Factors influencing individual consumer choice

Factors influencing individual consumer choice

1. Income

   • high income = more choice
   • low income = less choice
   • e.g. brands (D&G vs. Target)

2. Price of the good

   • higher price = less likely to buy
   • lower price = more likely to buy
   • e.g. sale items

3. Price of substitiutes

   • Price of similar goods
     • Apple vs. Microsoft

4. Price of complements

   • Price of a product that accompanies the goods purchased
     • Xbox controllers

5. Preference and tastes

   • Consumer preference
     • Cultural tastes, personal tastes

6. Advertising

   • Marketing of a product
     • Target audience