Why Consumers Purchase Goods or Services in the Informal Economy?

Consumption Behavior
Knowledge Center


Next Topic

Consumption Behavior > Best Practices

Anneke Zwart, Student (University), Netherlands
Williams and Martinez-Perez (2014) review research about customer behavior in the informal economy. The informal economy is that part of the economy not regulated, monitored or taxed by the state. As a result, income obtained in the informal economy is not included in the Gross National Product (GNP) of countries. Other maybe more familiarly terms of the informal economy are: the black market or the shadow market. In their study they describe the possible reasons for consumers to participate in the informal economy: 1. Financial Gain: consumers could be rational persons that weigh up the benefits versus the costs and risks of purchasing a good in the informal economy. If the financial benefits of purchasing a good in the informal economy exceeds the costs of their actions and of disregarding rules, a rational consumer will purchase the good or service in the informal economy. 2. Social/redistributive reason: An alternative view does not see consumers as rational but rath (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


Consumption Behaviour in Underground Economy / Shadow Economy

In this research, achieving a lower price was the (...)

More on Consumption Behavior
🔥The Customer Perspective to your Business? the Empathy Map
List of Uses of the Halo Effect in Advertising and Branding
How to Manage Motivational Conflicts in Consumer Decision-making
Best Practices
🥇4 Types of Consumer Buying Behavior (Assael)
🥈Mental Accounting and Buyer Behavior
🥉Why do Consumers Rescind Products/Purchases?
How Social Networks Influence Product Adoption
Trends in Consumer Marketing and Resulting Consumer Behavior
Why Consumers Purchase Goods or Services in the Informal Economy?
Consumer Buying Behavior wrt Health Care Products
The Role of Ethics in Consumer Purchasing Behavior
2- and 3-part Cost Structures in Consumer Behavior: The 'Free' Allowance
Consumer Behavior in Tourism: Concept and Importance
Why Consumers Using Price Comparison Sites not Always Buy the Lowest Price Product
Master Thesis Experiment Consumer Behavior in the Retail Environment
Special Interest Group Leader

Are you an expert in Consumption Behavior? Sign up for free

Consumption Behavior
Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 28-10-2020. All names of their owners.