relative income hypothesis
Definition:
Holds that expenditures/saving patterns depend up/on the relative position of the spending unit on the income scale, and not on the absolute income earned. This hypothesis recognizes the 'keeping up with the Joneses' phenomenon.
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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker], [1998].