how businesses respond to a change in disposable income Flashcards
knowing a customers disposable income helps a business to decide…..
- what type of products or services to provide
- which pricing strategy to use
- where to locate
strategies Sainsburys use to ensure they respond to meet the needs of their customers
a fall in consumers disposable income
- reducing its prices
- stock more own brand or value ranges
- having more promotions in store
- introduce saver stamps schemes
strategies Sainsburys use to ensure they respond to meet the needs of their customers#
a rise in customers disposable income
- increase prices
- introduce more premium range products
- stock a wider range of luxury products
- sell more branded products
prepared answer
Sainsburys PLC is able to respond to change in consumers disposable income in a variety of ways. Sainsburys can change its prices to suit how much its customers are able to pay for its products. another thing that Sainsburys can do is adapt its product range. it can focus more on value ranges or premium ranges depending on consumers disposable income. by taking these actions Sainsburys can meet the needs of its customers which should lead to increased sales and more profit
identify four ways a business that you have research could respond to a fall in customer disposable income
- reducing its prices
- stock more own brand or value ranges
- having more promotions in store
- introduce saver stamps schemes
identify four ways a business that you have research could respond to a rise in consumers disposable income
- introduce more premium range products
- increase pries
- stock a wider range of luxury products #
- sell more branded products
describe two ways a business that you have researched could respond to a fall in consumers disposable income
- Sainsburys could introduce more own brand products with simple packaging and cheaper prices
- Sainsburys could introduce a saver stamp system allowing customers to save money for expensive shops like at Christmas
describe two ways a business that you have researched could respond to a rise in consumers disposable income
sainsburys could introduce more premium range products that are better quality and have a higher price point
sainsburys could stock more luxury items such as clothing and gadgets, alongside its groceries
explain two ways a business that you have researched could respond to a fall in consumers disposable income
sainsburys could introduce more own brand products as they would have cheaper prices which consumers would be looking for
sainsburys could have more promotions so that their products seem better value to consumers with less money to spend
explain two ways a business that you have researched could respond to a rise in consumer disposable income
sainsburys could introduce more premium range products that would attract customers who were happy to pay more for better quality products
sainsburys could increase prices slightly as consumers with high disposable income could afford to pay these prices
analyse the impact of a fall in consumers disposable income on a business you have researched
sainsburys may need to reduce prices so customers can afford them and keep shopping with them rather than going to other supermarkets. this may mean they will make less revenue and profits
analyse the impact of a rise in consumers disposable income on a business you have researched
sainsburys may need to stock more premium range products and luxury items to cater for customers who are willing to pay more for better quality products. this will lead to increasing revenue and possibly profits for sainsburys
