Economic forces lo3 economy income expenditures and

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Unformatted text preview: ultural marketing programs? 3. How are important values such as health and fitness reflected in the marketplace today? ECONOMIC FORCES LO3 economy Income, expenditures, and resources that affect the cost of running a business or household The second component of the environmental scan, the economy, pertains to the income, expenditures, and resources that affect the cost of running a business and household. We’ll consider two aspects of these economic forces: a macroeconomic view of the marketplace and a microeconomic perspective of consumer income. Macroeconomic Conditions CHAPTER 3 SCANNING THE MARKETING ENVIRONMENT Culture culture Of particular concern at the macroeconomic level is the inflationary or recessionary state of the economy, whether actual or perceived by consumers or businesses. In an inflationary economy, the cost to produce and buy products and services escalates as prices increase. From a marketing standpoint, if prices rise faster than consumer incomes, the number of items consumers can buy decreases. This relationship is evident in the cost of a college education. The price of attending college ha...
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