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A company launched a premium membership plan when customers' purchasing power increased. This decision is influenced by which dimension?

Answer and explanation

Correct answer: Economic dimension

Direct answer: Option C, Economic dimension. Purchasing power means the ability of customers to buy goods or services. It is mainly affected by income, employment, prices, inflation and the general economic condition. When customers’ purchasing power rises, they may be more willing and able to pay for a premium membership. Therefore the company’s decision is influenced by the economic dimension. Option A, technological dimension, concerns new machines, software, digital systems or methods; no technology change is stated. Option B, social dimension, concerns culture, language, values and lifestyle; the key clue here is buying ability, not preference or culture. Option C is correct because purchasing power is a direct economic indicator. Option D, legal dimension, concerns laws and regulations; there is no rule or legal order in the situation. Step by step: identify the clue, purchasing power; connect it with income and economic strength; select economic dimension. Memory cue: income, prices and buying capacity mean economic.

Related tags

Economic DimensionPurchasing PowerPremium Plan

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