Question

Briefly explain everything with all the steps:
1) Provide an example of how a demographic variable has been used to position a product to a target market?
2) What do economists mean by scarcity? Can you think of anything that is not scarce according to the economic definition?

Answer 1

1) Demographic variable is used to divide the market into smaller segments so that the resources are used efficiently And it is used to target a particular section of people. Cm instead of reaching the entire market A definite group of people are targeted depending upon the age gender income occupation et cetera.

The demographic variables include the age ,income ,gender ,occupation ,religion ,family et cetera .

Let us take an example

here we will use gender as a demographic variable

The liking and disliking of men and women are generally different. Their needs and the things which they like. If a company has to sell their cosmetics or make-up products they will mostly target women because women or a group of people who usually wear more week up than men so obviously they are going to be the target audience.

We can take one more example based on the demographic vairabel  age

The consumer needs and preferences change with the age obviously the person who likes something in his young age or when he was a child would not like something when he is in his old age or middle age. For example youngsters mostly like chick fashion like which are in trend but the elderly people mostly like to wear simple and formal clothes . So maybe the advertising company mostly targets social platforms like Instagram Facebook to target young audience but whereas they would use email boxes et cetera to take the elderly people.So it does not only differ in the buying habits but also how other people going to respond to particular advertisement.

2) scarcity is defined as shortage of the resources to satisfy human wants . They are limited in nature but their demand is more . Because of this proper allocation of resources should be done in order to satisfy as many wants as possible .

anyting that is not scarce according to the definition can be AIR . Air is a natural resource but we have never heard that it is scarce or we use it in a limited way .
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