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What is an economic factor that could influence customer choice? A - HSC - SSCE Business Studies - Question 1 - 2022 - Paper 1
Question 1
What is an economic factor that could influence customer choice? A. Perception B. Recession C. Regulation D. Subculture
Worked Solution & Example Answer:What is an economic factor that could influence customer choice? A - HSC - SSCE Business Studies - Question 1 - 2022 - Paper 1
Step 1
B. Recession
Answer
The correct answer is "B. Recession".
Explanation
An economic factor that can significantly influence customer choice is recession. During a recession, consumers typically experience reduced income and increased unemployment rates, leading to changes in spending behavior. This economic condition often results in a more cautious approach to purchasing decisions, as customers prioritize essential goods and services over luxury items.
Other Options
- A. Perception: This is more of a psychological factor rather than an economic one.
- C. Regulation: While regulations can affect markets, they do not directly reflect economic conditions influencing customer choice.
- D. Subculture: Similar to perception, this relates to socio-cultural factors rather than economics.