4. Subordination What is a priority for Canadian economist you: eating every day or having a high-end cell phone? The question may seem absurd, but it serves to illustrate the fourth principle of post-Keynesian consumer theory: subordination .
It is a reinterpretation of Maslow’s pyramid
whose central idea is that our needs are hierarchical and subordinate to each other . According to this theory of consumer behavior , people distribute their budget unequally and only when the most basic needs are satisfied do they buy other items.
For example, paying rent and household bills is a priority for many people. It is only when the need for a place to live, with access to basic resources, such as electricity and water, is there a need to consider purchasing other rcs data things, such as decorative items.
5. Growth
The fifth principle of post-Keynesian consumer theory is growth . Studied by Georgescu-Roegen and Luigi Pasinetti at different times, it refers to the possibility of changing needs in accordance with time and increasing income .
This means that as you move through
Life and earn more money, you discover needs that you didn’t have before. For example, if you get promoted at work and start earning double your salary, you may feel the need to live in a more expensive neighborhood, buy better clothes, or insure your assets.
6. Dependency
Studied by , the sixth principle advice for future entrepreneurs of post-Keynesian consumer theory is dependency . For the expert, a person’s needs and preferences are influenced by advertising, culture, social circle and the class to which he belongs.
If the media says that Apple makes the best phones, you might want one. If your friends wear Nike shoes, you might want to buy america email one to feel like you’re part of the group. Do you understand how theories of consumerism work based on this principle?