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Main factors effecting the consumers expenditure choices - Coggle Diagram
Main factors effecting the consumers expenditure choices
Cultural factors
Whether or not you live in an industrialised economy effects the amount the individual wants to save spend
Personality factors
Personal preference to spend or save. Some consumers have a long-term view and wish to save more, whereas others make impulsive choices to receive the immediate benefits that their money can bring
Confidence and future expectations
When the economy is growing, consumers are more confident in spending their money rather than saving. However, when the economy is experiencing a downturn, individuals may lose confidence in spending and prefer to save.
Tax policies
Differing tax policies can make it more appealing for individuals to spend or save
Availability of credit
If credit is readily available and easy to access, spending is likely to be higher
Price
Whether or not consumers are willing to pay the set price for the good/service
Income
Income will influence the choice of the consumer depending on how much they earn, e.g., those with higher incomes will be able to purchase higher-priced products and/or more products.
Price of substitute/complement goods
Some goods require complementary goods/services, such as a car requiring petrol and mechanical servicing
Advertising
Marketing campaigns may influence a consumer to buy certain products
Consumer tastes/preferences
The consumer's individual style may influence the brand or type of product they buy