Every people in the world are different, there’s the rich, there’s the poor, there’s the handsome, there’s the one that is not so handsome, etc. People use money to fulfill their needs and wants and their family’s needs and wants. Rich and poor people are different by class, amount of wealth, dignity. And they’re also different in spending patterns because they’re in different income groups. Some rich people spend money mostly on tertiary items, which is actually not needed by them. It’s only to fulfill their needs and wants, for example: Ferrari, Louis Vuitton, if holiday, stay at Burj Dubai, etc. Whereas poor people spends money more on primary resources, the resources they need for survival, for example: Home for shelter, gas to cook, electricity to iron shirts, etc. They’re also different on spending patterns besides the example above. So this time we’re going to analyze why different income groups have different spending patterns in both LEDC and developed countries. So, as we discussed in the introduction above, we know that different income groups have different ways to spend the money they have earned. First, because of ways to solve the stress they have. This is proved according to the bar graph on activity 3.16 on page 164 on the alcohol drinks, tobacco and narcotics graph. In the graph, the poor waste more on this section because they have a lot of stress thinking about tomorrow and the future: do they can eat, do they can pay cost and etc. Whereas for rich people, they handle stress by going to vacation, relax, etc. This can be proved by the bar graph on activity 3.16 on page 164 on the recreation and culture section. Next, technology has increased, making people become more increasingly tempted to buy more and more products, making them spend more money for housing, household goods and services. This can be proved on the line graph on page 165. Before, people work for a long time to get lots of money, but now, we work for fewer hours than before but still can get the same amount of money or even more than the amount of money earned before. So, now people have more leisure time, so they increase in expense because they spend more, they spend on vacation, on fitness, gardening, and eating in restaurants. Another reason is because now social attitudes have changed. In these times, women have worked to help the husband to support the family. So that, they have less time to take care of their families and has increased in demand for more time efficient applications. And maybe she will pay for a maid to do her job she supposed to do at home. The next reason is because people have become more care about their own health. So now they spent more to sports activities and equipment. Now healthy foods and more demanded to maintain their health. The thing I want to say is that maybe in different countries they have different spending patterns. As long as it’s still normal then it’s fine.
The income that is spent by people depends on the disposable income. Disposable income the income of a person has left after income related tax, and charged have been deducted. The more disposable income the person has, the greater their potential consumer expenditure on goods and service, and the more they will be able to save. But, how much people spend with their disposable income will also depend on the price of the product. The increase of the price will reduce the real purchasing power of income. Some people with very low disposable income may only be able to afford to satisfy their basic need, such as foods, shelter, and clothes. But, the people who have a higher disposable income may choose to consume a vast array of different goods and service, mainly for pleasure. So, the disposable income will affect the spending pattern. We can examine consumption pattern or spending pattern by income group, gender, and age, and also overtime. The firms will use this information to target the consumer and to produce what kind of product. This information is also useful for firms to advertise their product so that consumer will be attracted.
The consumption pattern have been observed in may developed country, and now, in some developing countries, and the result of factor that affect spending pattern especially by income group are:
1. Real income has risen. A group of people that have high income (disposable income) will be much more braver to spend their money. They will buy some goods not based on the price of the goods, but the quality, design, or advertising. The increase use of the credit card is to boost spending, also reflects a change in attitude over time towards borrowing and debt. A group of people that have higher income will have a greater limit in credit card, so they will spend more than the others. 2. People work fewer hours than many years ago. The bigger wages someone have, usually their working hour will be decreasing (director, commissioner). People with this position works more outside the office. Usually they will meet clients at lunch, so the spending for eating in a restaurant, or transport will be increase. This will be caused by spending pattern of people that have high income becomes bigger. People that work with fewer hours usually will spend their time to spend on holiday, doing their hobbies (gardening, sport) where it is needed a cost that is not little. 3. Social attitude have changed Someone who have a good education often offered to work in other countries with higher income or someone who have a good achievement or award will be send to other countries by the company they work in. this surely make their income higher. Based on this condition, people must buy appliance to help them finishing their household (such as microwave, dishwasher, refrigerator, etc.) this person is usually will face a change in social attitudes or lifestyle, that become people that is more likely to buy rather than making (ex: buy a food in the restaurant rather than cooking)
So in conclusion, the income group makes a different pattern in spending pattern, the bigger the income a person gets; the spending pattern is higher. Usually, the group that has the same average income will have a similar pattern in spending pattern. For people that only got a little amount of income, their spending incomes will e limited to cover their needs and little wants. Celine Kusnadi 8B
There are many kinds of people with different economic ability level as well as spending patterns. These are caused by their different needs, wants, occupations and earnings. There are people who are satisfied just by completing their needs but there are also many people who have many kinds of wants as well as expectations from the society they are in. due to the different ability, educational background and also opportunities, people will get different occupations which affect the level of their income. For the people who have a low level of occupation and receive only enough some of earnings to fulfill their needs, they tend to not having the temptation to get other things beside of the basic needs. This is because their income is sometimes not even enough for them to get their basic needs. This is why they have a very low spending pattern as the only thing that they have in mind is just to get enough to pass their daily life. For the people who have more than enough income, they usually are already fulfilled their basic needs. thus, the next level of life which is wants approached them. For example, they might want to get a better food, better living environment, better school for their children, nice transportation and also better clothing. This actually will directly caused their spending to increase and also different with the previous group of people. These people actually is no longer focused on what their needs but more to what they wants. Some of them even cannot differentiate which one is their one and which one is their needs. they tend to think what they want is actually what they need, for example, people need food like rice, vegetables, and meat to survive and eat when they are hungry, but for some people they get their food in restaurant or more expensive food, while thinking what they are getting is just what they need which is food. The next group of people even have a greater spending pattern. This group of people are the people who have a big amount of income and some of them even have a marvelous number of earing. They now even more concern to what other people think about them and so indirectly they are living live in what other people expect from them. For these people they are concern about what the public see and they care about their pride. They are willing to spend more money and even a great some of money to get the best things they want. For them pride is also one of their needs, for example, for transportation they don’t only need just any car but they actually spend money to get mercedes for their transportation so that they will earn respect and awe from the public they are in. this things also apply in all of their daily aspects such as fine food, fine clothing and also holidays. They put satisfaction as priority of their lives and so they are willing to pay more for it. This is why these group of people have a very high spending patterns.
The spending pattern depends on how much disposable income a person has. Disposable income is the net income after you pay your taxes. In Indonesia there are still many people that have low disposable income. These people with very low disposable income may only be able to satisfy their basic needs like buying rice,shelter. There are even some people that cannot afford rice and shelter because of having low disposable income. Rich people with high disposable income may choose to consume luxury goods and good services. They are looking for quality, comfortability, and sometimes pride in consuming goods or services. Global economic growth also influences the spending pattern.When economic growth, spending pattern will increase, when economic falls, spending pattern will decrease. Spending pattern is also useful for firms because it allows them to target the goods and services they produce and advertise at particular groups of consumers they want to attract to buy those products. Spending pattern can be classified by income groups, changes in age, changes in technological conditions. In high income groups people usually spend far more on luxury items,leisure activities and other goods and services to satisfy their wants but overall will tend to spend a lower proportion of their total disposable income. In lower income groups they spend all their money to meet basic needs and if possible to satisfy a few wants from time to time. There are some factors that influence the spending patterns of income groups: A. Income has risen. Higher income enable people to spend more and satisfy their wants. Higher income makes it easier to make credit cards, we know credit cards boost spending and also changes the taste , attitude and spending pattern of people. Higher income makes people buy more goods and services, this influences the spending pattern. B. Couples are marrying later in life and having fewer children Usually people that have high income choose to postpone getting married. Consumption pattern for different goods and services, and also saving pattern are therefore changing over time as the average age of population rises. It means growing number of single people will increase the number of households but a fall in their average size. This helps to increase the amount spent on housing and households goods and furnishings over time. Single people tend to spend more on going out and travelling. Its easier for people with high income to travel and buy household goods and furnishings. C. Social attitude has changed People who have high income are usually changing their opinion on goods and services. Their looking for quality and they don’t care about the price. More females and males are going out to work in many countries that results in higher income, so in other countries they will buy durable appliances like microwave,TV,computer,refrigerator and washing machine. With high wage sits easier to buy these kind of items. So in conclusion income groups make a variety of spending patterns. With higher income people will buy many goods and services to satisfy themselves.
Different income group will always have a different spending pattern . It must be impossible if poor people spending their money on expensive goods . They will always choose the cheap product because its their capability . If their spending on an expensive goods , they may not pay it because their income is not as big as the price they bought . This is also happening to a rich people . Almost all rich people will spend their money on a quite expensive goods . Because normally expensive goods are having a good quality of product .So rich people usually will choose the one that have a good quality product .Actually poor people will always want to buy this good quality product . But the problem is their not as lucky as the rich people . Their income is not enough to buy it . There is also a people that are medium . They are not really rich and they are also not really poor . This people that like this are usually the one who work in the office . They will not get a high income because they are still a labor . The rich people are usually the owner of a company . So this medium people will spend their money according to their wages . They are usually spend their money on normal goods and they are not searching for a good brand . Because good brand are usually the expensive one . Normally rich people is the one who always searching for a good brand . The more famous the brand the more product they will buy . But medium income people are usually not searching for this because their income is not really big . Although sometimes there are also some people like this ,but there are not too many .
