Trends in Consumption Patterns

Continues for 3 more pages »
Read full document

Trends in Consumption Patterns

By | March 2008
Page 1 of 4
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. 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. Utility

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...
Hide

Rate this document

What do you think about the quality of this document?

Share this document

Let your classmates know about this document and more at Studymode.com