disposable income

(noun)

The amount of a person's or group's monetary income which is available to be saved or spent (on either essential or non-essential items), after deducting all taxes and other governmental fees.

Related Terms

Examples of disposable income in the following topics:

  • Social Classes

    • Usually, however, people are grouped in social classes according to income, wealth, education, or type of occupation.
    • Perhaps the most obvious effect is the level of disposable income of each social class.
    • Generally, the rich have the ability to purchase more consumer goods than those with less income, and those goods are of higher quality .

  • Roles

    • This is an important role for marketers to consider, as the prosumer generally uses professional (or nearly professional) equipment and has relatively high disposable income.

  • General Economic Conditions

    • During prosperity, consumer disposable incomes are high, and they try to improve their quality of life by purchasing products and services that are high in quality and price.
    • The chart shows the change in household incomes over the last three decades.

  • New Product Pricing

    • Early adopters generally have a relatively lower price-sensitivity and this can be attributed to their need for the product outweighing their need to economize, a greater understanding of the product's value, or simply having a higher disposable income.

  • Customer Service as a Supplement to Products

    • The process includes assistance in planning, installation, training, trouble shooting, maintenance, upgrading, and disposal of a product.
    • From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization's ability to generate income and revenue.

  • Social Behavior of Consumers

    • Traditionally, consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, purchase and dispose of products, services, experiences, or ideas.
    • Psychological factors include an individual's motivation, perception, attitude and beliefs, while personal factors include income level, personality, age, occupation and lifestyle.

  • The Purposes of Packaging

    • Information transmission: Packages and labels communicate how to use, transport, recycle, or dispose of the package or product.
    • Convenience: Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, re-closing, use, dispensing, reuse, recycling, and ease of disposal.

  • Point-of-Purchase Promotions

    • The disposable displays are usually covered with product branding.
    • Non-disposable displays may include lighting for more visibility or include a cooler for drinks or ice cream.

  • Marketing as an Entrepreneurial Force

    • These individuals often have the resources, capabilities, and security of an entire corporation at their disposal to execute marketing programs and achieve notable results.

  • Resolving Problems Quickly

    • It includes assistance in planning, installation, training, troubleshooting, maintenance, upgrading, and disposal of a product.