Some poor and medium people will not always spend their money on a cheap things . There are also some people that want to give a really good school for his kids , so they enter their kids to a good school . Good school are usually expensive . But there are some people that still wanting his kids to enter the school because they want to make sure that the kids will not become like him in the future . They can get a better job in the future .
There are also another reason why people have a different spending pattern . First , like I told before is the income . Income is the main reason why people have a different spending pattern . Second , is also the wealth . The richer a person ,the better product they will bought . Third is the consumer behavior . Sometimes people are buying a product because its exactly what they like .People will always have a different likes .That’s why not all people are buying the same product . People will not buy the product if its not their want . That’s why some company are usually wanting a chart that consist of the most consumer spends .From here the company can know what is the most product they bought . What is the product look like and what is the advantage of it . Then from here they also can make another product that have a similar look and they will add some more advantages so that product will sold out . Fourth is the future expectation . This is also some other reason why people are spending on a different product .
So , the conclusion is that different income group will always have a different spending . Rich people are usually spend their money on an expensive product and the poor people will usually spend their money on a cheap product . There are also some other effect why people are spending on a different product . kezia _ 8b
Different income groups will have the different spending incomes. Why different income groups have the different spending incomes? Because they have different needs and wants at their life and they have different work so they have different incomes. There are also the poor family and the rich family, between them sure they will have the different spending incomes. Poor people will not buy iPod because they do not have enough money to buy it, while the rich people can buy it, the reason the poor people can’t buy the iPod is also when they buy it they don’t have enough money to buy the other things like the food, etc. while if the rich people can buy anything.
They have different spending incomes, the spending depends on the first, the income, if they have little income they will not buy the expensive things, they just buy the needs at their life, while the one that have a greater income, they can buy expensive things and they also can buy their needs and wants because they have enough money. Second, based on their behavior, for the poor people they will save more rather than spend because they need the money to enough their needs at their life. While most of the rich people, behave extravagant, so they spend much money on their wants. Third, based on the wealth, that means an abundance of valuable possessions or money. The rich family will buy the expensive things and the good one, rich family of course will not buy the second hand things. Fourth, based on the confidence, or about the future expectations, so they also think about the future example for their child needs and wants at their life.
But not always that the poor people always spend less than the rich people, some rich people also behave economically, means that they are not spend too much, some rich people do that because they want to save more for the example the child future, they want to prepare all the things and need for the child, so that in the future the child can success, people will also spend on education, they will not spend less on education because education is s important for everyone, while id they are spending less on the education means they do not get enough knowledge, so people will spend more for the education, the rich one nor the poor one will spend more on education.
So in the overall, the conclusion is that the different groups will have the different spending incomes, but not all of them have different spending incomes, they will have the same spending incomes like example for the education they will not give the bad one for the education, they will always give the best for education. Most of the rich family will spend more than the poor family because the main factor is they have different income. While the rich family have bigger income and the poor family have a little income.
If we analyze the spending pattern of each person, we realize that every one of them is related to his or her income or earnings, so since each person’s income is different from the other, we have different spending rate. Some people spend more and some do not, some are spending more in a particular activities and some to another activities. People spend to satisfy their needs and wants, which are unlimited, it means were doing the activity of consumption, which will lead to our satisfaction, which will rise our utility, the want to satisfy power of commanding. For consumption, it depends on income which is the source of our money, wealth, the consumer’s behavior which they tends to save some of the money or spend all of them, and the confidence about his or her future of choosing his or her option. The consumption pattern or trend has been observed during these few years in developed countries, some of them are the amount of hours each people work, people who are well educated and has a high role in some business, examples are manager, partner, share-holders, work less hours than the unskilled, examples are the office boy, and the low-positioned people in the business. The office boys have to clean the whole buildings and provide services for the higher-leveled employees, while the low-positioned employees have to work harder, they often stay at the office until late while the other has go home in order to finish their work. The high-positioned employees usually is the one who meet clients, outside the office, they went home earlier than the low-positioned employees. But the spend more because they meet clients at café, restaurant, hotels n etch. To get there, they need a transportation which cost them not little and they must get dressed formally, and while they have conversation with their clients they will buy something to eat or drink, and even they sometimes offer themselves to pay the client’s bill to encourage them to work with them. The rich, spend more than the poor, why? Because they have higher wages than the poor. They spend more in some specific activities like entertainment and culture, but this doesn’t mean that the poor don’t have any entertainment, they have culture celebration like tumpengan, dangdut, they don’t need a lot of money for this, but most of them don’t go to the casino, high-class pub, etch. The rich spend their money on entertainment more because most of them go to places like Disneyland, universal studio, casino and etch, these need a lot of money, for the transportation, money for settlement and food, includes if they buy some souvenirs. But against the statements above, not all rich spend more than the poor and the poor spend less than the rich, some of the riches tends to save their money intensively, like for example they don’t drink much but when they drink, they drink the super expensive alcohol or some of them have their own bar inside the house. And some poor spend more on alcoholic drinks, usually to forget about their stress for a while, and if they don’t have money to buy what they want, if they think short they will borrow money and spend them, and if they cant repay their loan, they will be in trouble and can even get into jail. So, it come to a conclusion that every people in this world has different spending pattern, it comes to when they have different incomes, their economical family condition, their confidence about the future and etch. Rich people can spend more or less than poor people but most of them will spend more and when buy something, will see the quality not the price. Most of the poor spend less because they have less money, even for health, if someone get sick but they don’t have the money to go to hospital to buy medicine, but the rich people can buy. –the end-thania vireta 8b
There are many different types of people those who are in the higher than average on earnings, those who are in the bottom end on earnings, those who are very cautious in what they spend, those who likes to spend everything they have, and those who just happen to like travelling and so on. All of the time these different groups of people have slightly different to completely different spending patterns. Why do these different types of people have completely different spending patterns? There are a lot of factors affecting this. Most notably is the fact that the group of people who earn more than the average person would be able to buy more things. People want to have more things that they can own as it is normal human nature to never be satisfied with what you have, and having a higher salary rate would make them able to own more things. This would mean that everyone would want to purchase anything they can purchase but for most people they would save their hard earn money to avoid the risks of buying everything that you can buy. Another factor is that people have become more health conscious. As people now know how important is health to a person. This increases the spending rate of products that would help people to increase their health for example sports equipment, gym memberships, health trainers, insurances and so on. On percentage people who are rich, averagely paid, and poor spend on overall the same amount on these products. Why is this? Because no matter how rich or poor you are you are going to worry about your health as the same as everyone else. Though, like almost anything there’s always an exception to this like someone who really doesn’t care that much on health care though people like these are rare. Technology is advancing rapidly. It is much more widely available than ever before. This is a huge change as back then electronics weren’t even consumer goods and even if they are they would be so expensive most people wouldn’t purchase it. Now because it is much more widely available as consumer goods in forms of PC’s, laptops, tablets, phones, gaming consoles there’s an increase in demand for these electronics as they appeal to most people. Not all people completely like them so not all people spend as much as others on electronics, other than that some people may not have enough money to buy any of those things because they’re usually expensive compared to other more cheaper yet more essential things. Social attitudes have changed. There are a lot of social attitudes that have changed over the years and all lead to different spending patterns with different types of people. For example more women are going to have an occupation and not a housewife, this leads to an increase in spending of both time saving appliances such as microwaves and ovens and babysitters. Though an increase doesn't mean all, some women choose to be a housewife. Not only that but richer people tend to have babysitters despite having a housewife in their household. In conclusion, different people have different spending patterns because of changes in the world that is currently happening and their own personal preference. Ivan Didik Abadi Wutama 8B
All people have their own needs and wants. Needs means they really have to fulfill it to keep their life continual. But wants means they don’t need those things as basic criteria to afford their life, but they will spend their money for wants, is because they have more than enough money to make them satisfy of their life.
People usually spend more than before if their wealth increase, their consumer confidence increase and interest rates decrease. Those three factors are related with money. But for the people who have less income, confidence and high interest rates in their country, they won’t spend so much so that they can save more to afford their future life. 1.Income Income is the most important role in getting money to fulfill people daily needs and wants. With high income they’ll have opportunity to spend much but with low income people can’t spend much because their wealth is limited. Consumer Confidence Consumer confidence also take important role in affecting people spending pattern. If their confidence is high means that they are sure that in the future, with the rest of the money after they spent, they still can afford their future life. Interest Rates If higher interest rates in their country, people won’t spend much but save more. Because before they spend on anything with their disposable income, they have to pay tax first. Because the higher interest rates, the higher the tax. Because their disposable income become less, so they will have less opportunity to spend their money for wants.
