Consumer - Essay Example

Comments (0) Cite this document
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…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Read TextPreview

Extract of sample "Consumer"

The Functions of the Financial System 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 specifically - should be satisfied with their lack of information. The fact is that if such circumstance perpetuate, consumers would be susceptible to risks from financial services and from financial service provider and in the same way susceptible to the loss of benefits because of uninformed financial decisions.
For this paper, let us discuss the importance of financial institutions as intermediaries in the economic activity.
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. 374) It does not take a rocket scientist to understand that this situation spurs economic activity. Financing through financial intermediaries facilitates economic growth by allowing capital to be channeled to investment projects.
There are other financial institutions besides the banks. Other financial institutions that play intermediation functions and serve the industrial economy include savings and loan associations, mutual savings banks, credit unions, investment companies, pension funds, insurance and finance companies. Each of these has specific objectives and purposes and could serve the specific financial needs of consumers and the market.
Nnadozie, E. (2003). African economic development. Emerald Group Publishing.
Shavinina, L. (2003). The international handbook on innovation. Elsevier. Read More
Cite this document
  • APA
  • MLA
(“Consumer Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Consumer Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(Consumer Essay Example | Topics and Well Written Essays - 500 Words)
Consumer Essay Example | Topics and Well Written Essays - 500 Words.
“Consumer Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Consumer Behaviour

...?Consumer Behavior Table of Contents Table of Contents 2 Introduction 3 Consumer Motivation and Nestle Milo 3 Influence of Culture and Nestle Milo 4 Conclusion 4 References 5 Introduction Consumers’ buying behavior has been a crucial aspect for the marketers of all the multinational consumer goods producing companies. This paper deals with the consumers’ buying decisions regarding the Milo drink which is a popular product of Nestle. It describes two crucial concepts which are ‘consumer motivation’ and ‘consumer perception’ in the context of Nestle Milo. The paper is prepared keeping the consumers of...
3 Pages(750 words)Essay

Consumer behaviour

...?Consumer Behaviour Introduction: Consumer attitudes can be viewed as both harmful as well as extremely profitable to the company based on whether such attitudes are positive or negative. The marketers hence, have the choice to either pursue or ignore these attitudes and use the same by leveraging them in their favour by developing effective marketing strategies to target and capture the positive attitudes or the change the negative attitudes through influence, and other advertising tactics. The attitude of consumers towards a product or brand plays a key role in influencing the success or failure of the company's marketing strategy. The type of attitude i.e. positive or negative towards...
12 Pages(3000 words)Essay

Consumer' Income

... Graph a demand curve.  2. the law of demand.  The law of demand s that keeping all other factors constant, an increase in the price ofgoods decreases the quantity demanded. Similarly, as the price of good decreases the quantity demanded increases (Wessels, 2006). This makes sense intuitively since people would like to buy more of a good that costs less than a good which is priced higher. 6. Explain what causes an increase in quantity demanded. Give an example.  In economics, we typically use dimensional graph that has price of the good or services on x-axis and the quantity that people are willing and able to buy on y- axis. When the price of the orange is $30, consumers are willing and able to buy 30,000 oranges. As the price... of the...
4 Pages(1000 words)Coursework

Consumer Behaviour

...?CONSUMER BEHAVIOR Question In this case, trait theory was used to explain phone usage differences; looking through the chapter do you think there are other individual characteristics that could also be used to better explain mobile phone usage? The trait theory is very appropriately applied to explain the differences amongst individual phone usage; however, there is an array of other individual characteristics that can also be used to explain mobile phone usage. These characteristics are categorized according to their intrinsic and extrinsic relationship to personality. Factors that are more intrinsic to individuals’ personalities are their activities, interests and opinions towards mobile phones, these characteristics...
8 Pages(2000 words)Essay

Consumer Behaviour

...? Marketing Table of Contents Introduction 3 Explanation of four subtopics 3 Relevance of subtopics to marketing in the electric car sector 5 Conclusion 7 Reference 9 Introduction It is essential for marketers to study the consumer behaviour of employees. The project seeks to study the motivational aspect of consumers in the context of launching battery operated car in the market that saves on energy and pollution. In the perspective of studying the driving force of consumers to purchase the product, it studies the four components of motivation in consumer behaviour, such as substitute goals, defence mechanism, needs and types of motives. Explanation of four subtopics...
6 Pages(1500 words)Essay

Consumer Behaviour

...? Consumer Behaviour Contents Contents 2 Introduction 4 Marketing Mix Stimuli of Dulux 4 Concept of Marketing Mix Stimuli 4 The Case of Dulux 5 Products 5 Brands 6 Advertisements 6 Packaging 6 Point-of-Purchase Display 7 Impact of Marketing Mix Stimuli of Dulux on Consumer Cognitive Responses 8 Conceptual Understanding of Cognitive Response 8 Models of Cognitive Response Behaviour 9 The Case of Dulux 10 Conceptual Understanding of Affective Response 11 Models of Affective Response Behaviour 11 The Case of Dulux 12 Impact of Marketing Mix Stimuli of Dulux on Consumer Behavioural Responses 14 Conceptual Understanding of Behavioural Response 14 The Process of Instrumental Conditioning in...
12 Pages(3000 words)Essay

Consumer Behaviour

...?INTRODUCTION Primary objective of businesses is to strengthen its financial or more simple to would be to earn profits. Profit generation require businesses to strengthen and enhance its customer base by increasing number of customers associated with its products (or brand) while maintaining focus to retain existing ones. Success, in fact survival of the business is dependent on business’ capacity of understanding its customers (Evans, Jamal, and Foxall, 2010). Acknowledgement of the importance of this fact has given birth and rise to domain of study of consumer behaviour. Consumer behaviour, hence, entails understanding different attitude and behaviour of the consumers along with exploring factors having impact on these attitude... and...
12 Pages(3000 words)Essay

Consumer behaviour

...?Consumer Behaviour Marketing is the art of communicating the value of products to consumers to influence their choices. Primary and secondary research strategies are essential for understanding the psychology of consumers and how their immediate surroundings influence behaviour. Consumers are readily motivated to purchase products that are extensively advertised. The impact of persuasion is dependent on the way in which marketers deliver information concerning the quality of products. The main impact of marketing towards consumers is motivation. The essay below discusses the role of marketing in enhancing consumer motivation through...
12 Pages(3000 words)Essay

Consumer behavior

...?Consumer Behaviour – Motivation and Marketing Consumer behaviour comprises the purchasing inclinations of consumers. This behaviour can be explainedfrom different perspectives since a typical consumer passes through different levels of psychological being before he takes a decision regarding the purchase. These perspectives refer to social, cultural and personal impacts. Theory of consumer behaviour explains these aspects with help of different models. The key factor underlying all these models is the cognitive behaviour or psychological response to the external and internal stimuli. Amongst the internal factors which influence people in making their choice by interpreting market information are: perception, motivation, learning... ,...
12 Pages(3000 words)Essay

Consumer behaviour

...?Consumer behavior, marketing and semiotics: Semiotics is very useful in understanding consumer behavior. Semiotics mainly constitutes the linguisticturn in the sciences that discuss human nature and behavior. Semiotics is a particularly very powerful tool for uncovering concealed meanings of human activities and human behavior and hence it is fundamental part to be considered at the time of designing any marketing campaign. Due to the fact that marketing involves symbols, such as written words and pictures, it is very necessary to ensure that those symbols match real-world human behavior. In this case, semiotics comes to great help. In addition, semiotics examines how people constitute perceptions that...
12 Pages(3000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Consumer for FREE!

Contact Us