6 Questions
Consumer spending patterns change due to ______ in trends and fashions
changes
The competitiveness of a business is majorly affected by its ability to respond to any ______ in the market
changes
Businesses have to keep up with customers' changing needs to stay ______ and maintain their customer base/loyalty
relevant
Some markets have become more competitive because of ______, which allows products to be sold all over the world
globalisation
One way businesses respond to changing spending patterns is by keeping costs ______
low
Another way businesses respond to changing spending patterns is by bringing out ______ products to keep customers' interest
new
Study Notes
Factors Influencing Market Changes
- Consumer spending patterns change due to trends and fashions, making certain products popular for a short time before demand decreases
- Advancements in technology make older products obsolete, reducing their sales
- Economic conditions, such as high unemployment rates and low wages, affect the demand for expensive products
- Ageing population leads to changes in product preferences, with different age groups interested in different products
Factors Affecting Market Competitiveness
- Globalisation increases competition by allowing products to be sold worldwide
- Improved transportation makes it cheaper, quicker, and easier to transport products globally
- Internet and e-commerce enable customers to search and buy products from anywhere in the world, increasing competition
Business Strategies to Respond to Market Changes and Competition
- Continuously improve existing products to stay relevant
- Introduce new products to maintain customer interest
- Keep costs low to remain competitive
- Foster good customer relationships to maintain customer loyalty
Discover the various factors that influence market changes, including consumer spending patterns, technological advancements, economic conditions, and demographic shifts.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