Commonly, the higher a person's income is, the more spending that the person will make. The reasons are: 1.Life Style Especially in this globalization era and advance information technology, people can easily know and adopt the trend of the other part of the world 2.Peer that certain income groups belongs to The higher one's income is, there is tendency that he/she would gather to the upper level community that has "higher" taste which in the end would affect the spending pattern 3.It is common in human being that the higher one's income is, he/she would try to obtain his/her wants of things which he/she could not afford formerly.
In many developed countries and some developing countries, people spend more, because of these following criteria. 1.Increase in their income 2.People work on less hours than before 3.Change in Social Attitudes 4.Couples married later and have fewer children 5.People have become more health conscious 6.Environment concern is increasing 7.Technology development have rapidly improved
But sometimes, different income group have same spending patterns. This may happen because of: 1.Many families in a certain countries that have many children so that the families in the country needs more money. 2.High Interest rates in the country so that people have to save more, not to spend much on wants and take focus on fulfilling their needs 3.Less satisfying product so that people don’t know what else goods to fulfill their wants and utility.
In conclusion, different people, should be different spending, because each people have different wealth, consumer confidence and consumer behaviour. They have their own money to fulfill their needs, wants and utility.
All people have their own needs and wants. Needs means they really have to fulfill it to keep their life continual. But wants means they don’t need those things as basic criteria to afford their life, but they will spend their money for wants, is because they have more than enough money to make them satisfy of their life.
People usually spend more than before if their wealth increase, their consumer confidence increase and interest rates decrease. Those three factors are related with money. But for the people who have less income, confidence and high interest rates in their country, they won’t spend so much so that they can save more to afford their future life. 1.Income Income is the most important role in getting money to fulfill people daily needs and wants. With high income they’ll have opportunity to spend much but with low income people can’t spend much because their wealth is limited. 2.Consumer Confidence Consumer confidence also take important role in affecting people spending pattern. If their confidence is high means that they are sure that in the future, with the rest of the money after they spent, they still can afford their future life. 3.Interest Rates If higher interest rates in their country, people won’t spend much but save more. Because before they spend on anything with their disposable income, they have to pay tax first. Because the higher interest rates, the higher the tax. Because their disposable income become less, so they will have less opportunity to spend their money for wants.
Commonly, the higher a person's income is, the more spending that the person will make. The reasons are: 1.Life Style Especially in this globalization era and advance information technology, people can easily know and adopt the trend of the other part of the world 2.Peer that certain income groups belongs to The higher one's income is, there is tendency that he/she would gather to the upper level community that has "higher" taste which in the end would affect the spending pattern 3.It is common in human being that the higher one's income is, he/she would try to obtain his/her wants of things which he/she could not afford formerly.
In many developed countries and some developing countries, people spend more, because of these following criteria. 1.Increase in their income 2.People work on less hours than before 3.Change in Social Attitudes 4.Couples married later and have fewer children 5.People have become more health conscious 6.Environment concern is increasing 7.Technology development have rapidly improved
But sometimes, different income group have same spending patterns. This may happen because of: 1.Many families in a certain countries that have many children so that the families in the country needs more money. 2.High Interest rates in the country so that people have to save more, not to spend much on wants and take focus on fulfilling their needs 3.Less satisfying product so that people don’t know what else goods to fulfill their wants and utility.
In conclusion, different people, should be different spending, because each people have different wealth, consumer confidence and consumer behaviour. They have their own money to fulfill their needs, wants and utility.
Expenditure pattern is actually a typical manner in which consumers purchase goods or services (or firms place their purchase orders) in terms of amount, frequency, timing, etc. Income groups are a segment of the population whose income falls within a certain range. Income groups are divided into 3; the upper class, the middle class and the lower class. The upper class consist of the most affluent people amongst them, the one with the highest income also most times they are the ones who wield the greatest political power. The middle class falls between the upper class and the working class (lower class). These people don’t have a very high wage but it isn’t that low either. In short the middle class is the broad group of people in contemporary society who falls socio-economically between working class and upper class. Last is the lower class, also known as working class or laboring class. They are those who are employed in lower tier, subordinate jobs. Generally these people have below average incomes, and they are the poorest amongst them.
There are many factors influencing the income group, one of them is the level of income or wealth. If one has a high income this person is more likely to spend than to save since he already has a high income. For example if you compare an upper class person’s spending to a lower class person’s spending it’ll have a huge difference. Since the upper class doesn’t have to worry about saving, he’s a very opulent person. On the contrary though the lower class has to save more than the upper class since he doesn’t have that much money and usually he limits his expenses, so he’s living thriftily.
Another factor would be family size. If a person has a big family his expenditure will be more rather than if he had a smaller family. A person with a big family will spend more on everything, food, electricity, water, clothes, etc. So, no matter what class you’re in, when you have a large family you tend to spend more than a person with a small family. But the difference would be that if an upper class person spends 10% of his income on his family’s expenditure it could be equal to a 50% of the income of a middle class person. Because they have different income levels, they have different percentages, and different spending patterns.
Spending patterns also differ by lifestyle choices. If an upper class is living a lavish lifestyle, he would tend to spend more than to save. An upper class tends to spend more than to save because of the amount of money he has plus he already got used to living with luxurious goods. On the other hand a working person would be very careful and calculative about what his expenses are. Hence he would save more than he spends.
Upper class people are usually educated people. These people tend to spend more than uneducated people (working people). Why? Because their interest varies. Educated people have learned more and gained more knowledge, hence they have various interests resulting in a higher expenditure. When a person has many different interests he will want to spend more in order to be able to satisfy himself.
Future expectations also include as one of the factors that affect one’s spending pattern. A person, regardless their class, who already thought and planned ahead for his future is more likely to save than to spend since he wants to make sure that his future is safe and that he’ll be successful in the future especially if that individual is insecure about his future.
In conclusion, there are many different factors that cause different income groups to have different expenditure patterns. However the one factor that affects the spending pattern most would be the income factor. Because of this income factor, we are divided into different classes. Hence we have a different idea and strategy on how to save and spend our money, therefore each one of us have different spending patterns.
Why do people have spending patterns , you may think why some people spent more than other people or some people spent less than the others and why do they have this difference in the spending they have this can be influenced by the factors that certain individuals have such as: 1. Income Usually this is the biggest factors that influenced the consumption of certain people because the more money a people earns usually effect the spending of each people like such as people who earns little won’t buy apple products since they couldn’t afford it even if they can they lifestyle will be disturbed like they must spent less on daily needs for saving to buy the products.
2. Future expectation some people believed that they will get a rise or go to higher rank soon so their future expectation increase because they are confident that they will have enough money in the future so they don’t really care about the amount of money they are spending 3 .Consumer behavior Some consumer have different behavior some consumer are stingy on their spending while others are not ,so some people have less spending pattern while others don’t that why consumer behavior can be a influence of spending in certain circumstances some people who like to buy things will spent more than people who rather buy less . 4.wealth People who have a lot of wealth also will spent more than person that have less wealth because they are rich so they didn’t need to think about their expenses because they have a lot of wealth like for example john parents died and inherited john with money so of course john will have a lot of wealth without working so john will also spent more than people who are working. 5.borrowing Some people are willing to borrow money for their need and wants so sometime people spent a lot with the money they borrowed because maybe at the end of the month he get a payments so he think he can repay the amount he owed so he will spent more but some people are scared to borrow money because they think they couldn’t repay it and also if they borrowed to bank they could get a very big interest rate from the bank and their properties such as house or land can be mortgaged or sold if they couldn’t repay that’s why some people are scared to owe to the bank money. 5.saving Some people want to save more than their spend while other like to spent and the n save the unused money that’s why some people have different patterns like if you buy a lot of things it don’t mean they are rich but we also must see their savings because some people who spent a lot will have less saving than the person who spent less.
So in my conclusion there are factor than influence customer behavior like such as Income ,future expectation, wealth, borrowing and consumer behavior that’s why some people spent more than the others but for me the best factors that influence a person spending patterns in their daily lives is their income or earnings.
