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This article is about consumers in economics. For the article about consumers in biology, see 'Heterotroph.

Consumers refers to individuals or households that purchase and use Good (economics) generated within the economic system. The concept of a consumer is used in different contexts, so that the usage and significance of the term may vary.

Consumer in economics and marketing Typically when businesspeople and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy/not-buy decision. However there is a trend in marketing to individualize the concept. Instead of generating broad demographic profile and Psychographics of market segments, marketers are engaging in personalized marketing, permission marketing, and mass customization.

It is often claimed that, in free market or capitalist economies, consumers dictate what goods are produced and are generally considered the center of economic activity. Individual Consumption (economics) of goods and services is primarily linked to the consumer's level of disposable income, and budget allocations are made to maximize the consumer's marginal utility. In 'time series' models of consumer behavior, the consumer may also investment a proportion of their budget in order to gain a greater budget in future periods. This investment choice may include either interest or risk-bearing security.

The doctrine of consumer sovereignty ignores the existence of big business marketing, which is a trillion-plus-dollars-a-year effort at behavioral manipulation by corporate managers. The importance of this institution is as immense as it is denied by capitalist interests (Dawson 2005).

History of a Biased Concept The word consumer is the business owner's biased perception of what a neutral party would call as product user. Nonetheless the word consumer has throughly conquered public discourse, despite its bias (see Dawson 2005). The term first escaped business and economics circles at the end of the 19th century, when it appeared as a heading in the Sears & Roebuck catalog (see OED).

Use of the word consumer tends to divert attention away from ordinary people's interests in product preservation, durability, quality, safety, and economy (Dawson 2005).

Consumer in law and politics Within law, the notion of consumer is primarily used in relation to consumer protection laws, and the definition of consumer is often restricted to living persons (i.e. not corporations or businesses) and excludes commercial users. A typical legal rationale for protecting the consumer is based on the notion of policing market failures and inefficiencies, such as inequalities of bargaining power between a consumer and a business. As potential voters are also consumers, consumer protection takes on a clear political significance.

Concern over the interests of consumers has also spawned much activism, as well as incorporation of consumer education into school curricula. There are also various non-profit publications, such as Consumer Reports and Choice Magazine, dedicated to assist in consumer education and decision making.

See also

References

Consumer Direct
A one-stop service run by the United Kingdom's Department of Trade and Industry. Provides information and links to sources of further advice on issues of concern to general ...

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Consumer Credit Check - See My Credit Rating Report > Get Report
Credit check over 44 million UK consumers online. Personal credit ratings and status reports. ... Check. A comprehensive database of information from public and credit industry ...

Consumer affairs
Consumer Affairs ... The site was last updated on 23 August 2008. All links to other websites will open in a new window.

Digital TV Group | Consumer Section
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Free debt advice for families and individuals. Information about the organisation, and how they work. Includes news, useful links, and contact details (phone, mail, and e-mail).

Consumer training courses
Details of consumer training courses ... Citizens Advice: The Citizens Advice service helps people resolve their legal, money and other problems by providing free, independent and ...

Consumer Credit Appeals
The Consumer Credit Appeals Tribunal website provides information about appealing against decisions of the OFT with regard to Consumer Credit work ... Welcome to the Consumer ...





 
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