Q6. Discuss the Socio-Economic Factors Affect Consumer Behaviour and Movement

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Factors affecting Consumer Behaviour:
Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. Cultural Factors: Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. Social Factors: Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. Personal Factors: Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self concept. Psychological Factors: There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes. Factors affecting Consumer Movement:

The consumer movement exercises a considerable influence on the socio-economic environment of business. In a country like India where there is a high percentage of illiteracy among people, where people are less informed and where critical goods are always in short supply, the Government has a significant role in safeguarding the interests of consumers by promoting a climate of fair competition and preventing exploitation of consumers. The main socio-economic factors affecting the consumer movement are:...
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