Most beautiful places and cultures &Marketing business

Consumers make decisions. Their buying decisions are influenced by economic, personal, psychological and socio-cultural factors.

Economic factors that affect buying decisions. They consist of:

a) Level of income: The ability to spend is determined by the level of disposable income. Choice of income-sensitive products is very much dependent on income level.

b) Liquid Assets: Consumers who do not have regular income may possess liquid assets like gold and shares. They provide spending power to the consumers.

c) Savings, Debt and Credit Availability: They all affect consumer expenditure levels. High savings result in lower interest rates. Credit availability by bank becomes cheaper through lower interest rates. This increases the level of consumer spending.

d) Attitude Toward Spending: Negative attitude toward spending adversely affects the willingness of the consumers to spend. This influences the product choice.

e) Economic Conditions: The stage of economic development, inflation and business cycles affect consumer's willingness to spend. Prosperity is good and recession is bad for marketing. Health of the economy affects consumer behavior.