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Falling levels of consumer income have caused a car dealership to experience a significant reduction in retail sales - OCR - GCSE Business - Question 15 - 2019 - Paper 1
Question 15
Falling levels of consumer income have caused a car dealership to experience a significant reduction in retail sales. Which one of the following actions should the ... show full transcript
Worked Solution & Example Answer:Falling levels of consumer income have caused a car dealership to experience a significant reduction in retail sales - OCR - GCSE Business - Question 15 - 2019 - Paper 1
Step 1
Offer price reductions
Answer
To increase sales during a period of falling consumer income, the car dealership should take actions that incentivize purchasing despite economic downturns. One effective strategy is to offer price reductions. This makes vehicles more affordable for consumers whose disposable income has decreased, potentially boosting sales volume. Reducing prices can attract more customers who may be hesitant to buy otherwise, thus countering the effects of lower consumer expenditure.