Which of the following affects the price based on the spending power of consumers?

The target market significantly influences the price based on the spending power of consumers. When a business identifies its target market, it analyzes the demographics, income levels, preferences, and behaviors of its potential customers. This data helps in determining how much consumers can and are willing to pay for a product or service.

For example, a luxury brand may set higher prices because its target market consists of affluent consumers who are less sensitive to price changes and seek exclusivity. Conversely, if the target market is comprised of budget-conscious consumers, the business might adopt a pricing strategy that aligns with their spending power to maximize sales. Understanding the target market allows businesses to craft pricing strategies that not only meet their financial objectives but also resonate with their consumers’ economic realities.

The other options, while important, do not directly relate to consumer spending power in the same way. Cost of resources pertains more to the company's expenses rather than consumer capabilities. The quality of the product can influence price but is not inherently tied to consumer spending power. Brand loyalty can affect pricing strategies but is ultimately a consequence of established customer relationships rather than a defining factor of spending capacity.