Consumer Behavior: External Factors

Rajagopal ()
Additional contact information
Rajagopal: Tecnológico de Monterrey

Chapter Chapter 2 in Contemporary Marketing Strategy, 2025, pp 57-110 from Springer

Abstract: Abstract External factorsconsumer behaviorexternal factors of such as market economy, culture, social values, vogue, and corporate policies for consumers broadly influence consumer perceptionsconsumer perceptions, attitudeattitude, and consumer behavior. Consumer spending patterns, propensity to consume, pricing and affordability, brand affinity, and product attraction among consumers are determined by the market economic conditions. Prices, interest rates, and credit availability are some of the components of consumer economy with respect to income and wealth, that significantly affect the consumer consumption behavior (Barnes and Olivei, Journal of Money, Credit and Banking 49:1031–1058, 2017). Generally, consumer’s behavior and preferences toward products and services do not change as a function of economic conditions. Therefore, any adjustments in expenditure patterns during economic contractions or expansions affect the consumption budget. The choice of consumers tends to shift according to the income and expenditure ratio among the consumers (Kamakura and Du, Journal of Consumer Research 39:229–247, 2012). Credit availability and credit interest rates also affect the consumption patternsconsumption pattern in the destination countries. It has been observed that an incremental pattern of disposable income and innovation of products in the market is associated with conspicuous consumption. Lower credit interest rate not only increases the consumption level but also induces greater irresponsibility in credit card use among consumers (Rajagopal, 2016).

Keywords: Consumer behavior; Macro factors; Business environment; Geo-demographic factors; Crowd behavior; Culture; Butterfly effect; Seasonality; Social values; Co-creation; Social media marketing; Ethnic branding (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-95921-9_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031959219

DOI: 10.1007/978-3-031-95921-9_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().