Different income groups, the upper class, middle class, and lower class, all have different spending patterns. Why? There are a number of reasons for this statement, such as the lack or abundance of funds, financial mentality, desire vs. ability to attain luxury. Financial Priority as pertaining to social economical status also plays a large role in motivated spending. There are some who would go on to suggest that the IQ's of those in both the lower and upper bracket are directly related to their social economical status; IE, The less intelligent, the lower the status, etc. Which would, if it plays another large role in specific spending patterns. These factors include the particular type of household, the stage in the family life cycle and the particular values and preferences of households. The spending patterns of most households are dominated by five main types of spending which are taxation, food, transport, recreation and health. 1. Taxation – Tax took the largest share of incomes. People with high wages (could be people who have industries) must pay bigger tax then those people with lower incomes (poor people). 2. Food – The other biggest cost that took the largest share of incomes is food. People need food to eat. They usually eat 3 times a day. In that case, people will spend their income on food because it is a must. Food is part of our needs. But people with bigger incomes will want delicious foods which are expensive, while the lower income people will buy food only to fulfill their needs, it don’t need to be yummy. At least they gotta eat and fill their empty stomach. 3. Transport – Closely following food costs was spending on transport. People’s wants are unlimited. Everyday, technology is improving. And transportation are being improved. People with higher incomes will want to buy the newest form of transportation which is extremely expensive. While people with lower incomes will prefer to use public transportation which will not cost much. 4. Recreation – People with lower income will not not afford to go too far during recreation or they could even decide not to go anywhere. While as you can notice, people with higher incomes or as we can say, rich people, will travel at least once a year. 5. Health – People with lower income will have less health facilities because they can’t afford to have the best health facilities. They will only afford the health facilities according to how much they can pay for it. While people with higher income will definitely search for the best doctor and to receive the best health facilities. People with higher income will obviously spend more than those people with lower income. Because people with higher income have more money to buy things compared to people with lower incomes. This shows that many things are more affordable for people with higher incomes, and this explains why they spend more. They know that they have money to buy things they want and they will have less desire to save. Which person would not want luxury things, a more comfortable transportation to ride on and a more gorgeous house to live in? While the lower incomes people will prefer to save more than spending, because they know that they have limited money to spend. They can only afford to buy a few things. They will buy first things first, such as their needs. For example : foods, clothes and a house to live in. People with low incomes will not bother to buy branded things, while those people with high incomes will want to buy branded things. This explains why different income groups have different spending patterns.
What is spending pattern? Spending pattern is the pattern of a person to spend their money. Every group have different spending pattern because everyone is different. Every person have different behavior, income, wealth and confidence. Behavior is the way or manner in which one conducts oneself. Income is the total money we get. Wealth is the total money we have. Confidence is great faith in oneself or one's abilities. Why everyone have different behavior because they have different income, wealth and confidence because they are all related. Why? There’s an example of it, If you have an income for Rp 500 000 per month, it’s rarely for some people want to eat in a restaurant that every portion cost Rp 700 000 once per month. Why? Because you also want to fulfill your needs too, you need to buy food for the other days, washing clothes or buy clothes and pay the cost for your house. But, if you have an income Rp 15 000 000 per month, you can eat a food for Rp 700 000 for once a month. Why? You still have another Rp 14 300 000 to fulfill your needs and wants. So, that example can give the reason why behavior, income, wealth and confidence are related. But, wealth can give you reason you want to save your money or spend your money, The example of wealth can determine your spending pattern except income is, person A have an income as much as person B. But person A have his own house, but person B live with his parents. It can affect the spending pattern of person B. He want to save his money to buy his own house and person A can have more spending than person B because person A only think about his saving for buy things that he want because he have fulfill his needs but person A hasn’t fulfill all his needs, so he also need to save for his needs and wants. And the last is confidence, if a person can belief that he can be success in the future, he must study hard to get his desire. Example, if a person want to be a doctor in the future, he must study in the university for a long time to get the license to become a doctor, so it can take a lot of money. To save a lot of money, he must decrease his spending. But it also depend on his wealth, if he is a rich man, he can spend the amount of money he usually spend and he can use his saving, but saving can be finish, so he should save more money for his future expectation. So, different income group have different spending pattern because of some reason. The main reason that determine someone’s spending pattern are income, wealth, behavior and confidence. As we know everybody is different and as the most important thing is the desire to buy things and how they can control their desire to buy things.
How do people spend their money ? Every people have different spending pattern. This is cause because of their needs and wants. First we are talking what is spending pattern ? Spending pattern is the way how people spend their money. There are many rich and poor people in this world. Rich people maybe spend their income / wages for unnecessary things.For example, they spend their money for buying antique cars. This is a bad way of spending pattern. Every person has their own habit how to spend their own money. Rich people have more money to satisfy their needs and wants.
Different income groups, (upper, middle, and lower class) have different spending patterns for a number of reasons such as the lack or abundance of funds, financial mentality, desire vs. ability to attain luxury. Financial Priority as pertaining to social economical status also plays a large role in motivated spending. There are some who would go on to suggest that the IQ's of those in both the lower and upper bracket are directly related to their social economical status; IE, The less intelligent, the lower the status, etc. Which would, if it where the case, play another large role in specific spending patterns. For example : people have 13 000 000 earnings a month . They can spend that 13 000 000 money for their child needs , their needs , etcetera. Their needs is 30 000 000 a year . So they can save a money for another needs . 13 000 000 * 12 = 156 000 000 . 156 000 000 - 30 000 000 = 126 000 000 . They still have 126 000 000 savings. This is how to spend your money . This is the stable spending pattern . Less Spending , More on The SAVING . Saving is very important . If when the people's economy has a less income , they can use their savings to build their own working station . This is the right of doing the spending pattern . Everyone are different . We are born to be differ from the others . Spending pattern may have lesser spending and savings. It is all people's rite to do that . Because some people don't know how do they use their money . Better, they save their money first so, when they're needed , they may use that money for buying goods and service . All Peoples are different . We are all human being .
Every people in the world are different. There are the rich and the poor , they are different in their personalities, characteristics , religion , and so on. But all of the people in the world have their own spending pattern. What is a spending pattern ? Spending pattern is a pattern that shows the spending rate of a person. Spending pattern is divided into some categories that are related to goods or service that we buy in our daily life. The spending pattern of each person in the world are of course different because each people have different needs and wants. It is said that the spending pattern is divided into categories that are related to the goods and service that we buy in our daily life . It is also said that the spending pattern of each person in the world is different because they have different needs and wants. Here are the examples : 1.Housing , Fuel , Power : The rich people will tend to have a higher spending rate in this category because most of the rich people in the world tend to have a larger house and more vehicle. The vehicles need fuel and the larger the house is , the larger the power that is needed for the house appliances. The poor people tend to have a smaller house because they just need to buy a house that is sufficient for them. Poor people will also spend less on vehicle because some of the poor people don’t have one or they often use public transport rather than their own vehicle because they think using public transport is much more cheaper. 2.Education : The rich people will tend to spend more on education because they want to pursue their dreams or they want to have a big salary so they will spend more on education. The poor people spend less on education because some of the parents need their children to help support their family’s income or some of the parents don’t want to spend more so they can spend their money on things that are more important. 3.Alcoholic drinks , tobacco and narcotics : The rich people spends less in this category because they have a higher education level than most poor people so they are taught in their school to not drink alcoholic drinks, not to smoke , and not to use narcotics. While for the poor people have a lower education , as it is said in number 2. So they don’t know anything about the effects of using narcotics , drinking alcoholic drinks , and smoking. There are categories where the poor and the rich will have a different spending pattern but there are also categories where their spending pattern are almost the same. Here are the examples : 1.Health : The rich and the poor people have the same spending rate because both poor and rich people need to take care of their health because it is important for doing daily activities. 2.Clothing : The rich and the poor people have the same spending rate in this category because clothing is as important as health because without clothing , their health could be disturbed because clothing help us to protect our body. So each person in the world have a different spending pattern but in some categories their spending pattern are the same.
Spending pattern is the pattern on how we spend our income, which is the money we got for doing work. Income is the total sum of any type of earning that we get by doing work in a period of time. The income of a person varies depends on the work you do. The income receive by a person ranges from the lowest to the highest, it differs in everybody.
A person would spend his/her money in order to satisfy our needs and wants, which are essential for the survival of our life. There are factors that causes the want to spend money and buy things:
Income, different people have different income as they work in different kinds of jobs. Different incomes means different pattern of how we spend the money, for example, a higher-earning worker would spend more money on their wants because they have the sufficient money to. But on the other hand, a person can just save their money rather than spending it, to help them in the future, as pension money or money to help their child/childern’s education.
Satisfaction, a person would of course have wants in their life, so they buy goods in order to satisfy our wants and by using it properly, we’re using it to the maximum in which brings us more satisfaction.
Wealth, A wealth of a person can affect their spending pattern, a person with more money would buy more because they have the money to do so, but on the other hand, wealth does not define them, a wealthy person might spend less than a less wealthy person because of reasons, like, the poorer person may have a bigger family to raise, which means the cost of living are high, as some parents have more kids to ensure that they pass to adulthood, but wealthy person might have less children, as they live in a more luxurious life and the cost of living are very high.
Consumer behavior, the behavior of a person to a good differs from one another as each and every person have different tastes, one would consider a good be suitable for his/her taste while another would dislike it.
Future expectation, when buying a good, a person would have to think about the uses of the goods, would it be useful now or in the future, but on the other hand, a person could just buy a once use goods lie foods, once we eat the food, it’s gone but it can help our growth.
So, in conclusion, different income groups have different spending patterns because a person’s opinion and tastes differs from another, but the income of a person affects greatly on a person’s spending pattern.
Every people in the world are different, there’s the rich, there’s the poor, there’s the handsome, there’s the one that is not so handsome, etc. People use money to fulfill their needs and wants and their family’s needs and wants. Rich and poor people are different by class, amount of wealth, dignity. And they’re also different in spending patterns because they’re in different income groups. Some rich people spend money mostly on tertiary items, which is actually not needed by them. It’s only to fulfill their needs and wants, for example: Ferrari, Louis Vuitton, if holiday, stay at Burj Dubai, etc. Whereas poor people spends money more on primary resources, the resources they need for survival, for example: Home for shelter, gas to cook, electricity to iron shirts, etc. They’re also different on spending patterns besides the example above. So this time we’re going to analyze why different income groups have different spending patterns in both LEDC and developed countries.
