152 Marketing Dynamics Copyright Goodheart-Willcox Co., Inc. this does not mean it should ignore women or men as potential customers. In fact, there is a market for hand tools targeted at women, just as there is a market for men’s spa services. Income People with similar income levels often buy similar types of products. The two categories of income in which marketers are interested in are disposable and discretionary. Disposable income is the take-home pay a person has available to spend. Usually, disposable income is used for the necessities of life, such as food, clothing, shelter, and transportation. Discretionary income is the remaining take- home pay after life necessities are paid for. Discre- tionary income is the money people can spend at their discretion, or however they want. Discretionary income is often spent on wants instead of needs, such as entertainment, vacations, and dining out. Ethnicity The United States is composed of people from many ethnic backgrounds. The needs for products may vary with ethnic heritage. People of the same ethnic background may have similar preferences, which can lead to similar buying patterns for several types of goods and services. Preferences in certain foods, types of entertainment, and clothing styles might be more prevalent with specific ethnic groups and not with others. Education Level Education level is another way to segment a market. A person with a high school education may have very different wants or needs than someone with a bachelor degree. Somebody with a bachelor degree may have very different wants or needs than someone with a doctoral degree. Occupation People in certain jobs often have similar wants or needs based on their job type. The terms blue collar and white collar are commonly used in describing types of jobs. Blue collar generally refers to a job that r involves physical labor in which a person typically wears work clothes or protective gear. White collar usually refers to a job in an office environment in which workers primarily use mental abilities and knowledge acquired in higher education. A person’s job may affect his or her buying behavior. Marital Status Common marital status categories are married, single, widowed, and divorced. Marital status can influence purchases, such as houses, vacations, and food. A single person, for example, may purchase a smaller house and travel more often than a married couple. Family Size Marketing research has shown that the needs and wants of a one-person household differ from households with multiple people. As a result, marketers often segment the market based on family size. For example, many convenience food manufacturers have developed both family-size and single-serving packaging to meet the needs of various household sizes. Psychographic Segmentation Psychographics are data about the prefer- ences or choices of a group of people. Customers have psychological and emotional characteristics that affect their buying habits. Psychographic segmentation is dividing the market by certain preferences or lifestyle choices. When targeting markets, it is crucial to know psychographic char- acteristics that affect purchases, such as values, attitudes, activities, and interests. Psychographic information about target markets is very useful when planning a marketing mix. Values and Attitudes Customers can be segmented by their values and attitudes. Values are the principles and beliefs that Responsible CRM Marketing uses customer relationship manage- ment (CRM) software in which contact information is recorded about each customer. This information has been given to the company by the customer for its specific use. It is unethical and irresponsible for a marketer to sell this information to another company unless every single customer has given permission to have his or her information sold. Marketing Ethics