Factor of affecting purchasing decision

What drives consumers to choose a particular product with respect to others is a question which is often analyzed and studied by marketers. Most of the selection process involved in purchasing is based on emotions and reasoning.

Factor of affecting purchasing decision

Understand why companies must conduct research before setting prices in international markets. Learn how to calculate the breakeven point. A firm also has to look at a myriad of other factors before setting its prices.

If a company plans to sell its products or services in international markets, research on the factors for each market must be analyzed before setting prices. Organizations must understand buyers, competitors, the economic conditions, and political regulations in other markets before they can compete successfully.

Next we look at each of the factors and what they entail. Customers How will buyers respond?

Factor of affecting purchasing decision

Three important factors are whether the buyers perceive the product offers value, how many buyers there are, and how sensitive they are to changes in price.

In addition to gathering data on the size of markets, companies must try to determine how price sensitive customers are. Will customers buy the product, given its price? Or will they believe the value is not equal to the cost and choose an alternative or decide they can do without the product or service?

Equally important is how much buyers are willing to pay for the offering. Figuring out how consumers will respond to prices involves judgment as well as research. Think about a pair of sweatpants with an elastic waist.

Elasticity refers to the amount of stretch or change.

Dealer Ops

For example, the waistband of sweatpants may stretch if you pull on it. Similarly, the demand for a product may change if the price changes. The formula for calculating the price elasticity of demand is as follows. Durable goods such as TVs, stereos, and freezers are more price elastic than necessities.

People are more likely to buy them when their prices drop and less likely to buy them when their prices rise. By contrast, when the demand for a product stays relatively the same and buyers are not sensitive to changes in its price, the demand is price inelastic.

Demand for essential products such as many basic food and first-aid products is not as affected by price changes as demand for many nonessential goods. The number of competing products and substitutes available affects the elasticity of demand.

Some products, such as cigarettes, tend to be relatively price inelastic since most smokers keep purchasing them regardless of price increases and the fact that other people see cigarettes as unnecessary.7 Important Factors That Influence The Buying Decision Of A Consumer Economic Factor.

This one is the main foundation of any purchasing decision. The reason is simple people can’t buy. this study is to explore the factors affecting customers’ purchasing decision through e-commerce (online shopping). Several factors such as trust, satisfaction, return policy, cash on delivery, after sale service, cash back warranty, business reputation.

Social Factors affecting Consumer Behaviour Consumer Behaviour is an effort to study and understand the buying tendencies of consumers for their end use. Social factors play an essential role in influencing the buying decisions of consumers. The purpose of this study is to identify and analyze factors that influence consumer purchasing decision of private label food products.

Method: The research identified five factors that influence consumers' purchase decision of low-price private relationship is the most important factor.

If consumer perception of quality and price.

Factor of affecting purchasing decision

4 important Factors that Influence Consumer Behaviour. Consumer Behaviour – The consumer, The KING of the market is the one that dominates the market and the market arteensevilla.com us know the King first.

A consumer is someone who pays a sum to consume the goods and services sold by an organization. 5 Non-Product Factors That Influence Purchase Decisions When it comes to choosing one product versus another, consumers – whether consciously or subconsciously – weigh a variety of factors.

In an effort to organize these factors, it would be appropriate to create two distinct categories.

Factors That Affect Pricing Decisions | Principles of Marketing