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Ch. 1 Consumers in a changing world - Coggle Diagram
Ch. 1 Consumers in a changing world
consumer economics
how people deal with
scarsity
fulfill needs
select among alternative goods, services, and actions
studing it
helps us get things we want
creates awareness of impact
increases understanding of choices
understand how the market works
determin what's fair
think about how we spend
who consumes and why?
Consumers
individuals or groups who obtain, use, maintain, and dispose of products and services to increase life satisfaction and fulfill needs.
consumerism
the belief that goods give meaning to individuals and their roles in society.
Adam Smith: Father of Modern Economics
studied at the University in scotland
traviled and knew consumers well
thought that consumers can make mistakes but for the most part carful spenders as its in their best interests
USA founders liked his thinking
"The Invisible Hand" thoughts were against monopoly as government
Influences on consumer style
consumer style
behaving or ways of making
financial decisions and acting on them
7 factors of consumer style
Economics : The condition of national and worldwide economies during times of decision-making affects consumer style.
History : The background of a person influences the way his or her decisions are made and acted on. This includes immediate and past family history and the history of the area or region or society in which the individual resides.
Culture : Groups and their behaviors or traditions that surround the individual or family also impact consumer style. This group may be the overall culture and subcultures, including a consumer culture.
Personality : The sum total of an individual’s enduring traits, ways of relating, and characteristics, including reaction to risk and opportunity and likes and dislikes, determines consumer choices.
Biology or environment : The physiology of individuals (such as thirst or hunger) and the environment in which they live influence consumer style.
Technology : Technology, a broad term that encompasses machines, techniques, material objects, & processes, is used by individuals to get what they want. Certain individuals are more fascinated by technology than others; entrepreneurs & inventors tend to lead in this area.
Politics: Voters, politicians, organizations, and bureaucrats affect the decisions that alter public policy.
Goods & services
Goods
tangible objects: can be seen or touched
Resources
Human: knowledge, skill, ability, and strength
Natural: oceans, rivers, lakes, land, mineral deposits, and air.
Capital: human-made resources such as tools, machines, buildings, and money
services
intangible actions
Injurious consumption:
individuals or families make consumption decisions that will have negative consequences, affecting their quality of life in the long run
Needs as Population Grows
Maslow's Hierarchy of Needs
selfactualization
esteem
Belonging & love
safty
Physiological needs
Mark Oleson: says that there is a relationship between money and the Hierarchy
Not all people will have the same needs/combination
of needs at the same time
household
the related family members and
all the unrelated persons who
share a housing unit
Demography and demographics
Demography
the study of human population
size
growth
density
movment]
Demographics
data used to describe populations
often used in studying groups by
age, race, gender, income
Failure to realize changes
in demographics has been the
downfall of many businesses.
Consumption process
Consumption process
Thinking
mental exploration of possibilities
(thoughts are random)
wighing pros and cons
gathering information
Planning
decision of steps to obtain wants, needs, or goals
advanced stage of desistion making
Implementation/action
acting on plans
go some were
sample product
visiting website
getting an estimat
buying
Evaluation
reflecting on outcome
Am I happy with what happend?
Do I like this brand?
Awareness
Needs
things are deemed necessary
wants
things wished for/disiered
goals
things striving for, and are based on values
Economics and the business cycle
