Final answer:
Consumer's income level, preferences, and a product's adherence to category norms affect whether it is seen as a category prototype. While marketing effectiveness can influence perceptions, it's the product's fit within category norms that primarily determines its prototype status. Changes in prices or income influence demand through the substitution effect and the income effect.
Step-by-step explanation:
Factors that affect whether a consumer regards something as a category prototype include consumer's preferences, income level, and the product's conformity to category norms. Income influences consumer choices since it determines the ability to purchase. Higher income allows for greater flexibility in buying choices. Consumer preferences, shaped by tastes, experiences, and marketing campaigns, guide which products are considered desirable or as prototypes within a category.
Additionally, the degree of conformity to category norms plays a significant role in how a product is perceived as a prototype. If a product strongly fits what is expected in a category, it's more likely to be seen as a typical example or prototype of that category. Marketing campaigns can indeed impact consumer perceptions, but it is the product's conformity to these norms that shapes its prototype status.
Furthermore, the substitution effect and the income effect highlight how changes in prices or consumer income affect demand. The substitution effect occurs when consumers replace a more expensive item with a less costly alternative as prices change. The income effect describes how a change in disposable income can either increase or decrease the quantity of a good that consumers are willing and able to purchase, irrespective of price changes.