Definition of consumer durables
These are consumer goods that are bought for a long time period. They can usually last several years and include items such as:
- TV
- DVD player
- Cars
- Yachts
- Bikes
Because they are only bought every several years, consumption patterns tend to be more volatile. For example, in a recession, there will be a bigger fall in demand for consumer durables because people delay the purchase until the economy recovers. When the economy recovers there is often an upsurge in buying because people take the opportunity to buy after waiting an extra few years.
In other words, consumer durables tend to be luxury goods – goods with an income elasticity of demand of greater than one.
Consumer durables are often bought on credit so demand may depend on interest rates.
Many shops offer consumer durables on special 0% finance deals.
Consumer goods
This includes all goods intended for final consumption. They include consumer durables and consumer non-durables – perishable items like food and drink