Question

Your research tells you that households earning $55,000 or more are most likely to be interested in a new shoe store. Households earning $25,000 or more are likely to visit coffee shops. would have a larger potential customer base. is geared toward individuals with more disposable income.

Answer 1

Answer:

COFFEE SHOPS would have a larger potential customer base.

NEW SHOE STORE is geared toward individuals with more disposable income.

Explanation:

The logic here is quite simple, households earning $25,000 or more are likely to be customers of the coffee shops. This also includes households earning $55,000 or more. So the consumer base of coffee shops is very large.

On the other hand, only households earning $55,000 or more are likely to be customers of the new shoe store. Since there are fewer households that earn $55,000 or more, their consumer base will be smaller and it should rather focus on people with more disposable income.

Even if 90% of the people earn above $55,000 and only 10% earn between $25,000 - $55,000, the consumer base of coffee shops will always be larger since it includes almost everyone.