales overheads (US$100-150) = US$ 290-370 per user per month. Now, Breakeven point in terms of month is calculated as:- Total fixed cost = US$ 370 (acquisition cost for a post paid customer) = 28.46 months Revenue – Variable cost US$ 57 (avg. revenue per month from a user- ARPU) – US$30Hence it takes around 29 months for the customer to prove profitable for the company even in the most promisingscenario of the relevant range.But we will also have to induct the churn rate of around 2% per month into this optimistic consideration and try tocalculate the LTV. If the LTV is positive then the company should go ahead. The option that yields the largest LTV shouldbe chosen.LTV = ∑ (Ma).r(a-1) – Acquisition cost (1+i)a View slide Here, the margin remains relatively fixed across the periods which can be assumed as a modest 12%, r is the retentionrate which comes to around 72% (churn rate of 2% p.m. compounded monthly over a year = 1.02Ãâ€"1.02x†¦..till 12months ), i becoming interest rate assumed to be around 5%Margin in a month = (Average monthly phone bill ∞,=US$52)-(Cash cost per user =US$30) = US$22Now taking this value of n we have :- LTV = M/(1-r+i)Now calculating the LTV for every option available will give us a marker of how the pricing strategy should be used forusing various options considering the fact that the interest rate remains constant at 5%:-For option 1:-LTV = US$ {(22*12)/(1-0.72+0.05) } – 360= US$ 421For option 2:- Here the retention rate can be assumed to have been bettered by differential pricing in the 100-300minutes usage category , so we can assume a modest increase to 80%. But this is more or less offset by the increase incash cost to user which  can be assumes to rise by 5% if the differential pricing is 5% below the average industrystandard. So the margin can be assumed to drop to US$19. Here, LTV = US$ {(19*12)/(1-0.8+0.05) } – 360= US$ 489Hence we can see that even with modest assumptions, the LTV is maximized for Option 2, henca the company shouldventure into differential pricing if at all it wants to deviate. But considering the high acquisition turnover time andrecovery time of almost 29 months, it is a risky strategy because of very high mobility in the targeted segment.Hence Virgin should focus on non price factors such as :- If the contracts are done away with, this will ensure more loyalty of the target segment as the majority of them are not credit worthy. The positioning of Virgin Mobile USA and its collaborations with partners like MTV will attract more customers which are loyal. The cost of acquisition of a customer comprises of advertisement, sales cost and subsidy given. Since these costs are much lower than the other competitors, they can price themselves lower than competitors. They can also be transparent in their cost structure, eliminating hidden costs .Hence, initially it should give non-price advantage to its customers and over a period of time can reduce costs to sustaingrowth and drive off competition virgin mobile Presentation Transcript We Answer To A Higher Calling Prepared By – Team 4 Pooja Gupta (P122033) Rohit Singh (P122038) Saurabh Singh (P122041) Varun Anand (P122049 Virgin Groupâ€Å"Virgin believes in making a difference. We stand for value for money, quality, innovation, fun and a sense of competitive challenge. We strive to achieve this by empowering our employees to continually deliver an unbeatable customer experience.† Virgin Mobile USA†¢ Commenced operations in June, 2002†¢ Led by founding CEO Dan Schulman†¢ Entered USA as a 50-50 joint venture between Virgin Group and Sprint Corporation. Virgin Mobile USA’s service would be hosted on Sprint’s PCS network†¢ Sprint was in process of updating its network and increasing its capacity. View slide Virgin Mobile USA†¢ Schulamn- â€Å"The nice thing about this model is that we don’t have to worry about huge fixed costs or the physical infrastructure. We can focus on what we do best-understanding and meeting customer needs.