What are the economic factors that influence the marketing environment? If you own a used car dealership, which economic factors do you feel are most important to understand and monitor to make your business successful?

Question

What will be an ideal response?

Answer 1

The economic factors that influence the marketing environment are gross domestic product (GDP), income distribution, consumer confidence, and inflation. A used car dealership should monitor all of these economic factors as they all could affect this business. GDP is a gauge of the state of the economy and whether the economy is growing or in a recession. If the economy is expanding, consumers may be in the market for vehicles, but in a recession they are less likely to make major purchases. Inflation measures general price movements and could affect how the dealership sets prices. Consumer confidence is a measurement of how optimistic consumers are; if they are optimistic they may be more likely to purchase vehicles. Also, if incomes are growing, consumers may be more likely to make major purchases.