Question

Marketers that can find strategic ways to increase ________ about the overall state of the economy can help improve firm performance during challenging times.

Multiple Choice

• consumer impact

• consumer confidence

• consumer perception

• consumer positivity

• consumer opinion

Answer 1

Option 2 - consumer confidence

Explanation : Consumers purchase more when consumer confidence is high because they feel more secure in their jobs. Consumer spending accounts for more than two thirds of U.S. economic activity. The amount consumers spend is often based on their confidence in the stability of their future income. As a result consumer confidence can provide an effective measure of the health of the economy. Consumer confidence measures how optimistic consumers are about the overall state of the economy and their own personal finances. If the economy contracts and people lose jobs , consumer confidence decreases, leading to more saving and less spending. The effects of this could be seen in the U.S. during the most recent recession. Marketers who can find startegic ways to help consumers feel confident about their purchases can improve performance during challenging times.