trends

Question 1

what are some economic trends?

Answer 1

• it influences the level of consumer demand within the economy as a whole
• unemployment: high level of unemployment reduce consumer demand
• change in interest rates: a low rate of interest can stimulate consumer demand
• changes in taxation: a high rate of income tax can lower consumer demand
• rate of inflation: a low rate of inflation increases consumer demand
• changes in exchange rate: a fall in the value of the £ makes imports cheaper
• developments in technology: advances in technology can reduce the price of products
• all of theses factors will influence the level of consumers’ disposable income

Question 2

what are some market trends?

Answer 2

• are determined by changes in the spending pattern of consumers on particular goods and services
• age, gender, cultural diversity: the population profile of the target market will influence demand for different products and services
• changes in fashion and tastes: markets are influenced by marketing, advertising promotions and branding
• the product life cycle: all products have a life cycle and will eventually decline, to be replaced by other products
• businesses need to analyse these factors to determine if they need to change their current strategy

Question 3

what are some social trends?

Answer 3

• concern people’s views and opinions about key issues
• public opinion: this includes aspects such as environmental concerns, fair trading and animal rights
• technology: online reviews by consumers of products and services provide access to information on price, quality and customer service
• online campaigns can be started, aimed at highlighting and changes poor business practices
• changes in lifestyle: these include fundamental changes in consumer behaviour patterns such as the development of online shopping
• social trends are linked to how other people perceive their own welfare and the well-being of others