General
Why marketers are interested in discretionary income?
Because discretionary Income = the money people have left over once they have paid for all of their basic requirements (Food, Clothing, Shelter).
You could also call it Disposable Income because you can spend on whatever you want.
If people do not have very much discretionary income then they cannot buy all kinds of useless stuff that marketers are trying to sell them.
This would limit the potential demand for a good or service.
You could also call it Disposable Income because you can spend on whatever you want.
If people do not have very much discretionary income then they cannot buy all kinds of useless stuff that marketers are trying to sell them.
This would limit the potential demand for a good or service.
Advertisement
More from this specialization
- Are you applying for other jobs?
- What are your strengths..
- What is the opportunity cost of devoting scarce university land to car parking?
- What are the differences between absolute advantage and comparative advantage?
- What is the difference between an economic luxury and an economic necessity?
- How do reductions in government spending affect the economy?