In standard microeconomic theory, a consumer is assumed to have a budget which can be spent on a range of goods and services available on the market. Under the assumption of rationality, the budget allocation is chosen according to the preference of the consumer, i.e. to maximize his or her utility function.

In time-series models of consumer behaviour, the consumer may also invest a proportion of their budget in order to gain a greater budget in future periods. This investment choice may include either fixed rate interest or risk-bearing securities.

In the context of mental health, consumer is also a term applied to describe a person living with mental illness.

Concern over the best interests of consumers has spawned much activism, as well as incorporation of consumer education into the school curriculum. One non-profit publication active in consumer education is Consumer Reports.

Within many selling companies "consumer" has come to be a derogatory term. Meaning "purchaser of products who is not very intelligent." This is in contrast to the meaning of customer. Which is defined as an intelligent purchaser who has power in the purchasing relationship between buyer and seller.

See also : marketing, economics, liberalization, consumer rights

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