ReplyDeleteSo, as we discussed in the introduction above, we know that different income groups have different ways to spend the money they have earned. First, because of ways to solve the stress they have. This is proved according to the bar graph on activity 3.16 on page 164 on the alcohol drinks, tobacco and narcotics graph. In the graph, the poor waste more on this section because they have a lot of stress thinking about tomorrow and the future: do they can eat, do they can pay cost and etc. Whereas for rich people, they handle stress by going to vacation, relax, etc. This can be proved by the bar graph on activity 3.16 on page 164 on the recreation and culture section. Next, technology has increased, making people become more increasingly tempted to buy more and more products, making them spend more money for housing, household goods and services. This can be proved on the line graph on page 165.
Before, people work for a long time to get lots of money, but now, we work for fewer hours than before but still can get the same amount of money or even more than the amount of money earned before. So, now people have more leisure time, so they increase in expense because they spend more, they spend on vacation, on fitness, gardening, and eating in restaurants. Another reason is because now social attitudes have changed. In these times, women have worked to help the husband to support the family. So that, they have less time to take care of their families and has increased in demand for more time efficient applications. And maybe she will pay for a maid to do her job she supposed to do at home. The next reason is because people have become more care about their own health. So now they spent more to sports activities and equipment. Now healthy foods and more demanded to maintain their health.
The thing I want to say is that maybe in different countries they have different spending patterns. As long as it’s still normal then it’s fine.
This comment has been removed by the author.
ReplyDelete
ReplyDeleteThe income that is spent by people depends on the disposable income. Disposable income the income of a person has left after income related tax, and charged have been deducted. The more disposable income the person has, the greater their potential consumer expenditure on goods and service, and the more they will be able to save. But, how much people spend with their disposable income will also depend on the price of the product. The increase of the price will reduce the real purchasing power of income. Some people with very low disposable income may only be able to afford to satisfy their basic need, such as foods, shelter, and clothes. But, the people who have a higher disposable income may choose to consume a vast array of different goods and service, mainly for pleasure. So, the disposable income will affect the spending pattern. We can examine consumption pattern or spending pattern by income group, gender, and age, and also overtime. The firms will use this information to target the consumer and to produce what kind of product. This information is also useful for firms to advertise their product so that consumer will be attracted.
The consumption pattern have been observed in may developed country, and now, in some developing countries, and the result of factor that affect spending pattern especially by income group are:
1. Real income has risen.
A group of people that have high income (disposable income) will be much more braver to spend their money. They will buy some goods not based on the price of the goods, but the quality, design, or advertising. The increase use of the credit card is to boost spending, also reflects a change in attitude over time towards borrowing and debt. A group of people that have higher income will have a greater limit in credit card, so they will spend more than the others.
2. People work fewer hours than many years ago. The bigger wages someone have, usually their working hour will be decreasing (director, commissioner). People with this position works more outside the office. Usually they will meet clients at lunch, so the spending for eating in a restaurant, or transport will be increase. This will be caused by spending pattern of people that have high income becomes bigger. People that work with fewer hours usually will spend their time to spend on holiday, doing their hobbies (gardening, sport) where it is needed a cost that is not little.
3. Social attitude have changed
Someone who have a good education often offered to work in other countries with higher income or someone who have a good achievement or award will be send to other countries by the company they work in. this surely make their income higher. Based on this condition, people must buy appliance to help them finishing their household (such as microwave, dishwasher, refrigerator, etc.) this person is usually will face a change in social attitudes or lifestyle, that become people that is more likely to buy rather than making (ex: buy a food in the restaurant rather than cooking)
So in conclusion, the income group makes a different pattern in spending pattern, the bigger the income a person gets; the spending pattern is higher. Usually, the group that has the same average income will have a similar pattern in spending pattern. For people that only got a little amount of income, their spending incomes will e limited to cover their needs and little wants.
Celine Kusnadi 8B
There are many kinds of people with different economic ability level as well as spending patterns. These are caused by their different needs, wants, occupations and earnings. There are people who are satisfied just by completing their needs but there are also many people who have many kinds of wants as well as expectations from the society they are in. due to the different ability, educational background and also opportunities, people will get different occupations which affect the level of their income.
ReplyDeleteFor the people who have a low level of occupation and receive only enough some of earnings to fulfill their needs, they tend to not having the temptation to get other things beside of the basic needs. This is because their income is sometimes not even enough for them to get their basic needs. This is why they have a very low spending pattern as the only thing that they have in mind is just to get enough to pass their daily life.
For the people who have more than enough income, they usually are already fulfilled their basic needs. thus, the next level of life which is wants approached them. For example, they might want to get a better food, better living environment, better school for their children, nice transportation and also better clothing. This actually will directly caused their spending to increase and also different with the previous group of people. These people actually is no longer focused on what their needs but more to what they wants. Some of them even cannot differentiate which one is their one and which one is their needs. they tend to think what they want is actually what they need, for example, people need food like rice, vegetables, and meat to survive and eat when they are hungry, but for some people they get their food in restaurant or more expensive food, while thinking what they are getting is just what they need which is food.
The next group of people even have a greater spending pattern. This group of people are the people who have a big amount of income and some of them even have a marvelous number of earing. They now even more concern to what other people think about them and so indirectly they are living live in what other people expect from them. For these people they are concern about what the public see and they care about their pride. They are willing to spend more money and even a great some of money to get the best things they want. For them pride is also one of their needs, for example, for transportation they don’t only need just any car but they actually spend money to get mercedes for their transportation so that they will earn respect and awe from the public they are in. this things also apply in all of their daily aspects such as fine food, fine clothing and also holidays. They put satisfaction as priority of their lives and so they are willing to pay more for it. This is why these group of people have a very high spending patterns.
Vincent CIA
8B
The spending pattern depends on how much disposable income a person has. Disposable income is the net income after you pay your taxes. In Indonesia there are still many people that have low disposable income. These people with very low disposable income may only be able to satisfy their basic needs like buying rice,shelter. There are even some people that cannot afford rice and shelter because of having low disposable income. Rich people with high disposable income may choose to consume luxury goods and good services. They are looking for quality, comfortability, and sometimes pride in consuming goods or services. Global economic growth also influences the spending pattern.When economic growth, spending pattern will increase, when economic falls, spending pattern will decrease.
ReplyDeleteSpending pattern is also useful for firms because it allows them to target the goods and services they produce and advertise at particular groups of consumers they want to attract to buy those products. Spending pattern can be classified by income groups, changes in age, changes in technological conditions. In high income groups people usually spend far more on luxury items,leisure activities and other goods and services to satisfy their wants but overall will tend to spend a lower proportion of their total disposable income. In lower income groups they spend all their money to meet basic needs and if possible to satisfy a few wants from time to time. There are some factors that influence the spending patterns of income groups:
A. Income has risen.
Higher income enable people to spend more and satisfy their wants. Higher income makes it easier to make credit cards, we know credit cards boost spending and also changes the taste , attitude and spending pattern of people. Higher income makes people buy more goods and services, this influences the spending pattern.
B. Couples are marrying later in life and having fewer children
Usually people that have high income choose to postpone getting married. Consumption pattern for different goods and services, and also saving pattern are therefore changing over time as the average age of population rises. It means growing number of single people will increase the number of households but a fall in their average size. This helps to increase the amount spent on housing and households goods and furnishings over time. Single people tend to spend more on going out and travelling. Its easier for people with high income to travel and buy household goods and furnishings.
C. Social attitude has changed
People who have high income are usually changing their opinion on goods and services. Their looking for quality and they don’t care about the price. More females and males are going out to work in many countries that results in higher income, so in other countries they will buy durable appliances like microwave,TV,computer,refrigerator and washing machine. With high wage sits easier to buy these kind of items.
So in conclusion income groups make a variety of spending patterns. With higher income people will buy many goods and services to satisfy themselves.
Different income group will always have a different spending pattern . It must be impossible if poor people spending their money on expensive goods . They will always choose the cheap product because its their capability . If their spending on an expensive goods , they may not pay it because their income is not as big as the price they bought . This is also happening to a rich people . Almost all rich people will spend their money on a quite expensive goods . Because normally expensive goods are having a good quality of product .So rich people usually will choose the one that have a good quality product .Actually poor people will always want to buy this good quality product . But the problem is their not as lucky as the rich people . Their income is not enough to buy it . There is also a people that are medium . They are not really rich and they are also not really poor . This people that like this are usually the one who work in the office . They will not get a high income because they are still a labor . The rich people are usually the owner of a company . So this medium people will spend their money according to their wages . They are usually spend their money on normal goods and they are not searching for a good brand . Because good brand are usually the expensive one . Normally rich people is the one who always searching for a good brand . The more famous the brand the more product they will buy . But medium income people are usually not searching for this because their income is not really big . Although sometimes there are also some people like this ,but there are not too many .
