1. Income level
Personal disposable income
Consumers’ disposable personal income is a key factor in determining their purchasing power. The higher the disposable income, the more money you have to spend on non-essentials like office chairs after meeting basic needs. For example, high-income business executives or professionals, who have more money left over each month, can easily purchase higher-priced high-end office chairs, such as brand-name office chairs with advanced ergonomic design and high-quality materials.
On the other hand, people with low incomes can be very restricted in buying office chairs. They may be more focused on affordable products and may even choose to buy used office chairs to meet basic office needs. For example, some young people who just joined the work or engaged in grass-roots work workers, their income is mainly used to pay for rent, food and other necessities of life, and the budget for office chairs is relatively low.
Household income
Total household income plays an important role in the purchase of office chairs by families. If more than one member of the family has a job income, and the family’s economic situation is good, then there will be a larger budget space when choosing an office chair. For example, a dual-income family with a higher income of both spouses may be willing to spend thousands of yuan on a high-quality office desk and chair set when decorating a home office.
The family income mainly depends on a single member, or the family economic burden is heavy (such as mortgage, children’s education costs and other large expenses), consumers will be more cautious in the purchase of office chairs, more inclined to choose cost-effective products.
Second, consumer credit
Credit policy and interest rate
The consumer credit policies of banks and other financial institutions will affect the purchasing power of consumers. If credit is easy, consumers can more easily get loans to buy office chairs. For example, some banks have launched consumer credit products with low or zero interest instalments, and consumers can buy office chairs with higher prices by instalments, thereby improving their purchasing power.
The level of interest rates is also critical. Lower loan rates mean consumers pay less interest when buying office chairs on instalments, reducing the cost of buying them. For example, when the loan interest rate is reduced from 5% to 3%, consumers buy an office chair worth 3,000 yuan, pay in 12 installments, and the interest expense will be reduced from about 150 yuan to about 90 yuan, which makes consumers more likely to buy a higher-priced office chair.
Consumer credit status
Consumers’ own credit status determines whether they can obtain consumer credit and the size of the credit line. Consumers with a good credit history have an easier time getting a loan from a bank or financial institution and may be able to get a higher line of credit. For example, a consumer with a high credit score may be able to obtain a consumer credit line of tens of thousands of dollars, which gives him more options for funding the purchase of an office chair, even if it is more expensive, through a loan.
Conversely, consumers with poor credit histories may be denied loans or be limited to lower credit lines, limiting their ability to purchase higher-priced office chairs.
Third, price and cost performance
Office chair prices fluctuate
The price of office chairs directly affects the purchasing power of consumers. If the market price of office chairs generally rises, the purchasing power of consumers is relatively decreased. For example, when the rise in raw material prices leads to an increase in the production cost of office chairs, manufacturers increase the price of their products, and consumers who can originally budget to buy middle and high-end office chairs may only choose middle and low grade products because of the rise in prices.
Conversely, price declines or promotions increase the purchasing power of consumers. For example, during the e-commerce shopping festival, there are significant discounts on office chairs, and consumers can buy higher quality or higher level office chairs with the same budget.
Cost performance consideration
Consumers will consider price and performance when buying office chairs. Cost-effective office chairs are more popular with consumers, even if consumers have a limited budget, they may increase their willingness to buy because of the high cost performance of the product. For example, a moderately priced office chair with good ergonomic design, comfortable sitting and durable materials will attract more value-for-money consumers than an expensive but similarly functional brand office chair.
Consumers will evaluate their cost performance by comparing the function, quality and price of different brands and different styles of office chairs. They may refer to product evaluation, professional evaluation and other information to make purchase decisions, so as to choose the most suitable office chair within their own purchasing ability.
4. Economic environment and employment
Macroeconomic situation
In times of economic prosperity, consumers have increased employment opportunities, stable and rising incomes, confidence in future economic conditions, and relatively strong purchasing power. For example, in the stage of rapid economic development, business benefits are good, employees are rewarded with large bonuses, and consumers are more willing to spend money to buy comfortable and high-quality office chairs to improve the working environment.
In times of economic recession or instability, consumers may face the risk of losing their jobs or losing their income, and their ability to buy can be severely affected. They prioritize necessities and cut back on discretionary purchases, such as office chairs, or lower their purchase budgets.
Employment stability and career prospects
Consumers’ own job security and career prospects also affect their purchasing power. If the job is stable, there are good opportunities for promotion, and consumers have optimistic expectations about their income, they will be more generous in buying office chairs. For example, people working in civil servants, large state-owned enterprises and other units have relatively stable jobs, and they will have more stable purchasing ability when buying office chairs.
For temporary workers, part-time workers or workers in sunset industries, their employment is unstable, their income is uncertain, and they will be more cautious in buying office chairs, and their purchasing power is relatively weak.
Post time: Jan-15-2025