Economic factors and buyer behaviour

Fill each gap in the text below with a word or phrase from the box. The items in bold are headings.

assets credit availability discounts discretionary income economic growth employment general oconomic situation loss leader outgoings price purchasing power

There are four major economic factors which affect consumer buying behaviour.

When the national economy is doing well, when people feci that their ________is safe, they spend more. In times of a slow down in ________, if interest rates or taxation rates increase, then buyer confidcnce goes down.

People spend according to what is left after meeting their regular costs on rent, mortgage, bills, tax, borrowings and other

. What is left is called

. What is left is called

Banks and other lenders are sometimes particularly happy to lend, for example to anyone in work, or with_ such as property. Credit card spending goes up and many people borrow money to buy goods.

This is perhaps obvious. High prices may limit spending, but not always. Sometimes high prices indicate high quality and this increases the desirability of the product. Price may also be less important if the need is great. But, in contrast, low prices may increase buying, especially where_________are on offer.

Sometimes items are offered at a low price as a ______. This means products are sold at below cost price. The shop thinks that consumers will buy these low priced goods, but also other high profit items.

Was this article helpful?

0 0
Online Survey Champion

Online Survey Champion

There are people all over the world trying to find ways to make money online. From stay at home moms looking to make a few extra dollars to college students and entrepreneurs, the allure of making your own hours and working from home or from the local coffee shop is very appealing.

Get My Free Ebook

Post a comment