Transumer

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.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an 80% loan-to-value ratio, the second position lien has a 10% loan-to-value ratio and the borrower makes a 10% down payment. 80-10-10 mortgage transactions are piggy-back mortgage transactions, and are frequently used by borrowers to avoid paying private mortgage insurance.
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
Trading Center