Key Factors Affecting Consumer Decisions

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Key Factors Affecting Consumer Decisions Finance Finance affects consumers’ decisions when you want to purchase a product but the good is more than the amount of cash you have available. Then you’ll have to take a loan to purchase the item. The interest rate, how easily the money can be borrowed, level of savings and the cost of the money loaned will decide whether or not a consumer will purchase the good. Examples of items when a person might have to organise finance are cars and houses. Price Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless…show more content…
Many people go to convenience stores as they don’t have travel far distances just to buy a few items even if it’s a bit costly so they don’t have to travel far for limited items. Service Good service makes you feel like a valued customer. Thus, you will keep on going back to the store or buy the product again. If a shop has poor service lots of customers won’t visit it again. For example, my family goes to a Lebanese restaurant constantly because of the good service as they make us feel like valued customers on top of the good food. Environmental The environment plays an important role in a consumer’s decision. Many customers have become aware of problems by plastic and bring their own bags. People may be influenced to purchase a product that has packaging which can be recycled. Features of a Simple Contract Offer- An offer is a proposal involving one of the parties offering something of value to the other party in the agreement. Both parties are allowed to reject the offer. For example, buying a second-hand car, a person interested in buying the car makes an oral offer of $16,000. Acceptance- An acceptance occurs when the person agrees to the proposal. It involves a written or oral statement or an act that clearly communicates acceptance of the offer. For example, the offeree accepts the proposal of $16,000 and indicates it by saying ‘Deal’ and shaking hands.
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