Discretionary income is an important marker of economic health. Economists use it, along with disposable income, to derive other important economic ratios, such as the marginal propensity to consume (MPC), marginal propensity to save (MPS), and consumer leverage ratios.
Why are marketers interested in the level of disposable income ?:?
Marketers are most interested in consumers’ disposable income. This is the amount of money left after taxes. A recession and inflation are two economic events that can have enormous effects on consumers. Inflation is when there is decrease in the value of money.
What is discretionary income and why is it important?
Discretionary income is used to pay for necessities such as rent, loans, clothing, food, bill payments, goods and services, and other typical expenses. For example, suppose an individual has an income of $100,000 and pays an income tax rate of 35%.
What type of consumer income are marketers most interested in?
Marketing Questions for Bank PO – April 2011
- When looking at consumer income, marketers are most interested in:
- New technology results in new goods and services, and it also can:
- Four competing philosophies strongly influence the role of marketing and marketing activities within an organization.
How do I calculate discretionary income?
Once you know your personal income, look up the federal poverty guidelines for your state and family size. Multiply the federal poverty amount by 150 percent (or 100 percent if you’re pursuing the Income-Contingent Repayment Plan) and then subtract your income. That is your discretionary income.
What do environmentalists set as an objective for profitability?
What do environmentalists set as an objective for profitability? Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
When a firm has many potential competitors and tries to develop a marketing strategy?
Monopolistic Competition: A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate their product.
What type of competitive structure exists when just a few sellers control?
Oligopoly, refers to market structure where only small number of firms operate together control the majority of the market share. Firms are neither price takers or makers. Firms tend to avoid price war by following price rigidity. They closely monitor the prices of their competitors and change prices accordingly.
