What term refers to the resources that can be exchanged and enable a person to make a purchase?

Buying power is the term that refers to the resources that can be exchanged and enable a person to make a purchase. It encompasses the financial capacity that an individual has to buy goods and services. This concept is fundamental in marketing as it directly affects consumer behavior and purchasing decisions. Buying power can fluctuate based on various factors including income levels, credit availability, and overall economic conditions.

Disposable income, while related, specifically refers to the amount of income that remains after taxes have been deducted, which is available for spending or saving. Credit signifies the ability to borrow money or access goods and services with the promise of future payment, not an immediate resource for purchase. Wealth is a broader term that encompasses all assets an individual holds, but it does not directly refer to the resources available for immediate transactions. This deeper understanding of buying power highlights its significance in marketing and consumer engagement strategies.