How Economic Factors Affect Consumer BehaviorAre 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 16.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.htm
Resume:

Based on the article above discusses why few consumers come to the store to buy products. So it
seems they want to blame online sales, local government policies, or even local councils. The fact
that current economic factors are more related to the behavior of customers. The biggest factor for
the pattern of spending on consumer behavior is the orientation to the future until the consumer's
short-term or long-term plans include savings, employment and home payments.

In this article, factors that affects consumer behavior, such as:

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