Income distribution patterns are influenced by factors such as ownership of production resources and can be categorized into wages, rent, interest, and profit. This distribution affects firms' marketing decisions regarding target segmentation, product positioning, and pricing strategies. Additionally, personal distribution statistics and inequality levels are important in determining business strategies and product development.

1. 2. What are the different income-distribution patterns? How does income distribution in the
economies affect the marketing decision of the firms?
Solution
Income distribution pattern depends on several criteria. One classification system categorizes
individuals or soceity's wealth and income on the basis of the various ownership of factors of
production:such as labour, capital land,whose respective forms of income generated are labeled
on the further categories of wages, rent, interest, and the acucmulated profit.
Personal distribution statistics, which is considered as an index usually developed from the tax
reports, majorly categorize wealth and income on a type per capita basis.Inequality, levels of
living, gowth rate etc are also determining factors for distribution of income.
Income distribution plays vital role in making decision of firms in terms of target segmentation
of population, positioning of products, regions to be concentrated on and how pricing needs to be
done etc. The overall business strategy and product development also cdepends on the income or
disposable income of the society.