Market data
Market data refers to information about the characteristics that make up a particular market. It includes both economicRelating to money, wealth and the economy, and the production, distribution and consumption of goods and services. and demographicsThe study of population statistics. It measures trends and tracks changes in births, deaths and migration. factors. These factors may affect the behaviour of consumers within the market and the level of demand for products and services.
Economic factors
Economic factors relate to money and wealth. They include consumer incomeMoney received from employment or investments., exchange rateThe value of one currency against another., interest rate The price at which you can borrow money, or the return on how much money you can save., the inflation rateThe rise in the price of goods and services. and unemployment rateThe percentage of the total labour force that is unemployed..
Businesses must take any changes in these factors into account when making decisions, as they can affect the purchasing decisions that customers make and the conditions in which a business operates. For example, an increase in inflation may lead to higher costs for a business, which must then decide whether to pass on these higher costs to customers.
Demographic factors
Demography refers to the composition of the population. Demographic data is useful for business decision-making as it can tell businesses about changes in population size, migration and population structure.
For example, an ageing population, where the proportion of older people increases relative to the proportion of younger people, would influence the decisions made by a business that produces babywear, since it may expect sales to fall as a result.
