Question

REVIEW

1. Which type of income, disposable or discretionary is more important to businesses that sell expensive watches, second homes, and financial
services?
2. Of what significance are the combined African American, Hispanic, and Asian-American populations to marketers?
3. A recent study shows that teens are drinking more bottled water and reducing the amount of carbonated beverages they drink. Which
psychographic or lifestyle trend does this study support?

Answer 1

Discretionary income is more important than disposable income for businesses that sell expensive watches, second homes, and financial services.

Step-by-step explanation:

For businesses that sell expensive watches, second homes, and financial services, discretionary income is more important than disposable income.

Discretionary income refers to the money a person has left after paying for necessities like rent, bills, and groceries. It represents the amount of money that can be spent on luxury items like expensive watches or second homes.

On the other hand, disposable income refers to the income after taxes. It is the amount of money available for spending after taxes have been deducted.