Trends In Consumption Patterns

  • Length: 1019 words (2.9 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓

Continue reading...

Open Document

Trends in Consumption Patterns
The business world is very susceptible to the subtleties of consumer choices. The ability to anticipate the trends in consumer consumption patterns is vital to any company desiring to be a leader or major factor in their industry. Millions of dollars are spent each year in research and analysis to determine or to create trends in, not only who the company’s customers may be, now and in the near future, but also, what will those customers want to buy, and why.
To truly understand trends in consumption patterns, one must first understand the basic principles of economics. Economics is the science that deals with the production, distribution, and consumption of goods and services (economics, n.d.). The branch of economics dealing with particular aspects of an economy, as the price-cost relationship of an organization is called microeconomics. This aspect of economics concentrates on the laws of supply and demand. According to Colander (2004), the law of supply states quantity supplied rises as price rises, when all other factors remain constant and the law of demand states that the quantity of a good demanded is inversely related to the good’s price.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Trends In Consumption Patterns." 20 Jun 2018
Title Length Color Rating  
Consumption Patterns and Economics Essay - Consumption Patterns and Economics Introduction In order to get a better understanding of trends in consumption patterns, one must first understand the basic principles of economics. For the purpose of this assignment I have chosen an article from The American Journal of Clinical Nutrition that comments on the recent increase in body weight and food consumption patterns of today’s children. This paper will define such terms as economics, microeconomics, the law of supply, the law of demand, and identify the factors that lead to a change in supply and a change in demand....   [tags: Consumer Demand Economics] 1345 words
(3.8 pages)
Strong Essays [preview]
Changes in the American Consumer's Food Consumption Pattern Essay - Obesity in the United State has increasingly been cited as major health issue. Findings from the National Health and Nutrition Examination Survey show that the proportion of adults who are obese has more than doubled from 15% in 1971–1974 to 34% In 2003–2006 for adults 20-74 years.In 1990, obese adults made up less than 15 percent of the population in most US states however by the year 2010 , 36 states had obesity rates of 25 percent or higher and 12 of those states had obesity of 30 percent or higher (CDCP 2012)....   [tags: Food Consumption in America]
:: 19 Works Cited
2894 words
(8.3 pages)
Powerful Essays [preview]
The Sex of Things: Gender and Consumption in Historical Perspective Essays - The Sex of Things: Gender and Consumption in Historical Perspective The Sex of Things is a collection of thirteen essays discussing the social history of consumption (loosely defined) and gender in France, England, Germany, Italy, and the United States from the eighteenth to the late twentieth century. Taking a primarily historical approach to the topic of gender and consumption, the contributors come from various academic disciplines: history, economics, area studies, English, art history, and gender studies....   [tags: Grazia Gender Consumption essays] 2462 words
(7 pages)
Powerful Essays [preview]
Human Population and Patterns of Consumption Essay - ... Clean water, another massive factor in the sustainability of life, will be rare in China, the most populated country in the world. Energy is also being used so extensively that we will need to at least triple it's production by the end of the century. To reach the demand we need to build, roughly, 36 billion solar panels, 23,000 nuclear power plants, and 14 million wind turbines, or we could, of course, continue to pollute the world with another 36,000 power stations of coal and natural gas, which is more likely....   [tags: natural disasters, pollution, famine] 615 words
(1.8 pages)
Better Essays [preview]
Trends in the Hospitality Indus Essay - Trends in the Hospitality Industry Nowadays trends are everywhere. You can find them in every industry and they play a huge role. The retro trend in clothing, the SUV trend in the car industry, but nowhere else are trends more important than in the hospitality industry. But what exactly is a trend. A trend describes usually the time measurable course of a development into a certain quantitative and/or qualitative direction. In economics, trends are changes of the behavior of the society. In marketing research this describes the change and development of the consumerism and consumption behavior....   [tags: Industry Trends] 1440 words
(4.1 pages)
Powerful Essays [preview]
Five Differents Types of Consumption Essay - Consumption is a complex social phenomenon in which people consume goods or services for reasons beyond their basic use-value (Firat, Kutucuoglue, Arikan Saltik & Tuncel, 2003). Sometime after the industrial revolution, consumer societies emerged around the world. A consumer society is one in which the entire society is organized around the consumption and display of commodities through which individuals gain prestige, identity, and standing. Media as well, has for long been contributing in increasing the level of consumption among people....   [tags: consumer society, media, consumption]
:: 5 Works Cited
1027 words
(2.9 pages)
Strong Essays [preview]
Creating Meaning and Identity through Consumption Essay - Under the current capitalism society and material culture, people tend to form their identities through consumption, this means more than to consume products which are needed to survive, consumption can also link to self-identity formation and expression. People are imperceptibly influenced by the mass media that self-identity can be shaped and formed through consuming specific products. Therefore it can be said, fashion is an important element of identity formation. Young people are commonly feared of being seen as outdated and seek for acceptance from the peers and the society....   [tags: Mass Consumption and Identity] 1302 words
(3.7 pages)
Strong Essays [preview]
Consumption And Expenditure Patterns On Daily Meals Of Students Who Are Residing In Dormitories - CONSUMPTION AND EXPENDITURE PATTERNS ON DAILY MEALS OF STUDENTS WHO ARE RESIDING IN DORMITORIES I. INTRODUCTION A. Significance of the study According to John Maynard Keynes, the discussion of consumption and expenditure are important to economics, environmentalism, geographical analysis, and many other fields. In this study, analyzing the food consumption and expenditure patterns of students away from home can be used for future implementation of university policies that would offer financial and other assistances for the students....   [tags: Economics Business Study] 1991 words
(5.7 pages)
Strong Essays [preview]
Patterns by Amy Lowell Essay - "Patterns" by Amy Lowell When one hears the words, "I sink on a seat in the shade," they will most likely form a visual image in their head, such as a person sitting under a tree. Amy Lowell, an imagist, uses sharp images, precise wording, and figurative speech as a means of poetic expression to arouse the senses of the reader. In "Patterns," Amy Lowell explores the hopeful liberty of women in the early 20th century through a central theme. A woman’s dream of escaping the boundaries that society has placed on her dissipates when she learns of her lover’s untimely death....   [tags: Patterns Amy Lowell Essays] 1051 words
(3 pages)
Strong Essays [preview]
Design Patterns Essay - Design Patterns What is a Design Pattern. A design pattern solves a problem within a given context. The solution that is offered by implementing a pattern results in a system design structure, which balances the concerns of the design problem in a manner most appropriate for the given context. In “Understanding and Using Patterns in Software Development”, Dirk Riehle and Heinz Zullighaven offer a rather nice definition of what a design pattern is: “A pattern is the abstraction from a concrete form which keeps recurring in specific non-arbitrary contexts.” The ability to write good patterns is very difficult....   [tags: Definition Design Pattern] 1551 words
(4.4 pages)
Strong Essays [preview]

