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External Factors Affecting Consumer Behavior Essay

3469 words - 14 pages

Executive Summary
Consumer is the real asset of any organziation. There are a number of factors that affect on consumer’s buying. Every organziation keeps an eye on those factors and always try to minimize them or have a good impact on its consumer purchase. These factors can be of any type, social, non-socil, cultural and religious factors. In this respect, marketers and producers are forced to conduct intensive market research in order to identify the various external factors that are likely to influence the decision making process or buying behavior of consumers in regards to a particular product. Like other products, tesco sales are also highly affected by these external factors, the paper focus on those internal and mainly focus on external factors of consumer purchase. Later sections focus on personal, cultural and psychological factors of Tesco purchase. Tesco Consumer’s purchasing is highly affected by these social and non-social factors, the paper discusses these factors in its later parts.

Executive Summary 2
Introduction 4
Discussion 4
Social 5
Cultural Factors 9
Psychological Factors 11
Personal Factors 12
Conclusion 19
References 21

Tesco Corporation is one of the most prominent supplier and manufacturer of top drives and contractors. The company has a diversified presence across the globe. TESCO has a product line specially targeted to different needs of different types of the customers. Here, we will attempt to investigate the external environment for TESCO PLC, where different forces present in the external environment would be evaluated.


Factors Affecting Consumer Behavior

One of the most discriminating outer business elements is rivalry. This is true for industrial work, blue collar jobs, and top CEO corporations. In order to properly function as a business one of the most important goals is to know the competition: therefore it behooves an employer to conduct proper research about the opposition. Some organizations do just that: they exam the market value of a product, the necessary marketing involved, the packaging, and the cost to benefit ratio in similar contender’s offices and base their final strategies about business on this information.

The regular outer components fall into a few classes, including socio-investment, legitimate or moral, political and mechanical. Socio-monetary components concern the buying power of the consumer as well as the actual target audience of the product. Withint the target audience, businesses asses their potential client’s spending power. Thus, ratios incorporating this spending power with market value and cost of production become instrinsic to business schematics. There are other implications outside of this ratio that also contribute to cost such as moral implications involved in marketing and selling certain products, political import, and lawful distribution of company funds...

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