...Consumption is the largest GDP component in the economy, including of private expenditures in the economy, household final consumption expenditure. These personal expenditures fall under one of the following categories: durable goods, nondurable goods, and services. Such as, food, rent, jewelry, gasoline, and medical expenses, but not the purchase of new housing. People can also spend it on domestic goods or as savings, when they get their wages. Private consumption expenditure is to measure the consumer spending. It is to measure the money value spent by households for goods and services. Consumer has desires to make an effort to satisfy they needs. Investment includes the business investment of the equipment, but does not include the exchange...
Words: 1080 - Pages: 5
...Coffee Consumption Patterns Kristi Mouton ECO365 Monday, May 28, 2012 Professor Lisa Messemer Coffee Consumption Patterns People across the globe consume various products on a daily basis. How much and how often goods are consumed can depend on several factors that can build on each other or act independently to influence an individual. It is these causes that set a precedent for what consumers will purchase and the amount of products to be produced by manufacturers and farmers. This is known as economic consumption patterns, and these patterns are thoroughly reviewed by economists. Economists use the results of the evaluation to provide the economy with information regarding the supply of products and services, and the demand for those products and services. In review of recent consumption patterns, the coffee market has experienced many changes according to an article written by Daniel Harrington. The article was titled “Coffee Prices 2011-2012 – Coffee Price Increase – Coffee Shortage”, which detailed the various aspects that are altering the standard consumption patterns in the economy for coffee. Coffee has a reliable and growing economic utility. In other words, the level of satisfaction received when people drink coffee has remained elevated over the years. In addition, there are more consumers in our economy that are broadening the types of drinks they ingest with coffee, and the wide variety of coffee drinks that are offered. This has aided in the increase of...
Words: 862 - Pages: 4
...From concern to consumption Influencing the purchase behavior of green consumers ndustrial pollution is widely blamed for many environmental problems. Awareness of such issues has risen dramatically over recent years. As a result, concern for the environment now occupies a prominent place in public consciousness. Most business organizations realize this and fully accept the need to conduct their affairs in a socially responsible manner. Environmental welfare is a major part of this obligation. Compliance is a must. I Opportunity knocks But demand for green solutions also presents firms with a rich source of opportunity. Smart operators will be alert to this. Developing products that benefit rather than harm the environment can prove a highly lucrative exercise. An ability to create such products is not sufficient though. Companies need to get the message across too. Knowledge about product eco-friendliness remains limited among many consumer groups, making it vital that firms and marketers provide information which is accurate and reliable. Anything short of this increases consumer skepticism and damages trust. The prospect of purchase would then seem a million miles away. Is product greenness enough to tempt the consumer? Invariably not. In fact, the environmental performance of their purchase is often way down the list of priorities. People still attach greater merit to such as value for money, quality and performance reliability. Few are prepared to compromise. There’s...
Words: 1148 - Pages: 5
...value is created" (Day 1990, p. 163). Day (1990) addresses the issues in analyzing customer value and proposes that it can be expressed in a "value equation": "Customer's Perceived Benefits-Customer's Perceived Costs=Perceived Customer Value" (p. 142). Although Day's approach to customer value is basically sound, some details regarding consumer customers remain unclear. For example, the process by which consumers perceive product benefits is nebulous: Day particularly addresses product valuation by industrial customers in detail, but this is only in principle a part of a much more complex process of product valuation by consumers. Hence a theoretical framework which underlies the consumers' overall product valuation is still missing in the literature. Such a framework should address the issues of how consumers perceive the benefits and costs of products, as well as what possible benefits and costs consumers may perceive from products in the market. The current paper tries to fill these gaps. In addition, the word "value" has discrepant meanings in the marketing literature, especially between its two areas: marketing strategy and consumer behavior. What marketing strategists mean by "customer value" is quite...
