Definition of Consumption, Purpose and Factors (Full Discussion)

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Definition of Consumption, Purpose and Factors (Full Discussion) In a person's life, of course, he has a desire to get goods that he can consume with the aim of maintaining his life.

In obtaining these consumer goods, in general, there are many efforts that must be done by him by working diligently. In this way, it can provide opportunities for obtaining consumer goods to become easier.

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  • Definition of Consumption, Purpose and Factors (Full Discussion)
    • Definition of Consumption
    • Consumption Purpose
    • Factors of Production
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Definition of Consumption, Purpose and Factors (Full Discussion)

Actually what is consumption why is it the most important thing in human life on this earth. To be able to understand the meaning of consumption along with its objectives and factors will be explained as follows:

Definition of Consumption

Consumption is an activity carried out with the aim of using the benefits that exist in an item or service in order to be able to meet the needs of life. Consumption also means the actions taken by humans in using and enjoying the usefulness of goods or services to be able to fulfill their needs.

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Consumption Purpose

Consumption has the main purpose, namely to be able to meet the needs of a person's life directly, use goods or services that are outside the intended purpose which is definitely not an activity consumption. What is not included in consumption activities is such as an angkot driver who delivers passengers every day from morning to evening. This cannot be categorized as a consumption activity but a production activity.

Consumption has characteristics that can distinguish consumption behavior or non-consumption behavior. The following are the characteristics of objects or consumer goods which are explained as follows:

  1. Goods consumed can meet the needs of life. Such as the use of hoes, hammers, nails are not included in consumption activities because they are included in production activities.
  2. Consumer goods can have benefits, value and volume which when used will run out all at once or can be used up gradually. And consumer goods can be used up at once if the consumption goods are indeed the type of goods that can be used up at once, such as food and drinks. Goods that do not run out immediately in one use or can be used up gradually are clothes, buckets, tv, and others.
  3. Consumer goods can be obtained with sacrifice and are economic goods. And these goods must be obtained with sacrifice and are economic goods. Because if we breathe air and sunbathe in the morning it is not a production activity because it can be done for free or for free.

Factors of Production

Factors that can affect production include:

1. Price of goods

The price of goods is very decisive because if the price of an item rises, it will have an impact on the level of consumption that is done decreasing. On the other hand, if the price becomes cheap, many levels of consumption will be carried out.

2. Number of Family Members

The number of family members has a large enough impact because the more family members, the more expenses are needed every day.

Definition of Consumption along with its objectives and complete factors

3. Income Level And Income

The level of income and income earned by a person will be a barrier factor. When the income or income earned becomes large, the level of consumption that will be carried out is large and vice versa.

That's the explanation about Definition of Consumption, Purpose and Factors (Full Discussion) given about knowledge. With the measurement or control of the expenses we spend, it will give us Savings that will later be useful for us don't just think about what we continue to consume continuously. Hope it's useful

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