While it may be difficult to admit to low financial literacy, one should be reassured that a large section of American population face similar challenge particularly in regard to financial and money management. But this reassurance should not mean that people – the consumers…
The financial system performs the overall function of moving money between savers and borrowers and this allows people to transfer their ability to use money to transform the world through time and space. (Shavinina 2003, p. 530) The financial system interacts with real economic activity through its various functions by which it facilitates economic exchange. What is the significance of this system for consumers, one may ask. The financial system plays an important role in mobilizing funds in such a way that they are transformed into assets that better meet the needs of individuals as investors and as consumers. A specific example is when financial intermediaries facilitate portfolio diversification. Here, resources are transferred across time and space, allowing investors and consumers to borrow against future income and meet current needs.
Financial systems also have existing mechanisms that are pivotal in developing pricing information. This information such as the appraisal of the value of companies allows investors to make informed decisions in regard to how they allocate their money. A market that is plagued by information imperfection will result to an imbalance in the quantity and quality of investment hurting an economy’s potential.
In regard to financial institutions such as banks, they perform various functions within the financial system, including the use of technological infrastructure to profitably and reliably deliver services and so extend the institutional trust upon which the financial system depends. A particularly important role played by financial institution is how they ease the tension between a saver’s preference for liquidity and the entrepreneurs’ requirement for long-term financing. Because of this, wrote Nnadozie, at any given level of saving, an efficient financial system will allow for a higher level of investment by maximizing the proportion of saving that actually finances investment. (p. ...
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“Consumer Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/383830-consumer.
On the other hand materialism is the significance that a customer attaches to a specific good or service and it is characterized with satisfaction and dissatisfaction. Consumer culture assumes both consumerism and materialism therefore it can be defined as the social nature or lifestyle of customers and consumers where buying and spending is not only a predominant activity but also vital and significant to social organization, this implies that there is mediation between consumer material resources and meaningful ways of life as well as lifestyle culture and consumer social resources through a given market (Lury 2011).
The competition is cutthroat to say the least. According to Moskowitz, Beckley and Resurreccion (2006), at least 80-90 percent of new products introduced in the market fail within a year of its introduction (199). And so, an understanding of the behavior and motivations of the consumer in making consumption choices and purchases is crucial in developing a framework that would guide product development process.
“The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy” (Consumer Behavior, 2010).
These subcultures of consumption are created in order to make it easy for the marketers to understand and target a particular set of customers with same preferences and norms (Schouten and McAlxendar, 1993). One of the emerging consumption subcultures in the today’s high tech environment is the online shoppers and buyers.
A number of consumer protection laws have been enactment in different parts of the world including the United Kingdom, the United States and the emerging economies in Asia and Africa (Jay & Clarke, 2010).
In the United Kingdom, a number
We may be having two people who have a similar need but buy two different items though the items satisfy the same need, for example, one buyer may choose to buy coffee while anther choose to buy tea leaves. According to (Cheryl, Ward and Thuhang 2007, p. 7),
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