Which statement is true about the economic factors in a marketing environment?

• A. Economic factors are limited to technological advancements in the market.
• B. Economic factors such as inflation, unemployment, and income levels directly influence consumer purchasing power.
• C. Economic factors are unrelated to the demand and supply of goods and services.
• D. Economic factors only affect government policies and have no impact on businesses.

Answer: (B)

Verified step by step guidance

1. Understand the definition of economic factors in the marketing environment: these include elements like inflation, unemployment, income levels, and overall economic conditions that affect consumer behavior and business operations.
2. Recognize that economic factors influence consumer purchasing power, which in turn affects demand for goods and services in the market.
3. Evaluate each statement by comparing it to the definition and role of economic factors: for example, technological advancements are generally considered a separate category (technological factors), not economic factors.
4. Consider how economic factors relate to demand and supply: since they affect consumers' ability to buy and businesses' costs, they are directly related to demand and supply dynamics.
5. Conclude that the statement highlighting inflation, unemployment, and income levels influencing consumer purchasing power is true, while the others misrepresent the scope and impact of economic factors.