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Val and Norman Are Looking at Information About How Their

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Val and Norman are looking at information about how their organisation's products could fit potential customers' needs.This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences and usage rates.They are most likely looking at:


Definitions:

Real Discount Rate

The rate used to discount future cash flows to their present value, adjusting for inflation.

Nominal Discount Rate

The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.

Inflation

The speed at which overall prices for goods and services increase, leading to a decline in purchasing power.

Nominal Interest Rates

The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.

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