4. Economic Factors
Consumer behaviour is influenced largely by economic
factors. Economic factors that influence consumer
behaviour are
a) Personal Income,
b) Family income,
c) Income expectations,
d) Savings,
e) Liquid assets of the Consumer,
f) Consumer credit,
g) Other economic factors.
a) Personal Income
The personal income of a person is determinant of his
buying behaviour. The gross personal income of a person
consists of disposable income and discretionary income. The
disposable personal income refers to the actual income (i.e.
money balance) remaining at the disposal of a person after
deducting taxes and compulsorily deductible items from the
gross income. An increase in the disposable income leads to
an increase in the expenditure on various items. A fall in the
disposable income, on the other hand, leads to a fall in the
expenditure on various items.
The discretionary personal income refers to the balance
remaining after meeting basic necessaries of life. This
income is available for the purchase of shopping goods,
durable goods and luxuries. An increase in the discretionary
income leads to an increase in the expenditure on shopping
goods, luxuries etc. which improves the standard of living of
a person.
Dostları ilə paylaş: |