Factors Influencing Consumer Spending

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A consumer is an individual who uses goods and service in order to satisfy their needs and wants. To obtain these goods and series, however, the consumer must spend part of their income. Of course he or she wouldn’t go out and spend every cent on anything they see. The good or service must appeal to them. For example one can buy water services because it’s needed or a certain piece of clothing because they like it and so on. Such are the factors that influence consumer spending. Others include: the quality of the product, the availability of credit conditions, the family size and the age and gender of the consumer. While walking down the aisle in a department store, you will notice some individuals scrutinizing the items in their hands, checking it for any damage, or even examining the material it’s made of. This shows that the quality of the product is important in making the decision in buying a product. Products that are made of a cheaper material will not be bought most of the time, i.e. if the incomes of some consumers allow them to buy the better quality product. For example, a woman is at a department store looking for a handbag. There are two handbags on the shelf; one is of a cheaper imitation leather material and the other is of the real leather material and lined with sheer inside. The woman will most likely decide to buy the handbag made of the real leather material with the sheer because this handbag will last longer and will go through many conditions. Other than the quality of the product, the availability of credit conditions also affects consumer spending. If consumers are offered the condition of buying a good or service that is very expensive on credit or obtaining it via a loan, he/she will grab the opportunity, most likely. The most popular good or service that is obtained via loan is a motor vehicle. The prices on motor vehicles

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