Final answer:
A customer's usage and payment patterns are known as their credit history, which records their borrowing and repayments, including late payments. Purchases, especially those on credit, contribute to this history, which reflects their consumption choices and can affect future creditworthiness.
Step-by-step explanation:
A customer's usage and payment patterns are referred to as their credit history. Credit history encompasses all the detailed records of an individual's past borrowing and repayments, including information about late payments and bankruptcy. When individuals make purchases, especially on credit, these transactions contribute to their credit history, which is then used by lenders and credit providers to assess creditworthiness and determine the risk of lending money or extending credit.
Economic analysis takes into account the patterns of consumption choices, as people seek to attain the highest level of utility or satisfaction from their purchases. This often involves the use of credit and can reflect on one's credit history. Every purchase decision is based on the belief about the satisfaction the good or service will provide, influenced by the available information, and can affect future credit opportunities through its impact on one's credit history.