How Economic Factors Affect Consumer Behavior

Are you losing customers and blame online sales?

When I visit businesses with slow sales I hear many excuses for why they have so few
customers this month. It seems they are willing to blame online sales, the local government
policies, or even the local council. Their comments only serve to highlight the fact they do not
understand that the current economic factors have more to do with the customers behaviour
than any of those other factors. Money is not spent if  the customer is worried about their
future. The single biggest factor for consumer behaviour spending patterns is how secure they
feel their short-term future is regarding savings, employment and home payments. The more
insecure they feel about the economy, the more they will pay down debt or keep money for
the rainy days. This ‘happiness’ factor is measured by the consumer confidence index which is
reported daily showing how secure the consumer believes the future is. When the CCI goes
over 100 points, customers will spend. If the CCI goes under 100 the customers stop spending.

How the economy affects the consumer behaviour?

The consumer is bombarded with messages of doom & gloom from the newspaper and
other news media telling them all about the problems in the world. Currently we have
concerns with ;

- Eurozone debt and several countries in recession

- Declining natural resources and climate warning

- Instability in several governments causing public unrest & armed violence

- Over a 20% drop in Australian super and shares

- Loss of primary industries with large scale unemployment happening almost weekly since
start of 2012

Business owners need to pay attention to these economical factors. Mortgage

payments are often the largest expense a customer has and will not risk losing their home just
to take a chance and buy your products. When there is uncertainty in the mortgage rates, sales
will decline in most sectors. The instability of employment in manufacturing, financial
services and construction sectors will cause customers to focus on what would happen if they
lost their employment. So they start saving money for their possible unemployment and spend
it on career change prospects like training in new skills. Due to the high costs of aged care and
related retirement expenses many consumers are looking ahead to their future by investing in
superannuation and/or shares to be financially secure. With the global recession and collapse
of some international organisations thought to be secure from the economy wobbles, super
funds have lost millions of consumers financial net.

What the current economy means to your customers?

They are unsure if they will be able to keep the family home, pay for their retirement
and even if they will have a job in the next six months. So the consumer goes into survival
mode by saving money and stopping all unnecessary spending. As a business owner or
manager you need to pay attention to the local economic factors as they will mean the
difference between meeting your sales targets or not.
 Sumber : http://www.artikelberbahasainggris.com/ekonomi/how-economic-factors-affect-
consumer-behavior.html

Analisis tenses :
    1.      I hear many excuses  : S + V1 + O  = Present Tense

    2.      They are willing to blame online sales : S + Tobe + V ing + O = Simple Present Continous

    3.      Money is not spent : S + Tobe + O = Present Tense

    4.      The customer is worried : S + Tobe + V2 = Past Tense

  
    5.      They will pay down debt or keep money for the rainy days : S + Will + O = Present Future

    6.      The CCI goes over 100 points : S + V1 + O = Present Tense

    7.      The consumer is bombarded with messages of doom & gloom from the
newspaper :             
           S + Tobe + V2 + O = Simple Past Tense

    8.      We have concerns with : S + V1 + O = Present Tense

    9.      Business owners need to pay attention to these economical factors :

     S + V1 + O = Simple Present Tense

   10.  Sales will decline in most sectors : S + Will +V1 + O = Simple Future

   11.  Financial services and construction sectors will cause customers to focus on what would
happen :     S + Will + V1 + O = Simple Future

   12.  They lost their employment : S + V2 + O = Simple Present

   13.  The global recession and collapse of some international organisations thought to be secure
from       the economy wobbles : S + V2 + O/ Complement = Simple Past Tense

   14.  Super funds have lost millions of consumers financial net :

    S + Tobe + V3 + O = Past Perfect

   15.  They are unsure : S + Tobe + O = Simple Present

   16.  They will be able to keep the family home : S + Will + V1 + O =  Future Tense

   17.  The consumer goes into survival mode by saving money : S + V1 + O = Present Tense

   18.  They will have a job in the next six months : S + Will + V1 + O = Simple Pesent Future
  
   19.  As a business owner or manager you need to pay attention to the local economic factors :
    S + V1 + O = Simple Present Tense

   20.  They will mean the difference between meeting your sales targets or not :

    S + Will + V1 + O = Simple Future.