Question

Explain how the following factors affect consumer buying.

1. Income
2. Complimentary goods
3. Need to define a certain self-image.
4. Family set up.

Answer 1

1. Income - a reduction or increase income will reduce or improve the purchasing power of a household
2. Complimentary goods - there are items that the need for one will create the need for the other e.g. tea and sugar
3. Need to define a certain self-image. - this is the desire to live above one's means in order to portray a certain status may influence one to spend above their means.
4. Family set up.- a family with both young babies and older children will influence in type of items bought and amount of money spent on them.