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Consumer Behaviour
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Psychological
Social
Economic
Stimulus
Role Of Marketing
Economic Factors Influencing Demand:
Price
Disposable Income
Use of Credit
Willingness to Spend
Price
High or low level of prices can affect consumer behavior in purchasing goods and services.
If prices are too low, then the consumers would think the product has poor quality.
When prices are too high, people would think the product isn't worth wasting money on.
Disposable Income
The amount of money remaining after taxes, mortgages, and other payments, that is available for a person to spend.
Unemployment and low wage rates may make it hard for someone to spend their money on a product.
Use Of Credit
Having a credit card allows you to make a purchase now without having to come up with the money out of pocket.
If the purchase isn't repaid within a certain time period you must pay interest.
Willingness To Spend
When the consumer is confident enough to spend extra money on luxurious items that when bought, may be seemed as unnecessary.
It is also the maximum amount an individual is willing to sacrifice to purchase a good.
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Role Of Marketing