Changing Consumer Behaviour

Consumer tastes can have a big impact on sales. For example, trends in fashion can show what is and what is not popular at a certain time. Many consumers will not buy things that are not on trend. This is a form of social pressure that can affect many kinds of enterprise.

An enterprise may open a new business when consumer demand is high for a particular product – for example, an electronic gadget that everybody wants. However, when consumer tastes change, and the gadget is no longer popular, the enterprise will either have to change and adapt, or risk failing.