Analyzing consumption trends between consumption theories Essay

Analyzing consumption trends between consumption theories - Essay Example It can be stated as a matter of fact that these two theories, relative to the concept of consumer consumption, was introduced at a wide difference of nearly four decades and certainly focuses on distinct assumptions which often tends to contradict each others’ view point. As in the case of Veblen approach, consumers are termed to have no such influence on the price of the commodity; whereas, in the neo-classical theory, customers are considered as one of the major catalysts to influence the commodity price (Himmelweit & et. al., 2001). The concept of consumer consumption is often demonstrated as the pattern of expenditure made by the consumers in exchange of a particular commodity. It is further stated by economists that consumer consumption or the decision taken by the consumers to buy a commodity depends on the price of the product or the services rendered, their requirement or individual preferences, the availability of the product and quality of the commodity served among others. Thus, it may vary according to the changes occurring in relation to any of these variables (Lee & et. al., 2009; Himmelweit & et. al., 2001). However, as mentioned in the theory of ‘consumer sovereignty’ by the neo-classical approach, individual preferences, amid the other factors tend to be one of the strongest influencing factors of consumer consumption. This theory further depicts that these preferences are endogenous in nature and thus tends to be highly influenced by the external factors such as choices favored by the society (King & et. al., 2006; O’Hara & Stagl, 2002). Based on these assumptions, according to the consumer consumption behavior demonstrated by neo-classical theory, the buyers are termed to be one of the major drivers of price change that subsequently leads to change in quantity. The theory further assumes that price and demand for a particular commodity is conversely related which depicts the equilibrium to be as