Transumerism

DEFINITION of 'Transumerism'

A consumer trend toward renting or leasing items rather than purchasing goods. Transumerism is based on consumers' desire for new experiences rather than ownership, and associates the outright purchase of a good with a lack of freedom. Consumers who follow this ideology are more likely to rent or lease a product, allowing them to follow new product trends more closely.

BREAKING DOWN 'Transumerism'

Transumerism is closely associated with pleasure-seeking by consumers. Transumers may lease a car or rent a movie rather than buy it. This way, transumers can gain the positive image associated with a particular product without the expense of purchasing it outright. For businesses, transumerism means that consumers are less willing to pay for a product in full, especially for luxury goods or electronics that typically carry bigger price tags, but would still like to experience the product for a shorter time period.

RELATED TERMS
  1. Transumer

    A consumer who values experience over ownership. Transumers are ...
  2. Fixed Price Purchase Option

    The right, but not the obligation, to buy a leased item at a ...
  3. Single Net Lease

    A commercial real estate lease agreement in which the tenant ...
  4. Gap Amount

    Insurance will only cover a certain amount of coverage if leased ...
  5. Operating Lease

    A contract that allows for the use of an asset, but does not ...
  6. Percentage Lease

    A type of lease where the tenant pays a base rent plus a percentage ...
Related Articles
  1. Investing

    How Does an Operating Lease Work?

    Operating lease is a term used mostly in accounting to denote a lease that gives the lessee rights to use and operate an asset without ownership.
  2. Managing Wealth

    What is a Capital Lease?

    A lease considered to have the economic characteristics of asset ownership.
  3. Retirement

    Retirees: Should You Buy or Lease Your Car?

    To buy or lease – that is the question. For retirees, access to safer cars, comprehensive warranties and tax deductions may drive up leasing's appeal.
  4. Personal Finance

    Why You Should Buy A Car Instead Of Leasing

    While leasing has certain advantages, buying a car tends to save you money in the long run and offers greater flexibility.
  5. Managing Wealth

    New Wheels: Lease Or Buy?

    These two major ways to obtain a car have very different advantages and drawbacks. Find out which is best for you.
  6. Personal Finance

    Is There a Way to Get Out of Your Car Lease Early?

    For those who no longer want their car for whatever reason, transferring the lease to an interested party can be a particularly appealing choice.
  7. Personal Finance

    Millennials Guide: How To Read a Lease

    Everything you need to know before you rent a home.
  8. Personal Finance

    Rent vs. Buy: It’s Different for Expensive Property

    For multi-million dollar homes, renting often nets out as costing less than the expenses/other financials of buying a comparable property.
  9. Personal Finance

    Renters' Guide: Who Rents Property?

    People who rent property rather than purchase a home do so either out of necessity or by choice. People who rent out of necessity may do so because they are: Saving for a down payment on ...
  10. Personal Finance

    Renters' Guide: Living With Roommates

    When two or more people sign a lease or rental agreement together, they become co-tenants and share the same legal rights and responsibilities. Many leases contain language stating something ...
RELATED FAQS
  1. Why might a bond agreement limit the amount of assets that the firm can lease?

    Bond covenants can limit the amount of leases a company can have because leasing contracts are a form of debt. Taking on ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. At the beginning of the year, ABC Corp. began to lease a major piece of equipment ...

    The correct answer is: A) Under the capitalized lease method, the lessee must treat the asset as if it was purchased with ... Read Answer >>
  5. At the beginning of the year, OPQ Corp. began to lease a building using the capitalized ...

    The correct answer is: c) Step 1: Calculate the Present Value of the lease: PMT = $12,000; N = 7; I = 7.5%* Read Answer >>
  6. How does revolving credit differ from a general line of credit?

    Examine the consumer goods sector, which accounts for nearly one-third of consumer spending, and learn which goods account ... Read Answer >>
Trading Center