The Importance Of Consumer Demand

The consumer confidence index measures the level of optimism regarding the prospect of economic growth. These data are gathered via surveys that focus on people’s attitude towards economy by asking them to make short and long term forecasts. Although consumers’ overviews of the economy are based on past occurrences, the expectations are generally reflective of future expenditure behaviour, which is a large component of real GDP. CCI is subjective because people’s economic outlooks are generally based on variables that are partially reflective and closely related to themselves such as unemployment rate and petrol prices. Consumers’ expectations are based on the changes in these factors and they will impact upon future household consumption.

Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer Behavior, 6e, 6th Edition.

The current weak and volatile economic conditions, particularly in the United States and Canada, have impacted consumer spending. These week economic conditions will continue to impact consumer spending and purchasing habits for the foreseeable future. Consumers’

1. Using the tricomponent attitude model, compare the differences in attitude of consumers towards Kraft Foods versus their attitude towards Vegemite.

Next, consumer spending may be influence by the “final sales” every store in the U.S. presents. At the end, one spent more than expected. Consumer spending may be a good thing for GDP but not for the individual. Many people need counseling on how to spend their money because on the long-term it may cause a decline on the economy.

The Consumer Confidence Survey allows foresight for individuals and companies whether they how much their product would be sold or whether they should buy it. The confidence level most likely would influences the spending power of the individuals. According to the Keynesian formula, consumer spending plays a major role in the growth of the GDP and if consumer confidence is low within people, there is a decrease in the amount of purchases from the people. This economic indicator usually shows the optimism of the public to spend its money rather than save it. Allowing business to get a grasp on how much sales/revenue they would earn.

Consider the Law of Demand on p. 31 of the textbook. Universal healthcare coverage decreases the amount of money that people pay for health care services (at the time of service). With this in mind, describe the effect of decreased cost of health services on the demand for health services.

When making a consumer decision-making there are several influences that can affect, motivation, attitude, lifestyles, learning, and perception. A person behavior is a key point since it shows the person within their cycle. As we change daily as family our cycle changes as well. In the US, we have different socials classes, and each of them shows different values, behavior, and way of seen life in

In the United States, consumer sentiment is measured primarily using two measures: Consumer Confidence Index (CCI) and the University of Michigan Consumer Sentiment Index. Both of these measure the degree of optimism consumer’s express about the economy and their personal financial/employment situation. This is a key element in determining economic health, as 70% of economic activity comes from consumer spending. Consumer sentiment can both a positive and negative effect on the speed of an economic recovery.

Consumer confidence is a measure of how the consumers are felling about the current and future aspects of the economy conditions (Hubbard, R. G. (2017). Just like the overall economy, the consumers are not purchasing big ticket items like they have in the past decades. Look at all the stores that have closed due to lack of in store marketing. The consumer confidence measures at the end of the month of what the economy has done as consumers purchased the month before (Hubbard, R. G. (2017). By consumers pulling their investment into their home safes it effects the investments, GDP, and interest rates, since institutions can end up going into bankruptcy. It can decrease the GDP also. By people taking their money out of banks the inflation can increase and the

Consumer confidence plays a major role in indicating the future performance of an economy as the household consumer expenditure often makes up the most significant proportion of GDP. Therefore, changes in this variable will have an effect on GDP; and it is likely to be a leading indicator of growth (real GDP).

economy. The consumer is benefiting from a strong jobs market, stock prices are at record highs, a rebound in home prices and subdued inflation. We would argue that the consumer hasn’t been this healthy in decades. Corporate America is also on sound footing and will continue to benefit from the synchronized global rebound.

Lower unemployment rates and a stronger economy have led to increased consumer confidence. When consumers are confident in the economy and their own personal finances they are more likely to spend money. Lower gas prices in the last year or two have also led to consumers having a larger amount of discretionary income. When consumers are employed plus their cost of daily expenses is lower, they have more money to spend on non-essential goods or luxury items. Higher discretionary income and consumer confidence also caused a ramp-up of construction activities. Increased consumer spending drives up the GDP of the country since consumer consumption accounts for two thirds of the GDP (Mceachern, 2014).

Consumers are stepping up to the plate, with retail sales climbing by 0.6% in August, the fastest pace in four months. Such an uptick, plus an upward revision in July’s spending, boosts prospects for the economy in the months ahead. Behind this better retail showing, most likely, were declining layoffs, an improving stock market, and lower prices at the gas pump. Breaking the survey down, we saw gains at auto dealers, furniture outlets, building materials stores, and sporting goods retailers. All told, the consumer appears to be engaged as we head into the year’s home stretch.

Consumer behaviour is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. The emerging costumer trends play an important role in analysing the marketing opportunities. A consumer buying behaviour is influenced by cultural, social and personal factors. The consumer passes through five stages of the buying decision process: Problem Recognition, Information Search, evaluation of alternatives, purchase decision and post purchase behaviour. This model is important for anyone making marketing decision and customer pass through all stages in every purchase.