Low price and Target Essay

The nongovernmental factors that affected Target’s performance during the period were connected to the demographic, economic, natural, technological, political, and cultural. The change in demographic is related to the economy because when there is an unemployment it will create households income to drop while the households expenses increases. Since Wall-Mart is all about low price and Target is all about style and brand, Target thought customers will pay a little more for the rand but they got the opposite reaction from the customers.

For an example in the case it says “As unemployment rose and consumers began pinching their pennies, Wall-Mart’s familiar price “rollbacks” resonated with consumers while Target’s image of slightly better stuff for slightly higher prices did not. ” This tells you that people did not care about the brand during the unemployment time therefore customers start to buy things that are around there range which made Wall-Mart to have a better image than Target.

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Target should’ve followed their word “Pay Less” in their slogan and did some kind of survey to get feedback from customers in case they needed to fix something so the customers will not do business somewhere else. Another factor was culture because culture was also a shift that took over by economy. Not every household was affected economically because some people were prepared to face the rough situations ahead before the rising of unemployment and uncertain economic conditions. These are some nongovernmental factors that affected Target’s performance during the period.