Question

The ____ environment refers to the factors that affect the consumers "purchasing power

Answer 1

Answer:

Psychological (motivation, perception, learning, beliefs and attitudes)

Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self concept)

Social (reference groups, family, roles and status)

Cultural (culture, subculture, social class system).

Answer 2

The economic environment refers to the factors that affect the purchasing power of the consumer.

• The income of a particular consumer is one of the most important and dominant factors that affect the purchasing power of a consumer.

• The more people have a steady and consistent income the more they would be able to afford and spend.

• The high prices and the rate of inflation also decrease the purchasing power of the consumer.

• Higher interest rates demotivate the consumers to buy on loans as the interest to be paid is not very pleasing or appealing to the consumer.