› Economic Influences
The Economist's perspective
Demand is a function of:
- Price
- Income
- Preference
- Price of other goods
- Expectations about the future
Economic Factors Influencing demand:
Price:
- Price of the product
- Price of the substitute products
- Price of complementary goods
Use of Credit:
- Availability
- Interest rates
- Credit terms
Disposable Income:
- State of the economy
- Employment/Unemployment
- Inflation
- Interest/Morgage rate
- Wage rates
Willingness to spend:
- Consumer confidence
- Future expectations of standard living
- Competition for purchases
- Existing purchases