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The economic environment plays a crucial role in shaping consumer behaviour, influencing not only what consumers buy but also how, when, and why they make purchasing decisions. Consumer behaviour is deeply intertwined with economic variables, as it reflects the capacity of individuals and households to spend, save, and invest in goods and services. Various dimensions of the economic environment collectively determine the preferences, expectations, and purchasing power of consumers, and these dimensions are both macroeconomic and microeconomic in nature. One of the primary dimensions of the economic environment affecting consumer behaviour is income and wealth distribution. Consumers’ disposable income, which is the income left after taxation, directly determines their ability to purchase goods and services. Higher disposable income generally leads to increased consumption, diversification of spending across both necessities and luxuries, and a greater inclination to explore innovative products. Conversely, low disposable income restricts spending patterns, compelling consumers to prioritize basic needs such as food, clothing, and shelter. Additionally, wealth distribution in a society affects the types of products marketed and the segmentation of target audiences. For instance, in India, the middle class has seen a substantial rise in disposable income over the past two decades, resulting in increased demand for consumer durables, smartphones, and branded clothing, whereas lower-income groups tend to focus on essential commodities. Employment levels __________ ______ ____ ____ ______ _____ ________ _________ _________ _______ ____.
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