ReplyDeleteSome poor and medium people will not always spend their money on a cheap things . There are also some people that want to give a really good school for his kids , so they enter their kids to a good school . Good school are usually expensive . But there are some people that still wanting his kids to enter the school because they want to make sure that the kids will not become like him in the future . They can get a better job in the future .
There are also another reason why people have a different spending pattern . First , like I told before is the income . Income is the main reason why people have a different spending pattern . Second , is also the wealth . The richer a person ,the better product they will bought . Third is the consumer behavior . Sometimes people are buying a product because its exactly what they like .People will always have a different likes .That’s why not all people are buying the same product . People will not buy the product if its not their want . That’s why some company are usually wanting a chart that consist of the most consumer spends .From here the company can know what is the most product they bought . What is the product look like and what is the advantage of it . Then from here they also can make another product that have a similar look and they will add some more advantages so that product will sold out . Fourth is the future expectation . This is also some other reason why people are spending on a different product .
So , the conclusion is that different income group will always have a different spending . Rich people are usually spend their money on an expensive product and the poor people will usually spend their money on a cheap product . There are also some other effect why people are spending on a different product .
kezia _ 8b
Different income groups will have the different spending incomes. Why different income groups have the different spending incomes? Because they have different needs and wants at their life and they have different work so they have different incomes. There are also the poor family and the rich family, between them sure they will have the different spending incomes. Poor people will not buy iPod because they do not have enough money to buy it, while the rich people can buy it, the reason the poor people can’t buy the iPod is also when they buy it they don’t have enough money to buy the other things like the food, etc. while if the rich people can buy anything.
ReplyDeleteThey have different spending incomes, the spending depends on the first, the income, if they have little income they will not buy the expensive things, they just buy the needs at their life, while the one that have a greater income, they can buy expensive things and they also can buy their needs and wants because they have enough money. Second, based on their behavior, for the poor people they will save more rather than spend because they need the money to enough their needs at their life. While most of the rich people, behave extravagant, so they spend much money on their wants. Third, based on the wealth, that means an abundance of valuable possessions or money. The rich family will buy the expensive things and the good one, rich family of course will not buy the second hand things. Fourth, based on the confidence, or about the future expectations, so they also think about the future example for their child needs and wants at their life.
But not always that the poor people always spend less than the rich people, some rich people also behave economically, means that they are not spend too much, some rich people do that because they want to save more for the example the child future, they want to prepare all the things and need for the child, so that in the future the child can success, people will also spend on education, they will not spend less on education because education is s important for everyone, while id they are spending less on the education means they do not get enough knowledge, so people will spend more for the education, the rich one nor the poor one will spend more on education.
So in the overall, the conclusion is that the different groups will have the different spending incomes, but not all of them have different spending incomes, they will have the same spending incomes like example for the education they will not give the bad one for the education, they will always give the best for education. Most of the rich family will spend more than the poor family because the main factor is they have different income. While the rich family have bigger income and the poor family have a little income.
-Shelvina Gabriela 8B-
If we analyze the spending pattern of each person, we realize that every one of them is related to his or her income or earnings, so since each person’s income is different from the other, we have different spending rate. Some people spend more and some do not, some are spending more in a particular activities and some to another activities.
ReplyDeletePeople spend to satisfy their needs and wants, which are unlimited, it means were doing the activity of consumption, which will lead to our satisfaction, which will rise our utility, the want to satisfy power of commanding. For consumption, it depends on income which is the source of our money, wealth, the consumer’s behavior which they tends to save some of the money or spend all of them, and the confidence about his or her future of choosing his or her option.
The consumption pattern or trend has been observed during these few years in developed countries, some of them are the amount of hours each people work, people who are well educated and has a high role in some business, examples are manager, partner, share-holders, work less hours than the unskilled, examples are the office boy, and the low-positioned people in the business. The office boys have to clean the whole buildings and provide services for the higher-leveled employees, while the low-positioned employees have to work harder, they often stay at the office until late while the other has go home in order to finish their work. The high-positioned employees usually is the one who meet clients, outside the office, they went home earlier than the low-positioned employees. But the spend more because they meet clients at café, restaurant, hotels n etch. To get there, they need a transportation which cost them not little and they must get dressed formally, and while they have conversation with their clients they will buy something to eat or drink, and even they sometimes offer themselves to pay the client’s bill to encourage them to work with them.
The rich, spend more than the poor, why? Because they have higher wages than the poor. They spend more in some specific activities like entertainment and culture, but this doesn’t mean that the poor don’t have any entertainment, they have culture celebration like tumpengan, dangdut, they don’t need a lot of money for this, but most of them don’t go to the casino, high-class pub, etch. The rich spend their money on entertainment more because most of them go to places like Disneyland, universal studio, casino and etch, these need a lot of money, for the transportation, money for settlement and food, includes if they buy some souvenirs.
But against the statements above, not all rich spend more than the poor and the poor spend less than the rich, some of the riches tends to save their money intensively, like for example they don’t drink much but when they drink, they drink the super expensive alcohol or some of them have their own bar inside the house. And some poor spend more on alcoholic drinks, usually to forget about their stress for a while, and if they don’t have money to buy what they want, if they think short they will borrow money and spend them, and if they cant repay their loan, they will be in trouble and can even get into jail.
So, it come to a conclusion that every people in this world has different spending pattern, it comes to when they have different incomes, their economical family condition, their confidence about the future and etch. Rich people can spend more or less than poor people but most of them will spend more and when buy something, will see the quality not the price. Most of the poor spend less because they have less money, even for health, if someone get sick but they don’t have the money to go to hospital to buy medicine, but the rich people can buy. –the end-thania vireta 8b
There are many different types of people those who are in the higher than average on earnings, those who are in the bottom end on earnings, those who are very cautious in what they spend, those who likes to spend everything they have, and those who just happen to like travelling and so on. All of the time these different groups of people have slightly different to completely different spending patterns.
ReplyDeleteWhy do these different types of people have completely different spending patterns? There are a lot of factors affecting this.
Most notably is the fact that the group of people who earn more than the average person would be able to buy more things. People want to have more things that they can own as it is normal human nature to never be satisfied with what you have, and having a higher salary rate would make them able to own more things. This would mean that everyone would want to purchase anything they can purchase but for most people they would save their hard earn money to avoid the risks of buying everything that you can buy.
Another factor is that people have become more health conscious. As people now know how important is health to a person. This increases the spending rate of products that would help people to increase their health for example sports equipment, gym memberships, health trainers, insurances and so on. On percentage people who are rich, averagely paid, and poor spend on overall the same amount on these products. Why is this? Because no matter how rich or poor you are you are going to worry about your health as the same as everyone else. Though, like almost anything there’s always an exception to this like someone who really doesn’t care that much on health care though people like these are rare.
Technology is advancing rapidly. It is much more widely available than ever before. This is a huge change as back then electronics weren’t even consumer goods and even if they are they would be so expensive most people wouldn’t purchase it. Now because it is much more widely available as consumer goods in forms of PC’s, laptops, tablets, phones, gaming consoles there’s an increase in demand for these electronics as they appeal to most people. Not all people completely like them so not all people spend as much as others on electronics, other than that some people may not have enough money to buy any of those things because they’re usually expensive compared to other more cheaper yet more essential things.
Social attitudes have changed. There are a lot of social attitudes that have changed over the years and all lead to different spending patterns with different types of people. For example more women are going to have an occupation and not a housewife, this leads to an increase in spending of both time saving appliances such as microwaves and ovens and babysitters. Though an increase doesn't mean all, some women choose to be a housewife. Not only that but richer people tend to have babysitters despite having a housewife in their household.
In conclusion, different people have different spending patterns because of changes in the world that is currently happening and their own personal preference.
Ivan Didik Abadi Wutama
8B
All people have their own needs and wants. Needs means they really have to fulfill it to keep their life continual. But wants means they don’t need those things as basic criteria to afford their life, but they will spend their money for wants, is because they have more than enough money to make them satisfy of their life.
ReplyDeletePeople usually spend more than before if their wealth increase, their consumer confidence increase and interest rates decrease. Those three factors are related with money. But for the people who have less income, confidence and high interest rates in their country, they won’t spend so much so that they can save more to afford their future life.
1.Income
Income is the most important role in getting money to fulfill people daily needs and wants. With high income they’ll have opportunity to spend much but with low income people can’t spend much because their wealth is limited.
Consumer Confidence
Consumer confidence also take important role in affecting people spending pattern. If their confidence is high means that they are sure that in the future, with the rest of the money after they spent, they still can afford their future life.
Interest Rates
If higher interest rates in their country, people won’t spend much but save more. Because before they spend on anything with their disposable income, they have to pay tax first. Because the higher interest rates, the higher the tax. Because their disposable income become less, so they will have less opportunity to spend their money for wants.
