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Income Definition

As defined by the Census Bureau income is wage or salary income; self-employment income; interest, dividend, or net rental income; Social Security income; public assistance income; all other income, which includes unemployment compensation, veterans' payment, pensions, alimony, etc.

Income in marketing research refers to the amount of money earned by individuals or households, typically measured as annual gross income. It is a common demographic variable used to segment consumers, understand purchasing power and tailor marketing strategies.

What are the key aspects of income in marketing research?

• Can be reported as individual or household income.
• Often categorized into ranges or brackets.
• Used in conjunction with other demographics.
• Collected via surveys, panels or secondary data.
• May require respondent confidentiality and sensitivity.

Why is income important in market research?

Income is a strong indicator of consumer behavior, spending habits and product preferences. It helps brands understand affordability thresholds, forecast demand and create pricing or positioning strategies that align with target audience capabilities.

Who relies on understanding income in marketing research?

• Consumer goods companies.
• Financial institutions and insurance providers.
• Retailers and e-commerce platforms.
• Advertising and media planners.
• Government agencies and public policy researchers.

How do market researchers use income?

Researchers use income data to segment markets, build consumer personas, design targeted messaging and evaluate brand appeal across economic groups. It’s also key in identifying underserved populations, gauging market potential and informing product development.