Analysis of the General Demand Function Analysis of General Demand Function

Applied to the Changes in the Financial Services Industry

This paper will discuss the theory of the General Demand Function as it applies to the financial services industry (Maurice & Thomas, 1995, 15) . Part I, Definitions, will clarify the focus of the discussion. Part II, Data, will present the data accumulations connected with the industry, particularly the number of producers and the way the industry generates its profits. Part III, Production Volume of Major Producers, will summarize both the way production is measured and how it is determined. Part IV, Market Share of Major Producers, and Part V, Conclusions, will feature the conclusions based on this study.

Before any meaningful discussion of the General Demand Function, can begin, it is necessary to define the terms of the two major variables: the nature of the financial services industry and the meaning of the General Demand Function. Therefore, it is relevant to define the financial services industry at this moment in time. It has been called a behemoth with five million employees and $16 trillion in assets by Szabo (1994), and the current thinking regarding the industry is that it will be influenced by three critical factors over the next twenty years -- demographics, technology, and consumer expectations. These three factors will have a pressured increase on the concept that Maurice & Thomas' discussion in Chapter 2 expresse

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implies an agreement that the financial services professional will not operate solely on a commission basis, but will help the client choose the best program for the best results. This attitude has special bearing on all of the key variables of a quantity demanded formula. For instance, consumers will choose between Plan A or Plan B based on the " price of related goods or services." They will avoid a mutual fund if their tastes and preference patterns have created in them the idea that such funds are risky and therefore dangerous. The "expected price of the product in future periods" is relevant only to the potential returns on investment in terms of returns on investment or and the number of consumers in the market. Part III , Production Volume of Major Producers Even though the financial services industry has been called a behemoth based on the $16 trillion in assets, it is erroneous to assume that that figure is the size of the annual production of the industry. That figure includes a lot of M-1 money as well as money that is listed as capitalization of banks, lending companies, mortgage companies and so on. The profit margins of the major producers in the industry are derived from extremely complex formulas bas
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Some common words found in the essay are:
Major Producers, Demand Function, Planners IAFP, Maurice Thomas', Prudential Farm, Commission SEC, Investors Chicago, Plan Plan, Membership IAFP, financial services, II Data, financial services industry, services industry, quantity demanded, market share, major producers, demand function, quality demanded, producers industry, price elasticity, consumers market, price elasticity demand, producers financial services, price related services, financial services professional,
Approximate Word count = 1410
Approximate Pages = 6 (250 words per page)