Commonly, the higher a person's income is, the more spending that the person will make. The reasons are:
1.Life Style
Especially in this globalization era and advance information technology, people can easily know and adopt the trend of the other part of the world
2.Peer that certain income groups belongs to
The higher one's income is, there is tendency that he/she would gather to the upper level community that has "higher" taste which in the end would affect the spending pattern
3.It is common in human being that the higher one's income is, he/she would try to obtain his/her wants of things which he/she could not afford formerly.
In many developed countries and some developing countries, people spend more, because of these following criteria.
1.Increase in their income
2.People work on less hours than before
3.Change in Social Attitudes
4.Couples married later and have fewer children
5.People have become more health conscious
6.Environment concern is increasing
7.Technology development have rapidly improved
But sometimes, different income group have same spending patterns. This may happen because of:
1.Many families in a certain countries that have many children so that the families in the country needs more money.
2.High Interest rates in the country so that people have to save more, not to spend much on wants and take focus on fulfilling their needs
3.Less satisfying product so that people don’t know what else goods to fulfill their wants and utility.
In conclusion, different people, should be different spending, because each people have different wealth, consumer confidence and consumer behaviour. They have their own money to fulfill their needs, wants and utility.
All people have their own needs and wants. Needs means they really have to fulfill it to keep their life continual. But wants means they don’t need those things as basic criteria to afford their life, but they will spend their money for wants, is because they have more than enough money to make them satisfy of their life.
DeletePeople usually spend more than before if their wealth increase, their consumer confidence increase and interest rates decrease. Those three factors are related with money. But for the people who have less income, confidence and high interest rates in their country, they won’t spend so much so that they can save more to afford their future life.
1.Income
Income is the most important role in getting money to fulfill people daily needs and wants. With high income they’ll have opportunity to spend much but with low income people can’t spend much because their wealth is limited.
2.Consumer Confidence
Consumer confidence also take important role in affecting people spending pattern. If their confidence is high means that they are sure that in the future, with the rest of the money after they spent, they still can afford their future life.
3.Interest Rates
If higher interest rates in their country, people won’t spend much but save more. Because before they spend on anything with their disposable income, they have to pay tax first. Because the higher interest rates, the higher the tax. Because their disposable income become less, so they will have less opportunity to spend their money for wants.
Commonly, the higher a person's income is, the more spending that the person will make. The reasons are:
1.Life Style
Especially in this globalization era and advance information technology, people can easily know and adopt the trend of the other part of the world
2.Peer that certain income groups belongs to
The higher one's income is, there is tendency that he/she would gather to the upper level community that has "higher" taste which in the end would affect the spending pattern
3.It is common in human being that the higher one's income is, he/she would try to obtain his/her wants of things which he/she could not afford formerly.
In many developed countries and some developing countries, people spend more, because of these following criteria.
1.Increase in their income
2.People work on less hours than before
3.Change in Social Attitudes
4.Couples married later and have fewer children
5.People have become more health conscious
6.Environment concern is increasing
7.Technology development have rapidly improved
But sometimes, different income group have same spending patterns. This may happen because of:
1.Many families in a certain countries that have many children so that the families in the country needs more money.
2.High Interest rates in the country so that people have to save more, not to spend much on wants and take focus on fulfilling their needs
3.Less satisfying product so that people don’t know what else goods to fulfill their wants and utility.
In conclusion, different people, should be different spending, because each people have different wealth, consumer confidence and consumer behaviour. They have their own money to fulfill their needs, wants and utility.
The first answer I've posted is the broken answer, and the correct one is the second answer in(Reply Menu), Thanks - Constantius Neil 8B
DeleteExpenditure pattern is actually a typical manner in which consumers purchase goods or services (or firms place their purchase orders) in terms of amount, frequency, timing, etc. Income groups are a segment of the population whose income falls within a certain range. Income groups are divided into 3; the upper class, the middle class and the lower class. The upper class consist of the most affluent people amongst them, the one with the highest income also most times they are the ones who wield the greatest political power. The middle class falls between the upper class and the working class (lower class). These people don’t have a very high wage but it isn’t that low either. In short the middle class is the broad group of people in contemporary society who falls socio-economically between working class and upper class. Last is the lower class, also known as working class or laboring class. They are those who are employed in lower tier, subordinate jobs. Generally these people have below average incomes, and they are the poorest amongst them.
ReplyDeleteThere are many factors influencing the income group, one of them is the level of income or wealth. If one has a high income this person is more likely to spend than to save since he already has a high income. For example if you compare an upper class person’s spending to a lower class person’s spending it’ll have a huge difference. Since the upper class doesn’t have to worry about saving, he’s a very opulent person. On the contrary though the lower class has to save more than the upper class since he doesn’t have that much money and usually he limits his expenses, so he’s living thriftily.
Another factor would be family size. If a person has a big family his expenditure will be more rather than if he had a smaller family. A person with a big family will spend more on everything, food, electricity, water, clothes, etc. So, no matter what class you’re in, when you have a large family you tend to spend more than a person with a small family. But the difference would be that if an upper class person spends 10% of his income on his family’s expenditure it could be equal to a 50% of the income of a middle class person. Because they have different income levels, they have different percentages, and different spending patterns.
Spending patterns also differ by lifestyle choices. If an upper class is living a lavish lifestyle, he would tend to spend more than to save. An upper class tends to spend more than to save because of the amount of money he has plus he already got used to living with luxurious goods. On the other hand a working person would be very careful and calculative about what his expenses are. Hence he would save more than he spends.
Upper class people are usually educated people. These people tend to spend more than uneducated people (working people). Why? Because their interest varies. Educated people have learned more and gained more knowledge, hence they have various interests resulting in a higher expenditure. When a person has many different interests he will want to spend more in order to be able to satisfy himself.
Future expectations also include as one of the factors that affect one’s spending pattern. A person, regardless their class, who already thought and planned ahead for his future is more likely to save than to spend since he wants to make sure that his future is safe and that he’ll be successful in the future especially if that individual is insecure about his future.
In conclusion, there are many different factors that cause different income groups to have different expenditure patterns. However the one factor that affects the spending pattern most would be the income factor. Because of this income factor, we are divided into different classes. Hence we have a different idea and strategy on how to save and spend our money, therefore each one of us have different spending patterns.
Charlene 8B
Why do people have spending patterns , you may think why some people spent more than other people or some people spent less than the others and why do they have this difference in the spending they have this can be influenced by the factors that certain individuals have such as:
ReplyDelete1. Income
Usually this is the biggest factors that influenced the consumption of certain people because the more money a people earns usually effect the spending of each people like such as people who earns little won’t buy apple products since they couldn’t afford it even if they can they lifestyle will be disturbed like they must spent less on daily needs for saving to buy the products.
2. Future expectation
some people believed that they will get a rise or go to higher rank soon so their future expectation increase because they are confident that they will have enough money in the future so they don’t really care about the amount of money they are spending
3 .Consumer behavior
Some consumer have different behavior some consumer are stingy on their spending while others are not ,so some people have less spending pattern while others don’t that why consumer behavior can be a influence of spending in certain circumstances some people who like to buy things will spent more than people who rather buy less .
4.wealth
People who have a lot of wealth also will spent more than person that have less wealth because they are rich so they didn’t need to think about their expenses because they have a lot of wealth like for example john parents died and inherited john with money so of course john will have a lot of wealth without working so john will also spent more than people who are working.
5.borrowing
Some people are willing to borrow money for their need and wants so sometime people spent a lot with the money they borrowed because maybe at the end of the month he get a payments so he think he can repay the amount he owed so he will spent more but some people are scared to borrow money because they think they couldn’t repay it and also if they borrowed to bank they could get a very big interest rate from the bank and their properties such as house or land can be mortgaged or sold if they couldn’t repay that’s why some people are scared to owe to the bank money.
5.saving
Some people want to save more than their spend while other like to spent and the n save the unused money that’s why some people have different patterns like if you buy a lot of things it don’t mean they are rich but we also must see their savings because some people who spent a lot will have less saving than the person who spent less.
So in my conclusion there are factor than influence customer behavior like such as Income ,future expectation, wealth, borrowing and consumer behavior that’s why some people spent more than the others but for me the best factors that influence a person spending patterns in their daily lives is their income or earnings.
Different income groups, the upper class, middle class, and lower class, all have different spending patterns. Why? There are a number of reasons for this statement, such as the lack or abundance of funds, financial mentality, desire vs. ability to attain luxury. Financial Priority as pertaining to social economical status also plays a large role in motivated spending. There are some who would go on to suggest that the IQ's of those in both the lower and upper bracket are directly related to their social economical status; IE, The less intelligent, the lower the status, etc. Which would, if it plays another large role in specific spending patterns. These factors include the particular type of household, the stage in the family life cycle and the particular values and preferences of households.
ReplyDeleteThe spending patterns of most households are dominated by five main types of spending which are taxation, food, transport, recreation and health.
1. Taxation – Tax took the largest share of incomes. People with high wages (could be people who have industries) must pay bigger tax then those people with lower incomes (poor people).
