The main factors which influence customer buying decisions Essay

The main factors which influence customer buying decisions - Essay Example This research will begin with the statement that cares the individuals who buy goods and services for consumption purposes, the difference between a consumer and customer is that a customer is a group of businesses and organizations that purchase goods in order to use them as inputs in their production processes example the purchase of Raw materials. A fall in the price of a product will result in an increase in the quantity of a product purchased, however, these depend on the price elasticity of a product. If a product is price elastic and this means that the price elasticity of the good is more than one, then the products demand will rise at a greater proportion than the rise in price. If the price elasticity of a product is less than one then the demand for the product will not rise in a greater proportion than the price. The price of substitutes also play a major role in determining the consumers purchasing behavior, in a situation where a substitute of a product is less expensiv e, then the consumer will purchase the substitute example margarine and butter are substitutes, if the price of butter goes up then the consumer will purchase margarine. Under the price of a product we will also consider the risk associated with buying a certain product, the more expensive a product is the higher the risk and the higher the consequences of making the wrong decision, buyers will also consider the scrap value of and mostly this is associated with vehicle and machinery product, products with very high prices and low scrap value will be less preferred.