Consumption and the Consumer Society

KEY TERMS AND CONCEPTS
 
absolute deprivation: severe deprivation of basic human needs 
 
aspirational group: the group to which an individual aspires to belong 
 
budget line: a line showing the possible combinations of two goods that a consumer can purchase 
 
consumer society: a society in which a large part of people’s sense of identity and meaning is 
found through the purchase and use of consumer goods and services 
consumerism: having one’s sense of identity and meaning defined largely through the purchase 
and use of consumer goods and services 
 
consumer sovereignty: the idea that consumers’ needs and wants determine the shape of all 
economic activities 
diminishing marginal utility: the tendency for additional units of consumption to add less to 
utility than did previous units of consumption 
ecolabeling: product labels that provide information about environmental impacts, or indicate 
certification 
 
ecological footprint: an estimate of how much land area a human society requires to provide all 
that the society takes from nature and to absorb its waste and pollution 
 
green consumerism: making consumption decisions at least partly on the basis of environmental 
criteria 
 
living standard (or lifestyle) goals: goals related to satisfying basic needs and getting pleasure 
through the use of goods and services 
marginal utility: the change in a consumer’s utility when consumption of something changes by 
one unit 
relative deprivation: the feeling of lack that comes from comparing oneself with someone who 
has more 
reference group: the group to which an individual compares himself or herself
 
subjective well-being (SWB): a measure of welfare based on survey questions asking people 
about their own degree of life satisfaction