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:

Trading

The action or activity of buying and selling goods and services or financial instruments, often in financial markets.

Lenders

Individuals, institutions, or entities that provide funds to others with the expectation that the funds will be repaid, typically with interest.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by the yield on government securities.

Earning Power

The ability of a business to generate net income consistently over time.