Johnny Ch Lok

Understanding How Consumer Behavior Changes Johnny Ch Lok

?How can consumer debt management psychological factors influence consumption behavior?In behavioral economy view point, it can be applied to explain why consumer debt management psychological factors can influence consumption behavior. Some consumption psychologists had investigated several psychological variables which have been suggested as causes or effects of debts. Economic and demographic factors can predict debt category well to support this influence of factor. How can consumer manage money skills to pay debt which can influence when who plan to consume? Debtors were more likely to buy cigarettes and Christmas presents for children than non-debtors. Conclusions must be qualified because of low return rates, but the results suggest that a complex of psychological and behavioral variables affect debt and are affected by it. It is argued that these variables are linked to the psychology. In general, economical environment is poor, it will cause many unemployed people, even some people will loan debt to pay daily essential expenditure from banks. If those debtors can't manage whose debt to be better to spend. Whose behavior will cause who do not have more spending desires often. Because these debtors will feel themselves as being in a community where debt was more common and more tolerated than non-debtors. The whole question of the classification of products a necessities or luxuries and its consequences for purchasing behavior is of current interest in economic psychology. Since debt is associated with poverty and poor people tend to give external reasons for economic phenomena, such as poverty and unemployment, causality may run the other way. In either case, however, there should be a positive correlation between external control and debt. There have different variables offer explanations of debts at different levels. One factor may be a consequence of another, or the mechanism by which it takes effect ( for example, different patterns of economic socialization might generate different attitudes towards debt). Some debtors need to borrow debt (loan) for house purchasing need. So, if the house loan debtors who need to pay back whose house loan to bank for long time. It is possible that their house loan will influence to reduce to spend much of daily consumption behavior to buy non luxury and daily essential products for long time. Thus, the result is these house loan debtors will reduce every day essential expenditure, such as food and soft drink, entertainment etc. to consume too much to compare to non house loan debtors for long time. It seems that retailers can attempt to apply debt management behavior to predict consumer shopping of desires.