Matt's Company Produced a High-Tech Wireless Business Organizer for Busy

question 21

Multiple Choice

Matt's company produced a high-tech wireless business organizer for busy professionals. Matt suggested that a significant part of Internet promotions be made to appeal to gay, lesbian, bisexual, and transgender (GLBT) consumers. His manager argued against it, claiming the segment was too small to be of interest to the company. Which of the following claims should Matt use to support his position?

• A) The GLBT segment is always looking for new products.
• B) Although GLBT customers have smaller incomes than other segments, they are more likely to spend money on trendy products.
• C) GLBT customers are more likely to have lower level jobs; therefore, they will be attracted to products that give an appearance of success.
• D) The GLBT segment is larger than most think, and GLBT consumers are more likely to hold professional jobs and have a high income.

---

Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

Refers to the change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility constant.

Consumption Bundle

A collection of goods or services that an individual or household consumes within a given period.

Utility Function

A mathematical model in economics that maps a consumer's preferences for various products and services to a numerical representation of utility or satisfaction.