2. Food – The other biggest cost that took the largest share of incomes is food. People need food to eat. They usually eat 3 times a day. In that case, people will spend their income on food because it is a must. Food is part of our needs. But people with bigger incomes will want delicious foods which are expensive, while the lower income people will buy food only to fulfill their needs, it don’t need to be yummy. At least they gotta eat and fill their empty stomach.
3. Transport – Closely following food costs was spending on transport. People’s wants are unlimited. Everyday, technology is improving. And transportation are being improved. People with higher incomes will want to buy the newest form of transportation which is extremely expensive. While people with lower incomes will prefer to use public transportation which will not cost much.
4. Recreation – People with lower income will not not afford to go too far during recreation or they could even decide not to go anywhere. While as you can notice, people with higher incomes or as we can say, rich people, will travel at least once a year.
5. Health – People with lower income will have less health facilities because they can’t afford to have the best health facilities. They will only afford the health facilities according to how much they can pay for it. While people with higher income will definitely search for the best doctor and to receive the best health facilities.
People with higher income will obviously spend more than those people with lower income. Because people with higher income have more money to buy things compared to people with lower incomes. This shows that many things are more affordable for people with higher incomes, and this explains why they spend more. They know that they have money to buy things they want and they will have less desire to save. Which person would not want luxury things, a more comfortable transportation to ride on and a more gorgeous house to live in? While the lower incomes people will prefer to save more than spending, because they know that they have limited money to spend. They can only afford to buy a few things. They will buy first things first, such as their needs. For example : foods, clothes and a house to live in. People with low incomes will not bother to buy branded things, while those people with high incomes will want to buy branded things. This explains why different income groups have different spending patterns.
Regina T. 8B
What is spending pattern? Spending pattern is the pattern of a person to spend their money. Every group have different spending pattern because everyone is different. Every person have different behavior, income, wealth and confidence. Behavior is the way or manner in which one conducts oneself. Income is the total money we get. Wealth is the total money we have. Confidence is great faith in oneself or one's abilities. Why everyone have different behavior because they have different income, wealth and confidence because they are all related. Why? There’s an example of it, If you have an income for Rp 500 000 per month, it’s rarely for some people want to eat in a restaurant that every portion cost Rp 700 000 once per month. Why? Because you also want to fulfill your needs too, you need to buy food for the other days, washing clothes or buy clothes and pay the cost for your house. But, if you have an income Rp 15 000 000 per month, you can eat a food for Rp 700 000 for once a month. Why? You still have another Rp 14 300 000 to fulfill your needs and wants. So, that example can give the reason why behavior, income, wealth and confidence are related. But, wealth can give you reason you want to save your money or spend your money, The example of wealth can determine your spending pattern except income is, person A have an income as much as person B. But person A have his own house, but person B live with his parents. It can affect the spending pattern of person B. He want to save his money to buy his own house and person A can have more spending than person B because person A only think about his saving for buy things that he want because he have fulfill his needs but person A hasn’t fulfill all his needs, so he also need to save for his needs and wants. And the last is confidence, if a person can belief that he can be success in the future, he must study hard to get his desire. Example, if a person want to be a doctor in the future, he must study in the university for a long time to get the license to become a doctor, so it can take a lot of money. To save a lot of money, he must decrease his spending. But it also depend on his wealth, if he is a rich man, he can spend the amount of money he usually spend and he can use his saving, but saving can be finish, so he should save more money for his future expectation. So, different income group have different spending pattern because of some reason. The main reason that determine someone’s spending pattern are income, wealth, behavior and confidence. As we know everybody is different and as the most important thing is the desire to buy things and how they can control their desire to buy things.
ReplyDeleteRichard Sanders - 8B
How do people spend their money ? Every people have different spending pattern. This is cause because of their needs and wants. First we are talking what is spending pattern ? Spending pattern is the way how people spend their money. There are many rich and poor people in this world. Rich people maybe spend their income / wages for unnecessary things.For example, they spend their money for buying antique cars. This is a bad way of spending pattern. Every person has their own habit how to spend their own money. Rich people have more money to satisfy their needs and wants.
ReplyDeleteDifferent income groups, (upper, middle, and lower class) have different spending patterns for a number of reasons such as the lack or abundance of funds, financial mentality, desire vs. ability to attain luxury. Financial Priority as pertaining to social economical status also plays a large role in motivated spending. There are some who would go on to suggest that the IQ's of those in both the lower and upper bracket are directly related to their social economical status; IE, The less intelligent, the lower the status, etc. Which would, if it where the case, play another large role in specific spending patterns. For example : people have 13 000 000 earnings a month . They can spend that 13 000 000 money for their child needs , their needs , etcetera. Their needs is 30 000 000 a year . So they can save a money for another needs . 13 000 000 * 12 = 156 000 000 . 156 000 000 - 30 000 000 = 126 000 000 . They still have 126 000 000 savings. This is how to spend your money . This is the stable spending pattern . Less Spending , More on The SAVING . Saving is very important . If when the people's economy has a less income , they can use their savings to build their own working station . This is the right of doing the spending pattern . Everyone are different . We are born to be differ from the others . Spending pattern may have lesser spending and savings. It is all people's rite to do that . Because some people don't know how do they use their money . Better, they save their money first so, when they're needed , they may use that money for buying goods and service . All Peoples are different . We are all human being .
ReplyDeleteLeonardo - 8B
Thank you
Every people in the world are different. There are the rich and the poor , they are different in their personalities, characteristics , religion , and so on. But all of the people in the world have their own spending pattern. What is a spending pattern ? Spending pattern is a pattern that shows the spending rate of a person. Spending pattern is divided into some categories that are related to goods or service that we buy in our daily life. The spending pattern of each person in the world are of course different because each people have different needs and wants.
ReplyDeleteIt is said that the spending pattern is divided into categories that are related to the goods and service that we buy in our daily life . It is also said that the spending pattern of each person in the world is different because they have different needs and wants. Here are the examples :
1.Housing , Fuel , Power : The rich people will tend to have a higher spending rate in this category because most of the rich people in the world tend to have a larger house and more vehicle. The vehicles need fuel and the larger the house is , the larger the power that is needed for the house appliances. The poor people tend to have a smaller house because they just need to buy a house that is sufficient for them. Poor people will also spend less on vehicle because some of the poor people don’t have one or they often use public transport rather than their own vehicle because they think using public transport is much more cheaper.
2.Education : The rich people will tend to spend more on education because they want to pursue their dreams or they want to have a big salary so they will spend more on education. The poor people spend less on education because some of the parents need their children to help support their family’s income or some of the parents don’t want to spend more so they can spend their money on things that are more important.
3.Alcoholic drinks , tobacco and narcotics : The rich people spends less in this category because they have a higher education level than most poor people so they are taught in their school to not drink alcoholic drinks, not to smoke , and not to use narcotics. While for the poor people have a lower education , as it is said in number 2. So they don’t know anything about the effects of using narcotics , drinking alcoholic drinks , and smoking.
There are categories where the poor and the rich will have a different spending pattern but there are also categories where their spending pattern are almost the same. Here are the examples :
1.Health : The rich and the poor people have the same spending rate because both poor and rich people need to take care of their health because it is important for doing daily activities.
2.Clothing : The rich and the poor people have the same spending rate in this category because clothing is as important as health because without clothing , their health could be disturbed because clothing help us to protect our body.
So each person in the world have a different spending pattern but in some categories their spending pattern are the same.
Spending pattern is the pattern on how we spend our income, which is the money we got for doing work. Income is the total sum of any type of earning that we get by doing work in a period of time. The income of a person varies depends on the work you do. The income receive by a person ranges from the lowest to the highest, it differs in everybody.
ReplyDeleteA person would spend his/her money in order to satisfy our needs and wants, which are essential for the survival of our life. There are factors that causes the want to spend money and buy things:
Income, different people have different income as they work in different kinds of jobs. Different incomes means different pattern of how we spend the money, for example, a higher-earning worker would spend more money on their wants because they have the sufficient money to. But on the other hand, a person can just save their money rather than spending it, to help them in the future, as pension money or money to help their child/childern’s education.
Satisfaction, a person would of course have wants in their life, so they buy goods in order to satisfy our wants and by using it properly, we’re using it to the maximum in which brings us more satisfaction.
Wealth, A wealth of a person can affect their spending pattern, a person with more money would buy more because they have the money to do so, but on the other hand, wealth does not define them, a wealthy person might spend less than a less wealthy person because of reasons, like, the poorer person may have a bigger family to raise, which means the cost of living are high, as some parents have more kids to ensure that they pass to adulthood, but wealthy person might have less children, as they live in a more luxurious life and the cost of living are very high.
Consumer behavior, the behavior of a person to a good differs from one another as each and every person have different tastes, one would consider a good be suitable for his/her taste while another would dislike it.
Future expectation, when buying a good, a person would have to think about the uses of the goods, would it be useful now or in the future, but on the other hand, a person could just buy a once use goods lie foods, once we eat the food, it’s gone but it can help our growth.
So, in conclusion, different income groups have different spending patterns because a person’s opinion and tastes differs from another, but the income of a person affects greatly on a person’s spending pattern.
Grace- 8B