Consumer Behavior of College Students in the Czech Republic

Abstract

This contribution is a follow-up to the topic of consumer behavior which is analyzed from the economic theory perspective on microeconomic as well as a macroeconomic level. The main objective of the article is to reveal the structure of college students' consumer basket determined according to disposable income and its changes. In this article, the methodology of a consumer basket was used. The division of it was done by Czech Statistical Office to calculate the inflation rate in the environment of the Czech Republic. In this article, the analysis of college students' consumer basket was done. The pressure on having a higher qualification in tertiary education is a typical trend across Europe, which is also one of strategic goals of EU Strategy 2020 and its concept. There is clear evidence of a growing segment of college students that represents a significant demand group on the product and service market. The knowledge of their consumer habits is definitely beneficial for companies regarding their competitive advantage and reaching higher incomes from the products offered. The market product consumption is dependent on the total disposable income mainly. That is fundamentally dependent on hours of paid work or other fund contributions. The current disposable income shows the differences regarding consumption expenditures of a consumer basket and its various categories. A lower disposable income is typical for flowing the highest consumer expenditures from class 1 (Food and non-alcoholic beverages) to class 4 (Housing, water, electricity, gas and other fuels) of a higher disposal income. If the current disposable income of college students increases, there would be higher consumption expenditures regarding classes 9, 3 and 5 (Recreation and culture; Clothing and footwear; Furnishings, household equipment and routine household maintenance). On the contrary, a lower disposable income would mean lower expenditures regarding classes 3, 2 and 9 (Clothing and footwear; Alcoholic beverages and tobacco; Recreation and culture).