Blogs on Consumer Behavior

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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 card debt and consumer finance.

Consumer choice

This refers to the wants and desires of a consumer when matched against his or her expenditure. This definition includes both goods and services. How the wants of a consumer are reflected in how he decides to appropriate his money. Those that rank higher in his spending are highly preferred in his choices. T he consumers wants and