A retailer seeking to sell luxury goods needs to evaluate which demographic statistic?
A) discretionary income
B) disposable income
C) money income
D) social class

Question

Quizplus · Accepted Answer

Discretionary income is the amount of money that an individual has left after paying for necessities such as food, housing, and bills. With luxury goods being non-essential items, a retailer would need to evaluate the demographic of individuals who have a high discretionary income, because they are more likely to have the ability and willingness to spend on luxury goods. Disposable income refers to the amount of money left after taxes have been paid, and money income is simply the amount of money earned. Social class is also important to consider in selling luxury goods, but it is a broader demographic statistic that encompasses other factors such as education, occupation, and lifestyle.

A Retailer Seeking to Sell Luxury Goods Needs to Evaluate