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Economic Implications Surrounding The Buying Term Paper

A teenager relates with another teenager, member of the same social framework (be it group of friends, school, etc.), partially through the products he or she uses. Many of these need to be the latest style and embody not necessarily a social status, but a sense of style. At the same time, many of these are products that are used in the household, such as the car that the family drives or the electronics used. This type of approach also has an important aspect to be considered in the marketing segment: the lifecycle of the product is much shorter than for other products and for other periods of time. Because of this trend imposed by teenagers to be continuously in style, as well as by certain characteristics of a teenager that are reflected in the purchasing behavior (such as the fact, for example, that a teenager will tend to get bored faster with a certain product and, as such, lobby for a quicker change of some of the household's products), a product will reach its maturity and saturation phases much sooner. This in turn affects both production and research and development at manufacturing companies that need to keep the pace with this trend.

It is now time to expand on this framework and have an overall perspective over the entire set of economic implications that the buying power of teenagers has, not only strictly related to the household purchasing behavior. The most obvious thing is an increase in the volume of products that are part of transactions on the U.S. market, most notably on some segments of this market. In areas such as clothes and textile or electronics, the purchasing power of teenagers drives sales upward, to the degree to which it is able to significantly affect the volume of goods.

The direct economic implication of this is an increase in imports. Indeed, many of these products are produced in developing countries, where the cost is significantly lower than in the United States. As a consequence of this increase, the trade deficit between the United States and several...

This increase will be reflected, theoretically, in an increase of employment and, potentially, in a gradual positive impact on the economy (higher wages, bigger purchasing power for workers, higher employment etc.).
As studies have shown, the number of teenagers has increased over the past decade and, along with this, their buying power. Putting these two variables together, the conclusion is not only that teenagers buy more than they did a decade ago, but also that their purchasing patterns are more influential on the market, with the effect that they are even able to influence, through their purchasing patterns, distinct economic trends in the U.S.

Along with this, teenagers are now able to influence their parents when it comes to purchasing decisions in the household. They are indeed able to express their opinions, often regarding purchases of high value, and they are listened to, because parents usually understand that teenagers are much more connected to a social and informational world from where they can better understand how and what purchases to make.

Bibliography

1. Teen - Market Profile. 2004. On the Internet at http://www.magazine.org/content/files/teenprofile04.pdf. Last retrieved on April 22, 2010

2. Gale, Derek. 2007. Purchasing Power of Kids and Teens. On the Internet at http://www.rimag.com/article/374736-Purchasing_Power_of_Kids_and_Teens.php. Last retrieved on April 22, 2010

Teen - Market Profile. 2004. On the Internet at http://www.magazine.org/content/files/teenprofile04.pdf. Last retrieved on April 22, 2010

Ibid.

Ibid.

Gale, Derek. 2007. Purchasing Power of Kids and Teens. On the Internet at http://www.rimag.com/article/374736-Purchasing_Power_of_Kids_and_Teens.php. Last retrieved on April 22, 2010

Ibid.

Sources used in this document:
Bibliography

1. Teen - Market Profile. 2004. On the Internet at http://www.magazine.org/content/files/teenprofile04.pdf. Last retrieved on April 22, 2010

2. Gale, Derek. 2007. Purchasing Power of Kids and Teens. On the Internet at http://www.rimag.com/article/374736-Purchasing_Power_of_Kids_and_Teens.php. Last retrieved on April 22, 2010

Teen - Market Profile. 2004. On the Internet at http://www.magazine.org/content/files/teenprofile04.pdf. Last retrieved on April 22, 2010

Ibid.
Gale, Derek. 2007. Purchasing Power of Kids and Teens. On the Internet at http://www.rimag.com/article/374736-Purchasing_Power_of_Kids_and_Teens.php. Last retrieved on April 22, 2010
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