The influence of lending activity over consumer's behavior

• Author: Viorica Mirela Stefan-Duicu - Adrian Stefan-Duicu
• Position: Assistant, Faculty of Economic Sciences, 'Nicolae Titulescu' University, Bucharest - Economist, Bucharest
• Pages: 261-268

Viorica Mirela Stefan-Duicu, Adrian Stefan-Duicu

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LESIJ NO. XVIII, VOL. 1/2011

THE INFLUENCE OF LENDING ACTIVITY OVER

CONSUMER'S BEHAVIOR

Viorica Mirela STEFAN-DUICU*

Adrian STEFAN-DUICU**

Abstract

Lending activity involves an embedding of general principles which require the analysis of

risks incorporated in banking operations, both from a consumer and bank perspective. Correlated

with economic environment shifts, the consumer’s definition concentrates a series of individual

and group necessities with a decisive role in a possible lending decision. As socio-economic issue,

the consumer is oriented at lending when his income in order to buy goods or services is not

satisfactory. This paper aims at presenting the consumer hypostasis resulted from lending

activities, identifying its purposes and risks.

Keywords: Lending, environment shifts, lending risks, consumer’s behavior, individual

necessities

Introduction

According to Michael Solomon, Gary Bamossy, Soren Askegaard, Hogg, K. Margaret, “a

consumer is generally thought of as a person who identifies a need or desire, makes a purchase and

then disposes of the product during the consumption process”1.

Richard E. Beck and Susan M. Siegel highlight that “Consumer lending includes all types

of credit extended to consumers, either individually or jointly, primarily for buying goods and

services for their personal use”2.

Sustaining Professor Arjun Chaudhuri, Fairfield University, Connecticut, “Consumer

behavior is the study of how and why people consume products and services. All behavior can

broadly be attributed to three classic influences – the particular characteristics of the individual,

the environment that surrounds the individual (culture, subculture, family, friends) and the

inherited genetics that constitute the biological makeup of the individual ( personality, attitudes,

needs)”.3

Loan consumer rights, along with other addendums, are stipulated in GEO no. 50/2010

regarding loan contracts for consumers, published in Official Monitor, Part I no.389 per June 11th

2010.

The notion of “creditor” includes all legal entities, branches of credit institution and

non-banking financial institutions that operate in Romania and grant or undertake to grant loans in

its commercial of professional activity.

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*Assistant, Faculty of Economic Sciences, “Nicolae Titulescu” University, Bucharest (e-mail:

chirita.mirela@gmail.com).

**Economist, Bucharest (e-mail: stefanduicu.adrian@gmail.com).

1 Solomon, M. R., Bamossy,G., Askegaard, S. , Hogg, M.K, Consumer behaviour- european perspective, Pearson

Education, 2010, p. 7.

2 Beck, E.R. Jr., Siegel, M. S., Consumer Lending, American Bankers Association, 2001, p. 3.

3 Chaudhuri, Arjun, Emotion and reason in consumer behavior, Elsvier Inc., 2006.