When Looking at Demographic Dimensions, Marketers Should

question 24

Multiple Choice

When looking at demographic dimensions, marketers should:

• A) know that it is illegal to segment markets based on membership in some racial or ethnic group.
• B) know that demographics are especially helpful in explaining why specific people buy specific brands.
• C) recognize that demographics can be very useful for estimating the market potential of possible target markets.
• D) understand that ethnic groups are generally homogeneous within.
• E) All of the above are correct.

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Definitions:

Purchasing Power

A measure of the value of currency, expressed in terms of the quantity of goods or services that one unit of money can buy.

Nominal Interest Rates

The rate of interest before adjustments for inflation, reflecting the price of borrowing money.

Price Level

A metric that calculates the mean of present prices for all goods and services produced within the economy, relative to a reference year.

Consumer Price Index

An index that measures the average change in prices paid by consumers for a basket of goods and services over time, often used as an indicator of inflation.