Question

In: Economics

Has there been a shift from passive consumption to active participation by consumers? Why or why...

Has there been a shift from passive consumption to active participation by consumers? Why or why not?

Solutions

Expert Solution

There has been a definite shift from passive consumption to active participation by consumers. Earlier, consumers had less choice because of fewer varieties of products and services. Therefore, consumers needed less involvement and less active participation in making a consumption decision. In addition, consumers had less information due to a limited source of information. Therefore, they had less active participation in comparing products and services or actively seeking a particular product or service. At present, there has been an increasing individualism. Consumers have more sources of information due to digital technologies such as the Internet and the world wide web. Therefore, they can actively seek for products and services which can meet their specific needs. In addition, there has been an increase in the varieties of products and services, which require a more active participation from consumers in making purchase decisions.


Related Solutions

When you observe consumers in the marketplace, can you distinguish passive receivers from active seekers? How...
When you observe consumers in the marketplace, can you distinguish passive receivers from active seekers? How are they different?
Define passive investing and explain the difference from active investing
Define passive investing and explain the difference from active investing
39. Which of the following may shift the consumption function upward (Consumers spend more of any...
39. Which of the following may shift the consumption function upward (Consumers spend more of any given amount of disposable income)? An increase in disposable income A decrease in interest rates A significant decrease in stock prices A decrease in people's ability to borrow 40. A government budget deficit has which of the following effects in the market for Investment funds? Decreases the amount of private saving by households Increases the level of investment in the economy Reduces the availability...
What information can be gained from a passive assessment and an active assessment of joint motion?
What information can be gained from a passive assessment and an active assessment of joint motion?
what is the labor participation rate? Discuss if the participation rate has been increasing or decreasing...
what is the labor participation rate? Discuss if the participation rate has been increasing or decreasing during the past year.
If a taxpayer has the following for the current year: Active Portfolio Passive Income Income Income...
If a taxpayer has the following for the current year: Active Portfolio Passive Income Income Income Income $75,000 $22,000 $55,000 Deductions (45,000) (16,000) (110,000) Income(Loss) $30,000 $6,000 $(55,000) ​ I. If the taxpayer is a regular corporation, taxable income from the three activities is a loss of $19,000. II. If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000. ​...
I have been assigned a 3 page research paper into "active investment strategy" versus "passive investment...
I have been assigned a 3 page research paper into "active investment strategy" versus "passive investment strategy". Our course's textbook has no direct mention of either after searching exhaustively, which means the research paper invites me to use other sources and any perspectives or angles to defining, giving examples of, and comparing the two strategies. How would you define them? What topics would they encompass? I imagine passive strategies include ones with fewer steps and less oversight/watch needed, whereas active...
Why might an active policy approach be more politically popular than a passive approach, especially during...
Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
Should the media exert an active or passive role regarding public policy implementation? Why? What could...
Should the media exert an active or passive role regarding public policy implementation? Why? What could occur if the media exerts the opposite role? Please, write at least 160 words.
Has there been a "power shift" away from states and towards multinational corporations?
Has there been a "power shift" away from states and towards multinational corporations?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT