Transumer

AAA

DEFINITION of 'Transumer'

A consumer who values experience over ownership. Transumers are driven by the experience associated with using a product rather than owning it, and thus may be more likely to rent things when possible. Transumers typically have short attention spans, and are younger than traditional consumers. Examples of transumerism include renting movies, or even sharing a piece of expensive clothing among friends.

INVESTOPEDIA EXPLAINS 'Transumer'

The growth of business travel is considered to one of the catalysts that has sparked the growth of transumers. Since business travelers are unlikely to be in a specific location for an extended period of time, they typically rent or lease products so that they will not have to take them along after their business is completed.

Marketers suggest that regular consumers may shift to being transumers if they want to "experience" more products, and that outright ownership can be cost prohibitive to a "here and now" feeling. A depressed economy and space considerations may also result in similar shifts.

For businesses, transumers present both a hurdle and an opportunity. Businesses may see fewer traditional purchases of luxury items, but may be able to reap more revenue over the long run by renting the goods out.

RELATED TERMS
  1. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  2. Lease

    A legal document outlining the terms under which one party agrees ...
  3. Lessee

    The person who rents land or property from a lessor. The lessee ...
  4. Lessor

    The owner of an asset that is leased under an agreement to the ...
  5. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
  6. Rent To Own

    An arrangement between a consumer and a seller that allows the ...
Related Articles
  1. To Rent Or Buy? There's More To It Than ...
    Personal Finance

    To Rent Or Buy? There's More To It Than ...

  2. To Rent Or Buy? The Financial Issues
    Home & Auto

    To Rent Or Buy? The Financial Issues

  3. New Wheels: Lease Or Buy?
    Home & Auto

    New Wheels: Lease Or Buy?

  4. Help Your Kids Understand Money
    Credit & Loans

    Help Your Kids Understand Money

Hot Definitions
  1. Return On Sales - ROS

    A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's "operating profit margin". ...
  2. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  3. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  4. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  5. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  6. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
Trading Center