Economic Influences
Economic Influence is when a business is affected in any way by the economical factors. Economic Factors are the main elements that affect financial matters of a business like tax, interest rates, banks and stock markets. There are different ways in which different economic factors can affect a business, it can affect the business because they have to pay tax to the government on the energy they are using or they have to pay some profit that they make to the government as tax.
Price
- Price of product.
- Price of substitute products.
-Price of complementary products.
- Price of substitute products.
-Price of complementary products.
Disposable Income
- State of economy.
- Employment/ unemployment
- Inflation
- Interest/ mortgage rates
- Wage rates
- Employment/ unemployment
- Inflation
- Interest/ mortgage rates
- Wage rates
Use of Credit
- Availability
- Interest Rates
- Credit Terms
- Interest Rates
- Credit Terms
Willingness to Spend
- Consumer confidence.
- Future expectations of standard of living
- Competition for purchases
- Existing Purchases
- Future expectations of standard of living
- Competition for purchases
- Existing Purchases