Consumer Explained

Ashly Chole Senior Finance Researcher

Last Updated 13 April 2024

An individual or group is considered a consumer if they plan to order or use the goods, services, or products primarily for their own needs as well as those of their friends, families, and other people in their environment. This group's primary objective is to reduce consumption in order to generate savings. Consumers come in a variety of forms, from those who just purchase necessities like food and shelter to those who purchase more expensive products like designer clothes and luxury automobiles. By persuading individuals that spending money on things they don't actually need would increase their financial security in the future, marketers have contributed to the widespread acceptance of consumerism. Also, by making these purchases, consumers are more likely to remain loyal to the company and make repeat purchases.

Consumer is a broad category

Any persons who make purchases of goods, services, or other kinds of items fall under the umbrella term 'consumer' in use. This group's primary goal is to reduce consumption and increase savings. Consumerism is a term used to describe an economic system in which customers actively engage in markets and make decisions about what to buy based on their requirements rather of depending only on independent organizations like producers or governmental regulators. However, there are some criticisms regarding how this affects individual choices like what we eat. Consumerism can be seen as a form of social control that promotes individual action for personal gain through advertising and marketing campaigns by businesses seeking profits from consumers' desire for things like cars or electronics.

However, there are some criticisms regarding how this affects individual choices like what we eat. Consumerism can be seen as a form of social control that promotes individual action for personal gain through advertising and marketing campaigns by businesses seeking profits from consumers' desire for things like cars or electronics.

Consumers come in a variety of forms

Consumers come in a variety of forms, from those who just purchase necessities like food and shelter to those who purchase more expensive products like designer clothes and luxury automobiles. Consumers may be categorized in a number of ways. The kind of products people buy is one indicator. Consider the two primary categories of luxury (expensive) and necessity (necessary) items (not so expensive). Another approach is by their behavior: some shoppers just purchase essentials, while others combine both requirements and luxury goods in their shopping baskets.

Last but not least, consumerism refers to any actions associated with buying goods or services based on perceived worth rather than actual need, however it may also encompass actions like brand loyalty or the use of consumption to demonstrate social status.

One method that marketers have spread consumerism is through persuading individuals that purchasing things is worthwhile

One way that marketers have contributed to the widespread acceptance of consumerism is by persuading consumers that spending money on things they don't actually need will result in greater financial success in the future. Along with encouraging customer loyalty and keeping them coming back for future purchases, these purchases also serve to develop brand loyalty. The 'buy now, pay later' strategy employed by several credit card issuers today is one of the most effective instances of this kind of marketing campaign. These initiatives are based on the notion that consumers should be able to make an immediate purchase and pay for it later with additional funds. Credit cards encourage consumers to spend immediately and then forget about paying off their balance since they provide instant satisfaction without requiring them to wait until their next paycheck.

Purchasing things online

Another illustration is purchasing clothing or other things online, where billing is normally not regarded as a component of the purchase price but shipping fees are typically included in price tags. Customers who want instant gratification may not have much incentive to buy, but those who do may still end up paying extra fees simply because someone forgot to add those extra charges to monthly statements before sending out invoices each month. This could lead customers down a path where saving money becomes impossible due to a lack of savings accounts, good money management skills, etc.

The proliferation of prepaid credit cards

The proliferation of prepaid credit cards is another illustration of how the quick gratification tendency influences customers. Credit cards are frequently promoted as a tool for people to establish their credit history without having to worry about accruing debt. Unfortunately, many people have started utilizing these cards as an alternate payment option when they are still struggling with debt from prior credit card transactions (or simply cannot afford them). The issue with this is that many users of prepaid cards are unaware of the fact that they may be spending more money than normal because their transactions aren't reflected in their monthly statements or bills.

Consumer education is required

The advantages of purchasing particular items must be made clear to consumers. For instance, a buyer could desire to buy an electric automobile because it is eco-friendly. Yet not all customers are aware of its benefits or how effectively it functions. As a customer, the first thing a person can do is educate themselves on these subjects so they can make an informed choice when buying a car like this one. Researching the top electric vehicles available is the second thing a person may do. Sedans, SUVs, and trucks are just a few of the numerous vehicle varieties that are offered. One should also consider the amount of power each of these cars has as well as their fuel economy.

The third option

The third option is to chat to a salesperson at the dealership and inquire about the electric vehicles they now carry. One may test drive one of these cars, for instance, before making a purchase, at a reputed dealership. Also, this individual need to be able to explain to someone the price of each car as well as all the amenities that come standard with each one. The phrase 'customer' encompasses more than just these critical components, though. One who purchases products and services is another way to describe it.