Words: 523 - Pages: 3
...Impact of Culture on Consumer Behavior in Luxury Consumption South Korea vs Netherlands By: Cindy Yoel Tanesia, Joline Boersma I. South Korea South Korea is a country located in the southern part of Korean peninsula. The population is 48,955,203 people (July 2013 est.) which make South Korea to be the 25th largest country in terms of population despite the relatively small area of the land. This paper will compare two cities in South Korea, Seoul and Busan, in terms of different in culture and how it affects the consumer behavior of the people living in the related cities. But, first of all, let’s see the general culture of people in South Korea: 1. Homogeneous There is a term of ‘hanminjok’ (한민족) in South Korea which literally means South Korean race. This term is used to describe that South Korean actually prefer to not mix their race with other races through international marriage because they afraid that they eventually will not have the pure Korean race anymore. However, the diplomatic relationship between USA and South Korea where USA helps South Korea for the military made USA military base established in some parts of South Korea actually opened the opportunity for more people from USA to come and stay in South Korea and eventually have their own family in South Korea which contributes to the increase in the international marriage in South Korea, especially in Seoul. 2. Importance of education Education plays important part for South Korean in almost every...
Words: 1817 - Pages: 8
...RESEARCH PROJECT IN SOCIOLOGY Submitted to: Ma’am Anacoreta P. Arciaga Submitted by: Clarissa Bianca S. Osorio COM32 Research Title/Topic: Before and After Effects of Fast-Food advertisements in the perspectives of consumers/consumption behavior Introduction Food advertisements of different fast-food chains have always exerted massive amount of efforts to make their “ads” appealing and effective to the mass. From commercials, to billboards, to newspapers and etc., their advertisements caught the attention of consumers and it definitely paved way to make their sales at its peak. The problem is, sometimes, types of advertisements such as glittering generality, bandwagon and the like lead to giving false hopes to people for the sake of money. It even has come to a point where these companies prioritize “quantity over quality” that even the said advertisements lead to deception. The emerging world of advertising is inevitable and definitely uncontrollable. We, as consumers have been left with deciding whether to trust or to believe what the advertisements tell us. The effects of these food advertisements could trigger either positively or negatively in our lives. We become molded of these advertisements until they finally influence our lifestyle. We kept on being amazed and driven to purchase these products without knowing what it will affect us. This research will be beneficial especially to people who are fond of eating at fast-food chains. This research will identify...
Words: 3531 - Pages: 15
...DIAMOND-WATER PARADOX: The apparently conflicting and perplexing observation that water, which is more useful than diamonds, has a lower price than diamonds. This paradox was proposed by economists in the 1800s as a means understanding the role utility plays in the demand price of a good by differentiating between total utility and marginal utility. The diamond-water paradox poses the perplexing observations: Even though water is obviously important to human activity (life cannot exist without water), the price of water is relatively low. Alternatively, diamonds are clearly much less important to human existence, but the price of diamonds is substantially higher. In other words, the utility obtained from water is obviously very great, while the utility obtained from diamonds is substantially less. The key question that arises is: Why are diamonds so much more expensive than water? Total and Marginal Insight into, and clarification of, the diamond-water paradox results by differentiating between total utility and marginal utility. Total Utility: This is the overall satisfaction of wants and needs obtained from consuming a good. That is, total utility is the accumulated amount of satisfaction, or the total value, generated by several units of a good. Marginal Utility: This is the extra satisfaction of wants and needs obtained from consuming one additional unit of good. That is, marginal utility is the incremental satisfaction generated by, and the value of, a single...
