When Considering Income as a Demographic Variable Affecting Marketing Efforts,marketers

question 16

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 U.S.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:

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.

Rational

Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.

Weak-form Efficient

A form of market efficiency that asserts all past trading information is fully reflected in stock prices, and thus, technical analysis cannot consistently produce excess returns.