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This article is about consumers in economics. For the article about consumers in biology, see Heterotroph.

Consumers are individuals or households that consume goods and services generated within the economy. Since this includes just about everyone, the term is a political term as much as an economic term when it is used in everyday speech. Typically when businesspeople and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy not buy decision. However there is a trend in marketing to individualize the concept. Instead of generating broad demographic profile and psychographic profiles of market segments, marketers are engaging in personalized marketing, permission marketing, and mass customization.

A consumer is assumed to have a budget which can be spent on a range of goods and services available on the market. Under the assumption of rationality, the budget allocation is chosen according to the preference of the consumer, i.e. to maximize his or her utility function.

In 'time series' models of consumer behaviour, the consumer may also invest a proportion of their budget in order to gain a greater budget in future periods. This investment choice may include either fixed rate interest or risk-bearing securities.

In the context of mental health, consumer is also a term applied to describe a person living with mental illness.

Concern over the best interests of consumers has spawned much activism, as well as incorporation of consumer education into the school curriculum. There are many non-profit publications available to assist in consumer education such as Consumer Reports or Choice Magazine.

Within many selling companies as well as debt-management consultants consumer has come to be a derogatory term which means an unintelligent buyer of poorly made clothing and plastic or metallic items. Consumer could also be seen as an offensive term, implying that both an adult and a child's only function is to buy (consume) a product and discard it after only a short period of time.

See also

• Consumer debt
• Consumerism
• Consumption
• Obsessive-compulsive disorder

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