Term Paper: Terrorist Attacks on New York

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[. . .] The Federal Census Bureau (2000) estimates that the minority population will increase from 28% in 1999 to 47% in 2050.

Acculturation refers to changes in cultural attitudes, values, and behaviors as a result of geographical contact between members of two cultures (Redfield, Linton, and Herskovits 1936). When two cultures live together, they must make certain compromises, yet still maintain their sense of identity (Berry 1998; Berry and Sam 1996; and Berry, Trimble, and Olmedo 1986). In mixed societies, such as that of America, cultural groups and their individual members must deal with the issue every day.

When these two underlying issues are considered, four Acculturation strategies are generated. First, an assimilation strategy holds that the acculturating group adopts the dominant culture and sheds their original culture. They consider themselves to be part of the host culture and see themselves as separated from their original culture. This group has become an integrated part of the American society and is difficult to separate from the host culture.

The second, and opposite approach, is when a separation strategy prevails and the acculturating group place more value on keeping their original culture and try to avoid adopting the dominant culture. The third, integration strategy prevails when there is an interest in both maintaining one's original culture, yet wishing to participate as an integral part of the dominant culture. The fourth type of strategy prevails when marginalization dominates in the case of enforced cultural loss combined with enforced segregation (Berry, 1990). A good example of this fourth type is illustrated by the treatment of blacks in the earlier part of the twentieth century. They were expected to emulate white culture, yet were separated from it.

The affects of acculturation must be considered in the study of the effects of September 11 on the future of consumer spending with regard to the terrorist attacks. What effect will the perceived risks have on consumer spending by groups other than natural-born Americans.

In addition the question of acculturation poses a potential problem in sample selection. Many of these people speak a variety of languages other than English. An English survey would only target those members of the population who have sufficient English to understand the questions, either as natural-born citizens, or as a result of a high degree of acculturation. In addition, it leads us to the question of whether to consider only legal citizens of the United States. Many immigrants consider themselves to be fully acculturated, and have been in the country many years, but are not legal U.S. citizens. They must be considered as a part of the economy, as they do contribute and participate in it, both as employees and workers and as consumers with a voice and opinion. The issue of acculturation, as it relates to this particular research, only serves to present several sampling issues, that must be dealt with in the methodology section of this report.

Terrorism and Market Entry and Expansion

Terrorism may have both direct and indirect impacts on marketing plans and strategies. During the late 1980s, the U.S. experienced a fall in tourism that impacted luxury hotels in Rome and other parts of Western Europe. Many European hotels had to use aggressive pricing and promotional strategies to off set occupancy decreases after terrorist attacks in Rome and Vienna. The hospitality industry responded to this with increased marketing expenditures to relieve fears regarding consumer safety. Rate reductions, intentional drops from five-star to four-star designations and increased advertising on electronic media helped to rebuild its market positioning (Hurley 1988).

This strategy illustrates that terrorism has an impact on the tourism business, but that with proper advertising and publicity these effects can be overcome. Protection from the consequences of terrorism has many sides. One might expect that an ounce of prevention is an immediate cure for a market filled with uncertainty. Market uncertainty may indicate a missed opportunity, as marketers are in search of new customers to strengthen their position in the global market. Even relatively safe markets, such as the pharmaceutical industry, can be targets of unpredictable terrorist activities such as tampering with products (Sommez, Apostolopoulos and Tarlow 1999).

How has September 11 Impacted Americans?

A team at Carnegie Mellon University conducted a study immediately following September 11 to assess the public reaction and to assess the role that the media played in this reaction (Thomas, 2002). The sample consisted of 1,000 American men, women, and teens aged 13-88. This was a groundbreaking study that assessed the role that the media played in influencing public opinion and support for the war. This study revealed four conclusions. They are that people who experience anger are more optimistic about the future than are those who experience fear. They are less likely to take precautionary actions and more likely to favor aggressive policy responses. Men were more likely to experience fear than women. Likewise, those who experience fear are more pessimistic about the future and more likely to react in ways that helped to contribute to the economic downturn after September 11. Persons who experienced fear are more likely to favor tightened security. Those who were optimistic had a greater sense that something could be done about terrorism. Those who experienced fear felt a lack of control (Thomas, 2002).

The second part of the Carnegie Mellon survey assessed what effect the media had on these responses. A survey was administered nine days after September 11 to assess reactions. Eight weeks later the same group was divided into two groups, one which watched a fear inducing media clip of the event and the other watched an anger inducing clip about the events. The groups were re-surveyed. Thomas and associates found that those assigned to the fear-inducing clip perceived greater risks from terrorism, while those exposed to the anger-inducing clip perceived less risks associated with terrorism.

This study is significant in that researchers acted quickly and took advantage of the opportunity to study effects directly after a life-changing event. This is one of the first types of studies conducted in this atmosphere (immediately after an event.) This study broke new ground as many studies concerning persons who have experienced tragedy are conducted ex-post facto, sometimes years later. These studies occur after the initial shock and reaction are over. The test subjects have had time to process through the event and may give different answers than they would have in the early stages after the event. The Carnegie Mellon study was able to assess reactions when people were in the early stages of the tragedy. It reflected their true feelings after the event, not those that are a result of a year of healing.

Economic Impact of Terrorism

The economic impact of terrorist activities was a source of study long before September 11, 2002. The tourism industry generates a major amount of income for most countries around the world. It can be especially important in developing countries. Tourism generates foreign exchange earnings, tax revenues, business opportunities, and employment (Schuelke, 2000). Tourism ranks in the top five export categories in 83% of the countries in the world (Schuelke, 2000). According to the World Bank (2000), tourism generates approximately $800 billion yearly. Events that effect tourism have a major effect on local and world economies.

Many sectors make up the travel and tourism industry. Barriers to entry are relatively low, except in areas such as hotel and airlines. Travel and tourism provide opportunities for companies, both large and small. It is friendly to small businesses. Tourism effects many directly through hotels, restaurants, nightclubs, taxis, and souvenir sales. However, the businesses that provide goods and services to these areas cannot be ignored either.

Economists know that events that significantly effect one sector or one branch of a sector have a profound effect on other branches that depend upon and supply goods and service to that sector. They also describe what is called a Multiplier effect. This effect says that if extra money is pumped into a local economy, then this causes some workers to have excess to spend, which in turn gets pumped right back into the economy. One person's spending is another person's income (Schuelke, 2000). The reverse holds true when money is taken out of an economy, such as was the case with the drop in tourism associated with September 11. Economists have a complex algorithm to describe this effect and make predictions. In general the effect is that a small amount of money put into or taken out of an economy has an effect many times its original amount.

The effect that a drop in tourism has on the macroeconomy of a country largely depends on how much portion of income that industry has on that particular country. Until, September 11, the tourism industry had survived many events that effected tourism. It is the magnitude of the event and the effect of the Multiplier effect that caused a different scenario this time as compared to the past. In a… [END OF PREVIEW]

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Terrorist Attacks on New York.  (2002, September 29).  Retrieved April 22, 2019, from https://www.essaytown.com/subjects/paper/terrorist-attacks-new-york/5107302

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"Terrorist Attacks on New York."  Essaytown.com.  September 29, 2002.  Accessed April 22, 2019.
https://www.essaytown.com/subjects/paper/terrorist-attacks-new-york/5107302.