When Considering Income as a Demographic Variable Affecting Marketing Efforts

question 98

Multiple Choice

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

• A)everyone is equal.
• B)income in the United States has become more unevenly distributed.
• C)everyone has been equally affected by the recession.
• D)there is increasing purchasing power among lower-income groups.
• E)middle-income consumers are quickly becoming upper-income consumers.

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Definitions:

Allowance Method

An accounting technique used to account for accounts receivable that a company does not expect to collect fully, thereby creating an allowance for doubtful accounts.

Perpetual Inventory System

An inventory accounting method that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.

Accounts Receivable

This refers to the money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Payee

The party in a financial transaction who receives payment.