†Ã¢â‚¬ ¢ â€Å"We Answer To A Higher Calling†Ã¢â‚¬ ¢ Providing extra-ordinary services and experiences at a low price as $35 View slide Objective†¢ Create value and profitability in cell  phone service industry†¢ Target market ages 15-29, opportunity for growth with this market segment†¢ 1 million subscribers by year 1, 3 million by year 4†¢ â€Å"By focusing on the youth market from the ground up, we’re putting ourselves in a position to serve these customers in a way they have never been served before† -Dan Schulman, CEO, Virgin Mobile USA 4P’s of Virgin Mobile USAWhy? Problem with Current Telecom Services†¢ Low penetration among consumers aged 15-29. Growth rate for this segment was projected to be robust for the next 5 years†¢ Target group had been undeserved by existing carriers and specific needs that haven’t been met†¢ Average monthly cell phone bill – $52 representing 417 minutes of use. Hence, cost to serve a customer – $30†¢ Carriers tended to be wary of acquiring low- value subscribers Target Group and Behavior†¢ Consumers aged 15-29†¢ Calling pattern is different from typical business person†¢ Open to new things: – Text messaging – Downloading information using cell phones – More likely to use: ringtones, faceplates and graphics †¢ It’s a fashion accessory and a personal style statement Mobile Penetration by Age Group Revenue from Mobile Entertainment Services Pricing Trend in US before Virgin†¢ Over 90% of all subscribers had contractual agreements for a period of 1-2 years with their cellular providers†¢ Customers would sign up for ‘buckets of minutes’†¢ If a user used more than allocated minutes, they would be charged with extremely high rates (eg: 40 cents / minute)†¢ If a user used less than allocated minutes, they were still charged the fixed monthly fee, which drove up their price per minute Calling Plans – Industry PricesPrice per minute Contract Commitment – Minutes Calling Plans – Industry PricesPrice per Minute Contract Commitment – Minutes Pricing Trend in US before Virgin†¢ Carriers charged less for off-peak than on-peak minutes†¢ Off-peak time changed from 6:00 PM to 7:00, 8:00 and then finally 9:00 PM†¢ Some carriers charged a monthly fee (appox. $7) to move the peak time back to one hour†¢ Carriers added additional fees to monthly bill (tax or other additional cost information was not communicated. So a $29 plan ended up being a $35 plan) What Virgin focused on?†¢ Customers couldn’t predict their usage and ended up choosing  wrong plan pattern†¢ Customers think they use more minutes than they actually use†¢ Target segment actually used 100-300 mins/month but target predicted their usage is higher than that†¢ People tried picking up lower bucket plans to avoid high monthly fees but they ended up paying a lot more than that due to usage of minutes above the bucket†¢ On-peak and off-peak minutes weren’t in right mix 4P’s of Virgin Mobile USAWhat? What to provide them? VirginXtras†¢ Delivery of content, features and entertainment†¢ Signed a exclusive and multiyear, content & marketing agreement with MTV networks to deliver music, games and other MTV, VH1 and Nickelodeon based content to Virgin Mobile Subscribers†¢ Deal with MTV also ensured airtime on MTV’s channel and web site VirginXtras†¢ MTV-branded accessories and phones and contents (ringtones, text alerts and voice mails†¢ To vote for their favorite videos on MTV’s shows like â€Å"Total request Live†Ã¢â‚¬ ¢ Text messaging – No. of text msgs tends to skyrocket during school hours. Reason: Parents don’t see who they call, private form of communication VirginXtras†¢ Online Real-Time Billing – No call detail on monthly bills. Website will record individual calls on a real-time basis†¢ Rescue ring – Mobile subscriber will get a call at prearranged time to â€Å"escape† in case a date was not going well .†¢ Wake-up Call – Chance to wake up to original messages from a variety of cheeky celebrity VirginXtras†¢ Ring Tones – Customized ringtones would be available for subscribers to download†¢ Fun clips – News, tidbits, jokes, gossip, sports and more†¢ Hit List – Vote top 10 list of hit songs. Would be able to hear the %age of other subscribers who either â€Å"loved it† or â€Å"hated it† VirginXtras†¢ Music Messenger – Tap into 10 songs list & forward it to a friend allowing them to check out a hot new track†¢ Movies – Movie descriptions, show timings, and buy tickets in advance Handset: First 2 basic models named â€Å"Party Animal† and â€Å"Super Model† came with interchangeable faceplates decorated with eye-catching colors and patterns 4P’s of Virgin Mobile USAHow? Virgin’s Goal†¢ To make sure their prices are competitive†¢ To make sure they could make profit†¢ Don’t want to trigger off competitive reactions Options†¢ Clone the Industry Prices†¢ Price Below Competition†¢ Whole New Plan Clone the Industry Prices†¢ Use same prices as other competitors†¢ Communicate  -â€Å"priced competitively with everyone else but with a few key advantages like differentiated applications (MTV) and superior customer service† – MTV Applications and features – Superior Customer service†¢ Offering better off-peak hours and fewer hidden fees†¢ Put on packaging so that even without a salesperson, consumers would get the message Price per minute Contract Commitment – Minutes Clone the Industry Prices Price Below the Competition†¢ Maintain buckets and volume discounts†¢ Set price per minute below the industry average for certain key buckets – Target young market 100-300 mins Price per minute Contract Commitment – Minutes Price Below the Competition A Whole New Plan†¢ Shorten or Eliminate Contracts – Contracts guarantee annuity stream – Contract allows 18 years or below to purchase the product – Churn rate was 2%, new plan could increase churn rate to 6%†¢ Prepaid service – 92% US subscribers had Post-paid – Pre-paid was used on occasional basis as rates per minute was high and no credit check was required – Has high churn rates. Company would never be able to recoup its customer acquisition costs – New mechanism or infrastructure was required for prepaid services A Whole New Plan†¢ Handset subsidies – Mobile carriers subsidized the cost of handset to end users to acquire customer cost†¢ Eliminate Hidden Fees and off-peak hours – ‘what you see is what you get’ – Rolling out hidden costs into pricing such that pricing feels competitive – off-peak should benefit the target group. Minute usage is very different from busines s class Price Below the Competition What they did?†¢ LTV Model – Life Time Value†¢ In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or user lifetime value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer†¢ Simplified Model†¢ LTV = (M/(1-r+i)) – AC Factors influencing LTV†¢ ARPU: Avg Revenue Per User†¢ CCPU: Cash Cost per User = 45% of ARPU†¢ M: Monthly Margin = ARPU – CCPU†¢ r: Retention rate ( 1 – (12*6%)) = 0.28†¢ AC: Acquisition Cost ( = $120 for Virgin) – Sale commission – Advertising per gross add – Subsidy cost LTV Calculation†¢ LTV = (M/(1-r+i))  Ã¢â‚¬â€œ AC†¢ => M = ARPU – CCPU = (1 – 45)% = 55%M on yearly basis, assuming that a customer talks for 200mins. M = (1-0.45) * 200 * 12 * p p -> can be 5 – 30 cents/min (As competitors are charging more than 30 cents/min LTV @ Different Price Points†¢ LTV(at 5 c ents)= (1-.45) (200*12*.05) /(1-.28 + .05) – 120 = -34.28†¢ LTV(at 7 cents)= (1-.45) (200*12*.07) /(1-.28 + .05) – Break-even120 = 0 point†¢ LTV(at 10 cents)= (1-.45) (200*12*.1) /(1-.28 + .05) – 120 = 51.42†¢ LTV(at 15 cents)= (1-.45) (200*12*.15) /(1-.28 + .05) – 120 = 137.14†¢ At 7 cents, the LTV =0 which tells that minimum of 7 cents should be charged by the virgin†¢ Virgin can charge any amount more than 7 cents LTV @ Different Price Points Price Point LTV5 cents / minute -34.287 cents / minute 010 cents / minute 51.4215 cents / minute 137.14 Break-even point Current Plans in Market Company Plan ValueAT&T Starting at $40/monthVirgin Mobile USA $35T-Mobile $34.99 (Only talk + text) other plans starting at $59.99 Providing a plan with music and other added features Virgin’s Service Offering†¢ Extra features: Music, Wallpapers, Videos, Live Video Request, Rescue ring, wake-up call facility†¢ New improved billing pattern and online real-time monthly bills†¢ Prepaid plan†¢ No contracts†¢ No hidden charges†¢ No peak off peak hours†¢ Very low handset subsidies†¢ No credit checks†¢ No Monthly bills†¢ Price: 25 cents per minute for the first 10 minutes; 10 cents/minute for the rest of the day†¢ No exact numbers, but churn rate lower than 6% Conclusion†¢ Virgin correctly identified service gaps in telecom industry and what customers needed.†¢ Virgin identify inflexibility in calling plans and in other plans.†¢ Provided extra services than current mobile carriers.†¢ Provided a medium of entertainment on go.†¢ Offered customized services at a relatively low cost. References†¢ HBR case study â€Å"Virgin Mobile USA: Pricing for the Very First Time†Ã¢â‚¬ ¢ Wikipedia.com