Earlier in the text, individual difference characteristics such as personality were discussed. Do you believe that situational influences or individual differences have a greater effect on consumer behavior? Explain your choice and defend your position citing several examples.

Individual Consumer's (different) personal taste & preferences ; situational factors [future expectations, economic activity, climate] effecting demand, consumer's theory.

Explanation:

Demand is the quantity of good buyers are able & willing to buy, at a given price & period of time.

Individual taste & preferences are an important factor effecting consumer's demand. If consumer's taste & preferences change in favour of good, the demand of that good increases. If consumer's taste & preferences change against a good, demand of that good decreases.

Situational influences also effect consumer demand. Level of economic activity, Future expectations about price or income rise or fall , climatic factors, urgency of the demand etc - all these situational factors influence demand. If prices are expected to rise in future,  current demand increases & vice versa. If income is expected to rise in future, current demand increases & vice versa. At higher level of economic activity prevailing, demand is high & vice versa. Climatic factors also effect demand - eg air conditioners would be demanded more in summer rather than winter.

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