How does income affect consumer behavior?

How does income affect consumer behavior?

Income plays a crucial role in consumer behavior as it determines purchasing power and influences spending habits.

Can you give me examples of how different income levels affect spending?

Sure! Higher income individuals may spend more on luxury goods, while lower income consumers might prioritize essentials.

What about the impact of income on brand loyalty?

Generally, higher income consumers may exhibit more brand loyalty, as they can afford premium products and services.

Are there any psychological factors involved?

Yes, psychological factors like status and self-image can influence how consumers with different incomes perceive brands.

How do economic downturns affect consumer behavior related to income?

Economic downturns typically lead to reduced income for many, causing consumers to cut back on discretionary spending.