How Do External Factors Influence Consumer Demand?
External factors, such as economic conditions, cultural trends, and technological advancements, can significantly impact consumer demand: 1. Economic Conditions: During economic downturns, demand for luxury goods may decrease, while demand for essential items may remain stable or increase. 2. Cultural Trends: Shifts in cultural attitudes, such as a growing focus on sustainability, can affect demand for eco-friendly products. 3. Technological Advancements: New technologies can create demand for new types of products and services, while rendering others obsolete.