Demonstration Effect among the students of GCBS

Abstract

This paper is motivated by the work of James S. Duesenberry in which he tries to figure out human behaviour of excessive consumption without looking at his income. The paper however, highlights the importance and effectiveness of student’s consumption pattern in a college scenario by taking Gaeddu college as a particular area of study but the results of the research can be related to all college students. the research also identifies the factors that may determine student’s behaviour towards the consumption of products other than their basic necessities. It also aims at possibly solving the problems of student’s uncontrollable spending habits and finding out ways in which students can manage money and find more effective and economical ways of spending. the research was conducted with regard to Duesenberry’s demonstration effect which is based on the theory that people’s buying behaviour is influenced by others and not simply people around them but those that they look up to. The possible causes of student’s uncontrollable spending habits have been identified and analysis has been done by drawing nine parameters that are likely to have an impact on the student’s buying behaviour and collecting responses through questionnaires.