Consumerism

What is 'Consumerism'

The theory that a country that consumes goods and services in large quantities will be better off economically. Consumerism for example, is an industrial society that is advanced, a large amount of goods is bought and sold.
Sometimes referred to as a policy that promotes greed, consumerism is also coined as a movement towards consumer protection that promotes improvement in safety standards and truthful packaging and advertisement. Consumerism seeks to enforce laws against unfair practices implement product guarantees.

BREAKING DOWN 'Consumerism'

Over-consumption is sometimes negatively attributed to consumerism. For instance some people might argue that Christmas holidays are a time of consumerism due to the large amounts of goods that are purchased during this time. Consumers strive to find the perfect gifts and this creates a demand for goods and promotes greed. Consumerism causes a materialistic belief that the more materials acquired the better, implying an increased value placed on material possessions.

RELATED TERMS
  1. Time-Preference Theory Of Interest

    A theory that examines the nature of consumerism, and the factors ...
  2. Pent Up Demand

    When the demand for a service or product is unusually strong. ...
  3. Compulsive Shopping

    An unhealthy obsession with shopping that materially interferes ...
  4. Promotion

    1.In terms of a career, a promotion refers to the advancement ...
  5. Promotional Budget

    A specified amount of money set aside to promote a business' ...
  6. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
Related Articles
  1. Investing

    How Conscious Consumers Are Changing Business

    Thanks to the growth of conscious consumerism, corporations must evolve or lose ground to new, ethos-based entrepreneurial models.
  2. Markets

    Explaining Quantity Demanded

    Quantity demanded describes the total amount of goods or services that consumers demand at any given point in time.
  3. Managing Wealth

    How to Use Earnings Season to Make Better Decisions

    Earnings season reflects the state of the stock market, but also demonstrates how the overall economy is performing.
  4. Personal Finance

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  5. Personal Finance

    What are the Four Ps?

    The four Ps of the marketing mix are product, price, place and promotion.
  6. Trading

    The Financial Markets: When Fear And Greed Take Over

    If these unpleasant emotions are allowed to influence your decision-making, they may cost you dearly.
  7. Managing Wealth

    Teaching Financial Literacy To Kids: Goods And Services

    It's important that kids understand how resources are used to provide goods and services, and how they are made, distributed, consumed and exchanged.
  8. Investing

    The Disposable Society: An Expensive Place To Live

    Resisting the trend toward consumption will boost your bottom line and bolster the environment.
  9. Markets

    Macroeconomics: Supply, Demand and Elasticity

    By Stephen Simpson DemandDemand is driven by utility – the pleasure or satisfaction that a consumer obtains from consuming a good or service. Total utility is a function of the quantities ...
  10. Retirement

    Understanding the Trends Driving India's Rise

    Numerous factors support India’s rise as a global superpower and will help the economy continue on a high and sustainable growth path.
RELATED FAQS
  1. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ... Read Answer >>
  2. What is the difference between a capital good and a consumer good?

    Learn to differentiate between capital goods and consumer goods, and see why capital goods require savings and investment ... Read Answer >>
  3. How does Twitter (TWTR) make money?

    Learn how Twitter earns revenue, including the company's use of three targeted advertising streams and data farming and licensing. Read Answer >>
  4. What are the key differences between marketing and advertising?

    Understanding the role advertising plays in the marketing mix will help business owners define their promotional strategies ... Read Answer >>
  5. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  6. What are some examples of the law of demand in real markets?

    Find out how the price of a good or service affects the quantity demanded, and explore instances of consumption reflecting ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center