External Environment

Topics: Consumer theory, Goods, Food Pages: 4 (1209 words) Published: August 19, 2013
1. Number of consumers (naturally, more consumers means more D)  2. Income & normal goods (as Y increases, D for these goods increases)  3. Income & inferior goods (as Y increases, D for these goods decreases)  4. Preferences (obviously, if they prefer to buy it their D will increase)  5. Price of a substitute (if the price of a substitute good increases, D for the original good will increase)  6. Expectation of future prices and income. 

7. Government policies. e.g. ban pornography. This leans more towards supply restriction rather than demand.  8. Substitutes (Greater the number of substitutes and the attractiveness of their price, the smaller will be the demand for the good)  9. Complement goods (increase demand for cars would raise demand for petrol)  10 fashion (if item is currently popular in the market it will get more buyers and so it would be a high demand item  11. weather ( a winter cloth would be in greater demand in winter as compared to summer)  12. wars (demand of certain goods can be influenced in wars compared to peace situation  13. traditional and religious festivals and events can influence the demand of certain goods, like Christmas tree is in higher demand in the month of December  14. number of sellers also impact demand by influencing the price of certain goods. 

Competitors are always looking to take a bigger share of the market, perhaps by cutting their prices or by introducing a new or better version of a product Social factor
The facts and experiences that influence individuals' personality, attitudes and lifestyle. The marketing department of a business needs to take into account the various social factors characteristic of the consumer groups it is targeting to help increase a product's appeal to those potential buyers.

Read more: http://www.businessdictionary.com/definition/social-factor.html#ixzz2WLeNUAAw 1. Religion
2. Ethnicity
3. Family
4. Physical attributes
5. Economic Status
6. Education
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