Importance of disposable income for consumer behavior

Abstract

The field of the consumer behavior theory, more specifically focused on consumer basket, is undergoing numerous innovations regarding microeconomic plane as well as macroeconomic plane. The original microeconomic model of consumer's decision making (Frank, 2006) measures leisure time against consumption specified by the wage rate. Many quantifiable and nonquantifiable coefficients have some effect on both of these variables. This article concentrates on the key factor concerning disposable income and its influence on decision making regarding the choice between consumption and having leisure time. The Czech Republic has undergone various changes during the last 15 years which are also visible in the tertiary education sector. College students were thus the target group of respondents of the primary research. This social group has been getting larger in the last few years which is not declared by the European statistics only. Although the reasons for entering the tertiary education sector are various, there is always a particular type of consumer from economic perspective. A significant impact of disposable income on the consumer's choice between consumption and having leisure time was found out through the statistical verification. This quantifier also shows differentiation regarding consumer expenses in connection with the basic classes of consumer basket. Students with a lower disposable income spend the highest amount on the items of consumer basket "Food and non-alcoholic beverages" whereas students with a higher disposable income on the items "Housing, water, electricity, gas and other fuels.".