Research On Consumer Preference Differences Between Urban And Rural From The Perspective Of Income Gap

Since the reform and opening up,along with the change of political and economic system,the living standards of urban and rural residents have been greatly improved.However,at the same time the income gap between urban and rural residents showing a growing trend and having a significant impact on the consumption of urban and rural residents.Consumption,as one of the "troika" of economic growth,has drawn more and more attention from the government.The report of the eighteenth national congress and the 3rd plenary session of the 18th central committee of the CPC have emphasized on expanding consumer demand especially domestic demand to promote economic and social development.In view of this,research on consumer preference differences between urban and rural from the perspective of income gap,has a great significance on optimizing the consumption structure of urban and rural residents,reducing the consumption differences between urban and rural residents,achieving urban-rural integration and ultimately achieving the goal of comprehensive well-off.This paper is organized as follows:first of all,on the basis of review,reflection and expansion on western classical sort of preference theory,this paper gives the definition and measurement of consumer preference.Secondly,analyze the western classical theory of consumption function hypothesis and give the theoretical analysis between income gap and consumer preferences.Thirdly,give a comparative analysis of the current situation of China's urban-rural income gap and consumption systematically.Finally,based on the existing model of AIDS,by analyzing expenditure elasticity differences and price elasticity differences on seven categories,namely food,clothing,household facilities and articles,health care and medical services,education,culture and recreation,transport and communications,residence to illustrate consumer preference differences between urban and rural residents.On this basis,this paper points out that income gap,consumption environment,consumption concept and social security system have an important impact on consumer preferences from a qualitative point of view and put forward specific suggestions based on these issues.The main conclusions of this paper include:(1)Judging from the Engel coefficient,the urban residents have reached a rich phase in 2000 while the rural residents reached the level of affluence in 2012;(2)Urban-rural dual system has not yet broken,the income gap and consumption expenditure gap between urban and rural residents are significant;(3)Judging from the expenditure elasticity,food,residence and other consumer goods for subsistence exhibited the characteristics of necessity for both urban and rural residents;Urban residents purse more household facilities and articles,health care and medical services,transport and communications and other consumer goods for enjoyment initiatively,while such goods show more passive consumption characteristics to rural residents;For the consumer goods that promote comprehensive development,the expenditure elasticity of urban residents is significantly higher than rural residents,which indicating that urban residents prefer more of these goods;(4)Judging from the price elasticity,both urban and rural residents are not sensitive to changes in food prices;Urban residents are more sensitive to price changes in clothing and education,culture and recreation than rural residents,which indicating that urban residents have more consumption choices;Urban and rural residents show significant differences in consumer preferences in transport and communications,health care and medical services,residence:urban residents will reduce their purchases when these commodities' price increase,showing these commodities have become a necessity for urban residents;However,rural residents' price elasticity is positive,indicating that these commodities are luxury of conspicuous for rural residents.Finally,the purchase of household facilities and articles by urban and rural residents show that they all pursuit consumption of enjoyment.