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Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is ...
Annie Baxter, a reporter for Minnesota Public Radio, estimates that in 2008 consumer spending accounted for roughly two-thirds of the American economy. Consumers are the grease of the economy, and play important and complex roles in the way the economy is shaped. The main role of the consumer is to spend money. How much money she spends is primarily based on her income. How she spends it, however, depends on her needs and preferences. For instance, if she has $100 to spend, she might buy $75 worth of groceries and $25 worth of clothes.