Consumption – what is it and what determines it

A consumer, or a customer, is a user of goods that he buys for his own use. It is a natural person who carries out a legal transaction with an entrepreneur, which is not directly related to his professional or commercial activity. This definition is universal, so it applies to all civil law relationships, excluding those in which specific provisions provide otherwise. The buyer is the person who makes it consumption well given. Nowadays, a new type of consumer is emerging, less time-consuming, critical, meticulous and ever more vigilant, therefore difficult to manipulate.

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Consumption is the process of satisfying human needs through the use of the goods he possesses. It consists of using them for a specific purpose. The economic literature stands out three definitions of consumptionnamely, he sees it as:

  • biological and psychological act;
  • social process;
  • social reproduction zone.

The concept of consumption works in microeconomics and macroeconomics. Its opposite is thrift, i.e. saving money so you can spend it on consumption in the future.

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Consumption – biological and psychological act

From a biological and psychological point of view consumption is the direct act of satisfying a person’s needs through the use of a given tangible good or service. These acts include: eating a meal, visiting a beauty salon, watching a movie, reading a book or newspaper, riding a bike, or shopping for clothes. In the above cases, the effects are short-lived and the need to renew arises after some time, and with it the need to meet the need again.

Consumption – the social process and the area of ​​social reproduction

Consumption as a social process is not just about consumer behavior as an individual. This approach covers entire communities that meet their needs. While in macroeconomics, consumption is the end of the management cycle, i.e. the phase of social reproduction. This phenomenon informs that a given good has already found its user and has become an object that meets his needs, so it fulfills its function.

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What are the determinants of consumption at the micro level?

The microscale applies consumption household or unit. It is determined by economic, biological, social and cultural factors. Down economic determinants understand :

  • current household income;
  • land resources;
  • relations and level of prices of consumer goods;
  • the supply of goods and the methods of their distribution.

Biological factors are physiological and anatomical properties such as:

  • age;
  • Balance;
  • increase;
  • fitness;
  • the state of individual organs;
  • Mental Health.

The elements mentioned above significantly affect the needs for nutrition, clothing, housing, as well as recreational needs, that is, rest and entertainment.

Down social factors to belong:

  • type and level of education of household members;
  • the number of household members, their age and sex;
  • farm members’ relationships with the environment;
  • professional position.

Cultural factors are:

  • value system;
  • consumer education;
  • habits and habits;
  • traditions – family, national, local;
  • the influence of consumer habits.

What are the determinants of consumption at the macro scale?

Consumption at scale macro applies to the entire society of a given country, and its most important determinants are:

  • the pace and level of economic development – it is measured by the amount of gross domestic product (GDP), while the dynamics is expressed by indicators of its changes, that is, decreases and increases;
  • demographic and social processes – such as the size of the population, its dynamics; changes in the structure of the population according to age and sex, education, professional activity; social behavior patterns;
  • state influence.

What shapes modern consumption?

Technological and industrial development has a huge impact on consumptionbecause it greatly affects modern consumption. The following elements are particularly important:

  • urbanization of society;
  • development of science and technology;
  • development of mass culture;
  • industrial development;
  • changing and changing social conditions;
  • creation of shopping malls;
  • the emergence and spread of new modes of consumption, such as:
  • fast food bars;
  • discount stores;
  • mail order catalogs;
  • casinos;
  • changing the value system, as well as striving to have as many possessions as possible.

What is sustainable consumption?

Sustainable consumption aims for a conscious and optimal use of available resources Resources to achieve development while minimizing harmful impact on the environment. This concept is implemented both in large enterprises and in households. It happens because sustainable consumption goals they are global in scope, but can also apply to individual units. Moreover, it is also strongly influenced by decisions made by international structures, national governments and local governments. Sustainable consumption aims, among other things, the development of public transport and environmentally friendly transport, the promotion of a healthy lifestyle or drinking restrictions found in developed countries.

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