When price goes up, quantity demanded goes down. When price goes down, quantity demanded goes up. There are several factors that lead to changes in consumption patterns thus a change in supply and change in demand.
Many believe that people buy things for their own self interest. Sales courses indicate the need to know this self interest because the customer really is not buying their product. The actual purchase is the benefit that the customer will receive from buying their product. Knowing this benefit would enable the seller to set pricing at levels that would ideally be the most beneficial for both buyer and seller.
The customer benefit could be anything. Satisfaction, pleasure, good will, fulfillment of a need are some examples of the benefit received, but are definitely not the only reasons people buy things. The level of benefit received from purchasing any product can be different from person to person, or from group to group. A single male in his early twenties may perceive a higher level of benefit from buying a flashy sports car than perhaps would a married man in his fifties. This level of benefit has been generally termed utility, and is further broken down into segments called marginal utility.
Marginal Utility
Assuming that money is no object, the purchase of a second flashy sports car may be more or less of a benefit than the benefit received from the initial purchase. The benefit, or marginal utility, experienced from each purchase would be grouped together as the total utility gained from purchasing the cars.
Having established the utility and, if appropriate, marginal utility involved in the sale of the product, the setting or changing of the price charged for the product needs to be reviewed. Changing the price structure for the product is likely to have an impact on the amount of product that would be sold once the change is implemented. This change is called elasticity, and is determined by dividing the percent change in the quantity sold by the percent change in price. A January 2001 article in the Business Communications Review on the telecommunications industry discusses both utility and elasticity for that industry.
The article shows that a 3% reduction in market prices that results in a 3% increase in sales volume equates to a demand elasticity of one (.03 volume/.03 price change). If the market volume were increased by 9%, the demand elasticity would be three (.09 volume/.03 price change) (Weingarten, Stuck, 2001). Any demand elasticity above one is generally accepted as an indicator that lowering prices could be beneficial to the seller.
Elasticity Claims
At the time of this article, it had been asserted by a senior executive from a leading telecom service provider that the industry demand elasticity was in fact at three. This statement raised several questions as to the validity of the claim. Every calculation at the time placed the elasticity at one or less, proving that point was the financial trouble experienced by A T & T and WorldCom, both industry leaders. With a demand elasticity of three, simply lowering their prices should have greatly increased revenues and profits, yet neither company did so (Weingarten, Stuck, 2001).
The article states that there are two trend factors that drive telecom growth. First is population that was currently growing at the rate of 1% per year. The second factor was the increasing per capita gross domestic product (GDP), which at the time was rising at 4.6% nominal per year. The conclusion could be drawn that an increase in volume would occur regardless of any change in pricing structure. As these factors were not included in the calculations espoused by the executives, the results stated would be considered skewed (Weingarten, Stuck, 2001).

Consumption Trends
The article predicted the shifting to next generation networks (NGN) that would provide the availability of greater communication features for both businesses and individuals (Weingarten, Stuck, 2001). Providers have determined this desire as the current utility for the industry. This has proven true over the last seven years by the proliferation of cellular phones that take pictures, send/receive text messages, email capabilities, mobile internet access, and coast to coast walkie-talkie communication technology.
As with new products, the article predicted high demand elasticity for the next generation networks. Those flush with cash would likely pay the higher price to gain an edge on competition. Gradually lowering the price would make the technology and the utility available to a much broader spectrum of consumers. This price reduction should result in a greater sales volume than would have normally been experienced, and provide additional net profits. Consumers have already seen this benefit in the evolution of cell phone technology.

Colander, D. C. (2004). Economics, Burr Ridge, IL: Irwin/McGraw-Hill.
Economics. (n.d.). Unabridged (v 1.1). Retrieved March 24, 2008, from website:
Weingarten, M., Stuck, B. (2001). It’s a stretch to believe in high price elasticity.
Business Communications Review, Hinsdale. 31(1), 32. Retrieved March 23, 2008 from the ProQuest database.

Return to