A-Z Popular Blog Consumers Search »
Consumer Behavior
Related Topics

7 Examples of Consumption

Consumption is the process of using a resource. The following are illustrative examples.

Goods & Services

All consumer spending is viewed as consumption including purchases of products and services. This can be contrasted with savings and investments. For example, purchasing a house to rent to other people would be an investment but purchasing a house to live in yourself would be viewed as consumption.

Economic Activity

It is common to refer to consumption to denote all non-business economic activity. This divides economic activity into two types: production and consumption. For example, a factory produces a toaster oven and an individual consumes it when they purchase it.

Business Consumption

One thing that complicates the simple division of economic activity into production and consumption is that businesses also consume. Business consumption is defined as anything that a business immediately uses. This can be contrasted with capital that adds value over time. For example, electricity used by a business vehicle is consumption and the vehicle itself is capital.


Consumables, also known as fast moving consumer goods, are products such as food or cosmetics that are quickly used up such that they may need to be purchased regularly.


The purchase of durable things that last for many years is viewed as consumption unless you're a business. For example, if a farmer builds a fence that will last for 30 years this can be viewed as capital that represents an investment in the business. If an individual homeowner builds the same fence it is viewed as consumption.


Consumerism is the use of products and services as a substitute for authentic human experience. For example, people need respect from others and traditionally obtain this through their social behavior. It can be argued that products such as luxury fashions are an attempt to buy respect and admiration. Likewise, every element of the human experience has some product or service that can service as a substitute.


Overconsumption is a situation where consumers buy so much of a resource that that resource becomes depleted or its production creates economic bads that threaten quality of life. At the global level, this is irrational but at the individual level government, firms and people may not have incentives to fix these problems. For example, consumers may continue to eat a fish that is endangered and governments may continue to allow firms to satisfy this demand.
Overview: Consumption
Definition (1)
The process of using a resource.
Definition (2)
All spending by individuals on goods and services.
Definition (3)
All consumer spending plus the non-capital spending of businesses on inputs and supplies.
Related Concepts

Consumer Behavior

This is the complete list of articles we have written about consumer behavior.
Adverse Selection
Attention Economics
Buying Behavior
Conservation Of Effort
Conspicuous Conservation
Conspicuous Consumption
Consumer Attitudes
Consumer Culture
Consumer Economics
Consumer Education
Consumer Research
Consumer Society
Curiosity Drive
Customer Motivation
Customer Needs
Customer Perceptions
Customer Persona
Customer Preferences
Fear Of Missing Out
Impulse Buying
Marketing Analysis
Middle Class
Peak Experiences
Perceived Risk
Price Sensitivity
Problem Recognition
Product Involvement
Snob Effect
Status Seeking
User Intent
Willingness To Pay
If you enjoyed this page, please consider bookmarking Simplicable.

Consumer Behavior

A list of consumer behaviors.


The definition of prosumer with examples.

Consumer Economics

The definition of consumer economics with examples.

Extrinsic Motivation

The definition of extrinsic motivation with examples.

Consumer Education

An overview of consumer education with examples.

Buying Behavior

An overview of buying behavior with examples.

Economic Context

An overview of economic context with examples.

Customer Incentives

A list of common customer incentives.

Marketing Analysis

An overview of marketing analysis with examples.


Examples of common types of customers.

Consumer Attitudes

An overview of consumer attitudes with examples.

Customer Motivation

A list of common customer motivations.

Customer Behavior

The definition of customer behavior with examples.


The common types of comfort.

Customer Wants

An overview of customer wants with examples.

Customer Communication

An overview of customer communication with examples.

Customer Interactions

An overview of customer interactions with examples.


An overview of incentives with examples.

Customer Pain Points

An overview of customer pain points with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map