answersLogoWhite

0


Best Answer

Per Capita Income is a measure of the amount of money that is being earned per person in a certain area. Income per capita can apply to the average per-person income for a city, region or country and is used as a means of evaluating the living conditions and quality of life in different areas. It can be calculated for a country by dividing the country's national income by its population.

Because per-capita income is the overall income of a population divided by the number of people included in the population, it does not always give an accurate representation of the potential of market due to the function's inability to account for skewed data. For instance, if there is an area where 50 people are making $1 million per year and 1,000 people making $100 per year the per capita income is $47,714, but that does not give a true picture of the potential of market in this area.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the limitation of per capital income in evaluating marketing potential?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

When evaluating a capital budgeting project the change in net working capital must be considered as part of?

d


What is the statute of limitation on capital murder in the US?

There is no statute of limitations on homicide (capital murder) in the USA.


A method of evaluating capital investment proposals that ignore present value?

internal rate of return


Method of evaluating capital investment proposals that ignore present value?

internal rate of return


Example of risk in capital budgeting?

its to maintain cost effectiveness its allocating the capital among different branches like marketing, finance, adds....... ex: allocation of budget for marketing activities


What are marketing funds?

Marketing funds are capital (cash) used to pay for marketing expenses. Such expenses may include ad creation, television ad placement, direct marketing, etc.


Bixton Company's new Chief Financial Officer is evaluating Bixton's capital structure?

Yes, that's what a CFO does.


What are some of the steps for evaluating proposals for capital investments?

Approve funds for research that may result in a product idea. Approve funds for market research that may result in a product proposal. Approve funds for product development that may result in a usable product. Approve funds for plant and/or equipment


What are the guidelines in writing scope and limitations?

first you write scope but make sure that "S" in scope is in capital form and also in limitation make sure also that the letter "L" in also capital form... and thats how to Scope and Limitation in your thesis...


What is the term capital?

A+ goods that are designed to increase the production potential of the economy


What is capital market segment?

Capital Market Segment is an important concept in marketing is market segmentation. Identifying different groups in a market and subdividing the market into those groups which can be attacked by specially designed marketing strategies explains the concept of segmentation.


In the field of marketing what does the term Capital C refer to?

In Marketing, the term "Capital C" refers to financial markets that exist with the purpose of buying and selling longer termed debt, or even equity-backed securities. These Capital C Markets are overlooked and regulated by official financial bodies such as the BoC and SEC.