Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

5. Demographic
   Dimensions of Global
   Consumer Markets

Text © The McGraw−Hill

Companies, 2002

144 Chapter 5

in the U.S. And these large markets lead to economies of scale, which boost our

standard of living even more. Similar situations exist in Canada, many Western

European countries, Australia, New Zealand, and Japan.

Trends in median family income from 1960 to 1999 reflect this upward shift in

the income distribution—and the increased number of families with more money

to spend. See Exhibit 5-7. Note, though, that (real) median income stopped its con-

tinuous rise during the inflation-ridden 1970s. Since then it has gone through

periods of both upswings and decreases, but the changes in recent years have not

been as great as they were a few decades ago.

Real income growth
has slowed—but for
how long?

Marketers are very aware that
spending varies with income and
other demographic dimensions.

Median income

$50,000

$45,000

$40,000

$35,000

$30,000

$25,000

1960 1965 1970 1975

trend line

1980

Year

1985 1990 1995 2000

Exhibit 5-7
Median Family Income over
Time (in 1999 dollars)