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Consumers, Consumption, and Well-Being
Chapter 2 Review Kunz, G., & Garner, M. (2007). Going Global: The Textile and Apparel Industry, 2nd ed. New York, NY: Fairchild Publications. Ryan Burns and Sara Stevens 9/1/15
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Exploring the foundations of apparel choices
Consumer use of some type of textiles and apparel is universal for: Adornment Protection Non-verbal communication The mystery component of clothing selection is fashion: Fashion is defined as the style of dress accepted by the majority of a group at a given time. Textile and apparel products differ from other products due to the perishable desirability: Fashion makes the textile and apparel business more unpredictable than trade in other consumer products
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Exploring the foundations of apparel choices
There are two types of apparel categories Basic: stabilized, utilitarian, and have infrequent demand for change Inventories are steady, predictable, and refillable Fashion: individualized, differentiated by style and color Demand peaks followed by obsolescence Consumer obsolescence is a factor in most economies
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Examining the concepts of levels and standards of consumption and living…
Four terms Stancliffe Davis (1945) used to understand consumption patterns: Consumption-commodities (goods and services) Living-consumption and other dimensions of life Level-implies that which is actually experienced/enjoyed/suffered Standard-what is “urgently desired and striven for…” (Davis, 1945) Level of Consumption includes: The overall amount of food, fuel and other non-measurable goods consumed The use of house, car, clothing The use of services Standard of Living is: The level of consumption urgently desired and strived for inherently human to want more, but what “more” looks like varies based on age, gender, culture, income, etc. Typically the standard is higher than the level
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…and their relationships to apparel consumption patterns
Developed and Developing Countries: In poorer countries, the fashion cycle is slow due to lack of purchasing power Fashions available in developed countries are known to consumers around the world due to increased communication technology The desire for fashion appears to be universal Gap between rich and poor widening: Levels and standards of consumption and living are commonly used measures of well-being (a good or satisfactory condition of existence) Sustainability of supply chains: Skewed distribution of economic development among participating nations Deterioration of the environment Decline of nonrenewable natural resources
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Examining theories of income-consumption relationships
Many definitions for income! Most important for fashion purchases is discretionary income (disposable – consumption expenditure) Income elasticity of demand: Related to consumer Superior goods (economic luxury) Example? Normal goods (economic necessity) Inferior goods (inadequate income) What does income elasticity look like? Price elasticity of clothing expenditure Important to understand for profitability of business Does the demand for the good change according to price? Positive yet non-elastic Indicates normal good % change in clothing expenditure /% change in price What does price elasticity of demand look like?
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How do we measure consumption (really)?
Evaluating the meaning of consumption expenditure data representing developed and developing countries How do we measure consumption (really)? Expenditure patterns (China vs. U.S.) Food vs. Apparel Rural vs. Urban Consumer Price Index (CPI) Inflation High cost of other expenses vs. apparel Progressive vs. Regressive Taxes
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Exploring the clothing consumption process
Acquisition Inventory Use (Substitutes and Complements) Renovation Discard What factors speed up this cycle? What factors slow it down?
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What is the most relevant information you learned in this chapter
What is the most relevant information you learned in this chapter? Why is it relevant to you? what do you think?
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