Why Are Marketers Interested in Consumers' Levels of Disposable Income

question 199

Multiple Choice

Why are marketers interested in consumers' levels of disposable income?

• A) It accurately predicts future buying power.
• B) It increases current buying power.
• C) It is what is left after taxes and savings to buy luxuries with.
• D) It is a ready source of buying power.
• E) It is essential for forecasting future business trends.

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Definitions:

Liability

Any type of financial debt or obligation that a company or individual owes to another party.

Products Or Services

The outcomes of a business process or activity, which include tangible goods and intangible deliveries provided to meet customer needs.

Debit Side

The left side of an account in double-entry bookkeeping that records increases in assets, expenses, and decreases in liabilities, equity, and income.

Accounts Receivable

The amount that customers are required to pay a business for the goods or services they have received but have not yet paid for.