How has the shift in U.S. income distribution affected marketers?

• A. Marketers have increasingly targeted both high-income and low-income segments with differentiated products and advertising strategies.
• B. Marketers have focused exclusively on luxury goods for the wealthiest consumers.
• C. Marketers have reduced product variety to appeal to a more homogeneous market.
• D. Marketers have stopped advertising to middle-income consumers entirely.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of income distribution and its shift in the U.S. Income distribution refers to how income is spread across different groups in the population, such as low-income, middle-income, and high-income groups.
2. Step 2: Recognize that a shift in income distribution often means growing income inequality, where the rich get richer and the poor may remain the same or get poorer, leading to a larger gap between income groups.
3. Step 3: Consider how marketers respond to changes in income distribution. When income inequality increases, the market becomes more segmented, with distinct groups having different purchasing powers and preferences.
4. Step 4: Analyze the marketing strategies that would logically follow from this segmentation. Marketers are likely to create differentiated products and advertising strategies tailored to both high-income consumers (who may want luxury or premium products) and low-income consumers (who may seek affordability and value).
5. Step 5: Conclude that marketers do not focus exclusively on one segment or reduce product variety; instead, they expand their targeting to multiple income segments with customized approaches to maximize market coverage and sales.