Economic Environment

Economic environment includes those factors that influence consumer purchasing power and spending patterns.  Main economic trends in United States include:

1). Personal consumption (along personal debt) has gone up (in year 1980s) and the early Year 1990s brought recession that has caused adjustments personally and corporately both in this country.  Nowadays, consumers are more careful shoppers.

2). Value marketing (attempting to offer the consumer superior value for their dollar) is a very serious strategy in the year 1990s.  Real income is on the increase again but is being cautiously guarded by a value-conscious consumer.

3). Income distribution is still much skewed in U. S. and all of classes have not shared in prosperity. Additionally, spending patterns demonstrate that housing, food, and transportation still account for majority of consumer dollars.  It is also of notice that distribution of income has formed a "two-tiered market" where there are those that are affluent and less affluent. Marketers have to carefully monitor economic changes so they shall be able to prosper along trend, not suffer from it.