Words: 1025 - Pages: 5
...strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants? Competition from substitutes is substantial. There were many substitutes to alternative beverages such as tea, soft drinks, fruit juices, bottled water and tap water. Even though substitute products had a bigger market share in the US, consumers had tended to buy more alternative beverages. This change in customer preference had weakened the competitive power of substitute beverages. Convenience store, grocery store, and wholesale club buyers had substantial leverage in negotiating pricing and slotting fees with alternative beverage producers because of their large purchases. New brands with low market shares were most vulnerable to buyer leverage since shelf space was limited while top brands such as Red Bull were almost always assured of shelf space. Coca-Cola and PepsiCo were least vulnerable since they offered a wide variety of beverages that convenience stores, grocery stores, and wholesale clubs wished to offer to consumers. As a result of this certain appeal, the two companies’ alternative beverage brands almost always found shelf space in retail stores. The bargaining power and leverage of suppliers was the weakest competitive force. Many suppliers for alternative beverage ingredients and they fight with the others to sell their products. Packaging is readily available from many suppliers and is like a commodity...
Words: 575 - Pages: 3
...promotions influence the post purchase consumption experience of hedonic products over time. Depending on whether there is an immediate consumption or a delay in consumption after receiving a discount, a price discount may either increase consumer enjoyment by enhancing positive moods while dampening the “pain” of payment or decrease consumer enjoyment by lowering attention during consumption. Four experiments were conducted to test if immediate or delays in consumption after receiving a discount would play significant role in determining this increase or decrease in consumer enjoyment. These experiments involved real spending and consumption and set out to demonstrate that when consumption occurred immediately after a price discount, consumption experience was more enjoyable and there was an opposite effect on consumption experience when consumption was delayed. The experiments further investigated feelings (mood) and attention respectively to support these effects while ruling out perceived quality, absolute paid price and direct sunk cost as possible explanations. In experiment 1, they tested the influence of price promotions and a delay in consumption on overall consumer enjoyment (Hypothesis 1) of chocolate truffles. Hypothesis 1a stated an increase in consumer enjoyment between price promotion and immediate consumption while Hypothesis 1b stated a decrease in consumer enjoyment between a price promotion and a delay in consumption. The independent variables manipulated...
Words: 2793 - Pages: 12
...CHAPTER 16 Consumption Questions for Review 1. First, Keynes conjectured that the marginal propensity to consume—the amount consumed out of an additional dollar of income—is between zero and one. This means that if an individual’s income increases by a dollar, both consumption and saving increase. Second, Keynes conjectured that the ratio of consumption to income—called the average propensity to consume—falls as income rises. This implies that the rich save a higher proportion of their income than do the poor. Third, Keynes conjectured that income is the primary determinant of consumption. In particular, he believed that the interest rate does not have an important effect on consumption. A consumption function that satisfies these three conjectures is C = C + cY. C is a constant level of “autonomous consumption,” and Y is disposable income; c is the marginal propensity to consume, and is between zero and one. 2. The evidence that was consistent with Keynes’s conjectures came from studies of household data and short time-series. There were two observations from household data. First, households with higher income consumed more and saved more, implying that the marginal propensity to consume is between zero and one. Second, higher-income households saved a larger fraction of their income than lower-income households, implying that the average propensity to consume falls with income. There were three additional observations from short time-series. First, in years when aggregate...
Words: 3258 - Pages: 14
...Beyond Consumerism: New Historical Perspectives on Consumption Author(s): Frank Trentmann Source: Journal of Contemporary History, Vol. 39, No. 3 (Jul., 2004), pp. 373-401 Published by: Sage Publications, Ltd. Stable URL: http://www.jstor.org/stable/3180734 . Accessed: 21/03/2011 08:15 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . http://www.jstor.org/action/showPublisher?publisherCode=sageltd. . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Sage Publications, Ltd. is collaborating with JSTOR to digitize, preserve and extend access...
