blog




  • Essay / Impact of Gas Prices on Consumer Sales

    Gas prices are a reason why consumers choose a certain retailer over another. Indeed, these prices reflect an individual's budget. In case prices are too high, consumers can find measures to increase fuel economy. This may include using their motor vehicles less and using public transportation to get from one place to another. Another step consumers can take is to purchase more fuel-efficient vehicles in the face of higher fuel prices. In the case of lower fuel prices, consumers are more extravagant at the pump and may even purchase less fuel-efficient vehicles due to low gasoline prices. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssayThe Relationship Between Gasoline Prices and Consumer SalesIn the case of an increase in gasoline prices, filling at the pump becomes more expensive and, as a result, buyers have less to spend on other things. High or even low gas prices have an effect on the overall economy. When gas prices rise, retailers are forced to pass the burden of increased shipping costs onto consumers by increasing the cost of goods. Buyers will therefore drive less in order to be able to afford other goods and services. Rising fuel prices lead to a sudden increase in public transport ridership. Indeed, most of these people live on a tight budget and have to forgo buying gas to buy other important things (Folger). Vehicle sales can also be affected by fuel prices. Consumers may be influenced to purchase a particular type of car because of the daily cost of fuel. Indeed, most people are willing to buy a good car even if it consumes fuel. In this chart from Wards Auto showing car sales in 2011, over the months, it is visible that the cost of fuel directly affects the type of vehicle sold. . Generally speaking, all types of vehicles will be sold all year round. At some point when fuel prices are low, most people buy trucks, and as fuel prices rise, the number of truck sales decreases. On the other hand, as fuel prices fall, fewer people buy cars, and as these prices rise, the number of car sales increases (Drivingfueleconomy.com). Recently, when fuel prices hit a five-year low, vehicles sold in December 2015 achieved a low of 3% in average fuel economy. This is because consumers have purchased new vehicles with current fuel prices in mind and less concern about future costs. Therefore, public attention to falling gasoline prices results in the purchase of automobiles with less fuel economy (young people). Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay Gasoline prices, therefore, have an effect on consumer sales and the economy in general. Volatile gas prices make budgeting difficult because fuel costs are directly reflected in almost every product we purchase today. This fuels prices, such an important part of the economy. Without stable fuel prices, businesses struggle to allocate working capital and establish..