Prosperity – Riches: the financial success of a person, class of people, or country. Prosperity is characterized by a high level of economic activity, employment, and levels of investment.
See also: Standard of living
Purchasing Power – The financial means (including credit facilities) that a person or a group of people posses for the purchase of durable and non-durable goods.
Recession – Receders (Latin)= Pull back. A deterioration in the economy after a period of growth and higher economic activity. Since the Second World War recessions have tended to last an average of about 12 months.
Replacement Purchases – The total of second, third, etc. purchases of durable consumer goods. The previous article is “used up” or out of fashion. Some goods are currently uniquely replacement goods (radio, TV, refrigerator) in the Western world. See also: Average life
Return Rate – The total income from a particular product or group of products. It is shown as the sales price X quantity sold in a period.
1. Economics: The complete satisfaction of a market (e.g., television sets in the U.S.A.). The market stagnates and purchases are exclusively replacement purchases.
2. Perception : The intensity of a color, from pale to rich.
3. Psychology: The phenomenon whereby a person can absorb no more information. He tends to close himself off from sources of information. See also: Replacement Purchases
Saving – Not paying for goods and services. “Official” definitions of saving do not often correspond with what the consumer understands by the term. For instance, the consumer does not consider obligatory payments for social services, or life insurance premiums or a mortgage to be saving. Most consumers consider a bank savings account to be the only real form of saving.
Savings Outflow – Syn: Dissaving
Reduction in the savings of a consumer or family. Money is “consumed” not always only on luxury consumer goods.
Scarcity – Shortage of goods or services in relation to the demand for them. (If there is no demand for a product, then there is likewise no scarcity.) Most goods and services are scarce: There is a shortage of land, machines,manpower. Some non-scarce products are scarce in certain areas, such as water in the desert.
Soft Goods – Syn: Non-durable goods See: Non-durable goods.
Standard of Living – The total of quantities of goods such as food, clothing, furniture and services (rent, transport, medical care) that an economic group (person, family, country) considers to be essential. The standard is generally expressed in terms of money, the cost at which these goods and services are obtainable. The standard of living varies from place to place and at different times. See also: Consumer price index
Stock Rotation – The number of times per year (or other time period) that the stock of an enterprise is replaced (bought or supplied).
Substitution – The replacement of one product by another for a reasons of high price unavailability: margarine is substituted for butter; plastic is substituted for metal in cars, etc. See also: Sample
Supply – The capability and readiness of an enterprise or organization to sell goods or services. It is dependent upon the price the enterprise can obtain in the market place. See also: Demand
Utility – The capacity of a good or service to satisfy a human need. It involves the relation between the product and the pleasure (or pain) that can be derived from it. It is the property of a good or service to provide pleasure or prevent pain during the consumption or the anticipated consumption of it; as well, that “utility” may vary: the first steak provides much pleasure, the second somewhat less, the third none at all.
Value – 1. Economics: The exchange value of a product or service in the market. This is expressed in terms of money or other goods. The value is proportional to the desire for (subjective need) and the scarcity of the product (supply and demand).
2. Psychology: Concrete or abstract quality that someone or a number of people find important – love of country, eating with a knife and fork, the color blue. Values are not fixed; they can change with time. Values in one country may not be the same in another.
Zero-Growth – Euphemistic term, meaning there is no growth in the market, turnover of a company etc.
Commune – A social “family” comprised of many adults and children. Some communes consist of several traditional families; in others the social structure is less formal.
Conformity – Adapting to the norms, rules, laws and social agreements of a group. In an area where there is a high proportion of families with a video recorder, heads of families will tend to conform to the norm and purchase a video recorder. See also: Reference Group
Core Family – The independent social group of two or more people who regularly eat and sleep together. Mostly consist of parents and children.
Culture –1. The structure of norms and values, the total human production at the material and immaterial levels that we continuously transmit to our children.
2. The total of human attainments that are shared by many and are transmittable. Each society, from the most primitive to the most sophisticated, has its own culture. See also: Norm/Value/Material culture/Immaterial culture