Non-price Factors Affecting Demand

Define 'expectations of consumers'

If people expect conditions to change in the future, they may make decisions now rather than postpone them.

What are the 5 non-price factors affecting demand?

1. Income of consumers 2. The price of related goods 3. Tastes and preferences 4. Expectations of consumers 5. Demographic factors

Define 'tastes and preferences'

Advertising attempts to affect consumers preferences through persuasion and information. Preferences change over time as goods become outdated.

Define 'the price of related goods'

Consumers can choose between a number of substitutes which satisfy wants. Many goods are also consumed with other goods, these are called complements.

Define 'income of consumers'

Consumers will normally purchase more of a good when their income increases. The exception is for inferior goods.

Define 'demographic factors'

The size and age of the population and its make-up can influence demand on numerous products.