A-level Business

• What are the key economic variables that impact sales forecasting?

  • Inflation
  • Interest rates
  • GDP growth
• How do social attitudes impact buying habits?

  They change consumer preferences and interests.
• How do lifestyle changes affect consumer spending?

  They shift how people live and spend.
• What market was boosted by the rise of smartphones?

  Mobile apps market changed app store sales.
• What is sales forecasting?

  Predicting future sales amounts
• Why is sales forecasting compared to planning a party?

  Both require accurate predictions for resource management
• How do consumer trends help in sales forecasting?

  They predict sales direction and guide strategies.
• What usually accompanies a rising GDP?

  More jobs and higher income
• How do consumer trends influence sales forecasting?

  They heavily influence sales forecasting.
• What is the impact of lower demand for big-ticket items on sales forecasts?

  It leads to lower sales forecasts.
• How do high interest rates reduce consumer confidence?

  By making loans expensive.
• What effect do high interest rates have on businesses selling high-cost products?

  They affect sales forecasts negatively.
• What is a consequence of higher mortgage costs?

  Fewer people buy houses
• What happens to sales when inflation is high?

  Products become expensive, reducing sales
• How do economic variables and consumer trends influence sales forecasts?

  They shape sales forecasts together.
• How do consumer trends differ from economic variables in sales forecasting?

  Trends focus on consumer preferences, not economic health.
• What happens to consumer confidence when interest rates increase?

  It dampens consumer confidence.
• What fuels interest in sustainable products?

  Eco-consciousness drives consumer interest.
• How do technological advances create new markets?

  They introduce new products and services.
• How do high interest rates affect consumer spending?

  They make people more cautious with spending.
• How can businesses improve their sales forecasting accuracy?

  • By considering economic variables
  • By analyzing market trends
  • By adjusting operations accordingly
• What is the relationship between forecast accuracy and business operations?

  More accurate forecasts lead to smoother operations
• How do interest rates influence consumer behavior?

  Affects borrowing costs, influences confidence
• What might happen if gas prices increase?

  People might cut back on travel
• What effect do technological advances have on markets?

  Creates new markets and demand, like smartphones
• What are considered big-ticket items?

  Cars and houses
• How do higher interest rates influence consumer behavior?

  They discourage borrowing and spending
• How do social attitudes shape purchasing choices?

  Shapes choices, like eco-consciousness
• What does GDP growth indicate about the economy?

  Indicates economic health, boosts purchasing power
• What is the role of economic variables in sales forecasting?

  They are vital for accurate predictions
• How does inflation affect consumer spending?

  It may reduce spending due to higher prices
• How do lifestyle changes impact consumer spending?

  Alters spending habits, like health awareness
• What is the impact of inflation on sales?

  Increases prices, reduces spending
• What are the two main methods used in sales forecasting?

  • Qualitative methods: based on expert opinion
  • Quantitative methods: using historical data
• What are the main consumer trends that impact sales forecasting?

  1. Lifestyle Changes
  2. Technological Advances
  3. Social Attitudes
• How does sales forecasting help businesses?

  It aids in ordering supplies and hiring staff
• What does the dynamic relationship between economic factors and consumer behavior indicate?

  It is crucial for predicting sales.
• What does strong GDP growth indicate about the economy?

  It suggests a healthy economy with more spending
• How can increasing consumer interest in sustainable products affect sales?

  It can boost sales for eco-friendly businesses