Words: 14844 - Pages: 60
...Blogs on Consumer Behavior By Name Course Toutor University Department Date Consumer Debt Consumer debt gives reference to what consumers owe with regard to services consumed or goods bought on credit this .Business or governments debt cannot be said to fall under consumer debt. This Is debt for the sole purpose of utilization or spending rather than putting it where it will grow. It also comprises goods acquired for utilization apart from that which has been acquired in the form of property that appreciates as time lapses (Fisanick, 2010). Consumer debt is viewed as a way to help boost domestic supply of goods and services. This is based on the rationale that if consumers acquire debt so as to satisfy their immediate demand then there will be pressure for suppliers of goods to avail more of these goods to the consumers. It is speculated that consumers will tend to acquire debt in order to balance out their current income level to their years. This is to say that consumers will acquire much debt earlier on in life while income is a bit low and pay it slowly later on in life while income is assumed or expected to have stabilized. Examples of economies where an increase in consumer debt has resulted in a proportionate increase in the domestic production or growth of the economy are; South Korea where consumer debt has greatly spurred the economy by great leaps (Worsnop, 1996). Common types of consumer debt include; payday loans credit...
Words: 1356 - Pages: 6
...Similarities of Green Consumption in China and the U.S Green consumption has become a common practice among businesses around the world. The concept of green consumption is the manufacturing and selling of products that are environmentally friendly and sustainable for society and people. It also means recycling materials as well as being energy efficient. By practicing green consumption, companies are able to create products that can inflict less harm to the environment and to people. Green consumption alone cannot help improve the environment quickly. Green marketing helps to promote and reinforce the idea of sustainable products that green consumption is about. Everywhere around the world that practice green consumption has different ways of promoting it. In countries, such as United States and China, they share a common idea of what green consumption is, but practice and promote it differently. In China, their ultimate goal is to achieve sustainable consumption in choosing green products that are uncontaminated, good for public health and avoid pollution with the awareness of its people. China Origin The idea of green consumption was not immediately accepted in China. The United States started green consumption before China, so they have a better grasp and understanding on how to approach the problem on how to be environmentally sustainable. Over recent years, the concern of the environment rapidly has been increasing in China. The concept of green consumption has been introduced...
Words: 1616 - Pages: 7
...Collaborative Consumption And Sustainability: A Discursive Analysis Of Consumer Representations And Collaborative Website Narratives Anne-Sophie Binninger, NEOMA Business School, France Nacima Ourahmoune, NEOMA Business School, France Isabelle Robert, University Lille Nord de France-SKEMA Business School, France ABSTRACT In this article, the authors analyze the collaborative consumption model and its contribution to sustainable consumption. Indeed, collaborative consumption is considered as an alternative, ecological consumption mode (Bostman & Rogers, 2011), but previous research has no yet deeply explored to what extent it contributes the sustainable scheme and values. The study therefore investigates both the producer side (collaborative websites) and consumer side (blog participants) to decipher how sustainable ideals are shaped in this context and how consumers attend to them. Six segments of consumers have been identified which can help marketing and sustainable levers better frame their offer. Keywords: Collaborative Consumption; Sustainable Consumption; Access-Based Consumption; Sharing INTRODUCTION O ver the last decade, markets have changed significantly in terms of our relationship to goods, leading to other forms of acquisition and consumption than via possession (Rifkin, 2000, Lovelock and Gummeson 2004, Mont, 2002, Giesler 2006, Chen, 2009, Belk, 2010, Gansky 2010; Bostman & Rogers 2011, Bardhi & Eckhardt 2012,). So-called collaborative consumption (Felson & Spaeth...
Words: 10093 - Pages: 41
...Chapter 14 ConsumPTION TO Satisfaction WHAT DO YOU THINK Polling Question When I’m treated unfairly by a business, dissatisfaction describes my feelings well. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. Learning Outcomes After studying this chapter, the student should be able to: L01 Gain an appreciation of the link from consumption to value to satisfaction. L02 Discuss the relative importance of satisfaction and value in consumer behavior. L03 Know that emotions other than satisfaction can affect postconsumption behavior. L04 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. L04 Understand problems with commonly applied satisfaction measures. L06 Describe some ways that consumers dispose of products. Suggested Lecture Opener When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always...
Words: 6253 - Pages: 26