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Economis: Consumption Pattern

In: Business and Management

Submitted By SalmanK
Words 1134
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Consumption pattern comparative study high income vs low income.
Consumption Pattern
The combination of qualities, quantities, acts and tendencies characterizing a community or human group’s use of resources for survival, comfort and enjoyment is called consumption pattern.
Consumption pattern is not objective it is subjective. The consumption pattern changes according to the wants and needs of a person. The type of wants decides the consumption pattern. The general consumption pattern fulfils the basic need and then moves towards to the luxury. Consumption patterns are one of the most important drivers of development patterns in the industrialized world and will serve as case for the study of scenarios and transition management. What will be addressed here is less households’ consumption of a specific commodity or service such as transportation or food, than the structure, function and meaning of the consumption patterns that characterize the different lifestyles that coexist in our affluent, liberal, democratic and capitalist societies. While the concept of “consumption pattern” is omnipresent in sustainable development literature since its appearance in Agenda 21, it is generally left undefined as if it is not necessary to be more explicit about it. Here we will define a consumption pattern as that aspect of a lifestyle that relates to the Food, transport, Housing and utility, Medical, entertainment and savings.
This report presents the income of the people and their expenditures. In this report, we have collected information about the income of ten peoples (five high income and five low income people) and their expenditures that how they consume their income. Expenditures in different categories are as follows: * Food * Transport * Housing and Utilities * Medical * Entertainment * Savings

High Income Group:
Profession: Chartered Accountant
Income: Rs.120000

Tayeb Adeeb is a chartered Accountant. His monthly income is Rs.120000. He spends 35% of his income in food. He uses his private car & also his family & spends 5% in transport. 16% is used in furnishing house & paying utility bills etc. Usually high income people consume their major part of income in entertainment & he spends 26% in entertainment like parties, outing, dinner etc. Well 10% of his income is used in medical, and he saves 8% of his income.

Profession: Doctor
Income: Rs.75000

Qasim Rawat is a doctor specialized in E.N.T. His monthly income is Rs.75000. He spends 27% of his income in food. As he uses his private transport therefore he spends 9% in transport. 20% of his income is used in housing & utility expenses. He is a adventurous person therefore uses 31% of his income in entertainment like going on picnics, different places etc. 5% is used in medical, while he saves 8% of his income.

Income: Rs.300000

Mr. Khan is a pilot in PIA. His monthly income is Rs.300000. He spends 30% of his income in food. He uses his own car for going their and spend 10% in transport 20% of his income is used in housing & utility expenses. He uses 30% of his income in entertainment like going on picnics, different places etc. 5% is used in medical, and saves only 5% from his income.

Profession: Teacher
Income: Rs.50000

Noruddin Ali Husain is a teacher in a private school. His monthly income is Rs.50000. He spends 40% of his income in food. 7% of his income is used in transport. Up keeping his house & paying utility bills costs him 15% of his income. He spends 30% of his amount in entertainment. He spends 3% in medical & his saving is only is 5%

Profession: Judge
Income: Rs.55000

A.k Fazeel is a Judge in a Supreme Court of Pakistan. His monthly income is Rs.55000. He spends 30% of his income in food. He uses car provided by Government and the income that he spends in transport is 10% which is used by his family. Up keeping his house & paying utility bills costs him 30% of his income. He spends 15% of his amount in entertainment. He spends 5% medical & his saving is 10%.

Low Income Group:
Profession: Foreman
Income: Rs.16000

Abdul Qadir is a foreman a head of technical staff in KESC. His monthly income is Rs.16000. his major portion of income is used in food i.e. 40%. As he uses bus & spends 10% of his income in transport. House and utility expenses costs him 20% of his income. He uses 15% in medical, & a very little amount in entertainment i.e. 5% .His monthly saving is 10%.

Profession: Watchman
Income: Rs.12000

Ahmed Khan is a watchman. His monthly income is Rs.12000. Maximum part of his income is used in food which is 65%. He spends only 5% in transport, 13% in house & utility expenses. Due to very low income only 2% of his income is used in entertainment and he saves 15% of his income.

Profession: Mechanic
Income: Rs.11000

Waqas Ali is a Mechanic in Karachi auto mechanics. His monthly income is Rs.11000. his portion of income that uses in food is 41%. As he uses bus to go their he spends 14% of his income in transport. House and utility expenses costs him 22% of his income. He uses 9% in medical, a very little amount in entertainment i.e. 4% and he saves 10% of his income.

Profession: Postman
Income: Rs.8000

Ahsan Hasib is a Postman. His monthly income is Rs.8000. maximum part of his income is used in food which is 50%. He spends only 7% in transport, 13% in house & utility expenses. Due to his low income he spends only 2% of his income in entertainment and 15% in medical, his saving is 13%.

Name: Haider Naeem
Profession: Painter
Income: Rs.7500

Haider Naeem is a Painter. His monthly income is Rs.7500. He spends 15% income in transport, 50% spend in food. He spends only 6% of his income in entertainment and 10% is his monthly saving.

The above consumption schedules show a very clear consumption pattern of different income classes. It shows that the major portion of the income of lower class is used in necessities such as food, transport, house & utility bill etc. But as we see the consumption pattern of higher income people their major portion of income is used in entertainment & other luxurious activities.
Thus the conclusion is that the person first fulfills his basic needs & then spends his/her income in luxury.


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