Induced consumption

From Wikipedia, the free encyclopedia

Induced consumption is household consumption that varies with income. When a change in income "induces" a change in consumption on goods and services, then that changed consumption is called induced consumption. In contrast, expenditures for autonomous consumption do not vary with income.

For instance, expenditure on a consumable that is considered a normal good would be considered to be induced.

Some Ways in which Induced Consumption Occurs

Conspicuous consumption

When people consume things to display a higher status than others.

Artificial consumption

When people consume things because they were introduced to them through various forms of media.

v t e Consumer behaviour

Concepts	Consumption (economics) Consumer spending Autonomous consumption Induced consumption Consumer debt Consumer economy Consumer culture theory

Research types	Consumer behaviour Marketing research Consumer neuroscience Consumer choice Consumer product Consumer economics

Consumer attributes	Consumer confusion Consumer's risk Consumer confidence Consumer socialization Consumer ethnocentrism Cultural consumer Homo economicus Consumption function

Processes	Consumer cooperative Consumer-to-business Factory-to-consumer Consumer service Consumerization

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