Income, disposable, household

Table 9.10 shows the distribution of U.S. household incomes, which limits what each household can afford to buy. Let us consider baby diapers. A mother has a number of options to consider cloth diapers delivered to the home and retrieved after use, cloth diapers that are home laundered, disposable paper diapers for the garbage can after use, and the rural poor may let the babies run around with bare bottoms. The poor families buy less goods, and need to concentrate purchases on housing and basic food, such as bread and potatoes. The expenditure of 456 for disposal diapers in a budget of 75,000 is 0.6%, which is not a serious problem but for families with less than 10,000 income per year, this sum becomes 4.5%, which represents a much bigger burden, and less expensive and affordable options would be chosen. 

Individual households derive income from working or from selling (or lending) raw materials, land, and capital. The economic health of the household sector can be measured by personal income per person and by disposable income... 

The current retail market is the result of demographic changes (age, size of households, types of households), socioeconomic changes (labor market, disposable incomes), and life styles (greater emphasis on pastimes) (Femie et al., 2004). The retail industry has grown in size and is considerably more sophisticated now than ever before, partly as a result of the demands of increasingly sophisticated consumers. 

Specialty cleaners are largely a developed market phenomena. Less developed markets usually have consumers that are using all-purpose cleaners for truly all purposes. With more disposable income in developed markets, consumers can afford to have both all-purpose and specialty cleaners in their cabinets. The all-purpose cleaners are most used for greasy soil or dirt cleaning in the kitchen or household walls and floors, whereas the specialty cleaners are used for their target situations such as soap scum on bathroom surfaces. 

National Bureau of Statistics of PRC reported that China s GDP was growing at a rate of 9.5% in 2004 and the per capita annual disposable income of urban households was US 1,200 in 2004. 

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