What are the different income-distribution patterns? How does income distribution in the economies affect the marketing decision of the firms?
Answer: Marketers often distinguish countries using five income-distribution patterns: (1) very low
incomes; (2) mostly low incomes; (3) very low, very high incomes; (4) low, medium, high incomes; and (5) mostly medium incomes.
The market would be very small in countries with type 1 or 2 income patterns and will be considerably large in the countries with income patterns 3 and 4. Countries which have a marked inequality in income distribution the companies tend to produce goods which are consumed by the mass as well as produce certain luxurious goods to cater to the richer section.
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