Factors that influence a consumer

Factors that influence a consumer

1. Price = It is usually one of the most important factors. According to the law of demand , as the price of an item rises, the demand will fall. This is the result of two factors: the income effect and the substitution effect.

2. Marketing = Marketing is the entire process by which products are promoted and sold. This includes advertising campaigns, such as online, television , newspaper and billboard promotions, but also all the other measures companies take to gain and retain customers.

3. Availability and cost of finance = A consumer may wish to purchase an item even though they don't currently have the money available to pay the whole price of the item. The availability and cost of other payments options such as lay-by, store loans, payment plans, credit cards and bank loans may effect consumers' willingness and ability to buy an item.

4. Consumer preferences = Consumer's purchasing patterns are heavily influenced by factors such as age, gender or individual preference. While these can be affected to some extent by an effective market, underlying consumer preference is a powerful influencer on decision making.

5. Fashion trends = Fashion can be a strong element of consumer preferences, and can lead to very short -term changes in patterns of demand. Business that link their offerings too closely to temporary fashion trends can struggle to maintain their viability in the long term when demand eases.

6. Convenience = Under some circumstances , consumers may be willing to undertake some degree of inconvenience in order to obtain their desired goods and services. However, convenience is an important part of consumer decisions as if it is more convenient, a consumer may be more likely to buy it.

7. Health, ethical and environmental - Some groups of consumers can be heavily influenced by considerations such as health, ethical and environmental factors. When maintained in the long term, these purchasing patterns can in turn influence companies behaviour by encouraging them to alter their product ranges, seek certification from organisations ect. People can often have issues with the way in which animals are treated ect and this effects what is on the market.