Why People Buy Things They Dont Need: Understanding and Predicting Consumer Behavior
OVERVIEW
America is one of the wealthiest countries in the world. A typical middle-class, even lower-class, American cannot even imagine what life is like for the typical citizen of Afghanistan, Zimbabwe, or Indonesia. Our standard of living far exceeds any other developed nation. What we take for granted as an essential part of our way of life—unlimited electricity, clean running water, refrigeration, and television—is far beyond the means of a significant portion of the world's population. Worldwide, the average per capita gross national product is currently about $7,200. The United States per capita of $36,200 is five times as large, as shown in Figure 2.1. With U.S. median household income hovering around $40,000 and median net worth of $71,600, the average American's wealth is unimaginable for most of the world's inhabitants.
| $36,200 and above | United States, Luxembourg |
| $25,000–$36,199 | Austria, Belgium, Denmark, Hong Kong, Norway, Singapore, Switzerland |
| $20,000–$24,999 | Australia, Canada, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Qatar, Sweden, United Arab Emirates, United Kingdom |
| $15,000–$19,999 | Argentina, Bahrain, Greece, Israel, Kuwait, New Zealand, Portugal, Spain, South Korea, Taiwan |
| $10,000–$14,999 | Chile, Czech Republic, Estonia, Hungary, Malaysia, Martinique, Slovenia |
| $7,200 | Worldwide average |
| $5,000–$9,999 | Algeria, Botswana, Brazil, Bulgaria, Colombia, Croatia, Guadeloupe, Iran, Lebanon, Mexico, Poland, Romania, Russia, Thailand, South Africa, Turkey, Uruguay |
| $1,000–$4,999 | Albania, Angola, Bangladesh, Belize, Bolivia, Burma, Cambodia, Cameroon, Chad, China, Cuba, Ecuador, Egypt, Guatemala, Guyana, Haiti, Honduras, India, Indonesia, Iraq, Jamaica, Jordan, Kenya, North Korea, Kyrgyzstan, Liberia, Mongolia, Morocco, Mozambique, Namibia, Nicaragua, Pakistan, Paraguay, Peru, Philippines, Senegal, Sri Lanka, Swaziland, Syria, Tajikistan, Uganda, Ukraine, Uzbekistan, Vietnam, Yugoslavia, Zimbabwe |
| Under $1,000 | Afghanistan, Congo Republic, Ethiopia, Madagascar, Nigeria, Rwanda, Somalia, Zambia |
| Source: The World Factbook, CIA, 2001 | |
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