Identify consumer and marketer reactions to the state of the economy. In recent years, U.S. incomes have risen at a slow pace. At the same time, the financial power of women has increased, and they are making the purchasing decisions for many products in traditionally male-dominated areas. During a time of inflation, marketers generally attempt to maintain level pricing to avoid losing customer brand
1. Explain how consumers' buying habits may change during a recessionary period.
2. Periods of inflation require firms to alter their marketing mix. Suppose a recent economic forecast predicts that inflation will be almost 10 percent during the next 18 months. Your company manufactures hand tools for the home gardener. Write a memo to the company president explaining how the firm may have to alter its marketing mix.