CONSUMER BEHAVIOR-FINANCIALLY AT-RISK

STUDENTSBy Kimberly Gary

Definition: Consumer Behavior

The definition for consumer behavior: “Is the study of when, why, how, and where people do or do not buy a product. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people’s wants. It also tries to asses influences on the consumer from groups such as family, friends, reference groups, and society in general”(Wikipedia, 2010).

Demographic

High rates of credit card possession are documented across numerous studies of college students(Sallie Mae, 2009).

Recent research by Robb, Moody & Abdel-Ghany (2011) suggested that financial factors behavior, student loan debt, and the presence of other forms of debt play a significant role in student persistence behavior as well as in student perceptions of debt.

92% of undergrads use there credit cards for college expenses, the other top

expenses are for food, clothing and cosmetics.

MONEY ATTITUDES

COMPULSIVE BUYING BEHAVIOR

Need based expenses

Lifestyle

SOCIOCULTURAL INFLUENCES ON

CONSUMER BEHAVIOR

Personal influenceReference groups

The familySocial class

CultureSubculture

Reference Groups

Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups have an important influence on the purchase of luxury products but not of necessities:

Membership group: Aspiration group:

One group is associated with the college student, the other group is a group that the college student wishes to be associated with.

Persistence Behavior

It recognizes the significance of several socio-demographic and academic factors such as:

Student background GPA Gender Race/Ethnicity Campus integration/InvolvementIn this model we consider financial factors

as well as financial aid and income expenses from parents, if available.

At-Risk

While many high schools across the country offer personal finance courses as electives, there are only nine states in the U. S. that require students to enroll in some type of personal finance course to obtain their diploma. (National Coalition on Economic Education, 2007). This course should be standard for all high schools across the globe.

Necessities

Luxuries

Not to be At-Risk

Consider revising your spending habits Only purchase items that are needed. Protect what you have invested in. Think about your finances after college.

Good Luck with Your Consumer Behavior

ByKimberly Gary

Argosy University/Atlanta2011